COP29 highlighted the circular economy as a pivotal tool for supporting sustainable development goals. The conference’s outcomes demonstrated the circular economy’s potential not only for environmental benefits but also for driving social and economic transformation. Below is a detailed analysis:

1. Role of Multilateral Development Banks (MDBs) in Advancing Circular Economy

During COP29, MDBs presented their first joint report on the circular economy. This report highlighted 20 global projects focusing on sectors such as plastics, textiles, e-waste, and food, aiming to:

• Enhance resource efficiency,

• Reduce waste production,

• Establish sustainable supply chains.

Key Highlights:

• Private Sector: Although there is growing interest in circular business models, the need for stronger regulatory frameworks was emphasized.

• Urban Centers: Cities were recognized as innovation hubs for implementing circular economy practices.

• Financial Contributions: While financial institutions have a critical role in this transition, capacity building and clear guidelines are necessary to support the process.

2. ECO and UNEP Joint Initiative: “RESCUE”

The Economic Cooperation Organization (ECO) and the United Nations Environment Programme (UNEP) unveiled the “Baku Resource Efficiency and Circularity Declaration” during COP29. This declaration aims to enhance collaboration in resource efficiency, sustainability, and circular economy. The “RESCUE” initiative focuses on building regional capacity and fostering partnerships to accelerate the transition to a circular economy.

3. Perspectives from Africa and Asia

• African Development Bank (AfDB): AfDB highlighted the potential of the circular economy to create youth employment and deliver ecological benefits. Its “Africa Circular Economy Facility” is designed to provide financing and guidance for circular projects.

• Asian Development Bank (ADB): ADB introduced an Environmental Action Plan at COP29, aiming to promote nature-positive investments and expand circular practices across the Asia-Pacific region. Special focus areas include food systems and plastic waste management.

4. Contribution to Climate Goals

The circular economy was positioned as a key solution in combating climate change:

• Waste Reduction: Circular solutions aim to cut greenhouse gas emissions.

• Just Transition: Policies were developed to integrate disadvantaged communities and the informal sector into the circular economy.

5. Future Outlook

Discussions at COP29 sought to strengthen global cooperation and encourage private sector investments in circular economy initiatives. However, achieving success in this transition requires:

• Improved regulations and incentives,

• Adoption of inclusive policies,

• Financial and technical support for developing nations.