Border Crossing and Circular Economy Monitoring in a Global Context: Challenges and Opportunities

Circular economy (CE) and sustainability are high on the political agenda of governments nationally and internationally. We see different regulatory developments where governments aim to put stricter rules and requirements towards businesses to ensure the transition toward a more circular and sustainable future. The use of digital infrastructures, including transparency systems and digital product passports is starting to play a vital role in supporting governments in their CE monitoring efforts. Yet there are challenges to be overcome. Many government procedures are set up in laying out very detailed requirements about what one government agency can do in a singular phase of the circular process (e.g., customs performing specific checks at the border) or a single Member State (e.g., organizing Extended Producer Responsibility in a specific country). While these efforts are valuable building stones towards CE monitoring, they are fragmented, and blank spots in CE monitoring occur when borders are crossed, and another country needs to take over the CE monitoring tasks. As for circularity, even if many efforts are spent by a single government agency or a single country, all these efforts may be in vain if the proper CE monitoring of the next step is not secured. While earlier research identified this problem, there is still limited understanding of the problem itself and directions to address it systematically. In this paper, following up on earlier research and with insights gained from an EU project on CE monitoring, we shed further light on the problem. More specifically we conceptualize CE monitoring by putting the CE flows at the center and exploring deficiencies for governments and businesses to safeguard the monitoring of CE flows. We examine two routes that can be followed to ensure continued CE monitoring when borders are crossed, namely the government route, as well as the business route (enabled by traceability systems and in-control mechanisms of businesses). We discuss the need for a global governance layer that can facilitate both routes and propose further directions to advance CE monitoring by taking a global perspective.