Demand-pull Instruments to support the Circular Economy: A Global Perspective

In recent years, transitioning to a more circular economy has been introduced as a
policy objective in many jurisdictions across the globe with a view to achieving a
sustainable society. However, the increasing attention paid to this issue has so far not
led to a large-scale transformation of production processes and consumption. Instead,
many circular economy innovations have remained niche and have not become the
mainstream solutions. A plethora of regulatory, market, cultural and technological
barriers limit the demand for, and consequently wide-scale adoption of, circular
solutions. This article examines the potential offered by regulatory demand-pull
instruments to overcome such barriers and to mainstream circular economy solutions.
In particular, the article investigates innovative demand-pull instruments that have
been used in various jurisdictions globally. This article analyses the instruments
according to their types – i.e., command-and-control measures, economic incentives,
information tools and public procurement – to gain a better understanding of the
rationales, strengths, and limitations of these categories of instruments in creating a
stable demand for the circular economy. The lessons learned from the regulatory
innovations enable a more critical approach in determining the best combination of
instruments and tools to implement sustainable circular solutions on a larger scale.