European Union pushes for circular economy
THE Delegation of the European Union (EU) recently announced it will implement “an ambitious agenda” to transform its economy into a circular one, where the value of products and materials is maintained for as long as possible: from production and consumption to waste management and marketing for secondary raw materials.
Ambassador Luc Véron said in an online event that introducing the circular economy is quite timely, as the world is recovering from the economic brunt of the pandemic, coupled with Russia’s aggression against Ukraine.
Véron said in his keynote during the recent online awarding ceremonies of the Europa 2022 awards that this is an ideal time for the public and private sector to review and revise policies, making them more aligned with the Sustainable Development Goals.
To jumpstart the lofty goal, the envoy said the EU has adopted the “Next Generation EU” and the European “Green Deal”—two massive long-term projects that support innovative policies setting Europe on a path to a sustainable recovery.
In particular, he said the Green Deal will transform the EU into a modern, resource efficient and competitive economy. To support these, the bloc has adopted the biggest budget ever passed.
Moreover, Véron shared that the region requires all relevant policies, including trade policy, to promote sustainable development. Meanwhile, the European Commission is working to ensure coherence and synergies between industrial, environmental, climate and energy policies to create an optimal business environment for sustainable growth, job creation and innovation.
He pointed out that the commission is also supporting European industries to carve a path to a climate-neutral economy and improve the energy efficiency of products via eco-design legislation. Likewise, transitioning to a climate-neutral economy will mark a change for the energy, manufacturing, transport and construction sectors.
Simultaneously the EU trade policy aims to ensure that economic development goes hand-in-hand with social justice and respect for human rights, with increased labor and environmental standards. The region utilizes trade policy to promote sustainable development through trade agreements, special incentives for developing countries, as well as trade and development policies.
In the Philippines, Véron said the bloc implements the Generalised Scheme of Preferences Plus trade preferences, or GSP+: “This does not only provide market access to Filipino-made products to the EU market; it also incentivizes the Philippines to ensure proper implementation of sustainable-development initiatives through the implementation of 27 international conventions that the country has signed up to.”
Véron cited the important role of trade policy as a contributor to the objective by promoting responsible business conduct and greater transparency and traceability in supply chains. The forthcoming EU legislation on sustainable corporate governance, as well as against deforestation, will be important milestones in this regard.
For instance, the legislation on sustainable corporate governance will promote sustainable and responsible value chains through a proposal on mandatory due diligence—including effective action and enforcement mechanisms to ensure that forced labor does not find a place in the value chains of EU companies.
He said the cooperation priorities of the EU with the Philippines under its new 2021-2027 financial program very much reflect those of the bloc’s globally. He said two priority areas of cooperation have been agreed in close dialogue with the Philippine government: green, resilient economy and green jobs, as well as peaceful and just society, including good governance.