From extractive to regenerative: Leveraging COP30 for circular economy transformation in the Global South

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While COP30 is taking place in Belém, its implications extend to Delhi, Nairobi, Jakarta, and beyond. The linear take-make-waste model has increased environmental degradation, resource depletion, and increased greenhouse gas emissions, while also producing vast amounts of waste. For the Global South, including India and other developing countries, the COP30 has the opportunity to present the circular economy as an alternative to transition to a more equitable and ecologically focused approach that keeps jobs and value local.

Moving Away from an Extractive Model

Many emerging economies are stuck in commodity and asset extraction, through natural resource and land exports. This extractive model is based on short-term gains, which only reinforces the dependency of emerging economies. Brazil’s export mix, along with agricultural commodities, further illustrates the issues in deforestation, which produces nearly half of its GHG emissions, as well as the issues of resource dependence. For example, in 2019, Brazil’s top commodities with export value were iron ore, crude oil,

soybeans, and other agricultural products.

Having Brazil move from commodity supplier to innovation partner is something that COP30 can highlight in order to advance its circular economy transition, using its natural resources to drive sustainable, high-value economic growth and make use of its diplomatic influence at COP30.

The circular economy can separate economic growth from resource consumption, allowing developing countries to adopt sustainable practices. By extending product lifecycles, advancing recycling, repair, manufacturing, and reuse processes, developing green jobs and industries, and treating waste as a resource with tremendous potential, circular initiatives can increase job creation and higher-value production without following the carbon-intensive stages of industrialisation that compromised the climate in the Global North.

Across many developing countries, including India, circular practices already exist, for example, in the informal sector where waste pickers or scavengers are responsible for resource recovery by reusing, recycling, and remanufacturing waste. In India, these workers process over 70% of recyclable materials, however, their role in the informal sector leaves them ignored by municipal authorities. Formally integrating these informal workers into inclusive and just processes accelerates a just transition and ensures dignity and protection for millions.

COP30 and the Global South

COP30 is the first major decision-making conference following the initial Global Stocktake (GST) at COP28, which revealed that current Nationally Determined Contributions (NDCs) cannot meet the 1.5°C target. The GST advocates for collective responsibility, where parties share their self-defined national targets to reduce GHG (Greenhouse Gas) emissions.

COP30 presents an opportunity for countries to submit new, more ambitious NDCs that must be aligned with accelerating decarbonisation goals. And including circular economy solutions in NDCs (Nationally Determined Contributions) to achieve climate targets, as well as implementing a renewable energy transition. The GST acknowledges circular practices as being relevant to support developing nations. COP30’s agenda, especially ‘Thematic Days’ on cities, infrastructure, and waste management, serves as a critical platform to translate that recognition into proper finance, technology, and policy in the Global South.

Additionally, COP30 is the main stage for setting climate finance promises, sharing technology, and building skills to scale circular solutions in the Global South via international partnerships, like technology-sharing hubs. Developing nations, including India, criticised recent climate-finance proposals, such as giving $300 billion each year by 2035 instead of the requested $1.3 trillion. They targeted developed nations for lacking accountability by not offering enough climate funding. COP30 is expected to urge countries to honor funding pledges and aid developing nations with mitigation and adaptation. This will help these countries unlock greater ambition through a socially just and inclusive economic change. As many developing nations face urgent environmental threats that need reliable finance and access to low-carbon tech.

Circular Economy as a Tool for Resilience and Climate Justice

For developing nations, circular economy strategies reduce exposure to global volatility in commodity prices and supply chain risks, as well as improve resource security. Circularity also supports cities and infrastructure in keeping materials in circulation, creating an economy where nothing is wasted, and everything has value through several lifecycles. This is important for countries that are experiencing environmental impacts from waste disposal.

There are many examples in the Global South showing what is possible. For instance, India's Smart Cities Mission (SCM) and Swachh Bharat Mission (SBM) were set up to improve waste management, using smart waste systems and resource-efficient buildings to make things circular.

Morocco treats wastes and wastewater as a potential source for added value instead of trash through an integrated urban water management (IUWM) strategy, including National plans for wastewater (PNLA) and solid wastes. In Tanzania and other developing countries, waste has been informally reused, recycled, and remanufactured for a long time.

Focusing on making equitable and inclusive decisions is necessary in order for India to successfully transition to a circular economy. As such, the circular economy involves the social inclusion of these workers who are responsible for solid waste management in developing countries where they operate informally and are not recognised by municipal authorities.

A fair transition means circular policies must focus on those most at risk and the informal sector. Waste pickers and informal recyclers often face health risks and lack social safety nets. Circular economy steps can help achieve poverty reduction (SDG 1) and decent work (SDG 8) by giving value to the informal sector, ensuring respect and equity, and creating dignified jobs.

Barriers

The circular economy faces challenges directly linked to the specific unresolved issues that COP30 must address, particularly for advancing the Global South and India’s circular transition.

- Inadequate Legislative Framework

Many countries lack specific circular economy policies and regulations. It is difficult to implement waste legislation when it is primarily focused on hazard prevention rather than maximising secondary raw materials as a resource. In South Africa, current regulations may prevent the private sector from operating water treatment and wastewater works, limiting innovative cost-effective technologies.

- Uneven Enforcement

Even if there are existing policies, such as Extended Producer Responsibility (EPR), there is an ineffective implementation and a lack of explicit guidelines in India, for example. This leads to industry misunderstandings and poor results.

- Market Uncertainties

Large-scale investments in the circular economy are discouraged due to the unpredictable nature of the markets for secondary raw materials and recycled products.

- High Initial Costs and Lack of Support

Initial investment requirements for circular technologies and infrastructure, like recycling plants or remanufacturing capacity, represent a main challenge for SMEs (Small and Medium-Sized Enterprises), which make up the majority of manufacturing firms in India. There is also a lack of financial incentives or subsidies for SMEs to adopt expensive circular technologies.

- Insufficient Investment in Circular Initiatives

Emerging economies usually do not possess the financial incentives and infrastructure crucial to push for private investment in circular value creation.

- Lack of Knowledge and Skills

There is a limited amount of knowledge and skills necessary for industries to operate recycling systems and follow circular design principles. This is due to a lack of skilled workers. In India, a large percentage of workers are not formally trained, leaving them unprepared to operate specialised recycling and resource recovery equipment.

Steps Forward

Integrating circular economy practices into national climate strategies is crucial, as resource efficiency addresses nearly half of global GHG emissions. COP30 can achieve progress by pursuing several actions.

- Climate Negotiation Mandate

Integrating circular economy principles into NDCs and national climate plans so resource efficiency contributes to mitigation and adaptation targets.

- Multistakeholder Cooperation

Prioritising inclusive initiatives involving governments, private sectors, academia, and civil society can coordinate investments and standards.

- Incentivising Design

Strengthening EPR mechanisms and eco-design rules is crucial to create incentives for recycling-friendly design. This encourages product design that focuses on durability, repairability, and reuse. In countries like India, the successful implementation of EPR for waste streams like e-waste and plastic requires streamlining guidelines to improve compliance and awareness, overcoming issues of inadequate government oversight.

- EU’s ELV Regulation

The EU’s proposed End-of-Life Vehicles Regulation (ELVR) focuses on circular vehicle design to ease dismantling, introducing mandatory recycled content targets for plastics and metals, and requiring manufacturers to develop circular strategies addressing repairability and take-back concepts. It also mandates the use of a digital vehicle passport to track repair and dismantling information.

- Increasing Investment

Investing in workforce development and material-flow data systems so policy and markets can take advantage of verified circular opportunities. Increasing international cooperation, such as Germany's bilateral dialogues with India and Brazil, focuses on supporting resource-extracting countries in their transition from raw material suppliers to producers of semi-finished and finished goods.

Collaboration Within the Global South

India, along with other countries from the Global South, often deals with the impacts of the climate crisis as well as economic volatility despite being one of the world’s fastest-growing economies. These countries are burdened by balancing their economic ambitions with having to transition to a circular economy and deal with climate change.

Increasing support and inclusive cooperation between the Global North and South will reduce inequalities. Especially since several sectors are particularly important for collaboration with the Global South, because they have large emission-reduction potential and because they are directly linked to development goals. By collaborating on circular economy initiatives, this creates resilience for all parties involved, ensuring that there is a system to survive, adapt, and flourish despite the uncertainty and difficult change.

Circular economy is becoming a broad development plan for Latin America and the Global South, relying more on South-South and North-South cooperation, with Brazil leading. For example, Brazil and Germany ran Probiogas to support biogas, improve sanitation, and cut greenhouse gases.

A regional initiative for South-South collaboration is the Latin American and Caribbean Circular Economy Coalition, which involves national governments, international institutions, and strategic partners. This example shows that the transition across the continent via collaboration is feasible. To increase impact, stakeholders across regions must step up joint efforts, invest in innovation, and commit to scaling collaborative circular economy solutions now.

Conclusion

All eyes are on COP30. It should mobilise finance, technology, and governance frameworks to show the potential that the circular economy transition holds across the Global South. If COP30 succeeds, the outcome will be a shift from extraction to regeneration, delivering resilience, equitable jobs, and strengthened local value chains.

Policymakers, financial institutions, businesses, and civil society must utilise COP30 to transition the circular economy from promise to practice, ensuring that the Global South is not left behind in the pursuit of a regenerative, just, and prosperous future.