Page 29 - U4SSC: A guide to circular cities, June 2020

Procurement can be used as a lever for circularity (e.g., procuring circular materials). Municipal
governments have significant purchasing power in city economies. City procurement contracts may
be prepared with a circular lens in mind. The case study ‘Development of a Circular Procurement
Framework – City of Toronto – Canada’ provides an example of using procurement as a lever for
circularity. Procurement policies and procurement contracts can specify purchased goods and
services to comply with various circular targets in a city. Circular action items can provide guidance in
formulating specifications for procured goods and services. The re-use, recycling and remanufacturing
of materials, components and their packaging may be indicated during procurement. Procurement
can play an important role not only in changing behaviour but also in overcoming the lack of circular
economy markets.

Financial incentives can be used for boosting circularity (e.g. tax breaks, reductions, exemptions,
holidays, lower loan rates, impact investment). Suppliers of circular goods and services can be made
eligible to receive the benefits of these financial incentives. Favourable loan rates and green bonds
can also be used to assist suppliers of circular goods and services.

Public Private Partnerships and other appropriate financial mechanisms may be used to boost
circularity. Circular action items have significant benefits and positive impacts; hence, both the public
and the private sector have a favourable stake in achieving them. This allows the forming of public
and private sector partnerships (PPPs) whereby costs and benefits of circularity are shared among
18
19
them. The public sector can opt to utilize PPP as a procurement alternative for implementing circular
city initiatives. PPPs require upfront systematic thinking about various decisive factors such as the
costs of implementing different circular city actions, their benefits and timing. However, sufficient
20
benefits and positive impacts exist in most cases to justify a PPP approach whereby incentives are
aligned among the partners. 21

R&D programmes may be formulated and implemented in collaboration with the academia and private
22
sector to boost circularity. R&D programmes may be undertaken at the city or national levels, as well
as at the regional level. Circularity contains new areas of research, which require further exploration
23
and development. R&D programmes may play a key role in enhancing innovation in circular cities and
boosting intellectual property, which can then be put into practical use and potentially commercialized.

Regulations may be used as policy levers and tools to catalyse circular city actions (e.g. technical standards,
product regulations, compliance standards, trade regulations, waste and safety regulations). Existing
circular related regulations such as waste management regulations, industry (vertical) regulations (e.g.
chemical regulations, CLP) need to be taken into account during the implementation. Furthermore,
25
24
new regulations, national laws and directives (legislation) may provide an enabling framework to
encourage and boost circularity. At the city or national level, a supportive regulatory framework
can direct the circularity processes and enable stakeholders to coordinate efforts and operate in an
appropriate manner.

International standards also offer one of the most consistent and reliable ways to measure and improve
circularity in cities. Often developed through a collaborative and participatory process, they contain
guidelines and frameworks that provide a solid foundation for overcoming different challenges of
circular cities. Multiple global platforms have already taken the initiative to facilitate this transition.

U4SSC: A guide to circular cities 21