Circular economy and recycling goals cannot be achieved without new means – Minister Multala: Recycling must be guided by price

(For subscribers.) Current measures are not enough for Finland to achieve its waste recycling targets, let alone the targets of the circular economy strategy. Experts are calling for the introduction of new economic instruments. Minister Multala states that reforming the Waste Act into a circular economy act is not enough on its own. The Finnish Institute for Economic Research published its report in February, according to which Finland urgently needs more circular economy instruments. Without them, Finland is falling short of the goals of the circular economy programme. “Pricing externalities in different parts of the value chains with taxes or fees would be one way to ensure that there are incentives for sustainable choices in both production and consumption,” says Olli Ropponen, Research Manager at Etla. RDI subsidies for the circular economy Etla is examining possible economic instruments that could be considered as incentives for the circular economy. However, Etla reminds us that planning the combination of instruments requires careful consideration. According to Etla, one way to accelerate the transition to a circular economy could be to direct more of the funding intended to support research and product development innovations to circular economy solutions. Previous research identifies numerous steering instruments suitable for accelerating the circular economy, such as taxes, subsidies, regulation, information control and financing. “Price control should promote recycling” Finland is currently reforming its waste legislation towards a circular economy law. Various steering instruments are also being considered in the work on the circular economy law....