This study, funded by the Nordic Council of Ministers’ Working Group for Circular Economy (NCE), aimed to identify realistic and effective measures to strengthen waste prevention and the promotion of reuse in the Nordic region, with a focus on municipal waste. More specifically, the project aimed to: (1) map existing measures to reduce municipal waste from households, businesses, and institutions, (2) identify effective policy measures and steering instruments, with a specific focus on economic steering instruments, and (3) develop policy recommendations for the implementation of good practices for waste prevention and reuse in the Nordics.
Waste prevention and reuse measures and policies were evaluated and analysed with a focus on their impact (reducing the quantity of waste, reducing the adverse impacts of waste and/or harmful substance content) and feasibility (ease of implementation and monitoring as well as applicability to the Nordic region). Within municipal waste, the waste fractions of textiles, consumer electronics, and plastic packaging were specific focus areas.
It was found that waste prevention has been considered in the national waste plans in the Nordic countries, but there is no systematic approach to implementing waste prevention and reuse policy. An in-depth case study on economic steering instruments was conducted for the textiles value chain. It looked into the potential of implementing value added tax (VAT) reductions for repair services and second-hand products, fees for fast fashion, and research and development (R&D) funding for developing new circular business models.
The study emphasises that transitioning to a circular economy requires a fundamental shift from recycling-focused policies to a holistic approach that addresses the entire product lifecycle. Sufficiently stringent economic instruments are critical for overcoming the market and cultural barriers that sustain linear economies. However, economic measures alone are rarely impactful enough when implemented in isolation. Instead, policymakers must adopt a comprehensive ‘toolbox’ approach, combining multiple measures rather than relying on any single solution to drive significant change.
The study concludes that achieving the Nordic Vision 2030 of becoming the world’s most sustainable and integrated region necessitates a well-designed policy mix. This includes aligning extended producer responsibility (EPR) with economic and regulatory measures, supported by informational guidance, to create a favourable environment for a circular economy. Additionally, targeting the early stages of the product lifecycle is crucial for addressing waste prevention effectively.