Brazilian Federal Government establishes the National Circular Economy Strategy

By establishing the National Circular Economy Strategy (“ENEC” in Portuguese), the new Federal Decree foresees the aim of ensuring the efficient use of natural resources and promoting sustainable practices throughout production chains.The Decree considers circular economy as an economic production system that maintains a circular flow and associates economic activity with the circular management of resources. ENEC foresees as examples of activities linked to a circular economy the addition, retention or recovery of resource values, bearing the principles of non-waste generation, the circulation of products and materials and regeneration.

The regulation also lays down various guidelines, such as (i) eliminating pollution and reducing the generation of waste; (ii) maintaining the value of materials; (iii) regenerating the environment; (iv) reducing dependence on natural resources; (v) sustainable production and consumption; (vi) extending the life cycle of each and every material; and (vii) ensuring a fair, inclusive and equitable transition that addresses gender, racial, ethnic and socio-economic disparities.

The Decree indicates as its objectives the creation of a legal and institutional environment favorable to a circular economy, fostering, among other activities, innovation, education and the generation of skills to reduce, reuse and promote the circular redesign of production. The regulation also aims to reduce the use of natural resources and the generation of waste, as well as proposing financial instruments to support the circular economy, inter-federative coordination and the intention to promote public collection and sorting policies, also valuing waste collectors.

Finally, the new Decree establishes the creation of the National Circular Economy Forum, which is the governance body that will be responsible for advising, monitoring and evaluating the implementation of the ENEC.