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Resource efficiency and circular economy

Global consumption of material resources has risen exponentially in recent decades, contributing to the triple planetary crisis of climate change, pollution and biodiversity loss. This pace of raw material extraction, processing and waste puts pressure on the resource bases of our economies and has environmental consequences that impact human well-being and nature. The OECD's work on critical raw materials, material use and productivity aims to inform policymaking and help countries to reduce demand and extraction and move to more sustainable growth models.

Global plastics production has grown relentlessly and with it, rising public awareness and concern over plastic pollution has paved the way for stronger policy intervention. The OECD provides guidance to policymakers on all aspects of the plastics lifecycle. This includes analysing plastic flows, informing policy dialogues on instruments to curb plastic pollution, monitoring trends in international development assistance, and quantifying the evolution of the plastic waste trade. The OECD also analyses the links between plastics and other environmental issues, such as climate change and chemical safety.

Circular economy policies and resource efficiency are central to efforts to achieve the Paris Agreement on climate change and the Sustainable Development Goals, especially those related to climate, biodiversity, water, energy and responsible consumption and production. The OECD provides technical support to help countries develop national circular economy strategies, roadmaps and action plans. This includes recommendations for circular economy frameworks, including the rationale for transitioning to a circular economy and an in-depth analysis of priority areas. The OECD also suggests concrete measures that countries can implement to operationalise its recommendations.

Governments use economic instruments such as taxes, emissions trading schemes and subsidies to incentivise behavioural change. Such instruments (among other complementary approaches) help governments to change the relative price of goods and services available to households and companies. These price signals aim to incentivise changes to behaviour.

Extended Producer Responsibility (EPR) is an approach to economic instruments that is increasingly relevant as countries grapple with greater volumes and complexity of waste. EPR seeks to shift the responsibility for products from municipalities and consumers to producers. The OECD provides analysis on the use of EPR and guides governments on its policy development, implementation and evaluation. 

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