As climate change intensifies across the globe, many countries are accelerating the transition toward sustainable production and consumption models linked with circular economy strategies. This approach not only helps reduce greenhouse gas emissions but also improves resource efficiency and strengthens economic resilience against environmental and climate-related shocks.

Recent international initiatives show a clear shift in policy thinking. Climate strategies are no longer limited to clean energy or emission reductions at the production stage. Instead, they increasingly address the entire lifecycle of products, from design and manufacturing to consumption, reuse, and recycling. Integrating climate action into sustainable production and consumption policies is therefore considered a crucial step toward building a low-carbon economy.

ASEAN+3 Forum Promotes Regional Cooperation on Circular Economy

From March 9 to March 11, 2026, the Philippines Department of Environment and Natural Resources, in cooperation with the ASEAN Secretariat, hosted the 13th ASEAN+3 Leadership Programme on Sustainable Consumption and Production (SCP).

The event was held under the theme:
“Enhancing Climate Resilience through Sustainable Consumption and Production and Circular Economy for a Sustainable Future.”

The forum gathered policymakers from ASEAN countries together with three major regional partners—China, Japan, and South Korea. The programme aimed to create a platform for exchanging experiences, sharing innovative practices, and discussing policy pathways to integrate climate action into strategies for sustainable consumption and production and the circular economy.

Vietnam’s delegation included representatives from the Ministry of Agriculture and Environment, the Institute of Strategy and Policy on Agriculture and Environment, and the Department of Climate Change.

According to the organizers, strengthening sustainable production and consumption together with circular economy initiatives can become a key driver for reducing greenhouse gas emissions while enhancing climate resilience across the region.

Circular Economy as a Key Tool for Climate Action

International experts increasingly recognize the circular economy as a fundamental component of the global transition toward a low-carbon economy. A report by the United Nations Environment Programme (UNEP) indicates that nearly 45 percent of global greenhouse gas emissions are linked to resource extraction, production, and consumption of goods. This suggests that energy-related solutions alone will not be sufficient without transforming production and consumption systems.

James Lomax, a sustainable consumption and production expert at UNEP, notes that circular economy strategies can significantly reduce emissions by extending product lifecycles, increasing material reuse, and lowering demand for new raw materials. According to him, future climate policies must incorporate tools such as eco-design, material recycling, and circular business models.

Meanwhile, Kristina Persson, an expert from the Stockholm Environment Institute (SEI), argues that the transition toward circular systems offers not only environmental benefits but also substantial economic opportunities. International research indicates that circular economy models can help countries reduce material costs, strengthen industrial competitiveness, and stimulate technological innovation.

Challenges in Integrating Climate Policy and Circular Economy

Despite its potential, implementing circular economy principles in practice still faces several challenges.

One of the most significant obstacles is the lack of adequate infrastructure for circular systems in many countries. Waste collection, recycling, and resource recovery systems remain underdeveloped, particularly in emerging economies.

Financial constraints also pose difficulties. According to the World Bank, projects involving material recycling and reuse technologies often require high upfront investment costs, while the return on investment may take longer to materialize.

Another issue is that many existing climate policies still do not fully account for product life-cycle emissions. This limitation can result in incomplete assessments of environmental impacts.

Paul Ekins, Professor of Resources and Environmental Policy at University College London, suggests that governments should move from focusing solely on emissions at the production stage toward a life-cycle approach. Accounting for emissions from raw material extraction, transportation, manufacturing, and waste treatment can lead to more effective climate policies.

Additionally, the lack of reliable life-cycle data for products continues to hinder policy development and emission assessments.

International Expert Recommendations

To strengthen the integration between climate policy and circular economy strategies, international experts emphasize the need for coordinated policy measures.

First, governments should introduce stronger incentives to encourage businesses to adopt circular business models. Tax incentives, green finance mechanisms, and financial support programmes can help reduce the initial costs associated with recycling technologies and resource recovery systems.

Second, developing comprehensive product life-cycle data systems is essential. According to the Organisation for Economic Co-operation and Development (OECD), transparent material and product lifecycle data can significantly improve policy design and support corporate emission reporting.

Third, capacity-building programmes for policymakers are also necessary. In many countries, climate policy agencies and resource management authorities still operate separately, limiting policy coordination.

Experts also suggest encouraging companies to report emissions based on product lifecycle assessments. Such reporting could help build a reliable data foundation for policymaking while improving transparency across industries.

Vietnam Gradually Integrating Circular Economy into Climate Strategy

In Vietnam, circular economy principles are increasingly being incorporated into policies on climate action and sustainable development.

The National Green Growth Strategy for 2021–2030, with a vision to 2050, promotes efficient resource use, sustainable production and consumption, and the development of circular business models aimed at reducing emission intensity across economic sectors.

The concept of the circular economy has also been institutionalized in the Law on Environmental Protection 2020, providing a legal framework for promoting reuse, recycling, and environmentally friendly product design.

Implementation guidelines such as Decree 08/2022/ND-CP introduced the Extended Producer Responsibility (EPR) mechanism, which requires companies to collect and recycle products or packaging after use. This policy tool is considered a key driver for accelerating the transition toward circular economic models.

These policies encourage businesses to adopt practices such as waste-to-resource technologies, industrial symbiosis, sustainable packaging solutions, and resource-efficient production processes.

Toward a Low-Carbon and Climate-Resilient Economy

Integrating climate action into sustainable production and consumption strategies has become an increasingly important global policy direction. As countries shift from linear economic systems toward circular models, resources can be used more efficiently while greenhouse gas emissions are significantly reduced.

For Vietnam, promoting circular economy initiatives not only supports the national commitment to achieve net-zero emissions by 2050, announced at COP26, but also opens opportunities to restructure the economy toward a greener and more sustainable development pathway.

In a region that is particularly vulnerable to climate impacts, regional initiatives such as the ASEAN+3 leadership programme on sustainable consumption and production are expected to play a crucial role in accelerating the transition toward low-carbon economies and strengthening climate resilience across Asia.