The circular economy requires coherent practices by all actors across value chains, notably multinational companies and their suppliers, consumers, and financial and government institutions. The new ‘SWITCH to Circular Economy Value Chains’ project was designed to accelerate the uptake of circular practices by both improving the business environment and engaging with the private sector, notably small to medium-sized enterprises (SMEs). By promoting circular practices, the project aims to support the creation of decent jobs while contributing to environment and climate objectives, including reduced resource consumption and greenhouse gas emissions, and a safer, healthier and pollution-free environment.

There is a clear business case for companies to adopt circular practices, for example through better resource efficiency, which brings savings due to lower consumption while also helping companies shelter from price fluctuations. But many economic actors lack resources, or face significant technical and financial challenges to adopting new models. Developing policy and regulatory frameworks, reinforcing the capacities of business development service providers and facilitating SMEs’ access to finance are all necessary to accelerate the uptake of circular practices.

From research and development to product design, and from manufacturing, transport and distribution to usage and end-of-life management, multinationals leading global value chains have influence over their products. Building on this leverage, the project will work closely with large companies in selected value chains to demonstrate how SMEs can be empowered to implement circular economy practices in developing countries. By encouraging collaboration platforms for multinationals and their lower tier suppliers, the project also enables sharing of experience and best practices.

In parallel, the project will develop and disseminate knowledge on circular economy opportunities and facilitate dialogue and networking in target value chains. Advocacy and support for financial institutions will facilitate the development of financial products aimed at investments in circularity.

Launched in the context of the 2020 edition of the World Circular Economy Forum, the project will be implemented in partnership by UNIDO (as lead), the European Investment Bank, Circle Economy and the Royal Institute of International Affairs (Chatham House).