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National Circular Economy Strategy: Challenges and Responsibilities for the Industry

Walter Bacco


Climate change has fostered important discussions on the implementation of public policies that promote corporate environmental responsibility. 


In this context, on June 28, 2024, Decree No. 12,082 was published, introducing the “National Circular Economy Strategy.” This decree outlines the pillars for adopting a circular economy, encouraging the efficient use of natural resources and sustainable practices throughout the production chain.


The circular economy, inspired by the principles of reverse logistics, aims to reduce waste generation, promote the circulation of products and materials, and stimulate their regeneration through public policies. This topic is of great relevance to both society and businesses, which are adapting to a new way of environmentally responsible management.

In a globalized and competitive world, companies have recognized that, beyond pursuing profitability, it is essential to address social, environmental, and governmental interests. This ensures the sustainability of their businesses while preserving the environment. The circular economy strategy proposes models that break the cycle of disposal, promoting a new production model that includes the development of more resilient products suitable for sharing, repairing, reusing, redistributing, refurbishing, remanufacturing, and recycling.


From a business perspective, this new model, when properly implemented, not only generates profitability but also enhances the company's image, adds value to products and services, creates differentiators, and reduces costs throughout the production chain—an important competitive advantage in itself.


It is indisputable that this new form of circular economy will require significant efforts from companies, which have already adopted measures to prevent environmental and public health damage, especially through collection and disposal programs such as recycling, composting, recovery, and energy utilization.


Certainly, adapting to the new model will be necessary, but the benefits for the country are undeniable. These include the generation of income and “green” jobs, reduction of greenhouse gas emissions, reversal of biodiversity loss, and reduction of air, soil, and water pollution, thereby improving the population's quality of life.


In conclusion, the circular economy will open a variety of opportunities for new businesses across various sectors. However, every innovation brings challenges for all stakeholders in the consumption chain and imposes responsibilities on entrepreneurs to comply with the new legislation and align their commercial activities accordingly.


It is crucial that the industry remains vigilant to these changes to avoid conflicts with governmental agencies, as important investigations are currently underway at the state and federal levels by Public Prosecutor’s Offices, IBAMA, CETESB, and the Judiciary to ensure compliance with environmental goals and standards. Brazilian companies must closely monitor this significant topic and its developments.

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