Regulation shaping the circular value chains Visit main circularity page → There is no single “circular economy law”. Instead, circularity is shaped by a growing set of policies that work together. These policies cover different parts of a product’s lifecycle, including:How materials are sourcedHow products are designedHow they are used and marketedHow they are collected, reused, or recycledExamples include Bioeconomy strategies, rules for responsible sourcing of materials, product design requirements (e.g. durability and repairability), Extended Producer Responsibility (EPR) schemes, Green claims and consumer protection and Waste management and material recovery legislation.Each policy focuses on a specific area. But together, they form a connected system that supports the transition to a circular economy. FSC DK Why this matters for companies As these policies develop, expectations for companies are increasing.Companies are increasingly required to:Document where materials come fromShow how products are designed and usedProvide reliable data on environmental performanceTake responsibility for products after useThis means that transparency, traceability, and data are becoming essential.Companies that understand and prepare for these requirements are better positioned to comply with regulation, avoid risks, and stay competitive. FSC DK FSC perspective FSC-certified organizations already work with many of the elements that regulation is focusing on, such as responsible sourcing, traceability, and verified documentation. This provides a strong starting point for navigating the regulatory landscape.As circularity becomes more embedded in policy, FSC’s systems can help companies respond to increasing demands for transparency and accountability across value chains. Relevant global policies Circular economy policies Circular economy policies are moving from isolated actions to more connected frameworks. Because circularity covers the full lifecycle of products – from design and production to use and recycling – fragmented rules can create gaps or conflicts. More integrated policies aim to align these areas, creating clearer direction and more consistent implementation across value chains.Examples:MEXICO: General Law on Circular EconomyEU: Circular Economy ActBRAZIL: ENEC and PLANEC - National Circular Economy strategy and PlanJAPAN: The National Plan towards Circular Economy Bioeconomy policies Bioeconomy policies promote the use of renewable, bio-based materials across sectors. This is of course amongst others forest based materials. They support the shift away from fossil-based materials and encourage the responsible use of biomass. When managed well, this can reduce environmental impact and support more sustainable and circular material use.Examples:CANADA: Forest bioeconomy frameworkBRAZIL: National Bioeconomy Development PlanNAMIBIA: Bioeconomy StrategyEU: Bioeconomy Strategy Consumer behaviour & green claims policies These policies aim to ensure that sustainability claims are accurate and verifiable. They help consumers make informed choices and support more circular behaviour, while reducing misleading or unsubstantiated environmental claims.Examples:CHILE: Circular Chile Roadmap – initiative 12 and 19 on Eco-design and Eco-labelling and circular product standardsUK: The Green CodeEU: Empowering Consumers DirectiveEU: Right to repair Waste management & EPR policies These policies focus on what happens to products at the end of their life. Extended Producer Responsibility (EPR) requires companies to take responsibility for how their products are collected, treated, or recycled after use. This creates incentives to design products that last longer and are easier to reuse or recycle.Examples:COLOMBIA: EPR – Resolution 1407JAPAN: Containers and Packaging Recycling Act INDIA: National framework for EPREU: Waste Framework Directive Fiscal policies & taxonomies These policies use financial tools to support circular practices. This can include taxes on linear production and incentives for circular solutions, such as using recycled materials. Taxonomies help define what is considered sustainable and guide investments.Examples:THAILAND: BIO-circular-green model COLOMBIA: GREEN TaxonomyEU: Taxonomy for sustainable activities Product development & market policies These policies focus on how products are designed and brought to market. They promote and often demand more circular design - such as durability, repairability, and resource efficiency - and often require better data on materials and products. This supports traceability and transparency across value chains.Examples:CHILE: Circular Chile Roadmap – initiative 6 on information systems for modelling the local environmental impact of goods and servicesCOSTA RICA: National Strategy for the replacement of single use plastics by renewable alternativesEU: Eco-design for Sustainable Products RegulationJAPAN: Digital Product Passport Where do the rules apply? Circular economy regulation is developing rapidly across the world. Many countries are moving from early strategies to more concrete policies and implementation. This shows that circularity is becoming a structured and regulated part of how economies operate.Global circular policy mapping by organisations such as the Ellen MacArthur Foundation and Chatham House provides an overview of how these developments vary across regions and sectors. What is FSC doing to support? FSC is actively exploring how circularity and circularity policies connect with our certification systems and standards. Through the FSC Circularity Hub, we are working with stakeholders to identify where certification can support compliance, innovation and trust, including new approaches to circular business models (e.g. leasing, take back and repair), access to increased data on products, increased use of biobased fibers beyond forest fibers, and pathways to ensuring fair distribution of value. FSC's contribution to Circular Economy Get to know how FSC contributes to Circular Economy today and proposed solutions to expand.. Read more about FSC’s contribution to circular bioeconomy transition →
