China and the European Union (EU) have signed a MoU on circular economy. This implies reducing waste to a minimum and re-using, repairing, and recycling existing materials and products.

The agreement could see the world’s two largest economies align key circular economy mechanisms and pave the way for the development of product standards and policies, which could create the conditions for a system shift on a global scale towards a low carbon, regenerative economy.

Co-operation by the two economic powerhouses in this field will cover strategies, legislation, policies and research in areas of mutual interest. It will address management systems and policy tools such as eco-design, eco-labeling, extended producer responsibility and green supply chains as well as financing of the circular economy. Both sides will exchange best practice in key fields such as industrial parks, chemicals, plastics and waste.

A transition to a circular economy in China’s cities could have numerous local benefits, including making goods and services more affordable for citizens, as well as reducing the impacts normally associated with middle class lifestyles, such as traffic congestion and air pollution. Europe can add to its GDP by 2030 by moving to a circular economy, while also halving its Co2 emissions.