A shift toward a circular economy could become a turning point for the Philippines’ waste management system, but researchers warned that its success depends on stronger governance and the inclusion of informal workers and small enterprises in the system.

A policy note from the Philippine Institute for Development Studies (PIDS) said circular economy principles can provide a unified framework for improving waste reduction, recycling, and resource efficiency nationwide. However, current efforts remain fragmented and uneven across local governments.

The study, led by Senior Research Fellow Sonny Domingo with co-authors Roselle Guadalupe, Arvie Joy Manejar, and Gregorio Rafael Bueta, found that existing laws such as the Ecological Solid Waste Management Act and the Extended Producer Responsibility Act already support circular economy goals. Implementation, however, continues to be weakened by unclear responsibilities, limited enforcement, and gaps in upstream waste reduction strategies.

While stakeholders are generally supportive of circular economy approaches, the report noted persistent challenges in coordination and execution, especially at the local level where systems and resources vary widely.

A key gap identified is the limited integration of the informal waste sector and micro, small and medium enterprises into formal waste management systems. The study emphasized that these groups already play a major role in recycling and materials recovery but often remain outside official planning and support structures.

“Strategies that empower these groups not only enhance implementation capacity but also ensure that social equity is embedded in CE programs. Engaging local communities in CE initiatives can help bridge the gap between policy intentions and on-the-ground practices, reinforcing behavioral shifts toward more sustainable waste management habits,” the authors said.

The report recommended clearer institutional roles, stronger enforcement of existing environmental laws, and better alignment between national policies and local government implementation. It also called for embedding social and environmental justice principles in circular economy programs.

Among the laws highlighted were the Ecological Solid Waste Management Act, the Extended Producer Responsibility Act, the Toxic and Hazardous Substances Act, the Clean Air Act, and the Green Jobs Act, all of which form the legal backbone of environmental governance in the country.

The Extended Producer Responsibility Act of 2022 requires companies to take responsibility for the collection and recovery of plastic packaging waste and encourages upstream changes such as recycled content use and cleaner production systems.

Meanwhile, the Green Jobs Act provides incentives for industries involved in recycling and other environmentally sustainable activities, aiming to support both job creation and waste reduction efforts.

The study stressed that without stronger coordination and inclusive implementation, the circular economy framework will remain underutilized despite its potential to transform waste management and promote long-term environmental sustainability.