10002570-Studies and Consultancy Service in Trade in Circular Economy

Summary

The project "Promoting Trade-related Aspects for Circular Economy in ASEAN (TRACE)" supports the ASEAN Economic Community (AEC) in operationalising trade-related aspects of the circular economy (CE). Commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ, the project works in close cooperation with the ASEAN Secretariat, particularly the Trade Facilitation Division (TFD), as well as relevant ASEAN Sectoral Bodies and selected ASEAN Member States (AMS). ASEAN has experienced strong economic growth and increasing trade volumes over the past decade. At the same time, rising resource consumption and waste generation pose major environmental and economic challenges. Circular economy approaches offer significant potential to reduce resource use, promote recycling and reuse, and foster sustainable and inclusive growth. However, CE-related trade measures and regulatory frameworks across ASEAN remain fragmented and unevenly developed. The project builds on the ASEAN Framework for Circular Economy for the AEC and the ASEAN Strategy for Carbon Neutrality, as well as the upgraded ASEAN Trade in Goods Agreement (ATIGA), which explicitly recognises circular economy as an area for trade - environment cooperation. It aims to strengthen the capacities of ASEAN bodies and national authorities to integrate CE considerations into trade policy, improve regulatory coherence, and facilitate the movement of circular goods and secondary materials across borders. TRACE applies a multi-level capacity development approach addressing (i) individual competencies of policymakers and officials, (ii) organisational processes and inter-agency coordination, and (iii) public-private dialogue and regional peer learning. At national level, Cambodia, Lao PDR and Viet Nam receive targeted support. A dedicated focus is placed on strengthening the role of the private sector, including SMEs and women-led enterprises, in shaping and benefiting from circular trade. The overall objective is that trade-related aspects of the circular economy are operationalised by relevant public and private sector actors in the ASEAN region.