Brazil has taken a decisive step towards transforming its economy with the signing of the executive order establishing the National Circular Economy Strategy (ENEC) and the formalization of the National Circular Economy Plan forum. The initiative marks the beginning of the transition from the linear model of production to a circular model, in which waste is returned to the production system, reducing the demand for natural resources and promoting environmental restoration and pollution reduction. The strategy is part of the New Industry Brazil (NIB) policy and the New Brazil - Ecological Transformation Plan, combining innovation, social inclusion and environmental conservation.
Objective
Create a circular model production that:
Why is the circular economy the future?
The circular economy breaks the ‘use and discard’ logic and encourages the creation of more durable and recyclable products. Besides generating social and environmental benefits, such as reducing greenhouse gas emissions and protecting biodiversity, ENEC promotes the competitiveness of national industry, creating green jobs and more innovative and attractive products in the global market. Through incentives, regulatory and administrative frameworks and quality seals, the strategy will guide the transformation of the production sector.
ENEC's main actions:
Sustainable design and production
- Encourage the design of products with greater durability, repairability and recyclability
- Promote the replacement of non-renewable materials with renewable and recyclable ones
Waste and resource management
- Expand and improve selective collection, recycling and composting systems
- Implement solutions for the reuse of industrial and urban waste as inputs
Encouraging conscious consumption
- Promote awareness campaigns on sustainable consumption
- Encourage sharing models, such as collaborative economy and product rental
Technological innovation and digitalization
- Support research and innovations that increase efficiency in the use of resources
- Implement digital technologies to trace materials and products throughout their life cycles
Economic stimulus and incentives
- Create tax and financial incentives for companies that adopt circular practices
- Encourage the development of markets for recycled materials and circular products
Education and capacity building
- Incorporate circular economy into school curricula and professional development programs
- Prepare workers for the demands of a more sustainable economy
Governance and regulation
- Establish rules and policies that encourage circularity, such as reverse logistics and recycling targets.
- Create regulatory frameworks to make producers responsible for the life cycle of their products.
Inclusion and social justice
- Ensure that the transition to circular economy is fair and inclusive, reducing gender, race and class inequalities
- Promote the formalization of workers in the recycling and waste sector.
Monitoring and indicators
- Develop systems to track progress in the circular economy through clear and standardized indicators
- Monitor the environmental, economic and social impact of initiatives implemented
Within the scope of the Climate Fund
- DThe Climate Fund began financing projects at competitive rates in various areas, including circular economy initiatives such as using waste for energy generation or fertilizer production. Click here to learn more.
Examples of Circular Economy Actions by the Ministry of Finance
COFIEX – Commission on External Financing
In December 2023, COFIEX established an annual specific sub-limit of R$2.7 billion to finance projects by states and municipalities exclusively aimed at environmental and climate goals, such as biodiversity conservation, pollution prevention, and climate change adaptation.
This measure allows subnational entities to access external credit resources guaranteed by the federal government, facilitating the implementation of sustainable projects. Examples of approved projects include:
- "BH Verde Azul": R$440 million to reduce greenhouse gas emissions and adapt the city of Belo Horizonte to climate change.
- "Curitiba Carbono Neutro": R$600 million to reduce emissions in the transportation and energy sectors, targeting carbon neutrality by 2050.
- "Santa Catarina Protected and Resilient": R$650 million to strengthen resilience against floods and heavy rainfall.
Example of Ministry of Finance Circular Economy Actions
Federal Revenue Service and Circular Economy
The Federal Revenue Service has promoted innovative circular economy initiatives through the sustainable allocation of seized goods. Actions include converting pirated TV Box devices into mini-computers for public schools, transforming counterfeit alcoholic beverages into hand sanitizer, and recycling waste such as paper, plastic, and tobacco — the latter used as fertilizer or input for cement production.
These initiatives, carried out in partnership with public universities such as UNILA, combine efforts to combat smuggling, protect the environment, and promote social inclusion. The program highlights the strategic role of the Federal Revenue Service in public innovation and sustainability.