In looking for a common language, regulation sets the foundation.
As discussed in “The Language of Sustainability,” the terms used within the field of sustainability often lack consistent definitions, leading to significant ambiguity and varied interpretations across different individuals, organizations, and sectors. This lack of standardization extends to key concepts like "circular economy," "green," and "net-zero," where methodologies and goals can differ wildly. Without universally agreed-upon metrics and terminology, comparing efforts, measuring progress, and holding entities accountable becomes incredibly challenging, fostering confusion, mistrust, and even enabling "greenwashing" where misleading claims are made about environmental practices. Although the Circular Economy is currently struggling with consistent definitions and values of these measures, other industries have experienced this language ambiguity growing pain.
Vague language and inconsistent reporting of value was prevalent in Real Estate until the early 2000’s when ESG Reporting through the Global Real Estate Sustainability Benchmark (GRESB) became prevalent. GRESB reporting clarified the value of energy management in real estate by providing a standardized framework for data collection and benchmarking. This global standard allows for consistent measurement of energy consumption and greenhouse gas emissions, enabling meaningful comparisons between properties and portfolios. By openly quantifying energy performance, GRESB helps real estate companies identify areas for improvement, track the financial savings from efficiency projects, and benchmark their efforts against industry peers.
This rigorous reporting system links strong energy performance to enhanced financial outcomes and investor appeal. A high GRESB score, particularly in energy efficiency, signals effective risk management and operational excellence to institutional investors, potentially leading to better financing terms and increased asset value. Ultimately, GRESB has transformed energy management from a perceived environmental cost into a demonstrable value driver, making it a critical component of strategic decision-making in the real estate industry.
This type of rigorous definition of how Sustainability is defined and measured is now becoming more prevalent in demanufacturing and the circular economy. In lieu of a Global Sustainability Benchmark, there are mandates, precedents, legislation, and statewide programs throughout the United States that require businesses to focus on the environmental solutions, creating a unified language. Along with closed loop opportunities and consumer preferences businesses look to understand and adapt their models from a linear perspective to a circular one.
Federal Frameworks: Setting the National Stage
Bipartisan Infrastructure Law (BIL) - Funding the Transition: Signed into law in 2021, the BIL represents a historic investment in American infrastructure, with a significant portion dedicated to advancing circular economy goals. The BIL also explicitly supports the development and upgrades of reuse infrastructure, such as online reuse platforms, repair spaces, food donation networks, and electronic waste and computer recycling facilities.
State-Level Momentum: Pioneers of Policy Innovation
Many U.S. states are acting as laboratories for circular economy policy, often leading the way in areas like Extended Producer Responsibility (EPR).
• Extended Producer Responsibility (EPR) for Packaging: A growing number of states are enacting EPR laws for plastic and other packaging, shifting the financial and logistical burden of managing packaging waste from municipalities and taxpayers to the producers themselves. While packaging might not seem an intuitive component of the Circular Economy and demanufacturing, it paves the way to progress with respect to product demanufacturing as the same programs focused on packaging materials create resale markets for materials captured from products as well.
• California (SB 54): California's Plastic Pollution Prevention and Packaging Producer Responsibility Act, passed in 2022, is one of the most comprehensive EPR laws. It mandates that by 2032, 100% of packaging in the state must be recyclable or compostable and sets targets for plastic packaging reduction and recycling rates.
• Maine (LD 1541): Maine's law, enacted in 2021, was a pioneer in shifting responsibility and cost of packaging waste management to producers.
• Oregon (SB 582): Oregon's recycling modernization act also incorporates EPR principles for packaging.
• Colorado (HB22-1355): Colorado's law similarly requires producers to fund and manage the recycling system for packaging and printed paper.
• Minnesota, New Jersey, and Washington: These states have also passed or are actively considering various forms of packaging EPR legislation, demonstrating a clear trend toward producer responsibility.
City-Level Catalysts: Ground-Up Circularity
American cities are proving to be dynamic hubs for circular economy implementation, leveraging their unique local contexts to drive change.
• New York City's Zero Waste Goals: NYC is committed to becoming a zero-waste city by 2030, with a comprehensive "Zero Waste Act" passed in 2023. This includes expanding curbside organics collection, increasing recycling mandates, and establishing drop-off points for various materials.
• Austin, Texas - Reverse Pitch Competition: Austin has fostered a vibrant circular economy ecosystem, notably through its annual "[RE]verse Pitch Competition." This innovative program connects local institutions and businesses with discarded materials to entrepreneurs who develop new business ventures around repurposing those materials. Austin also has a Universal Recycling and Composting Ordinance, requiring all properties and businesses to offer recycling collection.
• San Francisco's Mandatory Composting and Recycling: A long-standing leader, San Francisco was one of the first U.S. cities to implement large-scale mandatory food scraps recycling and composting programs, dating back to 1996. The city continues to update its goals, aiming for significant waste reduction and diversion by 2030.
• Fort Collins, Colorado - Road to Zero Waste: Fort Collins aims for zero waste by 2030, with a strong focus on food waste reduction through curbside organics collection and promoting food donation. They also operate a crushing facility for recycling aggregate materials.
• Phoenix, Arizona - University Partnerships: Phoenix is collaborating with Arizona State University to advance circular economy principles, particularly in addressing plastic waste through research and community engagement.
The diverse landscape of U.S. circular economy policy, from federal strategies to localized city initiatives, reflects a growing understanding of the need for systemic change. While challenges remain in harmonizing regulations and scaling solutions, the increasing focus on producer responsibility, infrastructure investment, and innovative local programs indicates a strong trajectory toward a more sustainable, circular economy across the United States. As these programs take hold our understanding of sustainability, with respect to the circular economy and demanufacturing will become more universal, and defining the value will become clear to everyone.