Over a year ago, the first ten partner cities and municipalities in the Philippines, known as Local Government Units (LGUs), began their circular economy transition under the EU–PH Green Economy Partnership, funded through the Global Gateway initiative. This initial phase focused on introducing local stakeholders to circular economy concepts, illustrating how such strategies can address pressing urban challenges including climate change, waste management, and pollution. The early experiences of these LGUs generated valuable insights into localizing circular economy solutions, aligning them with existing development pathways, and scaling them for greater impact and sustainability.
The circular economy concept quickly gained traction due to strong national leadership and alignment with local realities. Agencies like the Department of Environment and Natural Resources (DENR) and the Department of the Interior and Local Government (DILG) championed circular economy initiatives as responses to environmental challenges, governance, and sustainable development, creating an enabling environment for LGUs to act.
Implementation revealed the importance of designing circular economy strategies that are context-specific. Large metropolitan areas such as Quezon City, Pasig City, and Caloocan City focused on flood prevention caused by plastic waste and managing food waste pressures on landfills. In Baguio City, circular approaches reinforced indigenous environmental stewardship, while tourism-dependent municipalities like Del Carmen prepared for green and circular tourism measures to manage waste. Agriculture- and tourism-based cities such as Ormoc, Puerto Princesa, Iloilo, Davao, and Samal explored circular solutions in food systems and plastic management to balance economic growth with sustainability.
Local leadership, particularly from mayors, proved critical in driving progress. Early engagement of local stakeholders ensured that circular economy strategies were co-created, context-specific, and aligned with city development goals. Sustained capacity-building support allowed LGUs to implement coordinated portfolios of interventions rather than isolated actions, covering policy, behavioral change, business infrastructure, and digital solutions.
Inclusion and integration were central to the approach, engaging women, youth, Indigenous Peoples, persons with disabilities, and informal sector actors as active contributors rather than mere beneficiaries. Peer-to-peer learning between cities accelerated adoption by sharing practical insights, such as establishing circular economy hubs, urban organic farming, and food rescue programs.
Achieving scale requires moving beyond pilot projects and public funding alone. Successful circular economy transitions depend on engaging businesses, developing viable circular business models, and attracting investment. The EU–PH Green Economy Partnership plays a vital role in piloting, upscaling, and operationalizing green financing mechanisms, translating local innovation into systemic change.
The initiative has now expanded to an additional ten cities, with plans to eventually reach 60 cities nationwide. Future phases will focus on institutionalizing circular economy solutions by strengthening local leadership, mobilizing finance, and embedding circularity into urban development pathways. This approach ensures that economic development, environmental protection, and social inclusion advance together sustainably over the long term.
The EU–Philippines Green Economy Partnership, funded with €60 million and running through 2028, supports circular economy, renewable energy, waste reduction, and climate resilience. Specific Objective 2, “Green LGUs,” co-led by DILG and implemented by UNDP Philippines, empowers local actors to co-create circular solutions, strengthen capacities, develop enabling policies, and engage civil society, the private sector, and marginalized groups to make circular practices practical, sustainable, and mainstream.
