Local economies drive circular transformation

An article published in Local Economy introduces the concept of Locally Embedded Circular Economy Systems (LECES), a framework that places cities, regions, and communities at the centre of efforts to transform production, consumption, and resource flow. According to the author, Cali Nuur head of INDEK, locally embedded approaches create inclusive, resilient, and economically beneficial pathways towards sustainability.

The article emphasizes the importance of local knowledge, traditional practices, innovation networks, and collaboration between businesses. By building on local strengths, communities can develop circular solutions that are adapted to their specific local economic, social, and environmental conditions.

There is no universal recipe for a successful transition. Transformation depends on several factors that need to collaborate. Local institutions, industrial structures, skills and capabilities, as well as trust between stakeholders, infrastructure, and access to materials, are important prerequisites for the circular transition. Local actors play an important role in shaping regulations and norms that promote circular practices and resource flows.

The main point is that we must build on what already exists locally, rather than assume that global circular solutions work everywhere.

How can municipalities facilitate circular collaboration?

Municipalities and regions can play an important coordinating role by bringing companies together, and creating arenas for collaboration. They can identify opportunities where, for example, waste or residual materials can become a resource for something else. They can also support shared infrastructure, local experimentation and procurement that favours circular solutions.

Municipalities don't need to provide the solution, but act as a facilitator and connector.

Three important pillars

• Institutional anchoring
  Local governments, civic organisations, and communities shape the policies, regulations, and norms that support circular practices.
• Industrial integration
  Collaboration among firms enables resource sharing.
• Cultural and material embeddedness
  Local traditions, identities, and resource conditions influence how circular practices emerge and evolve.

What barriers are there?

Cali Nuur, Head of INDEK

​​​​​​​In perspective: Rejuvenating local economies through locally embedded circular economy systems  ​​​​​​​

A major barrier is that circularity rarely depends on one stakeholder or company alone. It is all about interaction between businesses, infrastructure, knowledge, regulatory frameworks, and functioning markets. Small and medium sized firms can also lack the resources and capabilities needed to make this transition. 

The paper represents a shift in circular economy thinking, moving beyond technology-focused and one-size-fits-all approaches. Instead, it emphasises the importance of local governance, business cooperation, and cultural heritage in shaping successful transitions.

Cali Nuur means that empowering local actors is essential for building circular economies that are environmentally sustainable, socially inclusive, and economically resilient.
​​​​​​​“ I am not a geographer but I am interested in the mechanisms that facilitate or hinder transformation processes. Right now the circular economy is presented as a transformative model. It is often discussed as if the same solutions can simply be scaled up and applied everywhere. My argument is almost the opposite: successful circular transitions have to start from the place itself, its industries, capabilities, institutions and people, Cali Nuur concludes.”

Text: Rita Nõu