Central Asia Embraces Circular Economy: A Path to Sustainable Growth

Central Asia is embarking on a transformative journey towards a circular economy, with Kazakhstan, Uzbekistan, and Almaty leading the charge. Through strategic Circular Economy Action Plans, detailed in the World Bank report "Circular Economy as an Opportunity for Central Asia," these regions aim to enhance resource efficiency, reduce waste, and promote sustainable growth. Key sectors like construction and agri-food are targeted for major overhauls, promising substantial economic, environmental, and social benefits. However, challenges such as data gaps and the need for regulatory reforms remain. The path forward requires concerted efforts in capacity building, technological innovation, and private sector collaboration.

Central Asia is turning to the principles of the circular economy (CE) to foster sustainable development and mitigate environmental degradation. Countries like Kazakhstan, Uzbekistan, and the city of Almaty are spearheading efforts to reduce waste and maximize resource efficiency through Circular Economy Action Plans (CEAPs). These plans, detailed in the recent World Bank report "Circular Economy as an Opportunity for Central Asia," outline strategic actions across key sectors, promising significant economic, environmental, and social benefits.

Building a Sustainable Future: Kazakhstan's Construction Sector

Kazakhstan's construction sector, notorious for its high resource consumption and low recycling rates, is on the brink of transformation. The CEAP for Kazakhstan’s construction industry aims to enhance material efficiency, prevent waste, and build resilience. Key actions include mandatory waste audits for demolition permits, large-scale renovation projects, and the establishment of recycling centers.

Investment in these initiatives is estimated at $289 million over nine years, with expected benefits totaling $1.3 billion. The primary benefits will come from the value generated through the sale of secondary raw materials, the increased value of renovated buildings, and avoided waste management costs. By 2030, implementing these actions could reduce construction and demolition waste by 54% and decrease national greenhouse gas emissions by 5%.

Harvesting Efficiency: Uzbekistan's Agri-Food Sector

Uzbekistan's agri-food sector, which is crucial to the nation's economy yet plagued by inefficiencies and high post-harvest losses, is also set for a significant overhaul. The CEAP for this sector focuses on enhancing water circularity, improving bioresource utilization, and increasing overall resource efficiency. Proposed actions include implementing drip irrigation systems, eco-friendly wastewater treatment, and biogas production from organic waste.

The investment required for these initiatives is estimated at $860 million over nine years. However, the return on investment is projected to be nearly 100%, with the potential to reduce agricultural greenhouse gas emissions by 34%. Additionally, these measures are expected to significantly improve the sector's resilience to climate change and create up to 46,000 new jobs.

Urban Transformation: Circular Economy in Almaty

Almaty faces challenges such as excessive waste generation and inadequate waste processing infrastructure. The CEAP for Almaty targets the construction, industry, and agriculture sectors to reduce waste, improve recycling rates, and enhance resource efficiency. Among the proposed actions are establishing construction and demolition waste recycling centers, modular building production, and the bioconversion of food waste into animal feed and fertilizers.

The estimated cost for these initiatives is $368 million until 2030, equating to 1.1% of Almaty's GDP. Most of this investment is expected to come from private sources, with public funds covering approximately 6.2%. The successful implementation of these projects could reduce the demand for primary materials by 21 million tons, decrease construction and demolition waste generation by 871 tons annually, and create 375 new jobs.

Overcoming Challenges and Seizing Opportunities

Despite the promise of CE, Central Asia faces significant challenges in its transition. Data gaps hinder effective resource management, and the concept of CE is not widely integrated into national and local regulations. To overcome these barriers, the report emphasizes the need for comprehensive data collection, regulatory reforms, and enhanced collaboration with the private sector.

Capacity building and technological innovation are also critical. Raising awareness and increasing technical capacity across sectors will be essential to drive the adoption of CE practices. Additionally, leveraging new technologies for efficient resource management will be key to achieving the desired outcomes.

Path Forward

The transition to a circular economy offers Central Asia a pathway to sustainable growth, with significant economic, environmental, and social benefits. The successful implementation of CEAPs in Kazakhstan, Uzbekistan, and Almaty could serve as a model for other countries in the region, inspiring further actions and innovations. As the region embraces CE principles, it stands to gain both economic efficiency and environmental sustainability and improved public health and job creation.