Who Should Lead the Transition to a Circular Model: State, Industry, or Civil Society?

As the global community confronts an existential crisis driven by climate change and the depletion of natural resources, moving away from the "linear economy" – the traditional take-make-dispose model – has become unavoidable.

In this context, the circular economy has emerged as a viable and effective alternative. Yet a fundamental question remains: who will lead this transformation – the state, the industrial sector or civil society?

The circular model is built on the principles of reduce, reuse and recycle. It represents an economic system in which waste is reimagined as a resource and value is created by extending the lifecycle of products. Such a complex and far-reaching transition cannot be delivered by any single actor. It requires a coordinated effort involving the state, industry and civil society.

The state is the primary architect of national transformation. In the shift towards a circular economy, government must lead as policymaker. No systemic change can be sustained without a strong legal framework and a coherent system of incentives. The state must design policies that encourage recycling and resource efficiency by offering green tax incentives, mandating modern waste-management technologies and providing duty exemptions for eco-friendly imports. By establishing a supportive ecosystem, the government creates the conditions for wider participation by all stakeholders.

Financing this transition is equally critical. The issuance of sovereign green bonds could mobilise domestic and international capital for investment in sustainable infrastructure. At the same time, establishing a functional carbon credit market has become a necessity rather than a choice. According to the World Bank, global revenues from carbon taxes and emissions trading systems reached about $100 billion by 2024. If Bangladesh develops its own carbon market, industrial enterprises could generate revenue by selling credits earned through emissions reduction, encouraging voluntary investment in environmental protection.

Industry and commerce are the main engines of the circular economy, as they control production and distribution. From the perspective of a healthcare entrepreneur, waste management remains one of the most complex challenges in modern hospitals and large-scale industrial facilities. Industry must rethink production processes to ensure that goods are durable, reusable and resource-efficient. While this protects the environment, it also lowers long-term production costs. Investment in research and innovation to reduce carbon footprints is essential. The circular model can only succeed when environmental responsibility is treated as integral to profitability.

This industrial transition also opens significant opportunities for young entrepreneurs and startups. Ventures focused on waste-tech and circular supply chains can introduce disruptive solutions to traditional industries. The expansion of clean energy firms and renewable energy initiatives is particularly important. The International Renewable Energy Agency has projected that by 2030, investment in renewable energy could generate three times as many jobs as the linear economy. Developing solar- and biogas-based energy hubs within industrial zones would significantly reduce emissions while strengthening energy security.

Access to finance remains one of the largest barriers to scaling the circular economy. In many cases, equity financing or partnership-based investment is more effective than conventional bank lending. Equity allows entrepreneurs and clean-energy developers to focus on long-term innovation without the immediate pressure of debt repayment. In addition, the creation of a credit exchange house merits serious consideration. Such a platform could enable transparent trading of carbon credits, green credits and waste-management certificates, strengthening the financial architecture of the circular economy.

Civil society forms the third pillar of this transformation. No economic model can achieve lasting impact without changes in public behaviour and consumption patterns. As conscious consumers, citizens influence market demand. When eco-friendly and reusable products are prioritised, industries are compelled to adapt. Practices such as waste segregation and responsible consumption make state-led initiatives more effective and sustainable. Ultimately, the transition to a circular economy must evolve into a social movement.

In reality, leadership of the circular economy does not rest with a single institution or group. It is a tripartite partnership. The state sets the direction, industry implements the change and civil society accelerates the process. Resources may be finite, but human potential is not. If the linear model is not abandoned today, future generations will inherit a landscape defined by waste and scarcity.

The circular economy is not merely an economic framework; it is a philosophy rooted in responsibility and balance. When the state, industry and civil society act together, the journey towards a sustainable and resilient future can truly begin.