Privacy Policy Information Principle Strategy Rules
Privacy Policy Information Principle Strategy Rules Concept
11.06.2025

How to Map Regulatory Frameworks and Develop Effective Policy Recommendations for the Circular Economy

Author: Tran Ngo, VTT

The transition to a circular economy requires more than just technological innovation—it demands systemic change enabled by a strong, coherent regulatory framework. Policymakers, researchers, and industry stakeholders need to understand the existing legislative landscape, identify what drives or hinders progress, and co-create actionable, evidence-based policy recommendations.

This article outlines a structured methodology for mapping regulatory frameworks and formulating targeted policy recommendations. The process is illustrated in Figure 1 through a best practice example: the TREASoURcE project’s Deliverable D1.3, which maps EU and national regulations and provides policy recommendations supporting the transition to circular plastics, batteries, and bio-based side and waste streams.

Figure 1. Regulatory mapping and policy recommendation formation process
Figure 1. Regulatory mapping and policy recommendation formation process

Step 1.1: Mapping the Regulatory Framework

The foundation of systemic regulatory analysis begins with mapping the legislative landscape. This includes:

  • Identifying relevant policy instruments at EU, national, and local levels. These include regulations, directives, strategies, communications, and technical standards.
  • Classifying instruments based on their legal nature (binding vs. non-binding), scope, and impact.
  • Establishing geographic and sectoral scope, focusing, for instance, on specific value chains like plastics, batteries, or biowaste.

In the TREASoURcE project, the team conducted comprehensive desk research to catalogue policies impacting the circular economy across three key sectors. They included both existing and upcoming legislations and technical standards, as well as examined how these frameworks are implemented in specific countries—Finland, Norway, and Estonia—highlighting variations in interpretation and impact.

This mapping is best documented in a structured table that summarises each policy’s objectives, instruments, and its relation to circularity. This format also facilitates stakeholder validation in later stages.

Step 1.2: Identifying Regulatory Drivers and Barriers

Once the landscape is mapped, the next critical step is to identify what supports or impedes circularity. This involves:

  • Analyzing policy instruments for enablers (regulatory drivers) such as recycled content mandates or extended producer responsibility (EPR).
  • Spotting barriers, like the lack of harmonized recyclate quality standards, conflicting legal definitions, or regulatory focus on low-hierarchy waste solutions (e.g., recycling over reuse).
  • Categorizing drivers and barriers by type (e.g., financial, institutional, technical) and where they occur in the value chain (design, production, consumption, end-of-life).

In TREASoURcE D1.3, this analysis revealed that while EU legislation often promotes recycling, it sometimes neglects upstream solutions like reuse and eco-design. For example, the Battery Regulation strongly emphasizes recycling targets but lacks clarity on incentives for second-life applications.

Data collection tables were used to log insights systematically, allowing comparison across sectors and policy types.

Step 2: Stakeholder Engagement and Validation

Policy change cannot occur without multidisciplinary collaboration. Engaging stakeholders ensures that the identified barriers and proposed solutions reflect real-world conditions. The TREASoURcE approach involved:

  • Organizing thematic workshops for each value chain.
  • Dividing participants into small groups to discuss policy obstacles and brainstorm solutions.
  • Validating findings through written feedback and a final review workshop with EU policymakers.

Stakeholders included industry actors, public authorities, researchers, and NGOs. This participatory process strengthened the credibility and practicality of the policy proposals.

Step 3: Formulating Policy Recommendations

With validated data in hand, the final step is to form evidence-based policy recommendations tailored to each targeted value chain. This should follow a consistent structure:

  • Context: Define the background and key issues.
  • Example(s): Present case studies illustrating the policy gap or success.
  • Recommendation: Propose actionable measures such as regulatory revisions, standard development, or new incentives.

For instance, TREASoURcE proposed eco-modulation of EPR fees to reward recyclable plastic packaging, standardized recyclate quality metrics to enhance trust in secondary materials, and clearer regulation for bio-based packaging.

These recommendations were compiled into a policy recommendation framework and cross-validated by stakeholders, ensuring relevance and feasibility. Policy formation is not a linear path; it requires repeated feedback loops to refine recommendations and adapt them to diverse regulatory contexts and practical challenges.

Learn More:

For a detailed example of how this methodology was applied in practice, including comprehensive regulatory mapping, policy analysis, and concrete policy recommendations across plastics, batteries, and biowaste, refer to: TREASoURcE Deliverable D1.3 – Legislative and Regulatory Framework for Target Value Chains