Approved in May 2025, the National Circular Economy Plan (PNEC) marks a turning point in the way Brazil thinks about its production, consumption and development strategies. The proposal, an unprecedented regulatory framework aimed at the transition to a low-carbon and regenerative economy, breaks with the traditional linear model, based on the extraction, use and disposal of resources, and moves towards a system based on the reuse of materials, the minimization of waste and productive efficiency.
Read also: New sustainable fuels law promises to reduce emissions and boost biomethane
The PNEC was built in a participatory manner, bringing together more than 1,600 contributions from representatives of civil society, the business sector, academia and local governments. This collaborative approach, according to the experts interviewed by LexLegal, gave greater legitimacy to the document and increased its chances of effective implementation. With 71 actions distributed across five strategic axes, the plan establishes everything from regulatory guidelines to financial instruments to encourage companies to adopt more sustainable models.
With ambitious goals and well-defined deadlines, the PNEC is directly connected to international climate and sustainability agendas. This becomes even more relevant with the approach of COP30, which will be held in November 2025, in Belém (PA). In this context, the plan also represents a political position for Brazil, which presents itself as a leader in the debates on ecological transition and low-carbon economy.
For the teacher Flavio Ribeiro, PhD in Environmental Sciences from USP, professor of Circular Economy and ambassador of the Circular Movement, the launch of the plan marks an unprecedented step forward. “Seeing the federal government publishing this decree and the plan with a modern vision of the circular economy, its principles and objectives, is a reason for joy for everyone working in the area,” he says.
He also highlights the cross-cutting nature of the proposal. “The plan reflects the growing engagement of different ministries, such as the Environment, Finance, Foreign Affairs and the MDIC itself, all with initiatives that incorporate the circular economy into their agendas. This shows an important openness in public policy and facilitates the work of those who work in the sector,” he adds.
The main goals include increasing the recycling rate of urban solid waste to 50% by 2030, reducing the generation of hazardous industrial waste by 30%, reusing 40% of water in industry and adopting circular practices in all large Brazilian companies by 2035. If these goals are achieved, the impact on the economy, innovation and the generation of green jobs could be transformative.
“The PNEC emerges as an urgent response to contemporary socio-environmental challenges and places Brazil at the forefront of sustainable economic transformations, aligning itself with international commitments such as the UN 2030 Agenda and the Paris Agreement”, assesses the environmental lawyer. Sarah Martins, from Fonseca Brasil Advogados. According to her, the plan goes beyond a simple declaration of intentions: it is an operational document, with clear guidelines, defined goals and incentive mechanisms for the productive sector.
From a legal perspective, the plan establishes regulatory frameworks that encourage eco-design, remanufacturing, reverse logistics and the efficient use of materials. These practices favor the creation of new business models, especially among startups and small businesses, which now have access to credit lines, tax incentives and priority in sustainable public procurement. In this way, the circular economy is consolidated not only as an environmental issue, but also as a competitiveness strategy.
“The approval of PLANEC represents a fundamental step for Brazil. It not only formalizes a comprehensive and collaborative roadmap for the transition of its economic model to circularity, but also reinforces the country’s commitment to sustainability, innovation and, in an unprecedented way in its depth, social inclusion,” he says. Daisy Granado, specialist in environmental law and ESG at Luchesi Advogados.
The plan is also relevant in the context of decarbonizing the economy. By encouraging the reduction of greenhouse gas emissions, the PNEC strengthens Brazil's position in international negotiations on climate and sustainability. The political and diplomatic timing is also opportune, as holding COP30 on Brazilian soil allows the country to show practical leadership amid global demands for more ambitious actions.
However, the challenges to effectively implementing the plan are significant. The infrastructure for selective collection and sorting of waste is still deficient in much of the country. The tax system continues to penalize recycled products, and the consumer culture in the country is still marked by rapid disposal. In addition, adopting a circular economy requires coordination between federal, state and municipal governments, as well as the private sector.
“A change in mindset, both in the business sector and among consumers, will be essential for the success of the plan,” says Sarah Martins. She emphasizes that collective engagement is essential to ensure the effectiveness of the proposed measures and to prevent the plan from remaining limited to paper.
The five strategic axes of the plan
The PNEC establishes structuring and interconnected actions in five strategic axes:
- Normative and institutional basis
It seeks to consolidate legal foundations, promote integration with existing public policies and reinforce regulatory frameworks aligned with the circular economy. - Promoting innovation, culture and education
It provides for the training of companies and public managers, encouraging applied research, including content on the circular economy in educational curricula and cultural change campaigns. - Efficiency in resource use and waste management
Focus on ecodesign, expansion of infrastructure for reverse logistics and recycling, and better coordination between National Solid Waste Policy and circular strategies. - Financial instruments and sustainable public procurement
Includes mechanisms such as tax incentives, specific credit lines, green financing funds and guidelines for government purchases with sustainable criteria. - Social inclusion, interfederative articulation and decent work
Its central goal is to valorization of collectors, the formalization of work in the recycling chain, strengthening the local circular economy and integrating actions between the Union, states and municipalities.
One of the plan's distinguishing features is its emphasis on ensuring that the transition to a circular economy does not exclude workers, especially those who already work informally in activities related to recycling and reusing materials. In this regard, the plan is close to the principles of just transition, defended by trade unions and international organizations such as the International Labour Organization (ILO).
The axis focused on social inclusion foresees technical and financial support to waste pickers' cooperatives, training programs, access to credit lines and coordination with employment and social assistance policies.”It is essential to recognize and value workers who already practice circularity, even without institutional support.”, Ribeiro points out.
The expectation is that, with the creation of development and regulatory instruments, it will be possible to overcome these structural obstacles and transform the circular economy into a concrete reality. In this process, Brazil can become a reference case for other developing countries, showing that it is possible to grow in a sustainable and inclusive way.
See also: 2025: A milestone for sustainable actions in favor of the environment
By consolidating this paradigm shift, Brazil is aligning itself with global sustainability trends and paving the way for a new generation of economic policies based on circularity. It is also an invitation to Brazilian society to rethink its ways of producing, consuming and living with the environment.
Reproduction: Lexlegal
