By strategically combining public policy and private sector innovation, especially among micro, small, and medium-sized enterprises (MSMEs), the region can turn this policy challenge into a blueprint for inclusive and sustainable economic growth.
Making the shift: The circular economy imperative
The transition to electric vehicles (EVs) isn’t merely about cleaner and sustainable transportation and energy transition options; it’s a fundamental shift in how we utilise, recover and repurpose resources.
The circular economy, built upon the “R” principles (Reduce, Reuse, Recycle, Repurpose, Recover), provides a strategic framework to maximize battery material value, minimize waste and sever the link between economic growth and climate action. These principles are essential for sustainable battery waste management. Yet, realizing this ambitious vision extends beyond technology; it hinges on fostering a skilled workforce and cultivating innovative business models. Consequently, education and capacity-building become key drivers. Without a broad understanding of the country specific context and practical implementation of circularity principles, the promise of a truly sustainable ecosystem will not be met by 2030. In 2025, the Jaipur Declaration on 3R and Circular Economy provided crucial ideas and solutions for transitioning to circularity in end-of-life batteries and vehicles.
Integrating policy frameworks: National, regional and global ambitions
Addressing EV battery waste demands a collaborative approach; no nation can solve it alone. Governments are crucial in establishing robust regulatory frameworks, such as Extended Producer Responsibility (EPR) schemes, mandatory recycling targets and eco-design standards. These policies must align with international climate agreements, like those forged at COP29 in Azerbaijan in 2024. Such global discussions underscore both ambitious emissions reduction targets and the critical importance of circular economy principles for achieving net-zero. By legally codifying these requirements and connecting them to transparent reporting and monitoring, governments ensure that localized efforts effectively contribute to broader climate and sustainability goals.
Harnessing synergies: Circularity, finance, and multi-stakeholder policy dialogue
The transition to a circular economy for EV batteries is most effective through synergistic collaboration. At its core, this synergy involves integrating circularity principles, innovative financial mechanisms, and multi-stakeholder engagements. These engagements and dialogues should bring together government agencies, private sector leaders, MSMEs, civil society and academia.
Circularity extends beyond just recycling; it’s about fundamentally rethinking the entire value chain. National and regional engagements are crucial for facilitating the sharing of best practices, harmonizing standards and coordinating the cross-border flow of recyclable materials. These collaborative regional and national platforms are instrumental in scaling up advanced recycling infrastructure, promoting eco-design and embedding circular economy principles at every stage from product design to end-of-life management. Equally vital is financial innovation, which necessitates the integration of digital technology and innovative policies to facilitate widespread investment in digital public goods and infrastructure across various sectors.
National governments, often partnering with regional and international development agencies and banks, can play a pivotal role. They can provide grants, concessional loans and investment guarantees to lower barriers for MSMEs and startups entering the battery recycling and repurposing market. By coupling financial support with technical training and capacity-building, these initiatives empower local businesses to drive innovation, create green jobs and strengthen regional supply chains.
Leveraging education: Empowering MSMEs
The ESCAP Sustainable Business Network (ESBN) Position Paper on the circular economy underscores the fundamental role of education in bridging the gap between policy and practice. Comprehensive public awareness campaigns are vital for promoting responsible EV battery disposal and educating communities about the dangers of unsafe informal practices. Equally important is targeted capacity building and technical training for MSMEs, technicians and recyclers, which cultivates the expertise needed to safely handle, process, and innovate with battery waste, ensuring local methods meet international standards. The recent Fourth International Conference on Financing for Development also emphasized the critical need for appropriate incentives, particularly those supporting MSMEs.
Looking ahead: The region’s blueprint for a low-carbon future
The Asia-Pacific region has a transformational opportunity to elevate its knowledge-sharing and capacity-building in circular economy innovation. ESCAP stands ready to support this pivotal shift. This is not just about managing waste. It’s about reimagining the value of a circular economy: fostering green job creation, strengthening education and nurturing innovation that serves both people and the planet, a vision underscored in a recent ESCAP policy document.
Seamlessly integrating national policies with regional frameworks and global commitments is essential. So is deploying smart development financing instruments, digital tools and cultivating synergistic public-private partnerships. With the right approach, the Asia-Pacific region can transform EV battery waste from a daunting environmental challenge into a powerful engine for inclusive and sustainable economic growth, new employment opportunities and enhanced climate resilience.
Authors: Anupam Khajuria, Research Fellow and Academic Associate, United Nations University – Institute for the Advanced Study of Sustainability (UNU-IAS), Tokyo, Japan; Sudip Ranjan Basu, Chief of Sustainable Business Network Section, ESCAP
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.