Circular Economy Commerce

What is Circular Economy Commerce?

Circular Economy (CE) Commerce refers to business models within the circular economy that prioritise “Reduce” and “Reuse” to maximise the value of products already in circulation.

The importance of Circular Economy Commerce

The traditional Linear Economy involves mass production, consumption, and disposal. But when facing critical limits due to global resource shortages, rising material costs, and negative environmental impact, we need a different way.

CE Commerce offers a way to decouple economic growth from resource consumption. By keeping products in use longer, it reduces the burden on waste disposal infrastructure and helps regions transition to a more resilient, sustainable economic model.

Benefits of Circular Economy Commerce

Economically, CE Commerce creates new industries and local employment opportunities while reducing municipal waste processing costs. Furthermore, the latest update positions CE Commerce to help Japanese municipalities with unique regional challenges, including aging of public infrastructure, the Akiya (vacant house) problem, and depopulation.

CE Commerce has benefits for social well-being too, like increasing resident convenience, fosters local communities, and allows for diverse lifestyles without the burden of ownership.

Environmentally, it reduces the volume of waste sent to incinerators or landfills. It also lowers CO2 emissions by reducing the need for new product manufacturing.

Government guides to Circular Economy Commerce

Guide for Promoting CE Commerce Businesses

In 2025, Japan’s Ministry of Economy, Trade and Industry (METI) published a guide titled “Guide for Promoting CE Commerce Businesses”, outlining strategies to promote CE Commerce among businesses. It reinforces Japan’s Circular Economy Vision goal, establishing CE Commerce as a major pillar of the nation’s economy and a strategic advantage for global competitiveness.

CE Commerce Guidebook: Supporting the Solution of Regional Issues

The Kanto Bureau of Economy, Trade and Industry followed up with a new guidebook called “CE (Circular Economy) Commerce Guidebook: Supporting the Solution of Regional Issues”. Published March 2026, this guidebook is designed as a manual to implement CE Commerce to address regional issues.

The guidebook introduces five specific business models:
・ Living support sharing (e.g., furniture/appliance rental)
・ Municipality-collected reuse (picking items from bulky waste)
・ Resident-participation reuse (collection boxes)
・ Local skill repair (matching residents with repair professionals)
・ Unused resource upcycling (turning waste into new products)