Resource Circulation Act Passes Third Reading; Ministry of Environment: Moving from Waste Management to Resource Circulation

The Legislative Yuan passed the "Resource Circulation Promotion Act" in its third reading today. The Ministry of Environment stated that the passage of this bill not only demonstrates Taiwan's determination to promote a circular economy and resource sustainability but also symbolizes Taiwan's official transition from "waste management" to a new era of "resource circulation." This is the most significant amendment to the law since its enactment in 2002, expanding the scope of management to the entire product lifecycle—from design, production, and use to recycling and reuse—and establishing a regulatory sandbox mechanism. The Ministry of Environment issued a press release stating that this law serves as an important legal foundation for promoting sustainable resource use and implementing "zero waste in resource circulation." The Ministry pointed out that the amendment brings the entire product lifecycle under a management system for the first time. In the future, the government will formulate a national resource circulation plan and establish an inter-ministerial "Resource Circulation Promotion Committee" to integrate central and local resources to jointly promote the development of the circular economy. Furthermore, the amendment introduces a green design system, allowing the government to mandate that products and construction projects adopt designs that are easy to disassemble, use single materials, or incorporate a certain percentage of recycled materials, thereby reducing resource waste at the source. Additionally, the Ministry stated that a new circular labeling and product information disclosure system will be introduced, allowing consumers to understand the recycled content, durability, repairability, and recycling methods of products, thereby encouraging the purchase of circular products and driving a sustainable consumption market. The government will also prioritize the procurement of circular products and encourage private enterprises to engage in circular procurement to expand market demand. The act also adds an "Innovation Experimental Sandbox" system, allowing innovative circular technologies or business models to be verified in a controlled environment, assisting in the development of the circular industry and technological breakthroughs. The Ministry of Environment stated that after the passage of this amendment, it will actively promote the formulation and revision of relevant sub-laws and supporting measures, and continue to communicate and collaborate with local governments, industries, and civil society groups to gradually perfect the circulation system, ensuring that key resources remain in the industrial chain for reuse, and steadily moving toward the vision of "zero waste in resource circulation."