Legislative Yuan Passes Resource Circulation Promotion Act, Marking a New Era of Resource Circulation in Taiwan

To promote sustainable resource utilization, implement "Zero Waste through Resource Circulation," and advance key strategies of "Taiwan's Pathway to Net-Zero Emissions in 2050," the draft amendment to the "Resource Recycling Act "—now renamed the "Resource Circulation Promotion Act"—was passed by the Legislative Yuan today (June 2).

Minister of Environment Peng Chi-ming and Director-General Lai Ying-ying of the Resource Circulation Administration attended the session in person to express their gratitude, extending special thanks to Convener Lin Yueh-chin and all committee members across party lines from the Social Welfare and Environmental Hygiene Committee of the Legislative Yuan for their collective support. Legislator Wang Zheng-xu also stated that this legislative amendment aligns Taiwan's resource circulation policies and regulations with international standards. The passage of this bill not only demonstrates Taiwan's determination to drive a circular economy and resource sustainability, but also symbolizes Taiwan’s official transition from "waste management" to a new era of "resource circulation," establishing a vital legal foundation for a comprehensive life-cycle resource management system.

The Ministry of Environment pointed out that in the face of resource depletion, the shifting trends of international green supply chains, and global climate change, resource circulation has become a crucial key to national sustainable development and industrial competitiveness. This amendment centers on the core directions of "source reduction and resource circulation." Through institutional innovations and cross-departmental integration, it aims to comprehensively transform the industry from a linear economy into a circular economy, ushering in a new era of circulation for Taiwan.

Integrating Full Life-Cycle Management to Establish a Circular Governance System

This amendment marks the first time that the entire life cycle of a product—spanning design, production, consumption, recycling, to reuse—has been incorporated into the regulatory management system. Moving forward, the government will formulate a National Resource Circulation Plan and establish a cross-departmental "Resource Circulation Promotion Council" to integrate central and local resources to jointly drive the development of the circular economy.

Furthermore, this amendment introduces an ecodesign framework. In the future, specific products and construction projects may be mandated to adopt designs that are easy to disassemble, utilize a single material, or incorporate a designated percentage of recycled contents, thereby minimizing resource waste at the source and maximizing reuse efficiency. Concurrently, designated business operators can be required to implement measures such as reuse, reduction, extended product life, or restrictions/prohibitions on use, reducing reliance on virgin resources.

Promoting Sustainable Consumption and Creating New Momentum for Circular Industries

To foster public participation in the circular economy, this amendment introduces a new "Circular Label" and product information disclosure system. This allows consumers to understand a product’s recycled content percentage, durability, repairability, and recycling methods, enabling them to purchase circular products or services and driving the sustainable consumption market.

Additionally, the government will prioritize the procurement of circular products and encourage private enterprises to engage in circular procurement to expand market demand. The amendment also establishes an "Innovative Regulatory Sandbox" system. This will allow innovative circular technologies or business models to undergo validation within a controlled environment, assisting circular industries in achieving development and technological breakthroughs.

The Ministry of Environment emphasized that resource circulation is a cornerstone of the net-zero transition, as well as a critical key to enhancing national resilience and industrial competitiveness. Following the passage of this amendment, the Ministry will actively advance the formulation and revision of relevant sub-laws and supporting measures. It will continue to communicate and collaborate with local governments, industries, and non-governmental organizations to progressively improve Taiwan's circular ecosystem. This will ensure that critical resources remain utilized within the industrial chain, steadily moving toward the vision of "Zero Waste through Resource Circulation" and building a resilient, sustainable, and circular Taiwan.

Annex: General Explanation and Articles of the "Resource Circulation Promotion Act" (This English translation is a draft; the officially promulgated English version shall prevail.)