Integrated and sustainable transitions: circular economy and e-commerce

The meeting started with welcoming remarks from the organizing entities. The League of Arab States welcomed participants, highlighting the importance of the regional circular economy mechanism that will  be discussed during the forum, and emphasized Arab countries’ growing interest in national green and circular economy plans, hoping that the discussions would generate constructive recommendations, to be presented at the upcoming session of the Council of Arab Ministers Responsible for the Environment in Mauritania in October.

The Arab Organization for Agricultural Development (AOAD) underscored the importance of the meeting in developing innovative solutions to address the unprecedented environmental and economic challenges affecting the stability of Arab communities, particularly resource scarcity and climate change. The organization highlighted the circular economy and agricultural E-commerce as strategic options to empower youth and enhance sustainability, while commending its collaboration with ESCWA in preparing guidelines for expanding the use of E-commerce in agriculture and policy briefs promoting the water-energy-food nexus to reduce food loss.

For its part, ESCWA highlighted the importance of regional cooperation in supporting the transition toward more sustainable consumption and production patterns, enabling communities to cope with resource scarcity, and advancing environmental justice. ESCWA also underlined the need for private sector engagement to accelerate the circular economy transition in the Arab region.

The session concluded with an overview of the meeting’s objectives and agenda, followed by an introductory exchange among participants.

During this session, regional and national guidelines from Iraq and Algeria developed by ESCWA in collaboration with AOAD were presented, aiming to expand the adoption of E-commerce in the agricultural sector to reduce food loss. Discussions highlighted key challenges, including the complexity of agricultural value chains due to fragmented production and reliance on many small farms, difficulties in using e-payment systems, as well as issues related to quality control and logistics. Participants emphasized the need to build the capacities of farmers, engineers, and institutions through intersectoral committees (ministries, the private sector, and civil society organizations), establish a database of producers and investors, and adopt clear product standards that build trust and support expansion. Digitalization was also highlighted as a tool to improve resource efficiency and increase productivity across the agricultural value chain.

During this session, two policy briefs developed by ESCWA in collaboration with AOAD were presented, focusing on the adoption of the Water-Energy-Food (WEF) Nexus approach to enhance resource efficiency and reduce food loss. The session included a presentation by the International Water Management Institute, which highlighted successful practical applications from the Arab region where the Water-Energy-Food-Environment (WEFE) Nexus was used as a tool to support policy development and guide interventions.

Morocco’s experience demonstrated how scientific indicators can be used to identify priority areas based on the severity of risks, while Egypt’s experience emphasized the importance of strengthening coordination among sectoral policies and accelerating collaboration between relevant institutions.

A sustainable development advisor from the League of Arab States noted that food loss and waste in the region exceed global averages, reaching between 35% and 40%. He stressed that food loss represents an economic challenge for countries already burdened by financial constraints, which hinders their progress toward sustainable development.

The session also reviewed the efforts of the League of Arab States’ Committee on Ending Hunger, in collaboration with Arab parliaments, to develop legislation aimed at reducing food loss. The discussion underscored the importance of political support for implementing the WEFE Nexus approach and establishing the necessary institutional and legislative frameworks.

In the context of reducing food loss, a representative from the Food and Agriculture Organization of the United Nations (FAO) outlined key challenges that hinder progress in this area. These include the lack of reliable data, weak enabling environments for investment, low awareness of the economic impacts of food loss, and the absence of effective market incentives and regulatory frameworks.

He also presented a set of recommendations to support regional efforts, including strengthening policies and legislation, improving measurement and monitoring of food loss, adopting an integrated and systems-thinking approach across sectors, and enhancing public-private partnerships to mobilize investment and innovation.

The session concluded with examples from Egypt showcasing research and startups that are applying circular economy practices in their operations.

This session focused on the role of the private sector and entrepreneurship in supporting the transition toward more sustainable approaches. The experience of “SEKEM” in Egypt was presented, which integrates support for community, farmers, and the environment. Participants were introduced to the concept of the “Economy of Love” and its ambitious 2028 goals, which include supporting 250,000 farmers, alongside the organization’s efforts to promote the adoption of a voluntary carbon law. Morocco’s pioneering “Green Generation” strategy was also highlighted, focusing on integrated investment and farmer aggregation to support smallholders. In Saudi Arabia, the King Salman Park initiative was showcased as a model for ecosystem restoration and the enhancement of green cover in Riyadh using recycled water and compost from organic waste, within a sustainable environmental vision for the city. The session concluded with success stories from Egypt on women’s economic empowerment through digital training and the “Qodwa-Tech” initiative. The representative of the Federation of Egyptian Industries emphasized the importance of establishing a comprehensive regulatory and legislative framework for e-commerce. This framework should include product traceability across the value chain, the definition of clear and binding technical standards, the creation of official digital platforms, and the assurance of food safety and consumer protection within the context of digital trade.

The session featured presentations of success stories and practical experiences in initiating and expanding circular economy applications. These covered public policies, infrastructure and institutional development, investment attraction, and strengthening partnerships with the private sector. The presentations also addressed the identification of gaps and priority sectors for transitioning to a circular economy, capacity building, and linking policies to actionable implementation plans. These themes were illustrated through national and regional experiences from Egypt, Jordan, Morocco, Saudi Arabia, Tunisia, Oman, and the United Arab Emirates.

Discussions during the session highlighted the importance of regional cooperation in driving the transition, ensuring mutual benefits and empowering local communities through more sustainable practices. The session also underscored the need to collect reliable data from both public and private sectors and to establish an accredited regional database to support decision-making. This database would serve as a starting point for measuring the economy, analyzing material flows, and identifying priority industries and policies.

Participants called for the formation of a regional coalition comprising countries from the region to work toward a shared goal. This would include data analysis, pilot project implementation, mobilizing financing, and reforming policies, tax structures, and subsidies to create an enabling environment. The discussions also touched on the need to leverage the growing interest in the circular carbon economy across Arab countries.

The session opened with a presentation by the Department of Environmental Affairs and Meteorology at the League of Arab States, outlining the background of the proposal to establish a regional mechanism to support the circular economy in the Arab region. This proposal was developed in response to recommendations from the regional consultations held in August 2024 and was endorsed by the Council of Arab Ministers Responsible for the Environment through Resolution No. 660.

ESCWA then presented three proposed scenarios for the regional mechanism: (1) an open, interactive digital platform accessible to all stakeholders; (2) a closed LinkedIn group to connect experts and professionals; and (3) a voluntary regional committee comprising governments, the private sector, and civil society.

Participants discussed these proposals based on criteria such as cost-effectiveness, scalability, legitimacy, governance, inclusiveness, sustainability, and transparency. They also highlighted potential joint activities that could be implemented across all scenarios, including the creation of a regional database, organization of regional workshops, and development of policy papers.

Discussions emphasized that this phase represents a foundational step toward identifying the most suitable format for a regional mechanism that enhances coordination, supports knowledge exchange, and unifies efforts to accelerate the transition to a circular economy in the Arab region.

The presentation also highlighted the significant economic opportunities offered by the circular economy, drawing on national experiences from several Arab countries. It called for supportive legislation, mobilization of financing, and greater involvement of the private sector and youth in leading this transformation.

Following the presentations and discussions, participants were divided into four multi-stakeholder working groups, including representatives from ministries, the private sector, and regional and international organizations, to discuss and evaluate the proposed scenarios for regional cooperation, with the aim of selecting the most appropriate option.

The sixth session was dedicated to presenting the outcomes of the working groups and discussing the three proposed scenarios for a regional cooperation mechanism in the field of circular economy. The evaluation was based on criteria such as cost-effectiveness, scalability, legitimacy, governance, inclusiveness, sustainability, and transparency.

The first group proposed establishing a joint Arab mechanism under the umbrella of the League of Arab States or ESCWA, in the form of a permanent technical committee with defined quantitative goals. Their proposal included harmonizing legal frameworks, supporting research and financing through a regional fund, and ensuring the involvement of all relevant stakeholders.

The second group suggested combining the three scenarios into a single integrated approach managed by a regional entity.

Meanwhile, the third and fourth groups prioritized the third scenario, a regional coordinating committee, as the most suitable option, ranking the other scenarios as less favorable.

The discussions concluded with a near consensus that the third scenario is the most appropriate, with the possibility of integrating elements from the first and second scenarios. It was also proposed to use the term “partnership” instead of “committee” to convey a more flexible and inclusive nature for the proposed mechanism.

The discussions concluded with broad consensus that Scenario Three, a voluntary regional coordinating committee, is the most suitable option for establishing an Arab regional cooperation mechanism, as it combines legitimacy with flexibility and allows broader participation of states and stakeholders. It was agreed that digital platforms or professional groups could serve as interim tools to support the committee’s work until a full institutional structure is developed. A collective proposal, reflecting the outcomes of the working groups and the inputs presented, will be submitted to the Council of Arab Ministers Responsible for the Environment at its upcoming session in Nouakchott in October 2025, paving the way for a regional mechanism capable of coordinating efforts and enhancing knowledge exchange to accelerate the transition toward a circular economy in the Arab region.The meeting concluded with reaffirmation from ESCWA and the League of Arab States about their commitment to provide technical support and formulate a shared vision based on the recommendations, while underlining that the final decision depends on member states.

It was further emphasized that circular economy should remain on the agendas of environment, economy, industry, and trade ministers across the Arab region, and that sustained cooperation among regional and international organizations, the private sector, and civil society will be essential.