By Anupam Khajuria and Sudip Ranjan Basu
BANGKOK, Thailand, Jul 22 2025 – The Asia-Pacific region is becoming a showcase for regional solutions. As electric vehicles (EVs) rapidly gain traction, the region must confront a dual challenge: managing the environmental and health risks of end-of-life EV batteries, while actively pursuing the economic and technological opportunities of a circular economy.

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 EVs isn’t merely about cleaner and sustainable transportation and energy transition options; it’s a fundamental shift in how we utilize, recover and re-purpose resources.

The circular economy, built upon the five “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.

Anupam Khajuria is Research Fellow and Academic Associate, United Nations University- Institute for the Advanced Study of Sustainability (UNU-IAS), Tokyo, Japan; Sudip Ranjan Basu is Chief of Sustainable Business Network Section, ESCAP, Bangkok.

IPS UN Bureau

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