Localizing Portfolio Approach in Circular Economy

by Sharleene Kay Alayan, Elmerei Cuevas, and Dee T. Urtua, UNDP Philippines

April 30, 2025

Group of people cleaning litter from a beach under tropical trees.

In a world battling the triple planetary crises of climate emergency, biodiversity loss, and waste and pollution, a circular economy offers hope. By redesigning systems to regenerate natural ecosystems, keep materials in use, and minimize waste, a circular economy not only provides crucial solutions to sustainability challenges but also unlocks new economic opportunities. But moving away from deeply rooted linear systems is far from easy—it calls for bold, interconnected action that goes beyond quick fixes. The shift can be messy and uncertain, requiring transformative leadership from local governments and communities to turn ambition into real, lasting change. To support this complex transition, the portfolio approach—combining coordinated interventions across systems, policy, and practice—is a valuable framework for driving inclusive and systemic change toward circularity.

Since 2019, the United Nations Development Programme (UNDP) has promoted the portfolio approach throughout Asia-Pacific to address complex development challenges, with Gender Equality, Disability, and Social Inclusion (GEDSI) at its core.

Participants from partner cities during the Local Inception Workshops and site visits

People sorting through large piles of plastic waste in a cluttered, makeshift shelter.

A large group of people posing outdoors, surrounded by greenery and palm trees.

A group of people standing in a circle, holding hands in a well-lit indoor space.

UNDP has been championing the portfolio approach in the Philippines as a signature solution to accelerating the circular economy transition since 2021. To this end, the UNDP Philippines Accelerator Lab began applying the approach through rapid ethnography research to map the different personas' characteristics, interests, and norms related to plastic waste management in a highly urbanized city. The findings helped shape circular economy strategies tailored to specific urban contexts, ensuring greater relevance and effectiveness.

Building on earlier work, similar efforts continued between 2022 and 2024 through the Japan-funded Accelerating Nationally Determined Contributions through Circular Economy in Cities (ACE) project of UNDP. Implemented in partnership with the Department of Environment and Natural Resources (DENR), the ACE project aimed to fast-track the Philippines' transition to a circular economy by supporting climate goals through localized, systems-based interventions. As part of the circular economy portfolio in the Philippines, the ACE Project and the UNDP Accelerator Lab supported demonstration initiatives in five key cities—Quezon City, Pasig City, Caloocan City, Manila City; and Cotabato City in the Bangsamoro Administrative Region in Muslim Mindanao—exemplifying how circular economy solutions can drive inclusive, low-carbon development while advancing local economic, social, and environmental goals.

In 2024, UNDP Philippines expanded its work on the circular economy by launching the Green Local Government Units (LGUs) Project, EUR 23 million in grant funding under the EU-Philippines Green Economy Partnership (EU-GEPP). The project aims to enhance local circular economy actions together with key stakeholders. It launched a core portfolio of interventions for 20 cities and municipalities, with plans to expand support to 40 more to replicate, scale, and accelerate local innovations.

The project launched co-design sessions with the first 10 partner cities using various social innovation tools, introducing circular economy concepts, identifying local challenges, and co-developing portfolios tailored to the local context. The resulting interventions covered key areas such as policy, finance, business models, systems, and GEDSI integration, laying the groundwork for context-driven collaborative action for the 10 pilot cities.

Some of the cities' visions linked to Circular Economy and sample outputs from the Local Inception Workshops

Graphic displaying city vision dimensions, development sectors, investment themes, and SDGs.

Colorful infographic illustrating a circular economy, featuring various sustainable practices and community engagement.

Colorful sticky notes arranged on a bulletin board with various project ideas and opportunities.

Flowchart illustrating various project strategies categorized by potential and challenge levels.

Illustration of a plant growing from a cut plastic bottle, with multiple choice options listed.

For instance, Baguio City, with the vision of a "Creative, Inclusive, and Livable City", focused its CE portfolio on organic circularity, policy development, and educational modules that integrate Indigenous practices and the welfare of GEDSI groups such as informal waste workers.

Ormoc City, pursuing the vision of a "Smart and Green City", has now embedded circularity in its Comprehensive Development Plan and is advancing awareness strategies, stakeholder education, and testing new business models.

Introducing the portfolio approach for a circular economy was initially challenging, as many partners were unfamiliar with the concept, how it works, and why it matters. From this experience of co-designing a portfolio of interventions, we learned the following key lessons:

The portfolio approach enables systemic and integrated solutions. No single project or actor can create a lasting impact in isolation. The portfolio approach allowed us to identify "interconnected" interventions and engage stakeholders—local government, private sector, academe, civil society, and GEDSI groups—working on different aspects of a shared problem to accelerate the circular economy transition collectively.
Co-designing builds ownership and sustainability. By embedding co-design throughout the process, stakeholders were empowered to identify priorities that align with their local contexts. As a result, the interventions developed fostered ownership, relevance, and long-term commitment.
Simplification matters. Given CE concepts are technical, gamification and mixing with interactive, visual tools helped explain the concepts and provided a more engaging learning environment for the local partners to co-design solutions.
Leverage existing CE efforts: Many local partners are already applying the elements of the portfolio approach through their local development plans and stakeholder engagement. Thus, our support focused on supporting and strengthening these efforts towards circularity. Sean Maralit of the City Government of Caloocan noted their realization that circular economy initiatives already exist and are actionable for different players to contribute to.

A woman in a black blazer gestures while speaking into a microphone next to a chart of sticky notes. — Sean Crisley Maralit, City Government of Caloocan Manpower Development Officer II, during the Local Inception Workshop

This experience showed us that circularity isn't new—and that the shift is already happening in many local plans and practices. The portfolio approach offered a way to connect these efforts, highlight shared priorities, and co-design solutions that stick. By breaking down complex concepts and putting local ownership at the center, we helped turn ideas into actions. At the core of this shift, local governments and communities are leading the way toward a more circular future, one initiative at a time. Thus, UNDP's commitment to support this shift and promote an integrated approach to accelerate a circular economy continues.

On 4 April 2025, the Green LGUs Project launched its Call for Proposals for (1) Community Grants and (2) CE Education and Behavioral Change Grants, providing more opportunities for more stakeholders to contribute to the portfolio of solutions of the partner cities.

Learn more about the Cities' circular economy portfolio of solutions and apply for the grants by visiting this link. The Call for Proposals runs from 4 April to 19 May 2025.