site.btaOECD Offers Policy Recommendations for Accelerating Sofia's Circular Transition

Sofia faces significant governance challenges in advancing its circular economy agenda. These include a lack of measurable targets, an overemphasis on waste management rather than a holistic circular approach and limited financial incentives for businesses, according to the latest policy paper by the Organisation for Economic Co-operation and Development (OECD), The Circular Economy in Sofia, Bulgaria.

The OECD provides policy recommendations for accelerating the circular transition in Sofia based on the organization’s 3Ps framework (people and firms, policies, and places). 

The paper notes that Sofia has become a key innovation hub in Southeast Europe and one of the fastest-growing start up ecosystems. The city could leverage its existing innovation ecosystem as a catalyst for accelerating the circular economy transformation. For example, Sofia could turn the Centre for Competence on Clean Technologies into a central hub for circular innovation through hackathons, open calls for sustainable solutions, and collaborative research projects with universities. The city could set up outreach efforts actively involving local businesses, residents, and investors through initiatives like public challenges or hackathons to develop circular solutions. Additionally, Sofia could enhance citizen participation through Circular Economy Roundtables and the Circular Voices online platform, fostering dialogue and collaboration on sustainable solutions. The city could also foster a collaborative ecosystem by connecting established businesses with start ups, the policy paper reads. Sofia could also attract investors by establishing a Circular Economy Investment Fund and a Green Business Accelerator, providing financial backing and supporting start ups that want to develop circular economy related business and projects.

The paper also says that Sofia could become a role model by integrating circular economy principles into the operations of public institutions, including services, economic activities and infrastructure. First, Sofia could optimize resource efficiency (e.g. by prioritizing climate-neutral designs in public buildings), enhance waste reduction and recycling targets (e.g. by promoting waste prevention programmes and separate waste collection), and extend the lifecycle of municipal fixed assets (e.g. by requesting sustainable solutions for services like catering and event planning). Second, Sofia can position itself as a testbed for circular innovations by offering public spaces and infrastructure to pilot projects like urban furniture made from recycled materials or services such as second-hand markets and repair cafés. The city could enhance transparency, building on evidence-based information.

Indicators to monitor residents’ well-being — such as air quality, green space access, and green job creation — could inform policy making, while active communication, including publishing reports and running campaigns, could highlight the benefits of circular initiatives, such as reduced waste, energy savings, and economic advantages.

With its compact, high-density city centre, Sofia is well positioned to optimize resource use by reducing infrastructure and service needs and costs (e.g. roads and water systems). However, such benefits are counterbalanced by challenges, including the need for efficient waste and wastewater management systems and the constraints posed by limited land availability. In contrast, low-density areas surrounding Sofia’s city centre may face higher costs and logistical challenges for waste collection and recycling services. These contrasting dynamics underscore the need for a tailored and dual-approach solution to the circular economy in Sofia. The city could tailor circular economy solutions at scale by expanding waste drop-off points with smart monitoring, introducing mobile collection units for peripheral areas, and setting up localized waste hubs for sorting, repair, and upcycling, the OECD paper says.

Sofia could also pilot zero-waste neighbourhoods with incentive programmes, promote urban farms using composted waste, and support repair centres and second-hand markets with digital platforms.

Repurposing idle infrastructure into innovation hubs can foster community-driven circular initiatives. In low-density areas, Sofia can incentivize decentralized wastewater treatment and renewable energy communities, streamlining regulations and launching pilot projects to encourage adoption.