Closing the loop locally: transition barriers to nontoxic circularity in the built environment in a Swedish municipality

Circular economy is promoted globally as a framework for tackling resource scarcity, pollution, and climate change by enabling the reuse of products, materials, and energy rather than discarding them. An important yet often overlooked aspect of circular economy concerns the presence of hazardous chemicals in recycled materials. Since these chemicals are present in everyday products, they will inevitably enter the recycling loop and end up in new products. Actors such as governments and industry often propose that local authorities drive a circular transition, as their mandates can significantly shape how circular policies and regulations are implemented. This objective is particularly notable for its use of green public procurement as a strategic policy tool. However, metrics such as the Circularity Gap Report reveal a large discrepancy between the societal vision and the actual transition to circularity. This study improves understanding of the potential of local authorities, such as municipalities, to enable nontoxic circularity. Through an interactive governance lens, it focuses on innovation, facilitation/cooperation, and knowledge dissemination, employing semi-structured interviews to examine the potential for a circular transition of the built environment in a Swedish municipality. The article shows that municipal opportunities to drive a nontoxic circular economy are hampered by a complex interplay of conflicting obligations, mandates, and actors, along with built-environment linearity, an absence of political will, and a lack of viable market alternatives. Furthermore, uneven responsibility and limited organizational capacity and cooperation at the local scale limit the transition to nontoxic and circular cities.