Green Industrial Diplomacy: Why Do Circular Economy Transitions Need It?

Abstract

The shift from a linear production model to circular economy (CE) strategies has emerged as a central focus in industrial sustainability policies. However, the existing literature is fragmented across various disciplines, sectors, and regions, resulting in an insufficient understanding of the international aspect of cross-border circular transitions. Given that circular value chains are transnational, activities must be coordinated across jurisdictions with varying capacities to enforce regulations; domestic policies and business strategies are therefore insufficient in isolation. This perspective argues that circular transitions rely on green industrial diplomacy (GID), which is the strategic inter-governmental and inter-industrial diplomacy that facilitates sustainable industrial transitions beyond national borders. We define GID as situated at the intersection of environmental governance, industrial policy, and international relations, and we differentiate it from concepts with which it is frequently conflated, such as environmental, climate, and science diplomacy, as well as green industrial policy. We then set out its core functions, including policy coordination, technology transfer, capacity-building, and stakeholder alignment, and explain why these are particularly necessary for circular transitions. By positioning GID as a meso-level process that connects multilateral agreements with firm and sector practices, we argue that circularity cannot be governed solely by national policy, and we propose a research agenda.