Integrating the Informal Sector into Circular Economy Transitions for Carbon Mitigation in Pakistan

Abstract

Pakistan faces a growing solid waste problem, now reaching 50 million tonnes annually, requiring comprehensive legal and environmental reforms. This research assesses the significant, yet largely unquantified, carbon reduction potential of the informal recycling sector, which recovers up to 90% of urban recyclables but remains outside formal regulations. Employing a mixed-methods approach, we combine life cycle assessments (LCA) with field surveys and interviews involving over 200 informal waste workers from Karachi, Lahore, and Islamabad. By comparing legal frameworks from cooperative models in Brazil and India, our results indicate that informal recyclers reduce 0.5 to 1 tonne of CO₂e per tonne of waste processed. Incorporating this sector could help cities like Islamabad recover 26,070 tonnes of waste daily, significantly contributing to Pakistan’s 17% emissions reduction goal under the NDC by 2030. Nonetheless, institutional gaps in the 2023 National Waste Management Policy and EPR schemes exclude these actors, underreporting approximately 12.29 million tonnes of CO₂e annually. We advocate for legal recognition, access to microfinance, and multi-stakeholder platforms as essential steps to align environmental policies with social equity, providing a scalable model for sustainable, low-carbon development in emerging economies.