Strategy for Circularity Enhancement in Bioeconomy Sector: A Case Study from Biogas Sector of Nepal

The circular bioeconomy (CBE) aims to enhance the value of renewable biowaste by recovering resources, and the biogas sector, in particular, is a promising area within CBE. Despite the availability of diverse waste types, developing countries have mainly focused on circulating domestic waste. This study aims to formulate a strategy to enhance Nepal’s biogas-based circular bioeconomy (BGCBE) using the widely employed PEST-SWOT methodology. The biogas sector was analyzed from political, economic, social, and technical (PEST) perspectives, drawing from relevant literature, primary and secondary data, and international practices observed within the BGCBE. Key drivers and barriers in terms of strengths, weaknesses, opportunities, and threats (SWOT) were identified to enhance circularity within the sector. Key drivers supporting the BGCBE include a state-sponsored regulatory body promoting the biogas sector through financial incentives, the availability of various waste resources, and the involvement of local elected bodies as facilitators for municipal solid waste (MSW)-based biogas plants. However, several barriers were identified, such as a lack of community awareness about the importance of waste segregation and the environmental benefits of BGCBE, limited technical skills among household biodigester (HBD) users, the unavailability of technically skilled manpower, and the underutilization of waste resources for valorization. Stakeholder perspectives were integrated to validate the SWOT analysis and develop comprehensive strategies. Key proposed strategies include incentivizing bio-based product competitiveness through premium pricing policies, extending carbon trading opportunities, and raising community awareness about the ecological benefits of waste-based products. Policy interventions such as mobilizing unused waste resources, strategically locating biogas plants, and fostering stakeholder collaboration are recommended to advance the BGCBE in Nepal. © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2024.