Advancing to a Circular Plastic Economy: A Systematic Review of Policy Instruments

The transition to a (CE) in plastic waste management is increasingly recognised as a pivotal pathway to achieving long-term environmental sustainability. Policy instruments are critical in facilitating this transition, yet their effectiveness varies significantly across regions due to contextual differences in governance, infrastructure, and economic incentives. This study undertakes a systematic literature review to critically assess the global application of policy instruments that support CE practices in plastic waste management, with a particular emphasis on the Malaysian context. Using the ROSES methodology, this study analyses academic literature and policy documents to categorize instruments into five types: regulatory, economic, informational-based, collaborative, and investment. The analysis identifies key policy gaps, fragmentation, and a lack of sector-specific strategies within Malaysia’s current CE policy framework. Drawing on international best practices, this study proposes an integrated, multi-instrument policy model tailored to Malaysia’s institutional and economic landscape. The findings offer strategic policy insights and a conceptual foundation to guide more effective CE implementation in developing economies, thereby contributing to ongoing academic and policy discourse on sustainable plastic value chain governance.