By Adv. Sharon Artzy, Environmental Lawyer and Circular Economy Regulation Expert, Partner and Head of Environmental, Climate and Circular Economy Law at Abadi & Co.
Lawyers, and founder of Israel’s Circular Economy platform, Circular Economy Israel.
For many companies, new environmental regulation is perceived primarily as a burden: additional costs, complexity, and compliance risk. With over two decades of experience as an environmental lawyer, advising boards and management teams when new regulatory requirements are introduced, this reaction is familiar—concern, resistance, and a focus on “how much will this cost us.”
However, circular economy regulation tells a different story. Having participated in drafting Israel’s electronic waste legislation and later co-founding the company that implements that same law for more than half of Israel’s electronics and battery importers, Sharon Artzy has seen firsthand how regulation can create new, profitable markets. Circular Economy regulation is not only ethically and environmentally justified; it can be a catalyst for new business models and revenue streams.
Israel: From Compliance Obligation to New Business
In Israel, car importers—long-time distributors of leading global vehicle brands—are now moving into battery recycling. They are preparing for forthcoming Israeli regulation, expected to align with new EU battery rules that will require them to collect and recycle traction batteries from the vehicles they sell.
These companies face a strategic choice: treat compliance as an external cost, or internalize the obligation and build new capabilities. Those that choose the latter are transforming a regulatory requirement into a business asset - creating new lines of activity based on the recovery of valuable materials such as lithium, cobalt, and nickel, and providing services to other market participants.
This approach reflects a different way of thinking about regulation. Rather than viewing it solely as a constraint, it is treated as a market signal—a clear indication that new infrastructure, services, and technologies will be needed. The question then becomes: who will provide them?
International Perspective: From Israel to India
While Israel provides a strong example of how regulation can generate new markets, India offers a complementary perspective on circular economy regulation in a fast-growing, large-scale economy. By comparison, Europe is working to adapt and retrofit existing systems to meet new circular standards, whereas India is in the process of building much of its circular framework from the ground up.
This creates two important advantages for early movers:
- The ability to leapfrog legacy systems and design circular infrastructure that is more cost-effective and efficient.
- The opportunity to shape emerging standards. Karnataka is one example of how Indian states are experimenting with circular economy frameworks, and its approach – alongside emerging initiatives in regions such as Pune – may influence policy across India and beyond.
For Israeli and international companies alike, this opens a space for regulatory and commercial collaboration—aligning Israel’s experience in innovation and regulatory design with India’s scale and implementation capacity.
Regulation as Strategic Signal
From a strategic perspective, waiting until enforcement begins is often the most expensive and least effective way to respond to new regulation. Circular transformation requires time: redesigning products, adjusting supply chains, building new data systems, and integrating new partners. Organizations that act early are better positioned to define standards, secure long-term partnerships, and identify new value streams.
From National Roadmaps to Corporate Roadmaps
More than 70 countries worldwide have already adopted circular economy roadmaps. A similar level of strategic planning is increasingly expected from companies.
As part of a joint initiative between the Circular Economy Regulation Department at Abadi & Co. Lawyers and Circular Economy Israel Ltd., we support organizations in building circular economy roadmaps that connect regulatory compliance with clear business outcomes. This includes mapping regulatory exposure, identifying circular opportunities in products and operations, and designing governance and data frameworks that align with emerging standards such as the EU CSRD and the International Circular Economy Standard.
Regulators are now explicitly asking: Do you have a strategic plan for your circular transition? For many companies, the answer will need to be “yes” sooner than expected.
How We Can Help:
Circular regulations should not be viewed purely as a cost. Treated correctly, they are a forward-looking market signal that can guide investment, innovation, and competitive positioning.
Abadi & Co. Lawyers, through its Environmental, Climate and Circular Economy Law practice led by Adv. Sharon Artzy, together with Circular Economy Israel, advises companies and industries on:
- Designing regulatory and circular economy strategies that anticipate upcoming requirements.
- Structuring business models and partnerships around circular obligations (such as product take-back, recycling and extended producer responsibility).
- Integrating circular roadmaps with broader ESG, climate, and reporting frameworks.
