Implementing the Circular Economy at the Local Level: Institutional Conditions, Inter-Municipal Cooperation and Multilevel Governance in a Metropolitan Area

The implementation of the circular economy (CE) at the local level remains uneven and strongly dependent on institutional and governance capacities, particularly in metropolitan areas characterised by fragmented administrative structures and differentiated local conditions. This article analyses the determinants shaping CE implementation in municipalities of the Lodz Metropolitan Area (Poland), with particular emphasis on inter-municipal cooperation and multilevel governance mechanisms. The study employs a mixed-methods approach combining semi-structured interviews with municipal representatives, correspondence with municipalities, and the analysis of strategic and institutional documents. The findings indicate that CE implementation in the studied area remains predominantly operational, with activities focused mainly on waste management and educational activities, while more integrated circular practices are underdeveloped. Significant differences were identified between municipalities, resulting from variations in institutional, organisational, and financial capacities, as well as governance capacity. Three types of municipalities were identified according to their level of CE implementation and engagement in supra-local cooperation. The study also reveals that inter-municipal cooperation remains limited, fragmented, and predominantly project-based, while coordination between governance levels is insufficiently institutionalised. In addition, limited cooperation between municipalities and private-sector actors constrains the development of local material loops and more systemic circular solutions. The article contributes to the literature by providing empirical evidence on CE implementation in a metropolitan area in Central and Eastern Europe and by linking circular economy research with multilevel governance and inter-municipal cooperation perspectives. The findings highlight the importance of governance capacity, coordination mechanisms, and supra-local institutional support for strengthening local circular transformation.