Three circular economy trends shaping sustainability across the globe

Published: 3 August 2023
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Five adults walking in a garden outside of an energy-efficient building Amsterdam’s Circl was designed and constructed according to sustainable and circular principles, using recycled materials. Elements of the energy-efficient building are easy to disassemble, meaning they can be used again and again.

The support for circularity in our economy – where ‘waste’ as we know it, is eliminated – is growing across the globe. For many countries, a circular economy is crucial to overcoming the challenges our planet is facing.

A circular economy is fundamentally different to a ‘linear’ economy, where things are made, used and become waste when they are no longer needed. In a circular economy, everything is a valuable commodity: all materials are a resource, made into products, used and repaired, then recycled to be made into new products again. Waste is avoided.

But what does a successful circular economy look like in practice? And what is happening globally that we can learn from here in Victoria?

Sustainability Victoria’s Chief Growth Officer Emily Dunstan followed the recent World Circular Economy Forum in Helsinki, Finland to analyse the trends shaping sustainability across the globe.

The forum brought together 1,900 forward-thinkers and action-takers from 155 countries.

While every nation is at a different point in their transition to circularity, Emily says many are grappling with the practical challenges of moving away from a linear economy.

The good news is that these shared barriers and successes across the globe provide us with a valuable opportunity to explore and apply best practice here in Victoria.

Trend 1: A circular economy is about more than just recycling

Recycling is important, but designing out waste completely is even more crucial if we want to reduce our emissions and make an impact in our fight against climate change.

Emily says there is strong global focus on rethinking and refusing products in the first instance so that the need for recycling reduces dramatically.

“If I had a euro for every time I heard about the need to design out waste entirely during the World Circular Economy Forum, I would have returned a lot wealthier,” Emily says.

“There is a growing recognition that any product that must be recycled is still not the ultimate circular economy goal we want.”
Emily Dunstan, Chief Growth Officer, Sustainability Victoria.

California-based Apeel Sciences is one organisation designing out plastic packaging commonly used to preserve our fruit and vegetables, like shrink wrap on a cucumber. Their plant-based coating keeps produce fresh, avoiding food waste and reducing plastic packaging at the same time.

In Victoria, Returnr is also designing out plastic packaging. They supply reusable containers to local producers and suppliers across the state for everything from ice-cream to pasta to dips. Thanks to a grant from Sustainability Victoria, they have also implemented a grocery delivery service, bringing zero-waste groceries to your door.

The impact of transitioning to a circular economy could be profound. In Australia, transitioning to a circular economy could rescue more than $324 million worth of resources that could be used by the manufacturing, construction and agricultural sectors. Just a 5% improvement in materials efficiency could boost the Victorian economy by $6.4 billion. It pays to be circular.

Eight adults on a city sidewalk looking into the camera and holding a blue and white WCEF sign Sustainability Victoria’s Emily Dunstan at the World Circular Economy Forum with members of the Australia and New Zealand delegation.

Trend 2: A circular economy needs collaboration

A major lesson we can learn from the most successful circular economies worldwide is that their circular initiatives are embedded across a range of government departments and agencies, with everyone seeing it as part of their work.

Emily says the Netherlands is a standout in this area, with circular economy projects spread across departments like the Ministry of Economic Affairs and Climate Policy, and the Ministry of Infrastructure and Water Management.

“The Dutch National Circular Economy Programme has 250 measures being looked at, and the responsibilities are embedded in a number of different sectors,” Emily says.

“For example, they’ve developed this ‘eBay’ for second-hand bridges. So, people know when they need a bridge for their project, or want to replace an existing bridge, they can access the list of what is already available and start there to meet that need.”

Closer to home, the Victorian Government has been integrating circular economy principles in policy across different government departments. For example, the Recycled First policy requires bidders for construction projects to optimise their use of recycled materials in new infrastructure like roads and train stations.

By encouraging innovation and developing demand for materials like recycled glass, plastic and tyres, this policy is reducing waste while also improving Victoria’s transport network.

Trend 3: Courage is key

The countries making the biggest progress towards a circular economy are not waiting for the perfect opportunity.

Emily says much of what we need globally is about being brave enough to jump in and get started, and she was impressed by the activity underway in countries with economies at different scales.

“It’s no surprise that Western Europe is leading the way in this space, but it was great to see countries in Africa, South America and South-East Asia really taking action too,” Emily says.

“A really diverse range of countries are getting on board with a circular economy approach because the benefits speak for themselves.”

In Victoria, thinking big and thinking long-term will be one of our most important tools in transitioning to a circular economy.

Government decisions need to consider the future decades in advance to inform investment, planning, and behaviour change.

As SV’s Chief Growth Officer, Emily is leading a team working to foster ‘futures’ thinkers and embed foresight across the Victorian public service, and wider community.

“Many government decisions require thinking decades in advance, to inform investment and planning in infrastructure, industry transition, regulations, education, and behaviour change,” Emily says.

“When we have the courage to consider multiple possible futures, we make better strategic decisions today, and that brings us closer to achieving a preferable future tomorrow.”
Emily Dunstan, Chief Growth Officer, Sustainability Victoria.

At Sustainability Victoria, our mission is to accelerate Victoria’s transition to a circular, climate-resilient economy through innovation and investment, education and behaviour change, and community action.