Imagine a world where waste doesn’t exist, where every product is reused, repurposed, or regenerated rather than ending up in landfill. That’s the essence of a circular economy: a system designed to keep materials in use for as long as possible.
Unlike the traditional “take-make-waste” model, a circular economy focuses on waste reduction, resource efficiency, and sustainable business models to create a more environmentally friendly future.
In Australia, this approach is gaining momentum across industries, from fashion to construction, as businesses and consumers embrace eco-friendly practices.
Why Does Australia Need a Circular Economy?
Australia generates over 76 million tonnes of waste annually, with a 63% reuse and recycle rate. While this figure may seem reasonable, I was shaken to learn that only about 12% of plastic recycled is actually recovered and reused (this is called resource recovery). The rest ends up in landfills, polluting the environment and contributing to climate change.
A circular economy in Australia can 1) reduce waste and landfill reliance; 2) lower carbon emissions; 3) boost the economy through new green jobs; and 4) conserve natural resources.
By shifting to a circular model, businesses and individuals can play a role in creating a sustainable Australia, one where materials are valued, not wasted.
Key Principles of a Circular Economy
“Okay Emily that sounds great but what actually is a circular economy?”
A successful circular economy revolves around three main principles:
1. Designing Out Waste & Pollution
Products should be designed for reuse, repair, and recycling (as a last resort) from the start. Think of furniture made from reclaimed wood or biodegradable packaging that leaves zero waste.
2. Keeping Products & Materials in Use
Instead of discarding items, businesses and consumers can find ways to extend their lifespan, such as repairing electronics or repurposing old clothing into new fashion pieces.
3. Regenerating Natural Systems
A circular economy ensures that resources are not just preserved but replenished. For example, using compostable materials that return nutrients to the soil rather than polluting it.
Examples of the Circular Economy in Australia
Many Australian businesses are already embracing circular practices. Here are a few standout examples:
Who Gives a Crap
This eco-conscious toilet paper brand uses 100% post-consumer recycled materials and donates 50% of profits to improve global sanitation. If you’re wary about WGAC because they manufacture outside of Australia, check this article out. It might make you feel a bit better.
Banish’s Recycling Program
A super exciting initiative helping Australians recycle hard-to-recycle products like beauty packaging and tiny household items that can’t be recycled individually. AND it doesn’t matter where you live, yippee for us in rural FNQ! Banish will send you a shipping label so you can mail all the products you’ve collected at once in a reused container, box, envelope etc. of your choice.
Upparel
A textile recycling company that transforms discarded clothing into a super cool material with endless use possibilities. They also have an amazing recycling program that benefits people in need.
Challenges Facing the Circular Economy in Australia
While there are some great projects underway in Australia, several challenges hinder the full adoption of a circular economy:
Here are the key barriers to adopting a circular economy in Australia:
- We have inadequate recycling systems for collection, sorting, and processing recyclable materials that are still catching up to demand.
- Lack of education about the benefits and practices of a circular economy. Many Australians are accustomed to convenience-driven, disposable consumption habits.
- Reliance on raw materials and linear consumption models makes it difficult for businesses to shift to circular models.
- Policies supporting circular practices are still developing, with inconsistencies across states. Documents seem to identify a lot of what business should do rather than what they must do to enhance a more circular economy. Read more here.
- Short-term costs and perceived risks of transitioning to circular models for businesses. Not to mention, the initial investment in circular production models can be expensive. It’s up to you to decide whether paying a bit more for the sake of the planet is worth it.
How Does the Circular Economy Impact Product Costs?
Sustainable products often come with a higher price tag due to ethical sourcing, quality materials, and small-scale production. However, as demand grows and more businesses adopt circular practices, costs are expected to decrease. In the long run, circular products can be more cost-effective because they last longer and reduce waste-related expenses.
Industries Leading & Lagging in Circular Economy Adoption
Leading Industries
Fashion: Circular fashion brands focus on second-hand, recycled materials, and ethical production.
Construction: The sector is embracing recycled materials, modular designs, and low-waste construction. Fun fact: building and demolition are actually Australia’s number #1 recycler of materials.
Food & Agriculture: Businesses are tackling food waste through action plans that aim to design and source more sustainable products, strategies for lower resource farming, raise awareness and challenge food waste in business and repurpose surplus food. Learn more about Australia’s End Food Waste program here.
Lagging Industries
Electronics: E-waste recycling remains a challenge due to complex product designs. E-waste is more than just an eyesore, it’s a serious environmental threat. Toxic chemicals like lead, mercury, and arsenic can leach into our soil and water, wreaking havoc on ecosystems and posing risks to our health.
Plastics & Packaging: The plastics industry is dragging its feet on the circular economy, stuck in its cheap production habits, battling recycling challenges, lacking proper infrastructure, and hesitant to change without stronger policies and incentives.
Circular Economy vs. Other Sustainability Approaches
The circular economy goes hand in hand with carbon offsetting and net-zero goals, but it takes a different approach. While carbon reduction is key, the circular economy looks at the entire lifecycle of a product, from design to disposal. It’s all about rethinking how we use resources, which brings big wins not just for the environment, but for the economy too.
Take Queensland’s Containers for Change recycling program, which encourages people to return bottles and cans for recycling (and also to earn some $$$), or Close the Loop, which recycles office supplies into road materials. Its environmental impact is on par with that of a standard road, making it a sustainable and responsible, circular choice.
Government Policies Supporting the Circular Economy
Australia has introduced several initiatives to encourage circular practices:
- National Waste Policy Action Plan: Australia’s blueprint for reducing waste, boosting recycling, and supporting the transition to a circular economy with clear targets to improve sustainability across the country.
- Single-Use Plastics Ban: Items like straws, cutlery, and plates, aiming to cut down on pollution and encourage more sustainable alternatives across the country.
- Product Stewardship Schemes: Encourages businesses to take responsibility for their products’ lifecycle. Key priorities include reducing waste and improving recycling. For example the National TV and Computer Recycling Scheme
To really speed up the change, we need more incentives like tax breaks for circular businesses and investment in better recycling infrastructure.
How Can You Support the Circular Economy?
You don’t need to be a business owner to make an impact! Here are simple ways to contribute:
Shop Sustainably
Choose products with minimal packaging, support brands using recycled materials, and opt for second-hand shopping. I’ve given some great options already in this post. Let us know how you go if you decide to try one out!
Repair & Reuse
Before tossing something, ask: Can it be fixed, upcycled, or repurposed? Many communities have repair cafés that help restore broken items.
Recycle Responsibly
Use programs like Banish or local council drop-off points for harder-to-recycle items. If you aren’t sure, look it up!
Compost Food Waste
Organic waste makes up a huge part of landfill. Composting at home reduces waste while enriching your garden’s soil. Read our guide to composting.
Australia’s circular economy movement is gaining momentum, but there’s still a long way to go. By embracing circular practices, we’re not just safeguarding the planet, we’re paving the way for a sustainable, resource-efficient future.
What do you think about the circular economy? Drop your thoughts in the comments!
FAQs
What are the benefits of a circular economy?
A circular economy reduces waste, carbon emissions, and resource depletion, while boosting economic growth and job creation.
Which Australian businesses use circular economy practices?
Brands like Who Gives A Crap, Banish, and Upparel lead the way in sustainable and circular business models.
How can I reduce waste at home?
Shop sustainably, repair items instead of replacing them, recycle correctly, and compost food waste.