Australia’s circular economy comparative and competitive advantages
The challenge
A circular economy recognises the scarcity and value of natural resources and focuses on three economic and industrial goals: eliminating waste, maintaining and increasing the value of materials and products through repeated use, and conserving natural resources.
With a circularity rate of 4 per cent, Australia has considerable potential to build its circular economy. This will help foster new industries and technologies and boost Australia’s role in the global economy. Identifying the areas where Australia enjoys comparative and competitive advantage and where to focus and invest will strengthen a circular economy in Australia.
Our response
We prepared a report for Australia’s Chief Scientist through the National Science and Technology Council – Australia’s comparative and competitive advantages in transitioning to a circular economy.
Based on international best practice and industry engagement, our report confirms that Australia has considerable potential for a more circular economy, leveraged through strong comparative advantages in workforce capacity and capabilities, product and service development, and research and innovation to transition towards circular economy.
Using CSIRO’s established circular economy roadmap, the report identified five key industries with the most potential to advance Australia’s circular economy – mining, construction, manufacturing, agriculture and resource recovery.
These industries were identified based on three criteria:
- The industry produces large quantities of either raw materials or products, able to be reused or recycled within the circular economy.
- Currently has a high impact on the environment and an opportunity to reduce that impact through adopting one or more of the six key elements of a circular economy.
- Has comparative strengths that can be leveraged and lead to increased international competiveness.
Impact
Opportunities for product and service development within key industries will play a crucial role in advancing Australia’s circular economy. This will support the building of new industries and training and upskilling of a new and existing workforce, enabled by well-designed policies and economic levers.
The report outlines how Australia can forge new international partnerships to foster the purchase of Australian-made circular products, helps close loops for end-of-life materials, and supply circular inputs to domestic manufacturing. This will assist Australia unlocking vast economic value while reversing the substantial loss of natural capital. It will also strengthen Australia’s position in the global circular economy.
The report was announced by the Hon Ed Husic, Minister for Science and Innovation, and the Hon Tanya Plibersek, Minister for the Environment in April 2024, along with the Critical Minerals Circularity Report.
Reports