A circular economy helps the environment, economy and community. It changes how we use and value resources and materials. Including how we:
- design out waste and pollution
- keep materials and products in use for longer
- conserve our natural resources and regenerate nature.
In practice, the circular economy guides:
- designing products that last longer
- reusing products
- repairing and refurbishing
- recycling materials to make new products.
The Australian Government has committed to doubling economic circularity by 2035. This means using materials more efficiently and keeping them in use for longer.
Australia’s Circular Economy Framework shows how we can make this change, and is supported by the resources below. These practical tools, guidance and resources are essential for:
- protecting the environment
- reducing emissions
- supporting long-term economic growth.
Circular Economy Definition
The Circular Economy is an economic model that promotes sustainable and efficient use of resources as a way to support environmental, economic and social outcomes. It shifts away from the current linear ‘take, make, dispose’ consumption approach to one that maintains a circular flow of materials by recovering, retaining, or adding to their value. – Page 35, Glossary, Australia’s Circular Economy Framework
In simple terms, a circular economy means using products and materials for longer, wasting less, and getting more value from what we already have.
Australia’s Circular Economy Framework: Infographic
Goal
Double the circularity of the economy by 2035.
Targets
- Shrink per capita material footprint by 10% (front-end target)
- Lift material productivity by 30% (middle target)
- Safely recover 80% of resources (end target).
Priorities
Industry
- Circular packaging
- Durable, re-usable and sustainable goods
Built environment
- Refurbishing and adaptive re-use
- Circular, low carbon construction material fit-outs
Food and agriculture
- Reducing food waste
- Valorising agri-waste
Resources
- Minerals beneficiation
- Co-extraction and resource sharing through precincts
- Second-use of mineral-containing products
Australia’s Circular Economy Framework: An entry point for business
An overview of Australia’s Circular Economy Framework.
Circular Economy Ministerial Advisory Group final report
Watch the video of the Circular Economy Ministerial Advisory Group report launch.
Read the final report and Minister’s response: Circular Economy Ministerial Advisory Group
Reports on Australia’s circular economy transition
CSIRO
Australia’s comparative and competitive advantages in transitioning to a circular economy. Prepared for Australia’s Chief Scientist, through the National Science and Technology Council. Report release: January 2024
Australian material flow analysis to progress to a circular economy. Report release: March 2024
Modelling Circular Economy transition targets. Insights on economic benefits, and emissions reductions through circular economy policies. Report release: December 2024
Regional Australia Institute
Circular Economy in Action - Regional Perspectives. Explores how Australia’s regions are fostering and advancing the circular economy. Report release: October 2024
Australian Institute of Company Directors (AICD)
Nature Enters the Boardroom. An Australian-first study, examining how directors are addressing nature as a governance priority.
Opportunities in the circular economy: A primer for Australian directors. An introduction to circular economy practices and business models for Australian boards.
The Productivity Commission
Australia’s opportunities in the circular economy. The report identifies:
- priority opportunities to improve materials productivity and efficiency
- how to measure progress and address barriers.
Resources for businesses and investors
Australian Green Economy Prospectus, by Austrade. This showcases Australian industry capabilities and companies helping to achieve circular economy goals.
Guide on Sustainability Collaborations, by the ACCC. A guide for businesses and other entities. It covers:
- the benefits of collaboration for sustainability
- when working together may be a competition law risk
- when an ACCC exception and exemption may apply.
Video: How to design for environmental good
Produced for the Department of Climate Change, Energy, the Environment and Water. This video, by RMIT University, shows how better design choices can reduce waste and keep materials in use longer.
Narrator:
When you design a product, you make choices about how it will be produced, used, maintained, repaired and ultimately disposed.
And you can minimise your environmental impact by following simple principles of eco-design.
You can make your products upgradable, repairable and reusable so it’s more durable.
The longer your product lasts, the less it needs replacing.
You can design for the circular economy by streamlining materials use, avoiding the use of hazardous chemicals, and making your product easy to disassemble.
The goal is no waste.
What’s left at the end of your product life cycle becomes the starting material for something new.
You can design your production and distribution systems to reduce environmental impact.
For instance, consider reducing costs and emissions across your supply chain by sourcing materials locally where possible, choosing materials that make your product lighter, and designing and packaging your product for efficient distribution.
By tracing the movement of your product through its life cycle, you can be confident that your materials are ethically and sustainably sourced, human and environmental health impacts have been avoided, and your product is safe for its intended use.
Want to go further? You can also design in ways that that support and improve natural systems and give back to the community.
For example, by specifying carbon negative and renewable materials, or greener environments to absorb CO2.
Start making a more positive impact on the environment by applying eco-design strategies.
Find out more at dcceew.gov.au