Australia’s Circular Economy Framework 2024: Key Highlights and Why it Matters

Introduction

A few days ago the Australian Government released its Circular Economy Framework 2024. The framework aims to transform how we use, reuse, and regenerate resources, setting Australia on a path to double its circularity rate by 2035. This framework is not just about reducing waste; it’s about unlocking significant economic, social, and environmental benefits for the nation.

Key Highlights of the Circular Economy Framework 2024

1. Doubling Circularity by 2035: A National Mission

Australia’s circularity rate—currently 4.6%—lags behind the global average of 7%. The framework sets the ambitious goal of doubling this rate by 2035, signalling a paradigm shift from the linear "take-make-waste" model to a circular system. This means designing products for reuse, repair, and recycling, minimising waste, and maximising resource efficiency. Achieving this will position Australia as a leader in the global circular economy transition.

2. The Three Ambitious Targets

To measure progress, the framework establishes three key targets:

• Shrink Material Footprint by 10%: Australia’s material footprint, at 31 tonnes per person annually, is the highest in the G20. Reducing this footprint will require smarter use of materials through improved product design, sustainable construction practices, and prioritisation of recycled materials in manufacturing.

• Increase Material Productivity by 30%: Currently, Australia generates only USD $1.20 of economic output for every kilogram of materials consumed, compared to the OECD average of USD $2.50. By enhancing material productivity, the economy can generate more output with fewer inputs, reducing environmental impacts while fostering innovation and efficiency.

• Safely Recover 80% of Resources: At present, only 63% of Australia’s resources are recovered. Achieving this target will involve designing products for easy disassembly, removing harmful chemicals, and scaling up markets for recycled and repurposed materials.

3. Sectoral Priorities: Where the Change Begins

The framework identifies four critical sectors for driving significant circular economy progress:

Industry:

• Focus on circular packaging solutions and durable, reusable goods.

• Leverage Australia’s expertise in manufacturing high-tech components, such as transport and medical technology, to reduce reliance on virgin materials and minimise waste.

Built Environment:

• Encourage adaptive reuse of buildings to extend their lifecycle and reduce demolition waste.

• Promote circular construction materials like recycled steel, timber, and green concrete, supported by government procurement policies.

Food and Agriculture:

• Tackle the 7.6 million tonnes of food waste generated annually through innovations like smart packaging and behaviour change programs.

• Valorise agricultural by-products, such as turning husks and stalks into biofuels or high-value proteins.

Resources:

• Develop technologies to extract valuable materials from mining tailings and end-of-life products like solar panels and EV batteries.

• Establish resource-sharing precincts to maximise co-extraction opportunities and support circular innovation.

4. Cross-Cutting Objectives: Creating the Enablers

Achieving these ambitious goals requires addressing six cross-cutting objectives:

• Innovation: Drive the development of disruptive technologies, such as advanced recycling and green chemistry, to make circular practices both feasible and profitable.

• Market Development and Investment: Strengthen markets for recycled materials through government procurement policies, robust product standards, and incentives for businesses adopting circular practices.

• Advanced Resource Recovery and Recycling: Invest in AI and automation technologies for more efficient sorting and processing of recyclable materials, reducing landfill reliance and creating new business opportunities.

• Systems Thinking and Skills Development: Incorporate circular economy principles into education and professional training programs to ensure a workforce equipped for the transition.

• Collaboration and Place-Based Approaches: Foster partnerships between governments, businesses, and communities to drive localised circular economy initiatives, such as repair cafés and shared infrastructure hubs.

• Behaviour Change: Encourage consumers to adopt sustainable consumption patterns through better product information and awareness campaigns about the benefits of circularity.

5. Economic and Environmental Benefits: Why Go Circular?

The framework presents a compelling case for the circular economy’s potential to create significant economic and environmental value:

Economic Impact:

• Add $26 billion annually to GDP by 2035.

• Generate high-value jobs, particularly in advanced manufacturing, recycling, and materials innovation.

• Strengthen resilience in global supply chains by reducing dependence on virgin resources.

Environmental Impact:

• Reduce greenhouse gas emissions by 14% by 2035 and up to 23% by 2050.

• Divert 26 million tonnes of materials from landfills annually, easing pressure on natural ecosystems.

Social Impact:

• Lower the cost of living by promoting durable and repairable products.

• Enhance community well-being through cleaner environments and reduced waste.

Why It Matters for Businesses and Governments

The framework represents a unique opportunity for Australian businesses and government to lead in sustainability while unlocking economic growth. By adopting circular economy practices, organisations can:

• Enhance competitiveness in global markets.

• Meet rising stakeholder expectations for sustainable practices.

• Reduce operational costs through resource efficiency and waste reduction.

The circular economy framework offers businesses and government opportunities to reduce costs, improve resilience, and align with growing consumer demand for sustainable products. Here’s how businesses can benefit from this transition:

1. Cost Savings Through Resource Efficiency

Adopting circular economy practices can lead to significant cost reductions by:

• Minimising waste: Circular systems keep materials in use longer, reducing expenses associated with disposal and raw material procurement.

• Optimising operations: Technologies like AI-driven sorting and advanced recycling can streamline resource recovery and lower operational costs.

For example, Australia’s construction sector could save up to 30% of project costs by reusing materials and reducing waste.

2. Unlocking New Revenue Streams

Circularity opens doors to innovative business models:

• Product-as-a-Service (PaaS): Instead of selling products, businesses can offer them as services, fostering long-term customer relationships and ensuring product lifecycle control.

• Valorising waste: Agricultural businesses can turn organic by-products into biofuels or high-value proteins, tapping into growing markets like sustainable aviation fuel and alternative proteins.

• Recycled material markets: Industries can capitalise on demand for products made from recycled materials.

3. Enhancing Market Competitiveness

With over 40% of Australia’s exports going to markets embracing circular economy principles, businesses that align with these standards will gain a competitive edge. Circularity also positions businesses as leaders in innovation, appealing to consumers, investors, and trade partners who prioritise sustainability.

4. Attracting Investment

Sustainability is increasingly a criterion for investors. Circular economy initiatives, supported by clear ESG frameworks, can attract investment by demonstrating resilience, innovation, and alignment with global sustainability goals. Australia’s National Reconstruction Fund and other government programs provide further opportunities for co-investment in circular projects.

5. Meeting Consumer Demand for Sustainability

Consumers are demanding high-quality, durable, and sustainable products. Businesses that prioritise circular design and transparency can build trust and loyalty by offering repairable and reusable goods. According to the framework, 85% of Australians are concerned about waste and consumption, presenting a ripe market for circular innovations.

6. Leveraging Renewable Energy for Circularity

The integration of renewable energy systems with circular economy practices creates additional opportunities:

• Solar reuse and recycling: Businesses in the recycling and renewable energy sectors can develop solutions to extend service life and process end-of-life solar panels, a growing need as Australia’s solar systems age.

• Energy efficiency in operations: Renewable energy can power circular operations, reducing both carbon footprints and energy costs.

Case Studies of Business Success in Circularity

• Samsara Eco: An Australian innovator in enzymatic recycling, Samsara Eco transforms end-of-life plastics into their original building blocks, creating high-value recycled materials for industries like fashion and consumer goods.

• Bega Circular Valley Innovation Hub: This agricultural hub turns organic waste into compost and renewable energy, demonstrating how circularity enhances sustainability and profitability.

How The Blue Tribe Company Can Help Your Business Lead in Circularity

At The Blue Tribe Company, we specialise in guiding businesses through the complexities of sustainability and circular economy transitions. Our services include:

• Strategic Planning: We help businesses design and implement circular economy strategies that align with their goals and the broader framework.

• Behaviour Change Programs: Using our proprietary Behavimetrics framework, we enable organisations to engage internal and external stakeholders and drive lasting change.

• Market Analysis and Innovation Support: We identify market opportunities and support the development of circular business models tailored to your industry.

The Circular Economy Framework 2024 shows the Australian Government is aiming to take a leadership role in the circular economy which represents a unique opportunity for Australian businesses to align with a sustainable future while driving growth and innovation. If your organisation is ready to take the next step, our team at The Blue Tribe Company is here to help. Contact us today to start building your circular economy strategy and position your business as a leader, reduce waste, and capitalise on new market opportunities.