Circular economy

The adaption and adoption of Circular Economy (CE) principles – reuse, repair, remanufacture, rethink, redesign and recycle for “making things last” – does require a significant re-think to flip the prevailing linear economic approach of ‘take, make and waste.’

These CE principles shape the emerging CE business models that flip ‘waste’ to a ‘value’. Identifying potential ‘value’ in what is historically regarded as ‘waste’ requires evidence-based, ‘proof of concept’ assessment that can inform investment decisions adopting emerging CE business models.

CE activities within Tasmania present enormous opportunities for investment and job creation to achieve a number of federal and state targets as outlined in the Australian Government’s National Waste Policy, National Packaging Targets, and the Tasmanian Government’s Draft Waste Action Plan.

The OCG is currently working on the development of a circular economy pathway for Tasmania with a focus on investment opportunities. The OCG is also working to identify Tasmanian bio-assets and to develop business case pathways for investment.

Research suggests that Tasmania’s higher value CE opportunities will lie in aligning regional resource-assets to the most appropriate CE business model. Identifying regional bio-assets as a comparative advantage allows ‘value-adding’ through innovation, technical investment, and collaborative knowledge transfer to construct competitive advantage.

Circular Supplies, as a CE business model reduces materials derived from virgin or carbon-based resources and replaces them with bio-based renewable or recovered materials – bio-products. Tasmanian opportunities extend to flora genetics, wood residues, algae, fungi, and moulds to marine resources such as seaweed, kelp, and marine pests.

Companies adopting a Circular Supplies model can reduce their environmental impact and leverage a “going green” reputation, which is becoming increasingly important for some consumers and investors. This market trend is driving corporate ESG reporting - the disclosure of data covering the company's operations in three areas: environmental, social and corporate governance. ESG reporting has become an important market signal of corporate sustainability intentions and reporting.

An assessment by ACIL-ALLEN in 2020 determined that there was insufficient capacity in Tasmania to process plastic, paper and cardboard and glass, creating significant requirements for investment into recycling infrastructure to meet these targets. Targets to be achieved prior to 2025 include the use of 100 per cent reusable, recyclable or compostable packaging, 70 per cent of plastic packaging being recycled or composted and 50 per cent of average recycled content included in packaging. In addition, the Council of Australian Governments (COAG) waste export bans on materials such as plastic, tyres and glass are aimed to be achieved by 2024. Tasmanian Government targets include the introduction of a waste levy by 2021 to fund waste management and resource recovery activities, the introduction of a Container Refund Scheme in Tasmania by the end of 2022, reduction of waste generated in Tasmania by 5 per cent per person by 2025 and 10 per cent by 2030, achieving a 40 per cent average recovery rate from all waste streams by 2025 and 80 per cent by 2030,  and reducing the volume of organic waste sent to landfill by 25 per cent by 2025 and 50 per cent by 2030.

Other links:

Business Resource Efficiency Program