The Government must make “concrete policy commitments” on resource efficiency if the UK is to transition to a circular economy says the Green Alliance.
With progress on the resources and waste strategy “painfully slow”, the environmental think tank says there is a “yawning gap” between Government aspirations and policies “which are all focused simply on recycling and the lower end of ambition”.
“Right now, there is a catch-22 situation. Without concrete long-term commitments to reducing resource use, there is no signal or framework to develop the policies needed and no incentive for businesses to invest,” read the group’s report into the benefits of a circular economy.
“Conversely, without a framework, the Government is unwilling to commit to a long term target. The government should break this deadlock and stimulate sufficient investment to mainstream the circular economy.”
The report, titled Profit Without Loss, assesses the economic impact of such a transition, arguing that uncertainty in this area remains a barrier to policy progress. Having reviewed studies, interviewed circular businesses and conducted new analysis, the Green Alliance argued a circular economy can have a positive impact at all levels.
“Along with the experts we consulted, we believe further research would reveal the outcome of a genuinely circular economy would be significantly more positive than is currently understood,” it continued.
The report says that the global impact of resource efficiency scenarios could be positive, with a median increase of 3% of GDP by 2050. Similarly, it noted that most studies found a median increase in employment of 4.1% over the same period.
It also noted that most studies reviewed do not define a circular economy as one in which raw material consumption decreases, meaning the full potential of going circular is not appreciated. It called for more dynamic economic modelling and better understanding of material flows.
In order to stimulate confidence and investment in this transition, the report recommended legally binding resource reduction targets, more material taxes and an £800m fund to help kickstart circular businesses.
The alliance also recommended more training for circular economy workers, setting high quality product standards, embedding the right to repair and mandatory extended warranties for electrical items.
