The Circular Economy: Transforming Consumption on Circular Monday in the Land of Oz

Sustaining our current consumption levels would require the resources of 2.3 planets by 2050.

Shifting to a circular economy, where we reduce, reuse and recycle, can decouple the world's growth from consumption.

What is the Circular Economy?

The circular economy moves the needle from traditional “linear” economies, where products are made, used and then discarded, although now sometimes recycled, reducing some waste. The circular economy goes much further by creating a virtuous circle around use that includes making, repairing, refurbishing, reusing, remanufacturing and recycling.

A circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible.

The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.

The circular economy is based on three principles, driven by design:

·?????? Eliminate waste and pollution

·?????? Circulate products and materials (at their highest value)

·?????? Regenerate nature

Underpinned by a transition to?renewable energy?and materials, the?circular economy?is a resilient system that is good for business, people, and the environment.

A way to transform our system

What will it take to transform our throwaway economy into one where waste is eliminated, resources are circulated, and nature is regenerated?

The?circular economy?gives us the tools to tackle climate change and biodiversity loss together, while addressing important social needs.

It gives us the power to grow prosperity, jobs, and resilience while cutting greenhouse gas emissions, waste, and pollution.

The Overshoot Era: 2023 Circularity Gap Report

• In a circular economy, products are used again and again, which reduces our use of precious raw materials and cuts CO2 emissions.
• However, the amount of secondary materials being cycled back into the global economy has shrunk in the past five years, a new report says.
• The Circularity Gap Report highlights four key circular economy principles that we need to follow to get things back on track.
• Circular economy initiatives are also helping, including the Circulars Accelerator, an innovation programme run in collaboration with the World Economic Forum.

The way we live now is using 60% more resources than the Earth can provide – and creating too much waste, according to experts.

Switching to a circular economy is widely considered to be the way forward.

The Key Levers to Transition Towards a Circular Economy

Achieving the aims of a circular economy—minimising material use, regenerating the Earth and preventing material losses—can be done through four key strategies):

1. NARROW: Use Less

Narrow strategies reduce material and energy use. Currently, material use is highly inefficient and ineffective; we can deliver similar social outcomes by using much less and phasing out fossil fuels, for example. This doesn’t mean being worse off, but rather focussing on using materials efficiently: think in terms of riding a bike instead of driving a car, eating less meat and living in a space that suits your needs. Using less is a core tenet of the circular economy—yet currently, the threshold for sustainable consumption, 8 tonnes per person, 28 is being surpassed by 1.5 times.

2. SLOW: Use Longer

Slow strategies aim to keep materials in use for as long as possible, for example through design for durability and repairability. A more circular economy is also a slower one: materials, components and products—and even buildings and infrastructure—that we lock in stocks are made to last. This will lower material demand in the long run, in essence also serving to narrow resource flows.

3. REGENERATE: Make Clean

Regenerate strategies phase out hazardous or toxic materials and processes, and substitute them with regenerative biomass resources. A circular economy aims to mimic natural cycles—by shifting to more regenerative farming practices, for example—while also maximising the share of circular biomass that enters the economy.29 Regeneration can happen both at the systems level (by designing regenerative processes) as well as at the product level (by switching synthetic to organic fertilisers, for example).

4.CYCLE: Use Again

Cycle strategies aim to cycle and reuse materials at their highest value: they maximise the volume of secondary materials re-entering the economy, ultimately minimising the need for virgin material inputs and therefore also narrowing flows. Of course, virgin materials will always be needed to a degree: all materials degrade and can’t be cycled infinitely, use energy, and require blending with virgin materials to maintain strength and functionality.

The challenge of the 21st century must be to regain balance between satisfying people’s needs and planetary health. Excessive and wasteful consumption is outdated—the planet is humanity’s life support system and it should be treated as such. The circular economy offers a deep pool of solutions that are key to solving this challenge—using fewer materials where possible and squeezing out as much value as possible from the materials we use. Achieving more with less.

Australia's Circular Status

Amid the rising tide of environmental crises, Australia stands at a crossroads. Our collective future on the planet, our ecosystems' health, and our businesses' prosperity hang in the balance. It's time to recognise that a circular economy isn't just an idealistic dream; it's the pragmatic pathway to a sustainable and profitable future.

The Climate Council recently?reaffirmed?that Australia should strive for a 75 per cent emissions cut by 2030 and net zero emissions by 2035. But according to an?Ellen MacArthur Foundation?study, only 55 per cent of the world’s emissions can be addressed through energy efficiency and a transition to renewable energy. The other 45 per cent reduction is in the supply chain – how we use lands, produce food and products, transport goods, and design and construct buildings and infrastructure.

Currently, our economies are overwhelmingly linear, with?only 7.2 per cent?of used materials being cycled back into our economies after use. Material extraction and use also amounts to 70 per cent of global greenhouse gas (GHG) emissions.

Besides the environmental pitfalls of a linear economy, there are a number of reasons why they are disadvantageous for businesses including resource depletion, resource price volatility, loss of economic opportunities, lack of innovation, inefficiencies, and so much more.

Circularity is good for business

There are overwhelming economic benefits to implementing a circular business model.

1. Cost Reduction: Adopting circular practices can lead to reduced operational costs. By reusing and recycling materials, businesses can decrease expenses associated with raw material procurement, waste disposal, and production processes.
2. Resource Efficiency: Circular economy principles encourage the efficient use of resources, minimising waste and overconsumption. This leads to optimised resource allocation and reduced resource-related expenses.
3. Product Longevity: Designing products with durability and longevity in mind can increase customer satisfaction and reduce costs associated with frequent product replacement or repairs.
4. Innovation: Transitioning to a circular economy often encourages innovative solutions and product redesign. This fosters creativity within the organisation, leading to new revenue streams and business opportunities. Take the?automotive industry, for example, where the potential revenue of selected circular business models could more than double by 2030.
5. Market Opportunities: Circular products and services can tap into a growing market segment of environmentally-conscious consumers. Meeting their demands can result in increased sales and market share.

Circular business models are advantageous to the business, the consumer, and the world – a win-win-win approach. It’s the way of the future, and Australian businesses need to adopt the circular model or risk falling behind the competition.

Circularity is Great for Consumers

The circular economy offers several benefits for consumers:

1. Cost Savings: Products designed for a circular economy often emphasise durability and the ability to be repaired, which can save consumers money over time as they avoid the need to frequently replace items.
2. Quality Products: A focus on longevity and reusability can lead to higher quality products, as companies strive to create goods that maintain their value for as long as possible.
3. Access Over Ownership: Circular economy models such as sharing and leasing give consumers access to products and services without the need for ownership. This can be particularly advantageous for expensive items that are only needed temporarily or occasionally.
4. Environmental Impact: By participating in the circular economy, consumers contribute to reducing waste and conserving resources, which helps protect the environment for future generations.
5. Innovation and Choice: The circular economy drives innovation, leading to more diverse product offerings. Consumers can enjoy products that are not only environmentally friendly but also come with new features and conveniences.
6. Health and Safety: Circular economy practices often encourage the use of less toxic materials and promote cleaner production processes, which can have direct health benefits for consumers.
7. Community Benefits: The circular economy can strengthen local economies by creating new jobs in repair, refurbishment, and recycling sectors, offering consumers a sense of contributing to their community's wellbeing.
8. Reduced Clutter: Models that focus on sharing and services can help consumers reduce clutter in their homes, owning fewer items but having greater access to what they need.
9. Supporting Ethical Practices: By choosing circular economy products, consumers can support companies with ethical business practices that take social responsibility seriously.
10. Resale Value: Products made with circular principles in mind may retain their value better, offering consumers the potential to recoup some of their investment when they sell used items.

For consumers, the circular economy not only provides immediate practical and financial benefits but also aligns with a broader sense of responsibility towards environmental sustainability and ethical consumption.

The Yellow Brick Road to Circularity in the Land of Oz

A Circular Economy Ministerial Advisory Group was set up in 2023 to advise government on the opportunities and challenges in making the transition to a circular economy by 2030. The Australian, state and territory environment ministers in June 2023 committed to lead development of a national framework to direct Australia’s transition to a circular economy, informed by the group.

Circular Plastics Australia operate plastics recycling facilities in Victoria and NSW, involving partners Cleanaway, Asahi Beverages, Pact Group and Coca-Cola Europacific Partners (CCEP). Other companies innovating in the circular economy space include ?Bingo?Industries?and Tyrecycle.? Major Australian companies with circular economy ambitions include Coles,?Woolworths?and Sanitarium.

The?ACE Hub?also offers a range of knowledge products to assist in building confidence in what it means to transition to circular business models

Circularity 2023: Implementing the Circular Economy in Australian and Asia Pacific

Our annual Australian stocktake ‘Circularity in Australian Business 2023: Perceptions, Knowledge and Actions Beyond Recycling’ will be launched next week at Circularity by a panel including Planet Ark Environmental Foundation's Head of Circular Economy Programs Ryan Collins and Research Specialist Claire Laws with Teslin Taylor (Doud), Head of Circular Sustainability at Country Road Group and Planet Ark’s Head of Circular Economy Development Nicole T Garofano, PhD, AAIP.

Australia's ACE Circular Economy Awards Finalists

With winners announced during the Circularity Conference held in Melbourne today, and brought to you by The Australian Circular Economy Hub (ACE Hub), the ACE Awards recognises and celebrates those who are driving Australia’s transition to a circular economy.

These finalists represent the people and companies at?the forefront of Australia's circular transition. Through their innovation, talent and foresight they are inspiring others to work towards integrating new and innovative circular economy practices as the norm in Australia and the Asia Pacific region.

Congratulations & Thank You to this years pioneering finalists - you can view the full list here - https://circularitylive.com.au/ace-awards-2023-finalists/

Circular Leader Award Finalists:

• Belinda Chellingworth (She/Her) Director, BC Consulting Pty Ltd
• Brett Henderson, Chief Collaboration Officer, Brett Henderson Co
• Hayley Jarick, Company Secretary and CEO, Supply Chain Sustainability School
• Jennifer Macklin, Senior Research Officer, BehaviourWorks Australia, Monash University
• Karie Soehardi, Director, Sustainable Materials Specialist, Circular Design Thinking

Design for Circularity Award Finalists:

• Coles Group - KOi Refillable Foaming Handwash Starter Kit and Refill Tablet
• FOUND:ling Reusery - Design from Reuse: Product Development From Unwanted Goods
• Little Droppings - Little Bums, Big Impact
• Modibodi - Biodegradable Period Pant

Emerging Circular Leader Award Finalists:

• Adele Lanson, Head of Production and Ethical Sourcing, Cargo Crew
• Jess Hodge , Co-Founder, Resourceful Living
• Matthew Askeland Victorian Environment Lead, ADE Consulting Group
• Rae Knopik CEO, GREN
• Sarah D’Sylva, Co-Founder / Circular Design Strategist, Hyloh
• Dr. Yassie Samie , ESG & Sustainability Manager and Early Career Researcher, RMIT Alumna; Leaf Group

Full Circle Award Finalists:

• Adetex.CS - Circlolink. Circular Digital Product Passport via RFiD THREADS? and CIRCAA Cloud Platform
• Boomerang Labs | Australia - Australia’s first circular economy startup accelerator
• Circonomy & Mirvac - Mirvac and Circonomy collaborated on a joint mission to transform office spaces, unlock new social procurement opportunities, and make a positive social and environmental impact.
• FOUND:ling Reusery - A New Approach To Value-Add Reuse
• Modibodi - Recycled Pairs Project

Retaining Value Award Finalists:

• Cobram Estate Olives Limited - Reimagining farm waste to create value adding products
• Good360 Australia - The Circle of Good: Ensuring brand-new goods receive a ‘first life’ in the hands of people in need, making a positive social impact whilst reducing waste.
• Transmutation Pty Ltd - Breadtags to Bar Chairs
• Yume Food Australia - The Yume Platform: Managing Surplus Food at Scale?

Regenerating Nature Award Finalist:

• Mycelium Futures - Cultivating a love for Mushrooms: Mush Fest and beyond

What is Circular Monday?

As the world grapples with the urgent need for sustainable practices, initiatives like Circular Monday are gaining momentum. Originating as a counter-movement to the consumerism of Black Friday, Circular Monday has evolved into a global phenomenon, emphasising the importance of a circular economy.

It was born from the recognition that sustainable consumer practices are crucial in the fight against climate change and resource depletion.

Held on the Monday prior to Black Friday each year, this year - today, the 20th November 2023 - the campaign is organised through ClimateHero, an impact startup co-founded by Alexandra Davidsson. Circular Monday started as a grassroots movement and has since grown into a global campaign supported by various organisations, including We Don't Have Time , Cradlenet , 宜家 and the Ellen MacArthur Foundation.

The campaign's database gathers over 1200 participating companies, organisations, and influencers from over 30 countries, several of which offer circular try-out discounts on reused items, rental and sharing services, and repairs—a consumption that simply doesn't require new raw materials or result in any waste.

Circular Monday is a concept that challenges the traditional 'take-make-waste' linear economy and promotes a more sustainable, circular economy model. This model focuses on reducing waste, reusing resources, and recycling materials to create a closed-loop system.

Aims of Circular Monday:

• Raise awareness about the circular economy and its environmental benefits.
• Encourage consumers to make more sustainable choices.
• Promote businesses that implement circular economy principles.
• Reduce waste and carbon emissions.
• Encourage more of the Circular Pioneers from the "Global South" to sign up to the worlds largest Circular database https://www.circularmonday.com

Shout Out to the Australian Companies Leading the Way

It has been inspiring to see so many new and growing Australian organisations at the forefront of adopting circular economy practices, making significant contributions to sustainability - shout out to:

• Who Gives A Crap : Produces environmentally friendly toilet paper and is committed to sustainable practices.
• Koh : is proof you don't need chemical nasties to keep your home clean; The company’s refillable system uses 10x less plastic than regular cleaning products and is eco-certified by Good Environmental Choice Australia.?

• Biome Australia : An eco-friendly store offering a wide range of sustainable products, from beauty items to home goods.
• Planet Ark : Focused on helping people, governments, and businesses reduce their environmental footprint through recycling and sustainable resource use.
• Boomerang Labs - Circular Accelerator program has helped incubate 50+ circular economy startups in our 3 years of programs, accelerating ventures from initial ideas to thriving businesses.
• Sea Forest - 2023 Earthshot Prize Finalists developing algal products for food, feed, and human and animal health applications in circular bioeconomy models that reduce CO2 emissions.
• Shout out too to Coles Group Woolworths Group and Sanitarium for their big leaps forward in minimising waste and supporting a circular approach.

What can YOU do this Circular Monday?

Here are five actions that everyone can take to support Circular Monday and contribute to a more sustainable future and circular economy:

1.??? Reduce Consumption: Minimise unnecessary purchases to lower your overall environmental footprint.

2.??? Reuse and Repair: Before buying new items, consider if existing items can be repaired or repurposed.

3.??? Recycle Properly: Be diligent about recycling and learn about local recycling guidelines to ensure proper sorting and disposal.

4.??? Support Sustainable Brands: Choose to buy from companies that prioritise sustainability and environmentally friendly practices.

5.??? Spread Awareness: Educate yourself and others about the importance of a circular economy and share practices that contribute to sustainability.

Learn the 10 R's of Circularity and share them with your families & communities:

1. Rethink ??: Reconsider our needs and the way we fulfil them.
2. Refuse ??: Avoid unnecessary consumption and wasteful products.
3. Reduce ??: Minimise the amount of resources used.
4. Reuse ??: Use items multiple times before discarding.
5. Repair ??: Fix damaged items instead of replacing them.
6. Refurbish ???: Restore old items to extend their life.
7. Remanufacture ??: Rebuild products to new condition from old ones.
8. Repurpose ??: Use items in new ways for different purposes.
9. Recycle ??: Process used materials into new products.
10. Recover ??: Extract energy or materials from waste.

Circular Monday is more than just a campaign; it's a call to action for individuals and businesses to rethink consumption and production patterns.

Adopting circular economy principles is not only beneficial for the environment but also for business sustainability.

By supporting initiatives like Circular Monday, continuing our Australia-wide education, focus and effort, we can collectively work towards a more sustainable and prosperous future!

#CircularMonday #CircularEconomy #COP28 #Sustainability

Until next time,

Carrie