Shifting Towards a Circular Economy: The Carrot and The Stick Approach

Hello eco-conscious readers,

As we continue to strive towards sustainability, we often find ourselves in a continuous cycle of innovation, adaptation, and transformation. One such transformation is the transition towards a circular economy. Today, I'd like to share some thoughts on how we can push for this necessary shift, drawing inspiration from Diane Crowe, Reconomy's Head of Sustainability.

The Current State of Affairs

First, let's take a look at where we stand currently. According to the inaugural report measuring the UK's Circularity Gap by Circle Economy, the UK's economy is 7.5% circular. That's a tad above the global average of 7.2%, but we're trailing far behind countries like the Netherlands, which boasts a circular economy of 24.5%.

What does this mean? Well, a staggering 92.5% of all economic activity in the UK still depends on consuming virgin materials. More concerning is the fact that 80% of these materials are sourced from abroad, which brings additional sustainability challenges to the table.

The Path Towards a More Circular Economy

Given the state of affairs, it's clear that we need a strategy to speed up our transition to a more circular economy. One solution suggested by Crowe is the adoption of universal Science Based Targets for material consumption in the UK, much like those already in use for carbon reporting.?

This provides a measurable approach to circularity and a means for holding ourselves responsible for making tangible changes.

The Carrot and The Stick Approach

Crowe proposes a two-pronged strategy - the 'carrot and stick' approach - to help businesses achieve a more sustainable future.

The 'carrot' comes in the form of centralised investment in mandatory recycling infrastructure, along with proper incentives for businesses to invest in circularity. These incentives could follow the lines of those set out by the Task Force on Climate-related Financial Disclosure.

On the other hand, the 'stick' refers to the introduction of additional legislation and tax reform. This is to ensure all businesses adopt better operational practices that align with the goals of a circular economy.

To read the rest of this article, go to?ASPIRE blogs