Australia’s New National Circular Economy Framework
Australia has made its first-ever commitment to a nationwide shift toward a circular economy. Released by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) in December 2024, Australia’s National Circular Economy Framework outlines an ambitious strategy to double Australia’s circularity rate by 2035. Australia’s circularity rate (a.k.a. the proportion of materials used by the country that does not come from virgin sources) is only 4.6%- lower than the global average of around 7%.
To achieve this mission, Australia has set three targets that address the front, middle, and end of product lifecycles:
1. Reduce material footprint by 10% (Front-end target)
Australia has the highest material footprint among G20 nations with 31 tonnes per person
2. Increase material productivity by 30% (Middle target)
In 2019, Australia had the fourth lowest material productivity rate among OECD countries. By 2023, it generated only US$1.20 of economic output per kilogram of materials used, far below the OECD average of US$2.50.
3. Safely recover 80% of resources (End target)
The current resource recovery rate is around 63%. From the $1.4 billion spent by Australian firms annually, $26.5 billion worth of materials end up in landfills.
Why a transition to a Circular Economy?
Shifting to a circular economy is a key move for Australia, bringing big benefits for the economy, environment, and global trade. Economically, it could add $26 billion to the GDP each year by 2035. Environmentally, it can help cut greenhouse gas emissions by 14% and keep 26 million tonnes of waste out of landfills annually. On a global scale, Australia has a strong opportunity to grow its trade in sustainable products, with nearly half of its GDP coming from trade and over 40% of exports going to countries already embracing circular economy practices. Therefore, transitioning to a circular economy is not just an environmental necessity but also a strategic economic opportunity.
Sectoral Priorities
There are four key sectors in Australia identified as having the most significant opportunities for promoting a competitive and sustainable circular economy in the short to medium term: industry, food and agriculture, the built environment, and resources. These sectors play a major role in the economy, use large amounts of materials, and offer a competitive edge for Australia. Each of the priority sectors has three key enablers that support the transition to a circular economy. Additionally, six cross-cutting objectives apply across all sectors, as summarised below
Queensland’s Strategic Opportunity in Circular Economy
Queensland is uniquely positioned to lead Australia’s circular economy shift. The framework’s priority sectors align closely with Queensland’s existing strengths in mining, agriculture, and construction. This allows Queensland to support national targets while also boosting its economy. For instance, in mining, Queensland has the chance to lead the way in recovering critical minerals from mining waste. In agriculture, Queensland is already taking steps to capitalise on global demand for biofuels, as seen in the Jet Zero Australia project. By embracing the circular economy, Queensland can strengthen its economy, create new jobs, and protect its environment.