Circularity Compliance
The past week has been a turning point for circularity in Australia, with the release of the Circular Economy Ministerial Advisory Group (CE MAG) interim report. Through CE MAG’s expertise, evidence and consultation, the interim report makes recommendations in six critical areas relevant to accelerating circularity in Australia:
national policy setting
national target setting
economics
net zero
design and consumption of products
the built environment
What are the key takeaways?
Circularity and Compliance
Circularity is becoming a matter of compliance. The CEMAG has recommended the adoption of national circular economy design standards for products and materials, with a focus on fast moving consumer goods. Recognising that circular economy offers a powerful tool to mitigate climate change, they have also recommended that circular economy activities be included in directors’ duties and alongside mandatory climate-related reporting.
2. Economy Framework
A common direction for the Australian economy is being set, with a national framework for a circular economy being released by the end of 2024. The framework will become a guide for policy makers, businesses and communities to align the Australian economy with a common circular vision.
4. The Built Environment
The built environment sector has two full pages of recommendations and is the only sector explicitly called out in the report. The built environment recommendations focus on the adoption of policies that would transform practices such as changes to the national construction code, incentives for design for disassembly and refurbishment over demolition.
3. Expanding Scope
The scope of the circular economy is expanding and is no longer a framework just used to address waste. The circular economy is being linked to economic productivity, net zero ambitions and important government strategies such as ‘Future Made in Australia’ and the ‘National Reconstruction Fund’. Circularity is increasingly being seen as an enabler of net zero goals, with recommendations to embed circular economy principles and actions across key climate policies and all net zero sector plans to support emission reductions.
What does this mean?
This report is a significant step toward a circular economy in Australia, indicating that we will increasingly see circularity integrated into strategies, policies and regulations.
It is increasingly important that businesses be prepared for this transition.
The Resources Centre of Excellence is on hand to help - we can answer your questions about upcoming market and regulatory changes or empower you with the knowledge and tools you need to get ahead of these changes.