The circular economy is a regenerative model of production and consumption that aims to decouple economic growth from environmental harm. Unlike the traditional, more linear model of “take, make, dispose”, a circular economy would design out waste and pollution, keep products and materials in use for longer, and recover materials from waste for reproduction. As defined by the Ellen MacArthur Foundation, the core principles of a circular economy are: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems (Ellen MacArthur Foundation, 2024).
A circular economy strives for more efficient use of the planet’s finite stock of natural capital; reduced harms to the environment, climate and biodiversity; and improved social outcomes such as health, amenity and intergenerational equity (See: Productivity Commission, 2024). Circular economy activities include designing products to use less materials (‘narrowing material loops’); extending the time that products are consumed via reuse and repair (‘slowing material loops’); and recycling and recovering materials (‘closing material loops’).
Product stewardship is one mechanism by which industries can rapidly transition to modes of production that operate within a circular economy. The Australian federal government has recognised product stewardship as a central mechanism for achieving Australia’s recycling and resource recovery objectives and contributing to the development of a circular economy. Several Stewardship schemes currently operate to cover small portions of e-waste produced, but are not yet as effective as they need to be, nor do they fully embrace circular economy principles. These schemes generally only focus on the collection of materials for recycling, without sufficient attention to narrowing or slowing material loops.
The Circular Advantage report by the Circular Economy Ministerial Advisory Group estimates that circular economy initiatives could deliver $1.9 trillion in economic benefits by 2040, driven by productivity improvements, innovation, and job creation in remanufacturing, repair, and materials recovery (CEMAG, 2023). Moreover, the United Nations Development Programme has highlighted how extending product lifespans and reducing raw material extraction can significantly lower emissions and support sustainable development goals (UNDP, 2023).
Embracing a circular economy is not only good for Australia’s economy, it’s a vital part of protecting human and environmental health.
