The end of waste? Australia’s circular economy framework sets an ambitious target for 2035
In December 2024, the Federal Government unveiled Australia’s Circular Economy Framework, presenting a national strategy to double the country's circularity rate by 2035 and shift from the traditional 'take-make-dispose' model to a sustainable circular system. The Framework prioritises designing out waste, keeping materials in use for longer, and regenerating natural systems. The goal is to simultaneously drive economic growth, reduce greenhouse gas emissions, and minimise waste.
While the concept of a circular economy is not new, the Framework is designed to guide Australia’s transition to a circular economy and to embed a culture of sustainability in every aspect of Australia’s economy.
The Framework priorities
Integrating circular economy principles across key sectors like industry, construction, agriculture, and resource management.
Fostering innovation, collaboration, and behavior change to scale circular solutions.
Supporting local initiatives, developing markets for recycled goods, and embedding First Nations knowledge into sustainability practices.
Key elements of the Framework
Missions and targets
The Framework seeks to double Australia’s circularity by 2035. This ambitious goal involves reducing the per capita material footprint by 10%, increasing material productivity by 30%, and safely recovering 80% of resources. The transition focuses on creating a closed-loop system where materials are reused, repaired, and recycled instead of being discarded. Achieving these targets will drive significant environmental benefits, including reducing waste sent to landfills, cutting greenhouse gas emissions by 14%, and enhancing economic resilience.
Four key sectors targeted for action:
industry;
built environment;
food and agriculture; and
resources.
For industry, priorities include circular packaging and manufacturing durable goods to reduce resource dependence. The built environment emphasises refurbishing existing structures and using low-carbon, recycled materials in construction. In agriculture, reducing food waste and transforming agricultural by-products into valuable resources are key, while the resource sector focuses on improving mineral recovery and repurposing end-of-life products like EV batteries.
Cross-cutting objectives
The Framework identifies six overarching objectives to support the circular transition, including fostering innovation, improving resource recovery, and scaling markets for recycled materials. Systems thinking and circular economy skills are highlighted to ensure professionals consider the full lifecycle of materials. Collaboration across sectors, local initiatives, and behavior change campaigns will be essential to achieving these objectives.
Economic and environmental benefits
The Framework highlights how transition to a circular economy offers significant economic and environmental returns. By 2035, adopting circular practices could add $26 billion to Australia’s GDP annually and reduce material sent to landfill by 26 million tonnes. This shift will also contribute to achieving climate goals by cutting emissions through better resource use and reducing reliance on virgin materials. It provides industries with opportunities to innovate, enhance global competitiveness, and create jobs in sustainable sectors.
Integration with First Nations knowledge
The framework highlights the importance of learning from Aboriginal and Torres Strait Islander peoples, who have practiced sustainability for tens of thousands of years. First Nations knowledge emphasises the circular use of resources, minimising waste, and caring for the land to ensure its long-term health. Genuine partnerships with these communities are key to shaping a more sustainable and inclusive circular economy. This integration respects cultural heritage and ensures that the transition benefits all Australians equitably.
Impacts on the Water Sector
The water sector is also specifically called out in the Framework as an opportunity to showcase an area of Australian strength and to consider opportunities to take circularity further to support our water security, reduce emissions and better support our economy.
The Framework notes that future opportunities for circularity in water will be underpinned by the new National Water Agreement, an intergovernmental agreement serving as a blueprint for national water reform into the future.
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