Circularity 2024 kicked off today at Doltone House, Jones Bay Wharf in Sydney, with almost 300 circularity enthusiasts from government, business, industry, research, education and consulting gathering to drive Australia's circular economy transition.
The morning kicked off with an introduction to this year’s Master of Ceremonies, Maria Atkinson AM, an internationally recognised sustainability strategist with over 15 years’ experience on corporate, international institution and government boards and committees.
This was followed by a Welcome to Country paying respects and acknowledging the Traditional Owners of the Gadigal land, before Planet Ark’s Deputy CEO, Adam Culley, and Head of Circular Economy Development, Nicole Garofano, were invited to the stage to officially open the conference.
Enabling resource efficient value chains through action and collaboration
Adam began his address by introducing the theme of this year’s conference: ‘Enabling Resource Efficient Value Chains’. This theme was chosen in recognition of the critical importance of fundamentally changing how we currently extract resources, produce goods with them, use and consume those goods, and then discard them.
To keep global heating below 1.5 degrees, the world must reach net zero greenhouse gas emissions by 2050, with a 45 per cent reduction by 2030. Research by the Ellen MacArthur Foundation shows that 55 per cent of the journey to net zero will be achieved by transitioning our energy systems to 100 per cent renewable sources.
The remaining 45 per cent, however, must be addressed by moving from the linear 'take, make, dispose' model of resource use to a circular approach—one that eliminates waste, keeps resources in use for as long as possible, and regenerates natural systems.
Adam outlined the importance of building resource efficient value chains that use resources in a sustainable way to minimise environmental impact while maximising the benefits of products and services to achieve this. Adam spoke to the need for action and collaboration across all phases of supply chains, as well as the necessary legislative and economic conditions to make that possible.
Building a circular future with Australia’s first dedicated circular economy investment fund
Adam also took the opportunity to announce a new partnership between Planet Ark and Boston Global designed drive the nation's transition towards a circular economy through the country’s first dedicated circular economy investment fund.
The Circular Future Fund (CFF) will be a significant tool to accelerate Australia's shift from a linear to a circular economic model, supporting projects and innovations directly benefiting Australian businesses, communities, and the environment by focusing on this key goal.
The fund will target multiple sectors, including:
Recycling and waste management: Enhancing existing recycling systems and developing advanced recycling technologies.
Product design: Encouraging companies to adopt circular design principles, creating products that are longer-lasting, repairable, and recyclable.
Renewable resources: Supporting the development of bio-based materials and renewable energy solutions that are both scalable and sustainable.
By targeting these high-impact sectors, the CFF aims to facilitate Australia's leadership in circular practices, encouraging innovation and supporting the next generation of sustainable businesses.
The transformative potential of sustainable resource management
The conference then moved on to the inspiring keynote address from Dr. Janez Potočnik, current Co-Chair of the UNEP International Resource Panel (IRP) and former European Commissioner for Environment.
Janez began by highlighting how access to and use of natural resources has historically been closely related to the level of the achieved wellbeing of nations, yet this has not taken place equitably or sustainably to date. lobal material use has increased by more than a factor of three since 1970 due to urbanisation, industrialisation and population growth, with nations focusing primarily on the narrow quantitative concept of economic development associated with gross domestic product (GDP).
Janez then argued for the critical need to decouple resource consumption from economic growth, as evidenced by current ecological overshoot leading to significant climate impacts and even breakdown in certain systems.
Janez closed his keynote by speaking to the major business opportunity that addressing these issues by transitioning to a circular economy represents, and the individual and collective responsibility we have to make changes as a society that is more interconnected and interdependent than ever.
"A pathway towards sustainable resource use, one that enhances human well-being while safeguarding our planet’s boundaries, is possible—but urgent action is needed… Changing our relationship with the rest of nature is an economic, equity and security imperative to strengthen collective resilience,” Janez said.
National circular economy legislation: creating the conditions for successful transition
In the final session of the morning, members of Australia's Circular Economy Ministerial Advisory Group (CEMAG) including John Thwaites AM, Paul Klymenko, Dr. Dominique Hes and Dr. Larry Marshall shared insights from the group's ongoing consultations with government. This included challenges and opportunities in Australia's circular economy landscape as well as emerging strategies, collaborative initiatives and key trends in sustainability.
The members of the panel first outlined the contents of the interim report provided to government earlier this year and highlighted the key recommendations of the group so far. These included:
A national circular economy framework that sets ambitious targets to drive change throughout the economy.
National circular economy legislation at both regulatory and market levels, with the regulatory agenda underpinning market levers.
A harmonised approach between the commonwealth and the states to ensure these levels of government are acting collaboratively rather than separately.
Place based approaches to the circular economy that embed the concept locally, rather than purely top-down approaches.
Challenge-based funding for innovation and research aligning funding with national framework.
A key focus was Australia’s high-level of capability in science and innovation, which to date has not been suitably leveraged to build solutions for the issues we face as a society. The circular economy represents a second chance in this regard, but we need to create an enabling environment through collaborative education, regulation, strategy and policy.
An additional takeaway from the panel was the critical need for systems thinking to understand holistically the consequences of individual solutions. Too often, policy-makers have jumped on ‘environmentally-friendly’ solutions without truly grasping impacts at all stages of the supply chain, leading to unintended consequences.
Understanding the need for good collaboration
The afternoon sessions kicked off with a ‘Fireside chat’ on the core ingredients required for effective collaboration in circular economy initiatives, between Dr. John Butcher from the John Curtin Institute of Public Policy and Professor Veena Sahajwalla of the UNSW Centre for Sustainable Materials Research & Technology.
The discussion began with a criticism of the concept of ‘legacy mindsets’; approaches that entrench traditional conventions, practices, norms, rules and boundaries when it comes to societal change. Transitioning to a circular economy and achieving broader societal goals will require rethinking these mindsets, especially the assumptions that have caused us to reach this point such as "growth is good." Both John and Veena emphasised that this requires recognition that the problems we face are difficult and will require us to embrace hard answers, rather than seeking quick fixes.
The panellists then moved on to the need for collaboration across various sectors of the economy to challenge traditional approaches and discover what those hard answers might be. They outlined the essential need for champions of collaboration, robust governance, and breaking down silos throughout this process, while recognising that effective partnerships between academia, businesses, and other stakeholders depend on tailored approaches that respect unique contexts.
Finally, John and Veena talked to how we can create new, resilient systems that help us to face both current and future, unexpected changes within our society. They noted that innovation thrives in environments where it is ‘safe to fail’ and that only by fostering such an environment can we create adaptability, preparedness, and shared ownership of the journey toward impactful change.
Enabling circular value chains through good design
When it comes to the circular economy, much of the focus is placed on the end-of-life of the products we produce and consume. However, with up to 80 per cent of a product's environmental impact determined in the design phase - the influence of design, and good designers, on outcomes is clear. In this session, design professionals Pippa Corry from Philo & Co, Joshua Ellis from Cultivated and Jo-Ann Kellock from the Design Institute of Australia discussed the importance of circular design not only for environmental impacts, but also for social and economic outcomes.
The panel began by discussing the importance of transparency to allow for informed choices when it comes to both conventional product purchasing and alternative circular business models. Consumers require clear, accurate information on environmental impacts to make responsible decisions for the environment, but in our current situation false claims and distortion of facts are making this difficult. A particular emphasis was placed on the importance of product stewardship as a means to greater transparency, especially through initiatives like product passports.
The panel then outlined the necessary skills to design for circularity, including business acumen, systems thinking and technological proficiency. The panel articulated that effective circular design requires understanding the systems behind products and processes, while also managing complex, often fragmented markets. To ensure a workforce of designers with these capabilities, education will be key.
Finally, the panel echoed the sentiment of other speakers throughout day one by emphasising that circularity requires action, not just theory. They stressed that moving toward a circular economy is about completing the loop, not just following trends, and that to succeed organisations need passion, collaboration, and a shift in mindset. In design, this must begin with better briefs at the outset of projects that embrace new approaches to sustainability.
The role of finance in the circular economy transition
In the penultimate session of the day, a panel including Christina Tonkin from ANZ, Martijn Wilder from Pollination and Heath Warman from Boston Global and moderated by Holly Taylor from ANZ discussed how innovative financial strategies and investments are driving the transition to a sustainable and circular economic model and the role of finance in fostering circular business practices.
The first key takeaway from the panel was the clear need for standardisation of circular financing models and a taxonomy for clear communication both within and across borders. The panellists agreed an international framework and global standard for circular economy and sustainable financing would reduce confusion, support better investment decisions, and prevent greenwashing, making this a significant priority
The panel also highlighted the importance of collaborative partnerships in the finance field to close financing gaps. They noted that the success of circular economy initiatives often requires cooperation between sectors, including banks, investors, and businesses, however this kind of collaboration can be difficult to stimulate between such actors. They also noted that despite the availability of venture capital for circular economy innovation, there is a real gap in growth capital, particularly for scaling solutions like recycling technologies.
Lastly, the panel spoke to the significant potential impact and value of investment in decarbonisation and nature-based solutions. They pointed to the need for a holistic approach across sectors to decarbonise sectors and support sustainable transitions, and the importance of recognising investment into biodiversity and nature regeneration as economic as well as environmental opportunities.
How behaviour change can accelerate the circular economy transition
The day’s final session began with a keynote presentation from Martin Geissdoerfer, Associate Professor of Circular Economy Transitions at Monash Sustainable Development Institute. Martin introduced Monash’s new Circular Economy Labs, which will act as a transition broker to accelerate transformative change towards circularity through cutting-edge research and action.
The Circular Economy Labs have been established in recognition that the linear economy currently dwarfs the circular economy, and there is a significant need to dramatically accelerate our transition towards the latter. Capability building is a key focus of the new centre, with a focus on developing new talent and future leaders in the circular economy. The centre will operate on three key pillars:
Building a circular ecosystem through world-class research
Engaging industry and developing new tools for action
Supporting transition through policy engagement and behaviour change
Martin was then joined by Courtney Holm from A.BCH World and Lachlan Feggans from Brambles for a discussion moderated by Jennifer Macklin from the Monash Sustainable Development Institute on the importance of behaviour change on both sides of the market to achieve circular economy outcomes and system change.
The panel kicked off by once again pointing to the small scale of the circular economy in comparison with the linear economy in Australia. Addressing this gap requires systemic changes, a holistic approach across industries, and better coordination between sectors, along with leadership in transitioning key actors in the value chain. Transition brokers will play a key role in building an ecosystem of actors who together can drive these systemic changes.
The panel then moved on to a discussion around Australia’s current skills and capability gaps in terms of the circular economy. Australia needs to develop its workforce's capabilities to match the growth of the circular economy model, with transition brokers such as the Circular Economy Labs from Monash Sustainable Development Institute being a prime example of how to support this development and drive industry-wide collaboration.
Finally, technology and business model innovation was identified as key to scaling up Australia’s circular economy transition. The panel argued that new technologies and business models need to be rapidly developed, tested and scaled, with understanding consumer behaviours and overcoming barriers to their action key to their success. To achieve this, behaviour change science needs to be embedded across sectors to enable systems thinking and ecosystem design that promotes real, lasting change.
Concluding remarks
Day one of Circularity 2024 provided incredible insights from Australia’s circular economy visionaries as well as experts from abroad. Across the discussions ranging from resource efficiency to circular design and financing, to behaviour change among both business and consumers, there were three key themes that continued to be highlighted by speakers.
The circular economy remains in its infancy: We are at the very beginning of what will be a significant departure from what has been the modus operandi for economic growth and development since the industrial revolution. The circular economy is tiny in comparison with the established linear economy, and change needs to occur in all areas to achieve our goals.
The transition requires practical action: We are currently facing significant ecological and social imbalances globally and the need for action is urgent. Holistic, systems thinking is required to scale circular economy solutions and rapidly accelerate our transition without producing unintended negative consequences.
We can only achieve a circular economy with good collaboration: Collaboration is perhaps the number one most important element in our transition to a circular economy. Whether it be across sectors of the economy, between government and industry or along the supply chain of a product, collaboration is what will drive a successful transition to a just and sustainable circular economy in Australia and globally.
Stay tuned for more insights on day two of Circularity 2024.