The Australian Government’s Innovation Priority Sectors – Circular Economy

The concept of recycling — and the knowledge that this is a positive thing — has been around for quite some time. But the circular economy goes beyond this. The circular economy is not just recycling and reusing a little here and there. Instead, it is about turning these concepts into a viable, self-sustaining, economically feasible way of living that is going to support our society and planet in the years to come.

It’s no surprise, then, that the Australian government has made the circular economy one of its key innovation priorities for 2022 and far beyond. By fostering a better understanding of this vital area of development and by driving investment and study in sustainable practices, Australia is positioning itself as one of the global front-runners in a critical field.

The Current Landscape 

In the words of the government’s own Global Australia initiative, the country is “serious about reducing our waste and putting valuable recycled materials to work.”

The figures certainly suggest this to be the case. For instance, more than three-quarters of construction and demolition waste is recycled in Australia, with masonry materials and metals displaying the highest rates of recovery and reuse. Meanwhile, programs such as Sustainability Victoria (SV) are reframing the idea of what waste really is, transforming it from a problem into a resource. One of SV’s most recent projects was the construction of the Mordialloc freeway, which incorporated “more than 150,000 tonnes of recycled asphalt, more than 193,000 tonnes of recycled roadbase and 570 tonnes of plastic waste.”

This has become a government priority for two reasons. One is the vast amount of waste a country like Australia produces on an annual basis — around 67 million tonnes of waste per year. This represents both a significant problem and a huge potential resource.

The second reason is Australia’s less-than-exemplary performance in this area in recent years. While Australia scores fairly highly on the Global Waste Index — scoring 72.9/100 in terms of dealing with the waste it produces — this figure has fallen almost eight points from 80.85/100 only three years ago. In terms of plastic recycling, only 16% of plastic used in 2020 was recycled, putting Australia way behind on its target of 70% recycled plastic material by 2025.

Government Support for Innovation in This Sector

The Australian government has recognised the important role innovation is going to play in the coming years, as the nation overcomes these challenges and moves towards a more circular, more sustainable economy. To support this innovation, the government has implemented a number of measures.

Setting Achievable Yet Significant Benchmarks

Benchmarks provide useful targets as well as yardsticks for measuring progress. These benchmarks need to be realistically achievable, but they must also represent meaningful change.

• 70% of plastic material recycled by 2025 — as mentioned above.
• 80% recovery rate of waste by 2030.
• 50% reduction in food waste by 2030.

Investing Directly in the Circular Economy

Innovation requires financial support. While technologies should be commercially viable — achieving a self-sustaining circular economy — direct capital investment is required on the outside.

• $1+ billion of investment in the waste and recycling sectors. 
• $26 million invested into industry-led recycling schemes as part of the National Product Stewardship Fund.
• $70 billion in grants and incentives for Australian-based businesses.
• $250 million Recycling Modernisation Fund, projected to achieve $1 billion of funding in total.

Fostering Moves Towards Sustainability

In addition to benchmarking and investing, the government is fostering moves towards the circular economy through a number of programs and initiatives.

• Increased regulation for glass, plastic, rubber (tyres), paper and cardboard export.
• The Recycling Modernisation Fund discussed above.
• The National Waste Policy Action Plan.
• The National Plastics Plan, and support for Australians choosing to buy locally recycled products.

All of the above represent just a few of the initiatives that are currently in place in Australia. This list is designed to provide some insight into what the government is doing to bring about innovation in this sector — innovation that will prove critical if the country is to get where it needs to be.

A History of Global Innovation Leadership in this Field

So far, we’ve examined what is being done to move Australia in the right direction, but, in fact, our circular economy is already far beyond the preparation stage. Australian innovators are already driving real change in this sector, both here and abroad. 

Some of the most exciting and the most game-changing moves are being made by Australian organisations. For example, Drake’s Supermarkets and IG Fresh came together in 2019 to produce compostable wrapping for vegetables, reducing much of the plastic that ends up in Australian landfills and bringing us closer to our targets. Startups like Returnr have also made significant contributions, replacing single-use bowls and cutlery with reusable items that could revolutionise the way Australians consume food on the go.

While these innovations represent ways to reduce waste, other developers and entrepreneurs have been focusing instead on how we can utilise waste as a resource. Port Douglas’ Plastics Pirate is one example of this — the firm seeks to demonstrate the viability of “industry specific circular economies” through direct recycling and reusage programs.

Battery Pollution is another example. This innovative firm seeks to alleviate one of the issues associated with the increasing electrification of transport and other technology by harvesting materials from spent batteries. RecycleSmart, meanwhile, aims to make reuse easier with an on-demand recycling service for tricky recyclables (e.g. soft plastics, E-waste, etc.) — another instance of Australia’s innovative startup and entrepreneurial markets driving real, sustainable change.

Australia’s Academic Sector and the Circular Economy

Australia’s academic sector is also helping to further the causes of innovation and sustainable development in the country. 

• The Royal Melbourne Institute of Technology (RMIT) hosts the Circular Economy Hub (CEH), which brings together researchers and authorities from a number of industries to support practical innovation that will benefit our society and the environment.
• The University of Queensland has been singled out by The Ellen MacArthur Foundation for research into urban mining — the reclamation of valuable materials from inner-city environments that may otherwise be lost to waste landfills.

• Federation University works closely with the Carbon Technology Research Group, utilising advanced tech to accelerate moves towards the circular economy.
• The University of Technology in Sydney deploys its own circular economy research team, coordinating a variety of projects each year aimed at supporting a multi-faceted approach to sustainability.

The four examples listed here offer just a small snapshot of what is currently underway in Australia’s academic facilities and learning institutions. Mass engagement from educators and research centres is required if we are to drive innovation forwards and foster the next generation of talent in this field. With so much research already in progress, and with such integration and cooperation between different teams and institutions, Australia is rapidly becoming a global leader in this field of study.

A Welcoming Environment for Entrepreneurs Specialising in Sustainability 

With a concerted effort from Australian entrepreneurs, startups, and business innovators, as well as direct support from Australia’s state, territory, and federal governments, Australia is rapidly becoming one of the best choices for entrepreneurs in this sector. When we factor in the academic approaches — the vast scale of the research projects undertaken at institutions up and down the country — we can see why our nation represents such a welcoming environment for innovation.

This welcoming atmosphere is helping Australia to foster stronger economic ties with partners across the globe. A 2020 report on Chinese-Australian entrepreneurs, for example, found that innovators in this demographic were fostering strong bonds between the two economies despite the challenges of COVID-19. Cross-border knowledge was found to be a key factor in the success of these entrepreneurs, and this international outlook could prove pivotal as the business community overcomes sustainability obstacles in the future.

There is still some way to go for Australia on our journey towards a meaningful and sustainable circular economy. However, as we have seen from the business, governmental, and academic initiatives already in progress, we are certainly taking steps in the right direction.