BUILDING BACK BETTER
HOW A CIRCULAR ECONOMY COULD BOOST AUSTRALIA ’ S ECONOMIC RECOVERY
Angus Mitchell and Dr Ian Overton , Green Industries SA
THE STATE OF PLAY COVID-19 pandemic provided the largest shock to the global economy in decades . In Australia this has been compounded by the economic impacts associated with the ‘ Black Summer ’ 2019-20 bushfires . While the economic impacts from COVID-19 are still evolving , the Reserve Bank of Australia estimates that the Australian economy will contract by about 6 per cent this year 1 .
More than 300,000 Australians have lost a job in in 2020 ( Australian Bureau of Statistics ) 2 . Policy makers nationally are contemplating which stimulus measures could have the greatest ‘ bang for buck ’ for economic development and job creation .
Some estimates indicate a potential for an additional 230,000 new green manufacturing jobs 3 , and many policy makers are bullish about the opportunities investing in the circular economy could provide in Australia .
In South Australia , COVID-19 restrictions have been less detrimental compared to elsewhere in Australia , but these have
still had a significant economic impact . However , South Australia is in a strong position to recover given its leadership in the circular economy . South Australia has a long history in waste management and resource recovery since the introduction of container deposit legislation in 1977 . Nationally , it has the best rate of waste diversion to genuine recycling with 83.6 %. It has the best use of renewable energy outside of Denmark and has the greatest use of recycled water in Australia from water treatment and stormwater management . South Australia also has a well developed organics recycling industry and recently became the first state in Australia to introduce legislation to ban single-use plastics in Australia .
Green Industries SA is the Government agency leading the State ’ s transition to a circular economy . Its objectives under the Green Industries SA Act 2004 are to promote waste management practices that , as far as possible , eliminate waste or its consignment to landfill and promote innovation and business activity in the waste management , resource recovery and green industry sectors , recognising these areas present a valuable opportunity to contribute to the State ’ s economic growth . Green Industries SA uses strategy , policy , legislation , financial incentives and education to promote the circular economy to improve the environmental , societal and economic benefits for South Australians .
SO WHAT IS THE CIRCULAR ECONOMY AND WHERE ARE ALL THESE GREEN JOBS ? In contrast to a linear ‘ take , make , waste ’ economy , a circular economy builds and rebuilds overall system health creating economic opportunities and importantly improved environmental and social benefits . By designing out waste and pollution , keeping products and materials in use , and regenerating natural systems rather than degrading them , a circular economy looks to build long term economic opportunities and jobs that are resilient to economic shocks .
A circular economy aims to avoid and optimise the use of materials used in the production of goods and services in the economy , including through reducing
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