businesses will progress on to measure and monitor and continually improve their activity .
In the transition from a ‘ linear ’ economy ( in which products and materials have one ‘ life ’) to a ‘ circular ’ economy ( in which they have second , third , and more lives ), opportunities arise for savvy businesses to develop new revenue streams , achieve cost savings and protect themselves against future market shocks .
WHY SUPPORT CIRCULAR BUSINESSES IN LOCAL GOVERNMENT AREAS ? Not only has circular economy been demonstrated to achieve growth and create new jobs **, it also requires a number of elements that are crucial to the economic wellbeing of local areas , and which are aligned with strategic priorities in many regions around the country .
Circular elements include :
• Economic resilience . Circular economy potentially reduces reliance on imported raw materials through the treatment and use of recycled materials , and builds diverse capabilities within the economy .
• Fostering local economic ‘ loops ’ such as through local recycling and repair businesses . National and multinational businesses are looking for local businesses to support the recycling , repair and reuse of their products . This provides circular business opportunities for localities and businesses across the country . Local economic loops can also support resilience through the production of items such as critical medical products , or other forms of manufacturing deemed a national priority .
• Increasingly diverse job profiles . The wide range of skills needed in a more complex circular economy provide new opportunities to specialise . Some of the skills will be needed in repair and maintenance jobs , many of which have effectively become dormant in the current ‘ linear ’ economy . Others will necessarily be in the recycling and waste management industries , and circular economy jobs also include a large number of service roles from design through to customer relationship roles .
• Building collaboration . Businesses in a circular economy collaborate more closely to make the most of their assets and resources yet often traditional businesses have built their success by operating in a siloed way . In a circular economy , businesses may be sharing the use of an asset , or passing on resources that would otherwise have gone to landfill for the use of another business . To do this , the business community needs to collaborate more effectively than in the current ‘ linear ’ system .
• Renewable energy and carbon neutrality . These are key features of circular economy and the focus of local government areas across Australia . Fostering a circular economy is yet another string in the bow in the work toward these goals .
• Economic transition . Circular economy is all about economic transition , so for regions such as Edwardstown , it is a path that can provide necessary development and economic activity .
Economic development teams can play a critical role in fostering circular economy across the country to achieve the economic growth goals of local areas . These teams closely understand the economic make-up of their area and what makes it distinct from its neighbours . They also have strong skills in engagement , communication and collaboration , which are all essential in a circular economy , yet may not be in the skillset , or perhaps mindset , of traditional businesses .
Thanks to an incremental approach , Marion Council is now well positioned to support the businesses on their circular economy journey , providing connections to key people inside and outside the local government area and advice on next steps . Through this initial support , strong local case studies are being generated , which then help to promote further circular initiatives .
The lesson here has been : starting small can lead to big outcomes .
Selecting the right participants through the expertise of the economic development team and their in-depth understanding of the local area , and offering a step into the circular economy can achieve momentum and greater results over time .
NOTES
* The circular economy project is a deliverable for the City of Marion ’ s ‘ Revitalisation of Edwardstown Employment Precinct Project ’ < https :// www . makingmarion . com . au / edwardstown-project > managed by Donna Griffiths , Unit Manager Economic and Cultural Development and Kate Silkstone , Edwardstown Project Coordinator .
** Ellen MacArthur Foundation , supported by the World Economic Forum and McKinsey and Company put the economic benefit of shifting to a circular economy at one trillion per year in USD globally . The 2017 South Australian study commissioned by Green Industries SA showed that nearly 25,700 jobs would be created by 2030 , along with greenhouse gas savings of 27 %, with a shift toward circular economy in the state . The cost of food waste throughout the Australian economy ( or conversely , cost saving in preventing food waste ) is estimated at over $ 20 billion a year . pwc has recently shown $ 1,860 billion in direct economic benefits could be generated over twenty years and 165 million tonnes of CO2 saved per year by 2040 through circular economy . While studies vary on the models used and headline figure , they are unanimous that jobs , growth and economic benefit will be generated in a transition to a circular economy .
REFERENCES
Gamble H , Crossman SE & Spoehr J ( 2020 ) Economic activation of precincts : City of Marion , Australian Industrial Transformation Institute , Flinders University of South Australia .
Lapidge S ( 2015 ) ‘ Primary production food losses : turning losses into profit ’, South Australian Research and Development Institute .
Lifecycles , EconSearch , Colby Industries and the University of Queensland
( 2017 ) Creating value : potential benefits of a circular economy in South Australia .
Loop Circular Economy Platform and VTT ( 2019 ) Queensland ’ s circular economy future
< https :// www . loopplatform . org / loop-projectqueenslands-ce-future >
pwc ( 2021 ) Building a more circular Australia : The opportunity of transitioning to a circular economy .
World Economic Forum , Ellen MacArthur Foundation and McKinsey and Company ( 2014 )
Towards the circular economy : Accelerating the scale-up across global supply chains , World Economic Forum .
ABOUT THE AUTHOR
MELISSA MILLER Melissa Miller is Director and Cofounder at
Loop Circular Economy Platform . Melissa ’ s goal is to help businesses successfully navigate the circular economy . With a background in economics , she brings together expertise from marketing and engagement , and policy and circular economy . Prior to Loop Platform , Melissa worked in business , state government and the higher education sector . Melissa has been one of the driving forces behind the early understanding of circular economy in Australia . Since 2016 , she has developed research for four governments , established a national and international circular economy conference , Powering the change to a circular economy , and put in place circular economy training for hundreds of professionals across Australia .
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