This inquiry report examines Australia’s opportunities in the circular economy to improve materials productivity and efficiency in ways that benefit the economy and the environment. It identifies opportunities to improve materials productivity in ways that benefit the economy and environment in five priority sectors: built environment; food, agriculture and organics; mining; electronics; and textiles and clothing.

The inquiry aimed to both contribute to the evidence base for policymaking about Australia’s circular economy transition and to provide practical policy advice for Australian governments.

Key points

• A circular economy aims to meet human needs with fewer and more sustainable materials, reducing the environmental impacts and costs of economic activity.
• Despite some uptake of circular economy opportunities in Australia, overall progress has been slow.
• Circular economy-related policies in Australia are in early stages of development, but in several areas are evolving rapidly.
• The inquiry recommends governments take further action to improve materials productivity in ways that benefit the economy and environment across three broad areas.
• The Australian Government should develop an outcomes framework that connects each circular economy policy action to its related economic, social and environmental goals. This will support effective implementation, monitoring and evaluation of circular economy reforms.