Govt directs Productivity Commission to look into circular economy
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The news: The federal government has directed the Productivity Commission to undertake an inquiry into the circular economy over the next 12 months. It will look at ways to improve resource productivity, identify barriers that limit the efficient use of raw materials and find priority areas for progress.
The numbers: Australia's current economic output per kilogram of materials consumed is less than half the OECD benchmark. In the OECD’s measure of total material productivity, Australia is ranked 38th out of 41 nations.
The context: This inquiry was among the recommendations from a government's advisory group, which is advising on a Circular Economy Framework. It also recommended the sustainable finance taxonomy and Green Bonds framework be expanded to include the circular economy, encouraging voluntary sustainability reporting and embedding the circular economy in net zero plans among other measures.
What they said: "Australia currently has the third highest material footprint per capita in the OECD, and the fourth lowest rate of materials productivity. According to the most recent National Waste Report, Australian households and businesses generate the equivalent of almost three tonnes of waste per person, per year," said Minister for the Environment and Water Tanya Plibersek.
"The transition to a circular economy clearly requires economy-wide changes, with innovative thinking and reforms from governments and businesses."
Treasurer Jim Chalmers said this could help create more jobs in the economy.
"By re-using and recycling and repairing more of our waste, we can create more opportunities right through the supply chain for Australian companies and Australian workers," Chalmers said.
The source: Federal government media release
