What is a circular economy

A circular economy is a system that prioritises keeping materials and resources in use for as long as possible. This helps to minimise waste and our impact on the environment.

Our current system—the linear economy—follows a “take, make, waste” model, where resources are extracted, goods are produced and used, and then discarded as waste.

Whereas, in a circular economy, products (and materials that make up the product) are either recycled, remanufactured or re-used after they have served their useful life.

This minimises impact on our environment by avoiding resources going to landfill and reducing the need to extract new, virgin materials.

Moving to a circular economy model means businesses and manufacturers will design for durability, repairability, reusability, remanufacturing and recycling.

For this shift to be successful, it's essential for the community to champion the transition, helping drive demand for products made with recycled content and sustainable practices.

Key principles of a circular economy

A circular economy prioritises the following:

Waste reduction: Minimising waste through efficient production processes and responsible consumption habits
Reuse and repurposing: Finding new uses for products after they have served their useful life
Recycling: Recovering materials from products that have served their useful life and using them to create new items
Remanufacturing: Restoring used products to like-new conditions
Design for longevity: Products are designed to be durable, repairable, and upgradable, extending their lifespan

Benefits of a circular economy

A circular economy offers numerous advantages:

Environmental protection: Reduces the need to extract new natural resources, minimises waste and pollution, and contributes to a healthier planet
Resource recovery: Optimises the use of resources we already have and reduces the need for virgin materials
Economic growth: Encourages innovation, creates new industries and jobs in the repair, remanufacturing, and recycling sectors
Enhanced competitiveness: Businesses can gain a competitive edge offering more sustainable and resource-efficient products and services

ReMade in Australia is a positive step in Australia's transition toward a circular economy by focusing on the use of recycled materials. It encourages design innovation - getting more out of materials that are currently in our economy by using them again.

Businesses will soon have the opportunity to apply for the program. Sign up to keep up-to-date with the program.