Circular Economics 101
Yesterday I was at the North East Recycling Forum in Darlington. NERF is one of the very few green events I attend as a punter as they have great agendas and I get to catch up with a lot of familiar faces.
The speaker I most wanted to hear was Andrew Dickson from Zero Waste Scotland. During the Q&A, there was a debate over the circular economy. I said while I was pleased that Andrew had said encouraging things about the need for a circular economy, most of Zero Waste Scotland’s efforts seem to be focussed on pushing decent quality recyclate into the loop, and that it wouldn’t be sustainable without industrial demand for the material.
Andrew reiterated his position that quality standards were necessary to unlock demand, but a representative from a major waste company waded in on my side, saying “We could produce much higher quality material than current standards – if somebody wanted to buy it.”
Interestingly, the next speaker, Jenny Robinson from WRAP, put up a graph showing the decline in recycling of newsprint due to falling newspaper readership, which she said would cause problems for hitting UK recycling targets.
“Do the recyclers in the room want more newsprint?” asked the Chair.
“No.” came a firm voice from the back “Supply and demand.”
And that, to me, sums up the challenge for the circular economy. We can set all the targets, action plans and quality standards we want, but the basic economic principle of supply and demand will make or break it. Demand will increase volumes, drive efficiencies, improve quality, cut costs and spur innovation – as it does in every other industrial supply chain. Focussing solely on the supply side – the default approach of most public servants and quangocrats – is doomed to failure.
In the circular economy we cannot ignore basic economics.