Sustainable Consumption: A review of Circular Economy policies in principle and practice 2025

Abstract

Our current global industrialised economy is based on a linear 'take, make, dispose' model, in which raw resources are extracted from nature, turned into products, then disposed of when no longer wanted or no longer functional. This model is unsustainable and has significant environmental consequences. In contrast, circular economies follow the 4R framework, in which products and resources are Reused, Remanufactured, Recycled or Recovered wherever possible. In so doing, circular economies keep products and resources circulating through the economy for as long as possible, reducing the need to extract resources from nature. This aims to minimise waste, reduces the global footprint of human consumption on the environment, and reduces costs for companies and consumers.

The purpose of this report is to explain what a circular economy is, and to provide examples of potential policy interventions governments could take to increase the circularity of their economies. The report includes an explanation of the take-make-dispose economic model and its drawbacks, followed by an introduction to what a circular economy is, and how it can solve many of the problems our economies currently face.

It then provides real examples of policy interventions or actions undertaken or supported by governments in different countries to move towards a more circular economy. Four different policy interventions are discussed which were chosen to cover a broad range of different types of policy intervention which are possible:

• Deposit Return Schemes which incentivise consumers to change their behaviour.
• Government establishment and facilitation of Industrial Symbiosis Programmes which increase the efficiency of resource use in industry.
• Legislation requiring businesses to adopt circular economy principles.
• Government support and advice for a trial scheme creating Biochar from agricultural waste which can be used to increase crop yields and remove carbon from the atmosphere.

Finally, a summary of some key considerations of the evidence base behind introducing circular economy principles for countries, companies and consumers are provided and a list of useful resources is given.

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