The Australian Government’s Circular Economy Ministerial Advisory Group has delivered their final report called ‘The Circular Advantage.’ It’s a blueprint for unlocking opportunities through a uniquely Australian circular economy.
At the end of 2024, the Circular Economy Ministerial Advisory Group delivered their final report to the Hon. Tanya Plibersek MP, Federal Minister for the Environment and Water. The report, ‘The Circular Advantage: Unlocking innovation, environmental resilience, productivity and net zero opportunities through a uniquely Australian circular economy transition’ provides a comprehensive blueprint for realising the benefits of circularity. Drawing on insights from over 250 stakeholders and 12 government portfolios, it outlines recommendations for regulatory frameworks, supply chain transformation, and consumer empowerment.
Here, Seamless CEO, Ainsley Simpson shares key highlights and insights from the report and its implications for the Australian clothing industry.
Reinforcing Seamless strategic priorities to drive circularity
The report underscores the critical role of design, manufacturing practices and supply chain innovations in advancing circularity.
It expands the focus beyond end-of-life recycling to include upstream interventions, including circular design. This encourages improved durability to extend product life cycles, innovative material reuse and an increase in the number of products that can be more readily recycled.
Recognising First Nations people and knowledge systems, and prioritising partnership are central to the report. First Nations businesses inherently embrace circular economy principles that are rooted in cultural practices that prioritise sustainability, resource stewardship and respect for natural ecosystems. The report notes that recognising and adopting these principles, when possible, requires appropriate permissions, proper attribution and remuneration.
The report makes it clear that early movers can gain significant economic and financial advantages. By adopting circular business models, there is potential for organisations to benefit from new revenue streams, cost reduction through resource efficiency and credible leadership in sustainability – which is being increasingly valued by both investors and consumers.
Unlocking the new business and employment opportunities of a circular economy requires upskilling through education and training across all professions. The report notes that to effectively lead the changes required, skills development is equally important for senior leadership, including boards and C-suite executives.
The report states that Extended Producer Responsibility (EPR) policies are significant for closing the loop. EPR schemes create certainty for all participants in the life cycle from creating supply for reuse and recycling operations, through to stimulating end-market demand.
The need for systems and information that empower and enable Australians to identify, enjoy and recirculate products is the foundation for citizen behaviour change, with examples of practical interventions for circular consumption cited in research from BehaviourWorks Australia. To find out more about this research, listen to Jennifer Macklin, Senior Research Fellow at BehaviourWorks Australia in episode five of the Seamless Leadership Podcast, ‘Changing behaviour: How can we redefine our relationship with clothes?’
Regulation for transformation
One of the report's significant recommendations calls for ambitious policies to be backed by proactive regulations. This could be achieved through the introduction of a new ‘Circular Economy Act’ or by amending the Recycling and Waste Reduction Act 2020 (Cth), noting the latter is currently undergoing a statutory review.
The report recommends that the legislation include mandatory participation and robust governance for Extended Producer Responsibility (EPR) frameworks, which ensure equitable and sustainable management of resources and draw on international best practice such as mandatory design standards for durability, recyclability and traceability. The report cites factors that reinforce the need for mandatory stewardship schemes, including but not limited to free riders and the volume of material and its significant impact on landfill.
Creating a strong market for recycled materials
“A strong market for recycled materials remains a missing foundation in Australia’s circular economy.”
Australia has significant potential to drive demand and grow markets for recycled materials, particularly in remanufacturing and construction supply chains. Examples were cited that demonstrated the potential of government-led procurement initiatives in creating a reliable market for circular economy materials and products. The existing Environmentally Sustainable Procurement Policy will be extended to cover new categories from 1 July 2025, including textiles, and will include government issued uniforms.
Additional government interventions
The report also explores other government interventions including supportive financial frameworks, refining competition laws and enhancing funding and program accessibility. On financing, the report touched on mobilising private capital and green bonds. It also recommended that the transition to a circular economy is included in the Australian sustainable finance taxonomy being developed by the Australian Government, in partnership with the Australian Sustainable Finance Institute (ASFI).
A collaborative path forward
Importantly, the Advisory Group’s report emphasises that aligning our national framework with global circular economy trends, will help ensure that Australia can innovate, reduce emissions and enhance resource efficiency. Implementing the core recommendations is an exciting opportunity to secure a competitive edge for Australian businesses, while also prioritising nature and people.
Product stewardship will be a vital element in ensuring long term sustainability and accountability across value chains. As Seamless supports the clothing industry as it navigates these transformative shifts, we know that collaboration will be critical to our collective success.
