Government must embrace circular policy design to achieve the UK’s climate goals

The linear model of resource use (take, make, waste) has become ubiquitous in the UK, influencing everything from how individuals consume electonics and food to quietly shaping the way our government makes decisions. For the current government, laser-focused on traditional economic growth metrics often associated with consumption, this ‘linear’ approach risks undermining the UK’s own commitments to achieve net-zero emissions by 2050.

Yet, economic well-being, sustainable resource use, and decarbonisation are not mutually exclusive. Achieving all three will require the government to think in new and creative ways to meet these challenges. As we look to a future made increasingly uncertain by the impacts of climate change, we encourage the UK government to embed circular economy principles in its policies and decision-making to help deliver on its climate targets.

The case for government to adopt a more ‘circular’ approach

The UK has made strong progress in decarbonising its energy sector, with a 50.4 per cent drop in emissions between 1990 and 2024, primarily in the electricity sector. However, this progress has largely ignored the 45 per cent of global emissions tied to the lifecycle of products, materials, and food. These emissions stem from production processes, land use, and waste activities. In its 2024 emissions reductions progress report, the Climate Change Committee (CCC) called for ‘substantial acceleration’ to decarbonise these overlooked sectors.

Intersecting with each of these sectors, organic materials provide a clear case for circularity. Food systems are responsible for a third of global GHG emissions, yet adopting circular principles in agriculture could cut food-related emissions by 49 per cent by 2050. In the UK, approximately 10.2 million tonnes of food, equivalent to 25 per cent of all purchased food, is wasted annually. The CCC partly attributes stagnation in waste sector decarbonisation to ‘insufficient progress on recycling and composting’.

While the resource management sector has evolved considerably over the past couple of decades, the UK government has a significant opportunity to accelerate this transition. The establishment of a Circular Economy Taskforce and forthcoming Strategy for England, the development of Extended Producer Responsibility (EPR) for packaging, the standardisation of waste and recycling collections in England, and the passage of the Scottish Circular Economy Bill all indicate a move in the right direction, but more urgent action is needed.

Circular economy principles in action

The three principles of the circular economy model provide a useful framework for policies that both support the circular economy and climate efforts:

1. Eliminating waste and pollution helps reduce emissions across the value chain.
2. Keeping products and materials in circulation retains embodied emissions within the economy and maximises the value of resources over time.
3. Regenerating nature and natural systems enhance carbon sequestration.

The UK government can act on these principles by:

• Setting targets for the circular economy transition and designing policy consistent with these goals. For example, this could include expanding EPR to other manufactured goods and materials (in addition to packaging) so that the responsibility for managing materials’ end-of-life is more fairly shared throughout the value chain.
• Supporting production standards for circular product design and end-of-waste routes for waste-derived materials and products. and incentivising the use of recycled materials.
• Eliminating regulatory barriers that prevent more circular resource use where appropriate.
• Engaging with the public, including through educational campaigns and behaviour change initiatives that make circular and climate-aligned choices more accessible to the public. Successful implementation of these policies depends on the public having a sense of personal investment and active participation in them.
• Implementing a legal ban on the extraction and use of peat, the UK’s most essential carbon sink, is long overdue, as more sustainable, circular alternatives are available and continue to improve.
• Aligning trade policies to address embodied emissions of imports. This will include the successful implementation of the UK Carbon Border Adjustment Mechanism in 2027 and could also include a ban on imports not designed for circularity.
• Improving data collection and representation. Currently, government ‘waste’ data oversimplifies the realities of complex material flows in a circular economy, limiting strategic insights. To better understand our resource demands, potential gaps, and opportunities for greater efficiencies, government waste data should be broken down by material type and treatment method and reflect material recovery. Subdividing emissions data by greenhouse gas would also enable more targeted emissions reduction actions.
• Employing cross-departmental experts to develop holistic interventions, integrated at a systems level, so that ‘circular solutions’ adopted in one area are not inhibited or compromised in other areas, and all parts of the system work harmoniously.

Wider benefits of moving to a more circular model

The benefits of moving to a more circular model of resource use aren’t limited to decarbonisation. Adopting a more circular approach to resources can slow biodiversity loss and reduce environmental pollution. Better use of our resources can make the UK more resilient to supply chain disruptions and raw materials price volatility.

While many manufactured goods utilised in the UK are now imported from elsewhere, the UK could support a thriving domestic job market by keeping these resources in use longer. Skills in reuse, refurbishment, recycling, repair, remanufacture, and renting/sharing models will become increasingly valuable, and government investment in upskilling programmes for ‘circular skills’ could enable a significant boon to the domestic economy and job creation.

Circular practices can also aid climate adaptation. For instance, compost derived from organic waste can support robust flood defence systems by improving the infiltration of water into soils, improving soil structure, and strengthening natural flood defences.

Call to action

We can no longer afford to view the climate crisis as a distant threat or a reality happening elsewhere, but a present phenomenon with significant implications for the liveability of our planet, and indeed the UK. Over the last two years, the UK has experienced both its wettest and driest springs on record in over 150 years, resulting in an estimated £1 billion in losses for the agricultural sector in 2024 and threatening national food security.
The Environment Agency now warns that England faces a five billion litre water shortage by 2055 unless the Government takes “urgent action,” and the CCC’s latest adaptation report warns that the country is unprepared to deal with the impacts of climate change.

With the passage of the Climate Change Act 2008, the UK became the first country to establish a long-term, legally binding framework to cut emissions. Yet this momentum has stagnated, and with citizens already feeling the devastating impacts of the climate crisis, the government cannot afford complacency.

The UK must seize this opportunity for renewed global climate leadership. It must understand that long-term economic stability, sustainable resource use, and decarbonisation are not at odds, but enable one another. To realise these benefits, the UK must embrace a circular economy by designing policies and interventions that keep resources in use for longer. By embedding circularity into policy, we can cut emissions, protect nature, support livelihoods, and build a more resilient economy.