Greater policy certainty, stronger markets, and more targeted public investment are needed to accelerate reuse, repair and recycling infrastructure, new research from CIWM finds.
The research found that investors continue to view circular infrastructure as high risk, with ‘weak market signals, uncertain end markets and insufficient long-term policy clarity’ holding back investment.
The findings are revealed in the ‘Unlocking investment in circular economy (reuse, repair and recycling) infrastructure in the UK’ report, commissioned by the CIWM Policy & Innovation Forum and undertaken by Resource Futures.
Coordinated action across government, industry and investors is needed to create the conditions to unlock investment in the UK’s circular economy infrastructure, according to the report.
CIWM is calling for the government to publish the Circular Economy Growth Plan, and accompanying sector-specific roadmaps, to provide the long-term direction and policy certainty needed, it says, to give investors confidence.
Commenting on the report, Dan Cooke, CIWM Director of Policy, Communications and External Affairs, said: “The UK has a significant opportunity to make the circular economy an important part of a more resilient, productive and competitive economy.”
“Encouragingly, this research tells us that capital is available, but it will go where the conditions are right. We need to give investors the confidence to deploy it here in the UK.”
The research argues that circular economy infrastructure should increasingly be treated as ‘critical national infrastructure’ to support the UK’s ‘resource security, resilience and competitiveness’.
The report also calls for a broader approach to assessing value. It argues that environmental and socio-economic benefits, including resource security, job creation, waste prevention and reduced pollution, are not consistently measured or prioritised in investment decisions.
Among its recommendations are:
- Stronger demand signals for domestically recycled and reused materials;
- greater use of public investment to de-risk projects and attract private capital;
- targeted support to address the ‘missing middle’ between early-stage innovation and commercial deployment;
- and directing a proportion of the recently delayed UK Emissions Trading Scheme revenues towards circular economy infrastructure.
The research examines investment barriers and opportunities across four priority material streams: electrical and electronic equipment (EEE) and waste EEE, plastics, consumer packaging, and textiles.
Dan Cooke continued that other countries, including China and the EU, are ‘potentially stealing a march on the UK’ in recognising the benefits that investment in critical infrastructure can bring.
“Alongside providing that long-term direction, we need stronger markets for recycled and reused materials and to recognise the wider value this infrastructure can create, from jobs and resource security to environmental benefits and greater economic resilience,” Cooke said.
The report concludes that ‘coordinated action’ across government, industry and investors will be essential to retain more value from UK resources and realise the economic, social and environmental opportunities presented by the transition to a circular economy.