Circular economy and waste route map to 2030: business and regulatory impact assessment

Purpose and Intended Effect

Background

7. The Scottish Government is committed to moving towards a circular economy and playing its part to tackle the climate emergency. A circular economy, based on sustainable consumption and production, is essential to power Scotland’s transition to a fair, green and sustainable economy, and critical to meeting our obligations to tackle the twin climate and nature emergencies. Material consumption and waste are primary drivers of nearly every environmental problem Scotland currently faces, from water scarcity to habitat and species loss.

8. Founded on evidence and collaboration, the CEWRM is part of the Scottish Government’s wider response to these challenges. It is designed to drive progress on three key fronts:

a. Setting the strategic direction and laying foundations for how we will deliver our system-wide, comprehensive vision for Scotland’s circular economy from now to 2030. The shift to a circular economy can help realise the economic growth potential associated with climate action.

b. Setting out priority actions from now to 2030 to accelerate more sustainable use of our resources across the waste hierarchy.

c. Reducing emissions associated with resources and waste.

9. The priorities set out in the Route Map are based on rigorous gathering and assessment of the evidence and an extensive programme of engagement, including two public consultations, over the past three years.

10. The most recent consultation took place in January 2024 and the analysis of responses showed that there were consistently high levels of support for the actions within the four strategic aims, ranging from 71% to 81% support levels.^[1] Alongside this support, the responses to the consultation provided constructive feedback. This has directly informed the final shape of the Route Map and will inform the final design and implementation phase for measures.

Strategic aims and associated interventions within the CEWRM

11. The CEWRM outlines our priorities to accelerate progress to meet our sustainable resource objectives, deliver a circular economy and reduce emissions through to 2030. Measures are grouped under four strategic aims:

1) Reduce and reuse

2) Modernise recycling

3) Decarbonise disposal

4) Strengthen the circular economy

Interaction with other policies (draft or existing):

12. The Circular Economy (Scotland) Act 2024,^[2] passed unanimously by the Scottish Parliament in June 2024, contains provisions to underpin Scotland’s transition to a circular economy, and modernise Scotland’s waste and recycling services. The Act includes new powers that will allow us to take action now and into the future. The direction and actions set out in this Route Map are complemented by the new powers in the Act and, in some places, are dependent on these powers.

13. The Climate Change (Scotland) Act 2009,^[3] amended through the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 and the Climate Change (Emissions Reduction Targets) (Scotland) Act 2024. This Act sets out Scotland’s commitment on tackling climate change, with actions laid out in the various Climate Change Plans. The update to the Climate Change Plan (2020) sets out the Scottish Government's pathway to our previous emissions reduction targets set in 2019, including the waste management sector’s contribution.^[4] A new draft Climate Change Plan will be published in 2025, in line with the changes made to our target framework by the Climate Change (Emissions Reduction Targets) (Scotland) Act 2024.^[5] This Plan will reflect our new carbon budget targets that will be set by forthcoming secondary legislation. The CEWRM strategic aims and priority interventions all support progress towards meeting those targets.

14. Scotland's National Strategy for Economic Transformation (NSET).^[6] The NSET sets out the priorities for Scotland’s economy as well as the actions needed to maximise the opportunities to 2032 to achieve the vision of a wellbeing economy. Its vision for a Wellbeing Economy: Thriving across economic, social and environmental dimensions is supported by three ambitions, including ‘Greener: Demonstrating global leadership in delivering a just transition to a net zero, nature-positive economy, and rebuilding natural capital’. A number of interventions across the CEWRM may support the NSET.

15. Just Transition – A Fairer, Greener Scotland: Scottish Government response.^[7] Scottish Government’s strategic approach to just transition is aimed at supporting the development of the NSET. There are a number of interventions within the CEWRM that will also need to align with Just Transition principles. Building just transition into our economic strategy in this way provides a unique opportunity to work with all parts of our economy to deliver a fairer, greener Scotland. Through this work, a number of sector-focused Just Transition Plans are expected over the next few years. Through strategies such as the Green Industrial Strategy and Just Transition Plans, we will focus on the sectors with high potential for growth, identify emerging employment opportunities, and education and training provision to design and deliver activities that maximise the potential for skills development and education for a circular economy.

16. The Good Food Nation Act.^[8] In 2024 the Scottish Government published its first national Good Food Nation Plan (GFNP)^[9] which states “In our Good Food Nation, the people of Scotland can access and enjoy locally produced food that keeps them happy and healthy. Our food industry continues to thrive and grow. The environment is protected, biodiversity loss reversed, and our net zero ambitions achieved. A Good Food Nation enables flourishing rural and coastal communities”. Reducing food waste through redistribution and making the food system more sustainable and resilient through the measures in the CEWRM will support the ambition set out in the Act and Good Food Nation Plans by improving access to affordable food and helping to realise the food waste reduction and environmentally friendly disposal ambitions in the Act.

17. Scotland’s Biodiversity Strategy to 2045^[10]: the strategy sets out the outcomes needed to halt biodiversity loss by 2030 and restore and regenerate biodiversity by 2045. The supporting delivery plan includes key actions the circular economy can make to achieving these key milestones.

18. The Scottish Material Flow Accounts (MFA)^[11] show that the estimated material footprint (Raw Material Consumption) is 19.3 tonnes per capita, significantly higher than the amount experts suggest is sustainable (8 tonnes per person per year). The MFA will continue to form part of the evidence and monitoring functions used to measure progress of the CEWRM interventions.

19. The 2022 Circularity Gap Report for Scotland^[12] found that only 1.3% of the resources used in Scotland are cycled back into the economy, with over 98% of Scotland’s material use coming from virgin resources. Measures laid out in the CEWRM for future actions may help to increase resources cycled back into the economy, reducing the need for virgin materials.

20. There are a number of extended producer responsibility (EPR) schemes in place with several reforms underway. These are:

• Packaging Producer Responsibility Scheme^[13]
  • The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024^[14]
• Waste Electrical and Electronics Producer Responsibility Scheme^[15]
  • Consultation on reforming the producer responsibility system for waste electrical and electronic equipment^[16]
• Batteries and Accumulators Producer Responsibility Scheme^[17]
• End of Life Vehicles^[18]
• Deposit Return Scheme regulation^[19]

21. Reforms to the existing EPR schemes will change how end of life products are managed, how local authorities may be funded to manage that waste and how reuse and repair are championed across the three schemes. For the CEWRM, changes to EPR schemes will be crucial to interventions such as changes to recycling collections and co-design of services.