Victorians are taking part in the circular economy – without knowing what it is

Published: 27 February 2024
Share
girl in glasses looking at rack of used clothing The Old Church Wardrobe run by the Neighbourhood Collective Australia in Bendigo.

Netflix. Uber. Facebook Marketplace. They’re part of our daily lives, but did you know they are also part of the ‘circular economy’?

A ‘circular economy’ describes a system of how resources can be used in a more sustainable way. It focuses on keeping materials in use for as long as possible through reuse, refurbishing, repurposing and remanufacturing. It also designs out waste and pollution and finds ways to regenerate natural systems.

New research by Sustainability Victoria revealed 46% of Victorians have never heard of ‘circular economy’, and only 26% understand the term to some extent. Despite being unfamiliar with this term, 60% of Victorians are buying or selling secondhand items online and a further 69% are using op shops, which are all circular practices.

In Australia, transitioning to a circular economy could rescue more than $324 million worth of resources that could be used by the manufacturing, construction and agricultural sectors. Just a 5% improvement in materials efficiency could boost the Victorian economy by $6.4 billion.

Emily Dunstan, Chief Impact Officer at Sustainability Victoria says, '‘The emissions from materials and products we use are a growing problem. By shifting to a circular economy, we use fewer new materials and resources – and that means less emissions.

The State of Sustainability Report shows that swapping, selling and acquiring secondhand items is one of the most common ways people are already participating in a circular economy.'

'Using services instead of owning an item is also growing – digital services like streaming or flexible car sharing programs are already part of many peoples' lives.’
Emily Dunstan, Chief Impact Officer, Sustainability Victoria

The circular economy is a sustainable alternative to the dominant ‘take, make, waste’ linear system. In a circular system, waste is eliminated by finding ways to keep resources circulating through the supply chain for as long as possible.

Nearly a quarter of surveyed Victorians said they have used repair services, with 10% using borrowing, leasing or hiring services ‘often’ or ‘sometimes’.

<>

The research shows 70% of Victorias believe that living sustainably is important, and 56% are already thinking about how to do it.

An impressive 84% of respondents always or mostly use reusable shopping bags when shopping for food and nearly half choose products that contain recycled materials. One-fifth of Victorians won’t buy something due to over-packaging, and nearly one third use a reusable cup when getting take-away coffee.

To transition from a linear to a circular economy, we need to create services that make waste avoidance possible, like repair cafes, exchange libraries, leasing and buy-back schemes. 'We need to build consumer confidence in these services as the "new normal” and support “buying to last” consumption patterns, as opposed to the “throw-away”, linear consumption pattern,’ says Emily. ‘If it’s harder to repair, or that isn’t an obvious choice, consumers will struggle to take that option.’

Emily also points out that – as with many other sustainability behaviours – there are often segments of the population who can’t afford to participate.

'For a lot of people, spending more money on a longer-lasting item is not always an option. It isn't just financial cost either – repairing an item or finding the right thing secondhand can involve more time and effort.'
Emily Dunstan, Chief Impact Officer, Sustainability Victoria

Emily says the State of Sustainability Report allows government to better focus its efforts to transition from a linear to a circular economy. ‘This evidence base provides a blueprint for future investment. It has also reinforced we can do more to make these practices mainstream and visible. And help Victorians see the benefit of circular behaviours they're already doing as well as how to build from there.’

‘We're a very social species and we look to each other for an idea of what we should be doing. You don't need everyone to have a PhD in this. It's about bringing it back to why circularity matters, how Victorians can participate in the circular services and programs already out there and showing them what can come next.’