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Will Australia Embrace the Circular Revolution?

Will Australia Embrace the Circular Revolution?

Ilustrasi oleh: Marsha

Written by:

Khushnoor Dhaliwal

Murdoch University

CWTS-ACICIS Intern (January-February 2022)

Businesses and governments in Australia are recognising the potential waste materials give and the economic worth they maintain and are working towards a circular economy. This trend can be seen across the world, especially in the European Union, Canada, and Australia's main trading partners, such as China. The 2018 National Waste Policy establishes a framework for corporations, governments, communities, and individuals to work together until 2030. The government has done a commendable job of implementing measures such as phase out of superfluous plastics, increasing recycling through purchasing power, and boosting waste collecting statistics and information sharing to promote transparency. This policy specifically promotes Australia's participation in UN Sustainable Development Goal 12 on responsible consumption and production. It also plays a vital role in ensuring Australia fulfils its international duties. Although The National Waste Policy sets forth an effective, efficient, and achievable action plan, the challenge lies in convincing the private sector to undertake transformation and implement reform. There is a slight reluctance from the private sector because developing a circular business model is difficult and making the incorrect decision can be costly.

The National Waste Policy of 2009 outlined the following goals and strategies: Less waste, more resources have been instrumental in improving waste management, introducing products and resource stewardship, and creating national reporting of national waste and resource recovery statistics to drive policy and choices. The 2018 National Waste Strategy improves on the 2009 policy by emphasising waste prevention, enhanced material recovery, and the reuse of recovered resources. It lays forth a shared view of what should be prioritised in response to shifting worldwide trash markets. It will assist Australia in moving closer to a circular economy, which decreases waste while also improving economic, social, and environmental results. It will aid in the expansion of resource recycling systems and the re-establishment of Australian trust. While Australian businesses recognise the necessity of transitioning to a circular economy, many are hesitant to take the required measures to enact reform.

According to the second edition of the Australian Circular Economy Hub (ACE Hub)'s annual Circularity in Australian Corporate survey, an overwhelming 88 percent of business decision makers think that the circular economy will be crucial for their company's future, with 34% saying it is highly significant. The study, titled Circularity in Australian Business 2021: Awareness, Knowledge, and Perceptions, assesses how well Australian firms understand and apply the circular economy. The report draws on the findings of the first edition of the study, which was published in 2020 and assessed the level of circular economy thinking in Australia's corporate community.

The research demonstrates a disconnect between what people think they know about the circular economy and what they actually know. 81 percent of company decision-makers claimed they were familiar with the circular economy idea. However, when given a selection of possibilities, just 27% were able to properly identify the meaning of circular economy. This points to a knowledge gap that must be filled via education and engagement, which the ACE Hub can help with.

The Circularity in Australian Businesses report of 2021 also conducts in-depth interviews with 14 C-suite executives and surveys of 500 company decision makers from a variety of industries were used to develop insights from the study technique, which combined qualitative and quantitative data. The report finds that:

  • Circular economy is something that 92 percent of company decision makers have heard of and are familiar with.
  • According to the report, 88 percent of corporate decision makers believe the circular economy will be critical to their company's future success. The 2020 survey yielded the same results.
  • From 21 percent in 2020 to 34 percent in 2021, the proportion of company decision makers who felt the circular economy will be "very essential" climbed dramatically.
  • 'Reducing expenses' was the most often mentioned benefit of the circular economy (selected by 42 percent of business decision makers).
  • 'Lack of information on how to apply circular economy principles' was the most prevalent barrier to the circular economy found (selected by 40 percent of business decision makers). This emphasises the importance of information services like the Internet.

The private sector is concerned with increasing its revenue. The public sector, on the other hand, tries to increase the people's nett social welfare. This misalignment of goals is a fundamental issue that must be resolved if we are to properly adopt this relatively new notion in the future. Many businesses are just not devoting enough resources to figuring out how to create and implement a circular business model.

Despite the general reluctance from most organisations, there are a few key actors who have succeeded in developing and executing a circular business model. They serve as a beacon of hope, paving the path for others to follow in their footsteps. So, who are they?

The first is BINGO. This company transforms waste into a useful resource. Through their advanced recycling centres, they keep garbage out of landfills. To improve recovery rates, they invest in innovative technologies and process materials for re-use and re-sale. This is healthy for the environment as well as for businesses. Much like the 2018 Waste Policy BINGO has matched its sustainability goals with the UN's Sustainable Development Goals. By aligning their approach with the Task Force on Climate-related Financial Disclosures (TCFD) framework, they’re dedicated to examining climate risks and possibilities. They are also researching solar energy for our recycling centres and evaluating alternate fuels for our truck fleets, as well as building Recycling Ecology Park in Sydney's Eastern Creek. They want to achieve diversion rates of more than 75%. This will be accomplished by increasing resource recovery by investing in innovative separation technologies (Bingo Industries 2021).

The second major player is Planet Ark Power. This company is a partner of Planet Ark, it is a renewable energy engineering and technology firm. Their mission is “to unite people businesses and governments through positive environmental change”. This is similar to the objectives of the 2018 Waste Policy’s objectives. Planet Ark Power provides innovative technology and large-scale rooftop solar to companies and schools, they are working towards accelerating Australia's shift to renewable energy sources. They have already began transforming IKEA Adelaide into a grid-connected, sustainable energy microgrid with their award-winning “eleXsys” Energy Management System. Planet Ark Power's goal is to provide their clients with the most cost-effective, high-performing, and dependable sustainable energy solutions possible. Clean energy solutions that produce measurable energy and cost savings while also assisting their clients in meeting their sustainability goals during the system's lifetime (Planet Ark 2021).

In Australia, the concept of a circular economy is gaining traction. Florin et al., (2015) found that the advantages of circularising Australia's economy were predicted to be worth AU$26 billion per year, with an overall additional value for Australian businesses of AU$9.3 billion. Despite the benefits, private businesses are hesitant to make the move due to the high degree of risk associated during the implementation phase. The potential of a circular economy has been recognised by the public sector. The government has introduced measures such as the 2018 Waste Policy and has allocated $80 million in the Federal Budget for 2021 to the waste and resource recovery business. Will this, however, be enough for the private sector to overcome their reservations and transform these projections into a circular revolution?

Circular Economy: Understanding the relationship between Australia and its young citizens

Circular Economy: Understanding the relationship between Australia and its young citizens

Ilustrasi Oleh: Marsha

Written by:

Mehdi A. Ahmadi

Deakin University

CWTS UGM-ACICIS Intern (January – February 2022)

“Waste reduction to value creation” – the essence of circular economy simply put by Karen Delchet (2020). Current economic model is best described as a linear model where the extraction of raw material is put at the beginning, followed by the production, distribution, then overconsumption which leads to waste. The assumption of the model is that there is an infinite number of resources, thus profit maximization and over production become its main focus. However, as the World Economic Forum (2018) highlights, the fast growth of cities is paramount and inevitable: the ratio of population increases 40% between 1900 and 2015, estimated to 66% in 2050, and affects the increase of natural resources usage 12 times. This increase directly correlates to over consumption of resources, products, constriction of the supply chain and heightened pollution. Due to the finite number of resources available for mankind, it is not practical, sustainable, and economical to use resources and turn them to waste as the world has been doing so with the current linear model of economy. An alternative to these issues can be the Circular Economy model (CE), in which the resources are used to exhaustion, recycled, and reused again with minimal wastage. The shift from linear model to the circular model requires alteration to the current policies and supply chain, way of business and ultimately a shift in the collective approach to our ways of handling resources available to us. This implementation of CE can be challenging for both developing and developed nations. In particularly developed nations where the linear model of economy is so ingrained within the economy, any alteration can prove to be met with resistance. However, there is a certain group of people within a developed nation which has proven to be agents of change – the youth. This article will focus on Australia and its young citizens, their relationship with understanding of the circular economy, and their positions on the subject matter.

According to the article published by Melles (2021), it was left to individual states and other organizations to spell out the details of a circular economy future due to the “absence of strong federal ambition”. Thus, the inability to unite for a main goal resulted in an imperceptive and inadequate response to the transition to CE and implementation of policies across the nation. In addition, it was found that the quality of the “consultations, policy and potential for reform and transition was dependent on the political regime and leadership at the level across the federal and state government”. This also directly correlated to the quality and ability of local government’s actions in dealing with environmental issues and the transition to CE.

However, due to the persistence of the climate change issue and it being an eminent threat to Australia and its coastal cities, there had been a growing support and funding initiatives by the federal and states which had enabled the emergence of national hubs, consultancies, and digital platforms such as ASPIRE online marketplace. In addition, with collaboration of university sector and major retailers and other industries, the government has been able to develop hubs to identify industry specific issues and implement CE strategies. These initiatives indicate that Australia’s CE implementation process is influenced by economic and political factors. These factors range from disruption of the status quo, redistribution of wealth & resources, and political power balance.

Historically, it was understood that youth’s understanding of the circular economy was minimal and only to an extent of consumer behavior. However, recent studies found that youth groups and citizens are viewed as agents of change, first adopters of new reforms, policies, and actions. Youth groups, alongside local/regional governments and community organizations, were also considered more optimistic, acceptable of reform, and acted as agents of change despite having financial, regulatory, or political limitations. As Wallis & Loy (2021) highlights, young people are highly likely to be pro climate change, environmental sustainability and aware of their consumption than other groups of citizens. This behavior is clearly shown by youth mobilization and rallies that began in Melbourne, Sydney, Canberra, and Hobart outside state parliaments building and town halls. In the protests, students and young people have all gathered, skipping school or university, and joining in solidarity to voice their support for more eco-friendly policies and forcing the government to take action.

Moreover, the Fridays for Future (FFF) movement and their ever-increasing intensity, power, and support, has enabled young people to be established as a political force and agents of CE. FFF is a youth-led and organized global strike movement which was started in 2018 after Greta Thunberg’s demand for action. This movement was then morphed into School strike 4 Climate (SS4C) in Australia which follows the principle of FFF. The efficiency and effectiveness of SS4C is yet to be determined due to movement being in its infancy. In addition to such movements, Australia has a eco-friendly focused political party called the Greens Party which is ranked third in the political influence in the government. The Greens Party’s growing supporters are youth groups and young adults ranging from 18 to 34. Furthermore, Dias (2019) highlights that youth may hold some decisive power when casting their vote in some marginal areas during an election. For example, young voters hold power in Immigration minister Peter Dutton’s Queensland seat of Dickson. This enables youth group’s needs to be fulfilled by the political parties in order to gain voters thus giving youth political influence.

Despite the marginal shift of youths position as political actor, Mayes & Hartup (2022) stated that majority of times, youth voice, actions and concerns are still characterized as “ignorant zealots, anxious pawns, rebellious truants, and extraordinary heroes” by media. The research shows that as long as youth are classified and viewed in these terms, their political power is diminished and their actions are merely reduced to emotions and “just a phase”. Counter to such representation, youth have utilized social media platforms to represent a polished and true self-image of themselves. Mimi Elashiry, an Egyptian-Australian who has large followers and become a self-made Instagram star, is an environmental advocate that has been named Adidas Australia's ambassador. She uses the social media platform Instagram to voice her concerns of climate change and promote the principles of circular economy as well as eco-friendly lifestyle. She becomes one of The Oxygen Project’s “Top 10 Favorite Eco-Warriors in Australia”, representing fellow Australian youths in breaking down the stigma through a contemporary approach. Thus, the growing influence of youth are evident within the current society and political arena.

In conclusion, the state and youth are both actors that coexist within the same society. Each has their own power: states have the power to bring changes through reform, policy, or fundings while youth have limited resources and power of decision making. However, as the research highlights, youth may hold more persuasive power which positions them to be great agents of change within a society. Therefore, the government have begun to see youth as a more politically active force with power of making changes across the nation and industries through their consumption power, voting powers, their digital footprint, and influence.

 

Circular economy is making women’s work, work for women

Circular economy is making women’s work, work for women

Ilustrasi Oleh: Marsha

Written by:

Hannah Dayman

Deakin University

CWTS UGM-ACICIS Intern (January – February 2022)

The implementation of circular economy principles in countries around the world is as recent as it is varied, with states working alongside international organisations such as the Organisation for Economic Co-operation and Development (OECD) to encourage the fulfilment of the Sustainable Development Goals (SDGs). Circular economy (CE) and its influence on social development is a relatively new area of research, particularly regarding the relationship between CE and gender equity. The OECD has released research and frameworks on areas where the implementation of CE may affect and increase gender equity. The 2019 OECD report on CE and gender highlights areas of environmental degradation, the globalised fashion industry, waste management, and women's consumer patterns as critical components that will be affected where CE policy is implemented. A common trend in the gender analysis applied by organisations of the global North is a lack of differentiation between women from different socio-political and cultural backgrounds. The OECD undertook studies of gendered patterns from developed and developing countries; however, there was little emphasis regarding how women's socio-economic circumstances would reap different results and how this reflects in local governmental policy. The one-size-fits-all approach fails to provide much needed context when seeking to implement policy or commit resource allocation to grassroots initiatives and programs that empower the individual. This article aims to deconstruct how international organisations, such as the OECD, understand the relationship between CE and gender, using Indonesia as a representative case study for CE's application in developing countries and Australia as a case study for developed countries.

The concept of environmental sustainability has been a rapidly growing movement since the 1960s and '70s. However, the Australian government did not integrate the CE framework until the 2018 National Waste Policy. Since then, think tanks such as the Commonwealth Scientific and Industrial Research (CSIRO) have been tasked with investigating the benefits of CE in an Australian context. Australia's environmental and economic sustainability journey is seemingly in its research and discovery phase. Without a strong push from policymakers and government ministers, corporations have little incentive to adopt the framework themselves. Even though many international organisations and Australian-led think-tanks have proved CE to benefit business owners and consumers both fiscally and environmentally, corporate hesitation derives from a lack of information, understanding, and 'top-down' incentives. As a result, most efforts toward CE in Australia have been made by investors and consumers.

Women, in particular, have been progressing the CE movement in extraordinary ways. Generally, women as consumers are a powerful influence and statistically inclined to be the group most responsible for small, frequent household purchases, and having a high literacy regarding eco-branded product labels. While women are not the only members of Australian society that are using their purchasing power to direct companies to adopt a CE method of practice, they are further involved in several initiatives to educate consumers and change Australian industries. For example, 2018 saw the inaugural Australia Circular Fashion Conference that covers 'advocacy and awareness towards consumer change management'. Furthermore, the South Australian government have implemented the 'Women in Circular Economy Leadership Awards', selecting one woman each year to represent CE in action through education efforts and environmentally sustainable management practices. According to the OECD report, these examples demonstrate gender-specific consumption patterns and the active promotion of women's role in CE.

In addition to consumer power driving corporations into greener economic practices, the adoption of CE in Indonesia affects women as producers and informal, unpaid workers. This is primarily due to poor working conditions and exposure to toxic pollutants that are the by-product of the work women typically undertake. While Indonesia has gained momentum in its transition into a green economy, policymakers are yet to give necessary weight to women-focused programs and initiatives within the scope of CE. A 2021 report led by Kementerian PPN Bappenas and the Danish Embassy highlighted Indonesia's vital economic sectors that would best suit CE implementation. The OECD report was cited within the analysis, indicating women are the most likely to benefit from CE in Indonesia. Among the reasons for this is greater access for women to formal, green jobs creating financial security, less exposure to dangerous chemicals used in work practices, or from plastic burning in waste management. The report stated that women are likely to fill up to 75 per cent of the potential green jobs available through CE. Similarly to Australia, however, policymakers fail to give appropriate credence to the connection between CE and gender equity. The United Nations (UN) SDGs Roadmap for Indonesia, CE, is listed as a recommendation for Goal 8 (decent work and economic growth), with no mention of the potential impacts CE has on Goal 5 (gender parity and women's empowerment).

Grassroots programs in Indonesia have identified the beneficial relationship between CE and gender. There are several programs that have been identified in the greater Jakarta region by a 2018 study. Examples include the Gerakan Indonesia Kantong Plastik (Indonesia's Plastic Bag Diet Movement), Waste4Change – which provides corporations, communities, and individuals consultancy and support in green waste management, and SiDalang – which provides ‘training on upcycling and business development to local women'. Grassroots organisations and SMEs are ostensibly driving the force behind Indonesia's acceptance and future with a CE through their prioritising waste management and the re/up-cycling of waste resources. Results of women participating in these upcycling training and social enterprise programs demonstrate the benefits the OECD report highlighted. This includes improved life skills and the ability to experience and explore entrepreneurship, thus improving overall welfare.

While the connection between CE and gender equity has been established and investigated by international organisations and states alike, further prioritisation must be placed on supporting organisations and programs that facilitate and encourage the relationship. The contrast between CE influence on women in Australia and Indonesia is evident. The OECD report is comprehensive insofar as it identifies how women are affected by CE and how women globally work, consume, and influence. For example, women in higher socio-economic positions can be involved in CE through their consumer power; by influencing corporations and businesses to implement greener production processes. Equally, women who work in unsafe conditions due to the linear economy will benefit from the incorporation of circular practices that will provide better jobs, financial stability, and enhanced overall wellbeing. The OECD report and consequential research aiming to understand the connection between CE and gender is the first step to a green future. However, further advocacy is needed to establish a specific, local policy that centres on women as crucial actors in CE, considering individuals' strengths and limitations based on socio-economic and cultural standpoints.