A new report by the Chartered Institution of Wastes Management (CIWM) identifies ways to create an improved framework to incentivise a more circular economy in the UK. Recommendations include a refocus on policy development efforts on sectors with higher impacts and the use of EPR schemes to explicitly promote reuse.

The research, undertaken by Resource Futures, identified weaknesses and problems within seven key fiscal and financial incentives and was structured around three overarching aims of resources policy - decarbonising the waste sector, increasing recycling and reducing resource consumption. The report then offers a range of solutions that could strengthen the policy framework. 

Dan Cooke, CIWM Director of Policy, Communications and External Affairs, said: 

This timely piece of research provides useful insights for our sector, policy makers, governments and the Circular Economy Taskforce. The findings can help us consider how well-crafted financial incentives and policies can most effectively move us towards a more circular UK economy.”

The recommendations include:

• Incentives need more nuance to achieve circular economy and waste management goals
• Refocus policy development efforts on sectors and material streams with higher overall impacts
• Use EPR schemes to explicitly promote reuse
• Improve fiscal levers to create stronger incentives for circularity
• Strong data, monitoring and enforcement to ensure intended effects

Mr Cooke explained that the benefits of incentivising a circular economy in the UK were ‘clear’, creating jobs, enabling economic growth, and delivering resource resilience and carbon reduction. He added:

The report shows that financial levers can have a powerful effect, and several have already driven positive trends to move materials and behaviours up the waste hierarchy.  It also shows that strong data, monitoring and enforcement are essential to ensure incentives have the intended effects.”