Seizing Australia’s circular opportunity: innovating for a sustainable future

As the world grapples with climate change, resource scarcity, and environmental degradation, the need for circular solutions has never been more urgent. Innovation is the key to unlocking the full potential of a circular economy.  

Sustainability Victoria, through the Victorian Government’s Circular Economy Business Innovation Centre (CEBIC), has already accelerated more than 100 new circular products and services that are good for the environment and the bottom line.  

We’ve done it by rethinking and redesigning traditional business models, embracing cutting-edge technologies, and fostering collaboration.  

We’ve learned collaboration is not just a ‘nice-to-have’. The impact we’ve achieved in Victoria has been driven by bringing government, businesses, and universities together.   

Below we unpack the keys to success for circularity: how we can work together to drive transformative change, address systemic challenges, eliminate waste and future-proof our economy.  

A systems approach to innovation 

A key to unlocking the potential of a circular economy is adopting a systems-thinking approach, considering the entire lifecycle of a product or material from sourcing to disposal. By understanding the interconnectedness of various systems, we can identify opportunities for innovation that address systemic challenges.    

With the support of CEBIC, Dairy Australia’s collaborated with government, farmers, manufacturers and supermarkets to develop the Dairy Sector Food Waste Action Plan.  

Just a 1% reduction in food waste will save the dairy industry an incredible $10 million each year, and by mapping the entire dairy supply chain, Dairy Australia identified a range of circular solutions, including improving waste monitoring across the supply chain and establishing an industry working group.  

Measuring impact, not just reducing harm 

It’s not enough to simply reduce harm; we must strive to create positive impact and consider metrics that measure social and environmental benefits beyond reducing waste or emissions. 

A circular innovation that creates new jobs, improves community resilience, or restores ecosystems is highly impactful. By focusing on creating value and addressing societal needs, we can drive truly transformative change. 

CEBIC supported the Open Sauce project led by Moving Feast, a network of Victorian food and social enterprises. The project used an open innovation process, engaging members of the public to develop a delicious range of new circular retail products. It also created education and job pathways for people with barriers to training and employment. 

Convincing decision-makers and taking action 

One of the biggest challenges in implementing circular economy initiatives is securing buy-in from decision-makers. To build a strong business case, it’s essential to highlight the long-term benefits, such as cost savings, risk mitigation, and enhanced reputation. 

Real-world examples and case studies can be powerful tools to demonstrate the feasibility and success of circular economy practices. By sharing stories of innovation and impact, we can inspire others to take action. 

CEBIC provides research and useful tools for Victorian businesses. We’ve funded the real-world application of circular thinking in Victorian organisations, generating a wealth of practical case studies accessible to business and industry nationwide.  

Seizing the opportunity  

Our circular economy offers a wealth of opportunities for innovation across all sectors.  

Examples of innovation to achieve circularity through CEBIC include:  

• Product design: By considering the entire lifecycle of a product, from creation to its end-of-life, you can identify opportunities to minimise waste, reduce environmental impact, and maximise resource value. Applying the principles of circular design involves designing products that are durable, repairable, and easily recyclable or compostable, not only benefitting the environment but also offering economic advantages such as reduced material costs, extended product lifespans, and new business opportunities. Brickworks and the University of Newcastle are collaborating to develop a new mortar design allowing easy debonding from demolished bricks. By using this innovative mortar, whole bricks can be reused in their highest value, thereby extending their useful life, reducing the need for virgin materials, and decreasing greenhouse gas emissions in the construction sector.
   

• New business models: Exploring circular business models such as product-as-a-service, sharing economy, and closed-loop supply chains can create new revenue streams and strengthen customer relationships.B-alternative uses a ‘product as a service’ model by providing reusable crockery for events and venues. The business model provides an innovative collection and washing system, along with a Radio Frequency Identification tracking system to monitor usage and minimise losses.
   

• Technology: Leveraging digital technologies to make the most of resources, track product lifecycles, and enable efficient repair.  
   

Circular Sourcing enables resources to be used to their potential through a digital marketplace enabling the local textile industry to buy and sell deadstock fabric and surplus from leading designers, brands and mills.