5 November 2025

Today we're publishing ISEP's policy recommendations for delivering a circular economy in the UK. As the government prepares its Circular Economy Strategy alongside a series of sector specific road maps, there's a real opportunity to position the UK as a leader in delivering circular economy in a pragmatic and coherent way. 

The circular economy, which means keeping products and materials in use at their highest value represents significant economic opportunity. The World Economic Forum identifies it as a $4.5 trillion global opportunity by 2030, with international investment funds identifying it as a core part of their sustainable finance strategies. The application of the principles of circular economy can also strengthen resilience of supply chains though turbulent times and secure critical materials needed for the UK to deliver on its industrial strategy and growth ambitions.

The Circular Economy Steering Group, with consultation with ISEP members, prepared a series of policy recommendations that, when implemented coherently and in collaboration with UK devolved administrations could deliver a real boost to UK economic prosperity, jobs and environmental stewardship. The recommendations are centred around five interconnected pillars.

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Our Five-Pillar Framework 

Economic and Financial Reform 

Align taxation and trade with circular principles by reviewing taxes on virgin materials, reducing VAT on repair and reuse services, and embedding circularity standards in public procurement and trade agreements.  

Strategy and Regulation 

Sector roadmaps should align with UK-wide industrial and infrastructure plans and should be supported by binding resource productivity targets and product standards prioritising durability and repairability. Harmonised approaches across UK devolved administrations as well as our closest international partners are essential to avoid creating barriers for businesses. 

Investment in Research, Development and Innovation 

Support circular businesses from start-up through to scale-up by reforming end-of-waste regulations, integrating circular economy requirements into public procurement, and prioritising R&D funding for material recovery in strategically significant sectors like critical minerals needed for our net zero transition like solar panels and batteries. 

Skills and Jobs 

The circular economy could create over 200,000 jobs in Britain by 2030. A national Circular Skills Plan would support this transition through apprenticeships for repair and remanufacture, targeted bursaries for career changes, and micro-credentials linked to recognised standards. These opportunities should span skill levels and regions, from industrial designers to local repair technicians. 

Enabling Infrastructure 

Strategic planning and investment in infrastructure for critical raw material recovery, scaled anaerobic digestion capacity for food waste, and sustainable transport systems supporting reverse logistics. Harmonized data collection and sharing systems like Digital Product Passports compatible with EU standards would provide seamless material tracking and break barriers for businesses working across borders. 

Circular Economy: Benefits Beyond Economic Goals 

The circular economy addresses multiple challenges simultaneously. It creates quality jobs across regions, enables cost savings for families through resource efficiency and longer-lasting products, and protects business sectors from supply chain disruptions by building domestic capacity for material recovery and remanufacturing. 

With 45% of greenhouse gas emissions connected to everyday products, and 90% of biodiversity loss linked to resource extraction, circular economy policies can contribute significantly to environmental goals while supporting economic resilience. 

Next Steps 

The forthcoming Circular Economy Strategy must deliver regulatory certainty, financial incentives, facilitate critical skills within the workforce and help secure infrastructure investment that businesses and communities need. Our recommendations provide a framework for achieving this, drawing on international evidence and UK experience. 

The policy tools exist and the business case is established. What's needed now is coordinated implementation across government. 

Circular economy policy for green growth


Published by:
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Agnes Chruszcz

Policy and Engagement Lead

Agnes is the Policy and Engagement Lead for Circular Economy and Social Sustainability. She joined the ISEP Policy team in 2024 from a higher education institution where she managed circular economy strategy and initiatives across university operations, research and student engagement. Previous to that, she worked in consultancy developing and managing a range of projects for UK government departments, NGOs, local authorities and businesses. This focused on resource efficiency and material flows, waste management service optimisation, circular economy business models and behaviour change.