11 November 2025
Focusing on a Circular Economy could create over 200,000 green jobs in Britain by 2030 and boost economic growth, according to a new policy report published by the Institute of Sustainability and Environmental Professionals.
The report Circular Economy Policy for Green Growth says transitioning the UK from a linear "take-make-dispose" model to a circular approach, where materials remain in use at their highest value represents a fundamental shift toward resilient and inclusive prosperity. A circular economy approach will reduce waste, pollution and pressure on finite resources by redesigning products, business models and supply chains, and contribute to easing cost-of-living pressures and supply chain vulnerabilities, while creating jobs and delivering on key aspects of environmental sustainability.
With the UK Department of Environment, Food and Rural Affairs scheduled to publish a Circular Economy Strategy before the end of 2025, ISEP has made a raft of recommendations to ensure regulatory certainty, financial incentives, facilitate critical skills within the workforce and help secure infrastructure investment that businesses and communities need.
ISEP’s Circular Economy Steering Group consulted with ISEP’s 20,000+ members to prepare 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 structured around five interconnected pillars:
1. Economic and financial incentives that 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.
2. Strategic regulation including sectoral roadmaps that should align with UK-wide industrial and infrastructure plans, 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.
3. Investment in research, development and innovation to support circular business models 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.
4. Skills and jobs plan 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.
5. Enabling infrastructure to 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.
Environmental advantages
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.
Economic advantages
Global investment in circular economy has expanded rapidly in recent years, rising to an estimated $164 billion between 2018 and 2023 as capital markets increasingly recognise circular business models as a viable growth opportunity. The World Economic Forum identifies it as a $4.5 trillion global opportunity by 2030.
Agnes Chruszcz, Circular Economy policy lead at ISEP, said: “The evidence is clear: circular economy is a vital economic strategy that can deliver prosperity, increase resilience, and support social justice, while delivering environmental benefits. The question is not whether the UK can afford to make this transition, but whether it can afford not to.
“It strengthens supply chain security by reducing dependence on volatile global markets for virgin materials that are prone to price shocks.
“This in turn protects business sectors from supply chain disruptions by keeping materials circulating domestically and developing local recovery and remanufacturing capacity for strategically important sectors, such as clean energy, life science and medicine, advanced manufacturing, and digital technologies.
“Ultimately, there is also a massive opportunity to create hundreds of thousands of jobs if we invest in upskilling on the circular economy. The business case is clear. What is needed now is coordinated implementation across government.”
Fleur Ruckley PISEP, Associate Director and Circular Economy Strategist at Watts Sustainability, said: “The UK's forthcoming Circular Economy Strategy for England is an opportunity to create a consistent regulatory landscape that prioritises resource productivity and clear product standards.
“The government should use this moment to reward better design and drive clear product standards. This will reduce compliance burdens for UK businesses, strengthen their competitiveness in international markets and give households confidence in choosing circular products and services.”
The circular economy represents not only a compelling economic opportunity but also enables the world to transform to a sustainable future. It offers the UK a pathway to deliver strong, secure, and sustainable economic growth while boosting living standards across every region. The concept of circular economy is based on keeping products and materials in use for as long as possible through reuse, repair, remaking and recycling. It reduces waste, pollution and pressure on finite resources by redesigning products, business models and supply chains.
