Having been deliberated for a number of years, on 26 June the Scottish Parliament finally passed the Circular Economy (Scotland) Bill which now awaits royal assent prior to its commencement.

The Bill requires the Scottish Government to introduce measures to help develop a circular economy, supporting Scotland’s move towards achieving a net zero society.

What is a “circular economy” and what is the need for the Bill?

A “circular economy” is a model of production by which waste and pollution is eliminated and nature is regenerated through reusing, repairing and recycling materials for as long as possible. At its essence, the Bill seeks to recalibrate Scotland’s attitude towards waste.

In Wales, this work is already underway. The Welsh circular economy strategy of 2021, Beyond Recycling, is proving to be a successful part of an overall drive towards their aim of becoming a zero waste and net zero nation by 2050. A recent evidence report published by the Welsh Parliament shows significant progress towards the target of 70% recycling from households, commercial and industrial business by 2025, with most local authorities already at or on track to achieve the target.

Scotland’s per capita material footprint is nearly double the global average. Improving collective and individual sustainability levels has been at the forefront of the Scottish Government’s economic agenda for several years. However, progress in pursuing this policy has been slow, with many projects either postponed or behind target.

The Bill, as passed, builds on existing Scottish Government policy by:

• Creating a requirement that the Scottish Government adopt a circular economy strategy within two years of commencement, with a duty to revise this strategy every five years; and
• Creates enabling powers to introduce regulations on:
  • circular economy targets;
  • restrictions on the disposal of unsold consumer goods;
  • charges for single-use items; and
  • mandatory public reporting requirements for businesses in respect of waste and surpluses.

A timetable for the implementation of the circular economy strategy and regulations will be set out by the Scottish Government with close engagement from key stakeholders.

What does this mean for Scotland?

We await further consultation from the Scottish Government on the circular economy strategy, regulations and accompanying guidance to understand the impact of the Bill on specific sectors. However, in its current form, the Bill will affect a range of businesses operating in Scotland, including (but not limited to) manufacturers, distributors and retailers, those operating in the waste management sector, and online marketplaces.

Consideration will also be given on how any strategy will be implemented at a local level. Increasing the burden on local authorities to deliver this change will require resource and powers of enforcement.

If you require assistance in navigating your business through the upcoming changes, please contact Steven Stewart or Jemma Hughes in our environment team for further information.

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