The new report commissioned by the Green Purposes Company (GPC) highlights the growing number of examples of circular business models in the renewable energy sector and makes recommendations on what is needed to bring “pace and scale” to the circular economy.
The report, For a Circular Energy Transition: Action Plan for Industry, Policymakers and Investors, will be launched in Parliament today (21 February) in partnership with cross-party think tank Policy Connect.
Under Secretary of State at the Department for Energy Security and Net Zero, Lord Callanan will make the keynote address at the launch.
Report author, Rémy Le Moigne, commented: “The transition of the renewable energy sector to a circular economy is essential to ensure the reliability and resilience of critical materials supply.
“The circular economy can also help reduce carbon emissions and biodiversity loss, and become a source of new value creation and jobs.”
Amongst the report’s key findings was that “exponential demand” for critical materials, driven by the energy transition, may trigger supply chain problems.
The transition of the renewable energy sector to a circular economy is essential to ensure the reliability and resilience of critical materials supply.
The GPC says the transition to renewable energy will drive an exponential demand for critical materials which may trigger major supply chain problems in the future if no action is taken. The organisation continues that from 2030 onwards, the renewable energy sector will lead to a “tsunami of waste” from photovoltaic panels, wind turbines and lithium-ion batteries arriving at the end of life.
The report also highlighted that circular economy business models could help decouple the renewable energy sector from material consumption. However, transitioning to a circular economy faces “major” economic, regulatory and financial barriers.
According to the GPC, recycling solar panels, wind turbines and lithium-ion batteries does not yet allow the recovery of most critical materials. The organisation says this is because lithium-ion batteries and photovoltaic panels are designed for durability, not to be repaired or refurbished.
The GPC says this means investing in recycling infrastructures remains risky and not always economically attractive.
The report also called for an “action plan” for the renewable energy sector that is fully aligned with the principles of a circular economy. It should be based on designing assets for a circular economy, building circular value chains and creating the right economic and policy conditions.
It is critical that in helping to address climate change the renewable energy sector does not inadvertently drive environmental problems elsewhere.
Commenting on the report, GPC chair, Trevor Hutchings, said: “It is critical that in helping to address climate change the renewable energy sector does not inadvertently drive environmental problems elsewhere.
“At best, the sector is missing out on the growing economic opportunity and stronger supply chains that come from a circular economy, at worst, risks becoming complicit in ‘greenwashing’.”
