Does Labour victory signal new era for UK circular economy?

Legislation

The Labour Party has emerged victorious in the UK’s general election, securing a commanding (at the time of publishing) 410 seats in the House of Commons, compared to the Conservative Party’s 144. Will the party now deliver on its sustainable and circular economy promises?

“It feels good, I have to be honest,” Starmer remarked, following the win. “A burden finally removed from the shoulders of this great nation.”

Outgoing Prime Minister Rishi Sunak, despite holding his seat in Richmond and Northallerton, conceded defeat and congratulated Starmer on his victory.

Sunak acknowledged the public’s verdict: “Today, power will change hands in a peaceful and orderly manner, with goodwill on all sides. The British people have delivered a sobering verdict tonight, there is much to learn… and I take responsibility for the loss.”

A Green Shift in Policy

As Labour prepares to take the reins, for many, the spotlight is on their environmental agenda, particularly their commitment to a circular economy. This shift promises to address the UK’s pressing waste and sustainability issues, paving the way for reduced material footprint and enhanced resource efficiency.

Libby Peake, head of resources at Green Alliance, emphasised the importance of this transition: “The Labour Party is right to commit to a more circular economy – the public wants it and it is desperately needed to meet our legally-binding climate and nature commitments.”

“A burden finally removed from the shoulders of this great nation.”

Michael Topham, CEO of Biffa, also expressed optimism about the new government’s approach. “We’re pleased to welcome the new Government and look forward to working with them to deliver the ambitious vision of a circular economy. A stable and clear policy environment with realistic timetables and as much consistency as possible across all devolved nations will be key to allowing the waste sector to invest and innovate,” Topham stated.

Industry Priorities and Initiatives

Biffa, a leading waste management company, has outlined several priorities for the new government to focus on, including the successful implementation of Extended Producer Responsibility, Simpler Recycling, and a UK-wide deposit return scheme for drinks bottles and cans.

“The transition to decarbonised energy and transport systems is increasingly urgent, and the waste sector must move to no or low carbon collection fleets”

Topham also urged the government to make the Plastics Packaging Tax more ambitious, ban the export of unprocessed plastic waste, and support the decarbonisation of the waste sector through promoting carbon capture and zero emissions collections.

“The transition to decarbonised energy and transport systems is increasingly urgent, and the waste sector must move to no or low carbon collection fleets,” Topham noted. Biffa has already begun adopting alternative fuels, with a fleet that includes more than 94 battery electric vehicles and 64 renewable diesel-fuelled vehicles.

Energy and Waste Management

Labour’s green vision extends to significant investments in carbon capture and renewable energy. The party has pledged to establish a National Wealth Fund, capitalised with £7.3 billion, aimed at accelerating the deployment of carbon capture technologies.

This initiative is expected to attract substantial private investment, further driving the UK’s transition to a low-carbon economy.

“With the right policies in place, the waste sector has the skills, capital and ambition to deliver a circular economy for the UK.”

Topham highlighted the role of energy recovery from waste in contributing to the UK’s energy security and called for a moratorium on new energy recovery facilities to prevent overcapacity. “Overcapacity in this sector would make it harder to encourage waste to move up the hierarchy into reuse, recycling and other forms of recovery,” he explained.

As Labour steps into leadership, the environmental and sustainability sectors will be eagerly awaiting for Labour to set this new transformative path towards sustainability, with a focus on circular economy principles, waste reduction, and green investments.

“With the right policies in place, the waste sector has the skills, capital and ambition to deliver a circular economy for the UK. Delivering a more sustainable UK waste sector is not easy but represents a huge opportunity. We are ready to support the new Government in rising to the challenge,” Topham concluded.

Resources Blueprint

Kirstin Roberts, Waste and Sustainability Director at national law firm Freeths, said the waste industry is “impatient to see what of the existing proposed waste reforms this new Government will prioritise”.

“We’ve been waiting so long and just want the new Government to get them over the line! Businesses and local authorities need certainty in order to invest confidently in new technologies, infrastructure and practices and to simply get on with the changes that have been promised for so long.

“I urge the new Prime Minister to create a sense of certainty surrounding the proposed reforms, so that the waste and resources industry can support the country’s environmental goals.”

I urge the new Prime Minister to create a sense of certainty surrounding the proposed reforms, so that the waste and resources industry can support the country’s environmental goals

Ahead of the general election, the Chartered Institution of Wastes Management (CIWM) outlined ten ‘policy asks’ designed to accelerate the transition to a more resource resilient and circular economy capable of meeting future material demands and supporting the battle against climate change. 

CIWM’s Director of Innovation and Technical Services, Lee Marshall, said: “CIWM welcomes the new Government and looks forward to working with them as we continue our journey to a world beyond waste. We believe our ten policy asks will help support them in delivering on their manifesto promise to commit to a more circular economy.”

CIWM’s recommendations are split into those which should be prioritised in the first two years of the new government, and those which can be developed in the following three to five years of the term.

Years One and Two
Policy 1: Implement the existing Resources & Waste Strategy policies  
Policy 2: Create a cross-government resource resilience task force
Policy 3: Launch a Green Skills Fund 
Policy 4: Introduce targeted Extended Producer Responsibility (EPR) for several key product types
Policy 5: Introduce targets across the top half of the waste hierarchy (prevention, reuse, repair)

Years Three to Five
Policy 6: Develop a Circular Economy Plan with a supporting Resource Resilience Strategy
Policy 7: Price raw materials so that prices include negative environmental externalities
Policy 8: Introduce targeted economic instruments
Policy 9: Strengthen eco-design and waste prevention
Policy 10: Ensure adequate funding for Environment Agency and other regulators.

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