A circular economy is one of the megatrends that will shape the next phase of sustainability in the built environment.60
There are strong motivations for the sector to adapt, as building construction industries are a major source of Australia's waste. While government policy will provide a valuable signal to the market, developing circular economy practices at scale is expected to be driven by the industry.61
Typically, circular practices are embedded at individual component or asset level, for example as a component of modular, prefabricated offsite construction.62
Introducing a circular economy impacts the whole system, so it requires both the overall system and its individual components to change. This means regulation, governance and business models are as important as design and engineering for a smooth transition.63
To guide the transition, the Australian Government should collaborate with industry to develop a dedicated circular economy roadmap for the infrastructure sector. It should focus on the business case for change; provide sector-specific targets, risk reduction standards and reporting; and leverage existing leading practice through the states and territories. It should also integrate remanufacturing as part of completing the circular economy.
For further reforms relating to the infrastructure sector, refer to the Industry productivity and innovation chapter.