Oireachtas Joint and Select Committees

Wednesday, 4 October 2023

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

The Circular Economy: Discussion

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank the committee for inviting me to speak here today. I also thank Ms Catherine Higgins for assisting me. She is one of the civil servants in the Department who has responsibility for the circular economy.

It is just a year now since the enactment of the Circular Economy Act and it is an opportunity to review the progress that has been made in the last year and to discuss the priority areas where we now need to focus our attention.

I think we are all agreed that the linear economic model of take-make-waste is environmentally and economically unsustainable. The transition to a circular economy offers an alternative. In a circular economy, waste and resource use is minimised, and the value of products and materials is maintained for as long as possible. In a circular economy, when a product has reached the end of its life, its parts can then be used again and again to create further useful products.

A circular economy normalises the efficient use, reuse and ultimate recycling of our material resources. Materials can be designed to be less resource intensive, and waste can be recaptured as a resource to manufacture new materials and products. By making the transition to a circular economy we can move away from the model of managing and disposing of waste towards preserving resources. It also has the potential to significantly reduce our dependency on primary resource extraction and complex global supply chains, thereby strengthening State and business resilience in the face of supply shocks.

Circular economy practices and improvements in sustainability can result in real benefits for business and enterprise. Therefore, it is important that our policy and regulatory framework support the business community in making the circular transition, not just in terms of direct funding but also through the provision of funding for research and innovation, delivering on the potential for increased cost savings, improved resource efficiency and new business opportunities.

Meeting our climate targets also requires a transformation in the way we produce and use goods. Therefore, making less or making with fewer resources will play a key role in climate action and reduce our carbon emissions.

In recent years and in response to the triple global emergencies we face in climate, biodiversity and pollution, the EU has ramped up its ambition and delivery of new legislation in the circular economy space. In addition to textiles and eco-design, negotiations are under way on a new packaging regulation, food waste prevention, and critical raw materials. Further legislative proposals have been announced on end-of-life vehicles and more are promised for waste electrical and electronic equipment.

We are making progress at a national level as well as at EU level. In line with the evolution of EU and UN environmental policy, the waste action plan for a circular economy was published in September 2020. The first circular economy strategy and the circular economy programme were published in November 2021, and in July 2022. The Circular Economy Act completed its passage through the Oireachtas in 2022. Over the past two years, we have put in place the necessary policy and regulatory framework required for a successful circular transition. But now that the policy and regulatory framework are in place, I intend to build on that momentum. In November last year, I launched, with the Minister for Agriculture, Food and the Marine, Deputy McConalogue, Ireland's first national food waste prevention roadmap, which is a key step in steering our efforts towards achieving the goal of reducing food waste by 50% by 2030. I also announced the second call for funding under the circular economy innovation grant scheme, bringing total allocations to date under the scheme to €1.25 million. I intend to launch the third round of funding under the scheme before the end of this year.

The new circular economy fund was established under the Act in July, signalling a clear commitment to further integration of circular economy principles in practice. July also saw the introduction of incentivised waste collection in the commercial sector and, from January next year, waste collection service providers will be obliged to provide all households with a separate collection for biowaste, or what is known as a brown bin, by the end of the year.

From 1 September 2023, I introduced a levy of €10 for every tonne, or 1 cent per kilogram, of municipal waste recovered in Ireland or exported abroad for recovery. I also announced a corresponding increase in the existing landfill levy to €85 per tonne. These levies will encourage more recycling and reuse, and greater efforts to segregate waste at source.

While we have made progress, there are further issues that I intend to address. Work is continuing on the next iteration of the circular economy strategy. The next version of the strategy will have a statutory basis and, in line with the requirements under the Act, it will include targets for specified sectors, delivering on the potential to make significant contributions to the circular transition.

I am also very keen to see the issue of disposable vaping products addressed. The recent public consultation survey that sought views on a potential ban on disposable vapes indicated that a clear majority favour such a ban and I am working to find the best way forward to address this environmental threat.

I am also committed to the introduction of a new regulatory system for end of waste and byproducts. End of waste is one of the pivotal issues for our circular economy ambition in Ireland and a key area for industry. The publication of a sectoral roadmap for the construction sector, as part of the work of the construction sector group, is also a priority.

Work is continuing on the preparation of a new green public procurement strategy and action plan, which will replace the current national policy, Green Tenders, that was launched in 2012. The draft plan is currently the subject of a public consultation process and I hope the final version will be approved by the Government by the end of this year.

February 2024 will see the introduction of Ireland's deposit return scheme for plastic bottles and aluminium cans.

That will be the final step in this very exciting project. It has been a major undertaking for the beverage industry, retailers and the deposit-return scheme company, Re-turn. This is the first such system across Britain and Ireland and it is an example of how we can all embrace circularity in our everyday lives.

I am hopeful that 2024 will also see the delivery of two key circular economy projects. The first is a national circular economy platform to provide an authoritative source of information about the circular economy. If we are to embrace the circular economy and effect real behavioural change, we must raise awareness of circular economy practices in society in general. The establishment of a national circular economy platform will achieve that objective. The establishment of a centre of excellence for circular manufacturing and innovation is a priority. Members of this committee have been supportive of this approach. Embedding circularity in business and enterprise is fundamental to a successful circular transition and one of the areas in which we can make the most impact. Support for business and enterprise in making that transition is a priority for my Department and across government.

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