Image source: Scottish Government Flickr, CC-2.0

There are a range of industry trends that can deliver significant cost savings to the sector.


Circular economy

The move to sustainable technologies and practices also incorporates a seismic shift from our historically linear 'take-make-dispose' economy into a circular economy, which aims to stop waste from being produced in the first place. With a circular economy, our resources and materials stay in circulation for longer. This targeted approach aims to tackle climate change, biodiversity loss, waste and pollution.

The three main principles of a circular economy include:

  1. Eliminate pollution and waste.
  2. Circulate materials and products (at their highest value).
  3. Regenerate nature.


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The move to a circular economy in Australia is currently being fostered through CSIRO's Circular Economy national research initiative. They are working to help Australia transition through technology design and implementation, new and advanced manufacturing, and economic, social and policy frameworks.

Their research aims to transform the nation's circular economy from its current state of 3.5% to 30% by 2030. This ambitious goal aims to create a $30 billion economic opportunity through a strategic, four-fold approach:

  1. Brokering transition partnerships and agreeing on a circular economy transition agenda.
  2. Developing the guidelines and principles required to transition, including criteria for the success of initiatives.
  3. Identify solutions that are tailored to opportunities and challenges in managing waste and creating economic and employment regional opportunities.
  4. Transforming procurement.

Source: https://www.csiro.au/en/news/All/Articles/2023/October/zero-waste-circular-economy


 Case study

The global clothing industry, valued at 1.3 trillion USD, sustains over 300 million jobs across its supply chain. Cotton production, a notably water-intensive crop, represents nearly 7% of employment in several low-income nations. Clothing constitutes over 60% of all textile consumption, and in the past 15 years, the production of garments has nearly doubled. This surge is attributed to the expanding middle-class demographic worldwide and heightened per capita purchases in developed economies. Concurrently, the lifespan of clothing has decreased by almost 40%, largely due to the rise of 'fast fashion'. This trend is characterised by rapid changes in style, more frequent releases of new collections each year, and generally, more affordable prices.

Adopting a circular model presents a global 560 billion USD economic opportunity for the industry. To capitalise on this potential, innovative business strategies and collaborative efforts across the entire supply chain, including production, marketing, and post-sale services, are essential. Such collaboration aims to maintain the continuous use of safe materials, aligning with environmental sustainability goals.


Source: https://www.ellenmacarthurfoundation.org/fashion-and-the-circular-economy-deep-dive

Clean energy trends

'In 2022, global energy transition investment matched investment in fossil fuels for the first time' (Clean Energy Australia Report 2023).

The Clean Energy Australia Report provides a snapshot into Australia's clean energy trends each year. The 2023 Report showed that 35.9% of electricity generated in 2022 was through renewable energy sources, an increase from 32.5% in 2021. The boom in the industry is apparent when you look at the data from 2017, when just 16.9% of our energy was through renewable energy. 

Wind is continuing to lead the way as the most significant renewable energy generator overall, providing 35.6% of all renewable generation. Two new wind farms became operational in Victoria, the state that provides a third of Australia's wind generation. There are approximately 3.4 million Australian homes using rooftop solar PV systems, as of 2022. External factors impacting the cost of fossil fuel energy sources, such as the war in Ukraine, have renewed interest in solar installations. 


Image source: Clean Energy Australia Report, p.7

Last modified: Tuesday, 24 September 2024, 1:20 PM