The circular economy is central to Britain’s energy and resource security

This post is by Jenny Grant, head of organics and natural capital at the Renewable Energy Association (REA). It is part of a series of blogs exploring why different businesses and sectors have been calling for the government to release its delayed Circular Economy Growth Plan

Growing instability in global trade and geopolitics has made one thing abundantly clear: the UK can no longer afford to depend so heavily on fragile international supply chains. Recent conflict in the Persian Gulf, alongside the lasting impacts of the pandemic and rising energy costs, have exposed how vulnerable businesses and communities become when essential materials, energy and resources are sourced from concentrated global markets.

There is increasing recognition that the circular economy is no longer an environmental aspiration sitting on the sidelines of industry. It is now central to resilience, competitiveness and long term growth and we need a clear commitment from the government to support it.

At its core, the circular economy is about keeping resources in use for as long as possible, extracting maximum value from materials and recovering them at the end of their lifecycle instead of wasting them. In sectors reliant on raw materials, energy and infrastructure, this approach creates a more secure and efficient system. Critical minerals, biodegradable waste and other valuable resources that were once discarded can instead be recycled or repurposed to support domestic supply chains.

Circular supply networks are more stable
This shift has significant implications for economic security. By increasing the circular management of resources here in the UK, businesses can reduce their exposure to volatile global markets and geopolitical disruption. Rather than relying on imported resources that are subject to price spikes, transport delays or political instability, industries can create stronger domestic supply networks that are more stable and predictable.

It also presents a major opportunity for jobs and innovation. Investment in recycling infrastructure, remanufacturing, repair services, resource recovery technologies and engineering biology to produce bio-based chemicals and materials for well-targeted applications will create skilled employment across the country. New business models focused on reuse, refurbishment and waste reduction can unlock growth while helping organisations lower operational costs. In a period where businesses are under pressure from inflation and rising energy prices, improving resource efficiency is no longer optional, it is essential.

Waste should be seen as a valuable asset
Importantly, circularity supports both energy and nutrient security. Biodegradable waste, for example, can be transformed into renewable energy, biofuels and fertilisers, reducing dependence on imported fossil fuels and synthetic products and enabling farmers to continue to grow crops. This creates a system where what was previously seen as waste becomes a valuable domestic asset rather than an expensive problem to manage.

However, industry cannot deliver this transition alone. Clear and consistent government policy is vital if the UK is to fully realise the benefits of a circular economy. Now, more than ever, the government and industry must work together to accelerate progress. A robust Circular Economy Growth Plan would provide the clarity and direction to unlock investment, strengthen domestic resilience and position the UK as a leader in sustainable economic growth. This will give businesses the confidence to invest in long term infrastructure, innovation and workforce development.

The challenges facing global supply chains are unlikely to disappear anytime soon. But, by embracing circular principles, the renewable energy sector has an opportunity to turn uncertainty into strength, creating a more resilient, efficient and secure future for businesses, communities and the wider economy.