The tech sector is being held back by the delayed Circular Economy Growth Plan

This post is by Craig Melson, associate director, climate, environment and sustainability at techUK. 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

Delay to the UK’s Circular Economy Growth Plan is holding up momentum just when industry and government should be accelerating action. While industry cannot and should not wait for government to act before driving change, the reality is that circularity depends heavily on clear and consistent policy, otherwise innovation stalls, investment is deferred and opportunities are missed.

From the perspective of the technology sector, represented by techUK, this delay is particularly frustrating. The sector is uniquely positioned to deliver circular solutions at scale. From AI-enabled waste sorting and advanced materials tracking to digital tools that optimise collection systems and improve resource efficiency, many of the technological solutions exist. These can reduce costs for local authorities and recyclers while improving environmental outcomes but, without clear policy, deployment is constrained.

Manufacturers want this reform
Electronics manufacturers are also ready for reform. The UK’s current e-waste framework is over 15 years old and prioritises recycling over reuse and refurbishment. This runs counter to industry ambitions and consumer expectations. Modern tech products are more advanced and valuable than ever, yet existing regulations can inadvertently penalise efforts to extend product lifecycles so we need new rules to make electronics more circular.

There is also a broader political and economic argument: the UK risks falling behind the EU, which is moving ahead with its own, more comprehensive Circular Economy Action Plan. Divergence from EU law increases complexity for businesses, raises compliance costs, and weakens the UK’s attractiveness as a destination for investment. Alignment, where appropriate, would support trade and give the regulatory certainty businesses need to scale innovation and infrastructure.

Delay is holding up investment
Uncertainty is already having consequences. Investment in UK waste and resource infrastructure is too low, in part because businesses are waiting for clear regulatory and investment signals. Companies are reluctant to commit capital without knowing whether future policy will support or undermine their decisions, and this is slowing down the development of new recovery systems, business models, and material innovation.

Crucially, gaps remain in key areas such as chemicals and plastics. While there is some indication of the direction of travel for electronics, there is far less clarity on how the government intends to address material recovery, persistent organic pollutants and increasing recovery rates for complex materials. These issues are particularly important for the tech sector, where products often contain a mix of valuable and sensitive materials.

Ultimately, the delay suppresses innovation and investment and undermines confidence. When resource efficiency and supply chain resilience are strategic priorities, the UK cannot afford to lose momentum, so swift publication of the Circular Economy Growth Plan is essential.