KEY SYNERGY TOPICS
- CIRCULAR DESIGN
- CONSUMER EMPOWERMENT
- CIRCULAR AND SHARING BUSINESS MODELS
- DEMAND FOR RECYCLED AND RENEWABLE FIBRES
- POST-USE ECOSYSTEM
- SORTATION AND RECYCLING
- INNOVATION INVESTMENT
The UK government needs to actively consult on and introduce effective extended producer responsibility (EPR) legislation. As well as exploring the options, it must support the transition to a circular fashion ecosystem, including offering preferential incentives and developing standards for labels and feedstock. The UK Government will play a critical role in propelling the move to a circular fashion ecosystem. To support this transition, it must consult on and implement policy and regulation to incentivise responsible business behaviours and practices. This is important to ensure that ‘first adopters’ in the circular economy are not penalisedwith relatively higher costs in developing solutions and technologies than ‘late adopters’, who may gain commercial advantage by holding out to change until costs have dropped.
Potential policy and legislative levers include EPR; preferential tariffs; tax breaks; a carbon tax; grants for circular small and medium enterprises; requirements for reused or recycled content in products; sustainability considerations when negotiating new Free Trade Agreements, and the establishment of standards and certification for the industry in areas like labelling and feedstock. These options subscribe to the fundamental principle that policy and regulation must take into account the environmental and social costs of producing goods alongside considering traditional economic costs. This principle was also emphasised by several of the stakeholders consulted for this report.