Embedding circularity in Scotland’s energy transition and supporting circular supply chains

There is a key opportunity to embed circular economy (CE) principles, as per currently drafted Circular Economy Bill, into the Energy Strategy and Just Transition Plan. Failing to follow the waste hierarchy and CE principles risks associated energy infrastructure continuing business as usual linear material flows*, contributing to greenhouse gas emissions and detracting from net-zero ambitions. Zero Waste Scotland are working to influence the energy sector, at a Government Strategy level and through the supply chain to deliver sustainable, circular economy approaches for the materials of the energy transition but has identified the need for the industry to go further in implementing circular approaches and creating value from end-of-life assets. Our role in supporting CE in supply chains can facilitate this transition. and there is a need to further embed circularity and support the development of circular energy infrastructure supply chains in Scotland.

Zero Waste Scotland exists to lead Scotland to use products and resources responsibly, focusing on where we can have the greatest impact on climate change. Using evidence and insight, our goal is to inform policy, and motivate individuals and businesses to embrace the environmental, economic, and social benefits of a circular economy. We are a not-for-profit environmental organisation, funded by the Scottish Government. For further details see https://www.zerowastescotland.org.uk

The energy transition (toward net-zero targets) is already increasing demand for raw materials. The International Energy Agency (IEA)1 estimates the average amount of minerals needed for a new unit of power generation capacity has increased by 50% globally with the increase of renewables in the energy landscape. Competition for materials is likely to increase and vulnerabilities may impact costs and availability, and consequently realising emission reduction targets.

A circular economy seeks to minimise the need for materials and minerals, and making the most of them, by keeping them in use and designing them to be cycled back into the economy, eliminating waste. The circular economy can reduce the dependence on mining and ensure longer-term use of these critical materials and minerals while reducing carbon emissions. According to the IEA1 “a strong focus on recycling, supply chain resilience and sustainability will be essential”. There is an opportunity to enhance circularity within the design, manufacturing and construction of energy transition technologies while maximising the recycling and reuse of materials emanating from decommissioning of various technologies, such as batteries and wind turbines, and increasing innovation for sustainable materials. The latest Just Transition Commission report, Scottish Government2 stated “Clusters of test and demonstration sites that build on existing capabilities and deliver supply chain diversification should be established to accelerate innovation and develop affordable, job-creating solutions, fit for design, manufacture and installation in Scotland” and such supply chains would help support a circular economy in Scotland.

Zero Waste Scotland are currently working on a series of studies to understand the potential for energy infrastructure circularity in Scotland, including collaborating on the recently published report - End of Life Materials Mapping for Offshore Wind in Scotland, OREC3. A circular economy within Scotland has the potential to create valuable economic opportunities including generating jobs in life extension and remanufacturing, as well as further job creation through associated circular supply chains3 while reducing embedded carbon in energy infrastructure and other socio and environmental impacts frequently cited from mining operations1. Recent research estimated a circular economy in the offshore wind sector alone could extend the current projection of 60,000 jobs in the sector by an additional 20,000 jobs4. However, the currently available workforce and infrastructure is insufficient to fully enable the high-value reuse of materials from decommissioned assets. Embedding Circular Economy practices while supporting the development of circular supply chains could leverage socioeconomic benefits, such as green jobs, improving air quality linked to reductions in fossil fuel use and opportunities for Scottish communities built on domestic energy security.

*In a linear economy, the mineral or material is extracted from the planet. These are used directly, or we make something with them, and if something is made from them, at end of life, we throw them away as waste.

1International Energy Agency (2022). The Role of Critical Minerals in Clean Energy Transitions, Word Energy Outlook Special Report: Revised version March 2022. https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf

2Scottish Government (2022). Making the Future: Initial Report of the 2nd Just Transition Commission, ISBN 9781804356791. https://www.gov.scot/publications/making-future-initial-report-2nd-transition-commission/

3Offshore Renewable Energy (ORE) Catapult (2022). End of life materials mapping for offshore wind in Scotland, Report from Phase 1 of the Elmwind project. https://ore.catapult.org.uk/wp-content/uploads/2022/07/FINAL-Catapult_ELMWind_Report-online-version.pdf

4Zero Waste Scotland (2021). The future of onshore wind decommissioning in Scotland. https://www.zerowastescotland.org.uk/sites/default/files/Onshore%20Wind%20Decommissioning%20Full%20Report%20FINAL2.pdf