Draft circular economy strategy: island communities impact assessment - pre-consultation interim report

Step two - Data and stakeholders

Whilst the nature of the Strategy means that it will not have a direct impact on islands communities, it has been considered important to complete an ICIA nevertheless. This ICIA will not offer full insight into all potential issues that will come from the development of interventions linked to the priorities set out in the Strategy, however we can identify and consider broader issues. Doing so will assist further investigation prior to development and implementation of individual interventions, as required.

An initial assessment of potential impacts on islands communities has been undertaken. This involved systematically assessing the Strategy priorities and considering impacts on islands communities based on ICIA guidance notes. This process looked at the theme of the priority and anticipated the nature of activity it may demand.

As a result, many priorities were discounted from this analysis because it was not immediately clear how they might impact island communities. Only those priorities that could be reasonably predicted to link to future impacts on island communities are included.

This ICIA acknowledges and assesses some generic activities that may result from pursuing interventions linked to stated priorities. This will enable an element of impact assessment at this stage and highlight areas for attention for fuller assessment in future. These generic activities are listed alongside other identified impacts below. Additions will be made to this list, if required, as a result the analysis of responses from consultation.

Several generalised potential impacts were identified, via desk-based research and internal discussion, that often impact island communities:

A. Cost of living

B. Resource and waste management

C. Access to (and uptake of) skills, training and jobs

D. Access to personal transport

E. Access to food and essentials

F. Demographics

G. Other generic activity likely to result from the Strategy:

• Research activity
• Policy development activity
• Communications activity

A. Cost of living

A Scottish Government report from 2021 estimates that the cost of living in rural Scotland, including the islands, is between 15% and 30% higher than urban parts of the UK^[23]. The budgets that households need to achieve a minimum acceptable living standard in ‘remote rural Scotland’ are typically 10% to 40% higher than elsewhere in the UK.

Interventions resulting from the Strategy priority to empower consumers and organisations to adopt circular behaviours, may have an indirect effect on product prices. Interventions relating to priorities that support business to increase circularity and uptake of circular business models; and expanding the application of a place-based approach to the circular economy may have the same effect. If these interventions resulted in lower prices it could benefit those living in island communities in future – although this is not certain and the converse may also be true. In addition, these benefits could also be offset or negated by lack of economies of scale or increased transportation costs – and these price effects may also differ in terms of impact product by product.

Understanding and setting out the impacts will require assessment of associated interventions once they are in their own planning and development phase.

B. Resource and waste management

Island communities face unique challenges around waste management due to the increased distances involved. These issues also include accessibility to equipment and/or waste management infrastructure or services; added complexity and cost for collections and/or haulage logistics; and a lack of economies of scale for local solutions^[24]. The same challenges can also make it more difficult to access and utilise secondary resources and make reuse, repair and refurbishment services or solutions less accessible.

As such the priority to improve management of post-consumer textiles may result in a disproportionate impact on islands communities if it requires additional resource management costs, services or infrastructure.

C. Access to (and uptake of) skills, training and jobs

There is potential that circular skills and job opportunities are increased through the transition to a circular economy. While this will be across all society, it may prove to be more difficult for those living and working in island communities to access them; conversely, island communities may be uniquely placed to adopt new practices and attract inward investment.

Expanding the application of a place-based approach to the circular economy has the potential to improve accessibility to circular economy products/practices and potentially jobs.

Linked to the above, plans to improve job opportunities in island communities need to consider the implications of a predicted shrinking working-age population, which is anticipated to be at a disproportionately higher rate than elsewhere^[25].

The nature of part-time, seasonal or self-employment should also be considered when positioning any investment in climate-smart skills in the islands.

Availability of affordable housing is also a barrier to young families staying and settling on the islands – more so than in many other areas of Scotland^[26]. This issue also requires further understanding in relation to addressing any skills gaps and taking advantage of any possible circular economy opportunities in terms of skills, training and jobs.

D. Access to personal transport

People in island communities do not benefit from the same accessibility to public transport. When developing interventions linked to the priority of improving circularity of passenger and light goods vehicles, consideration should be given to issues this would raise for those in island communities who are more reliant on personal transport.

E. Access to food and essentials

Empowering consumers and organisations to adopt circular behaviours may be more difficult in island populations for a variety of reasons. The 2021 Poverty in rural Scotland evidence review^[27] suggests that the cost of these items may be higher in some rural and island areas, and that people may experience additional non-financial barriers to food in island communities linked to dispersed populations, limited food retail, irregular or disrupted transport, and weather-related disruption.

F. Demographics

The average age of populations living on Scottish islands is increasing at a rate that is faster than mainland populations. This makes those communities more vulnerable to climate change as age is a factor which compounds vulnerability to climate change. This is of relevance as a more circular economy can help tackle climate change.

2022 census data^[28] shows that Scotland's average age in every area between now and 2043 is set to increase. The highest reduction in children and working age populations will occur in islands and remote rural areas, - 23% and -15% respectively^[29]. The projected percentage change in population is most extreme in island and remote rural areas, where an approximate drop of 19,000 people represents a 12% change between 2018 and 2043^[30].

G. Other generic activity likely to result from the strategy

This ICIA acknowledges and assesses some generic activities that may result from pursuing interventions linked to stated priorities. This will enable an element of impact assessment at this stage and highlight areas for attention for fuller assessment in future. These generic activities are:

• Research activity
• Policy development activity
• Communications activity

Future research activity may impact on islands communities at two stages. Firstly, via impact during research due to methodology, and secondly the potential impact of policy implementation following research.

For the former, it is not possible to assess at this stage where and how this impact may occur. As such, this research activity must encourage inclusivity and diversity to avoid bias and generalisations. It should be accessible and ensure perspectives and experiences represent the breadth of Scottish society - including organisations and individuals that represent islands communities.

It is also not possible to assess where and how this impact may occur for the latter at this stage. As such, future research related to the Strategy priorities should require a methodology that includes perspectives, and experiences of organisations and individuals that represent island communities.

Similarly, future policy development activity may impact on islands communities and so must encourage inclusivity and diversity to avoid bias and generalisations. It should include voices from organisations and individuals that represent islands communities.

Finally, future communications activity may impact on islands communities and must be inclusive, suitable and incorporate information relevant to all – including those in islands communities.