Draft circular economy strategy: consultation

6. Circular Economy Monitoring and Indicator Framework

Background

The circular economy monitoring and indicator framework (CEMIF) attaches indicators to each of the draft strategy’s outcomes, to provide a high-level overview of Scotland’s progress towards a more circular economy. This is the first national-level indicator framework specifically developed for the circular economy in Scotland. The proposed circular economy indicator framework is presented in Figure 3.

The framework will be the starting point for development of future circular economy targets, which will be developed by 2027. Not every indicator will be suitable for targets, given data limitations and the extent to which Scottish Government policy can influence certain outcomes. A separate development and consultation process will be conducted for circular economy targets following the publication of the final framework.

Development of the Framework

Over 170 potential Circular Economy (CE) indicators were identified with potential for application within a Scottish CE indicator framework. Each indicator was linked to one or more relevant circular economy outcomes. A set of indicator selection criteria was developed and applied to this long list reducing this list to 25 (see appendix 3).

Datasets

The datasets used for each indicator are set out in appendix 2. Several are based on data sources that are still under development or under review. As data is limited for measuring certain circular economy outcomes, several new indicators are proposed which require further development. As a result, the final format of some indicators will be subject to further development of the evidence base.

Reporting against the Strategy

Section 5 of the Circular Economy (Scotland) Act 2024^[38] requires that Scottish Ministers must report on progress delivering this strategy as soon as practicable after the end of each reporting period (i.e. 2.5 years following the publication of the strategy). Progress on delivery will be monitored through standard Scottish Government programme management arrangements, as well as the monitoring framework.

The image is an infographic titled ' Indicator Framework Linked to Circular Economy for Scotland’

It consists of coloured circles with icons and text, illustrating the Strategy’s draft outcomes and draft Monitor and Indicator Framework indicators associated with each outcome.  The indicators will be used to monitor the progress of the agreed outcomes. Where an indicator concludes with Dev bracketed, this means this indicator requires development

The focus of the infographic shows the Strategy’s eight desired outcomes under four themes of ‘Economy’, ‘Environment’, ‘International’ and ‘Social’ and associated indicators

Economy Outcomes

First Outcome

• The economic value derived from material use is maximised without increasing our environmental impacts.

Linked Indicators to this outcome

• GVA of circular economy sectors
• Resource Productivity and Material Intensity
• Labour productivity of CE jobs

Second Outcome

• The Scottish economy is more resilient to disruptions in global supply of materials, including critical raw materials.

Linked Indicators to this outcome

• Resource resilience ratio
• Material intensity of trade flows (trade value indicator)
• Resource resilience ratio of critical raw materials

Third Outcome

• Business and entrepreneurs have opportunities to develop circular economy innovations.

Linked Indicators to this outcome

• Number of CE patents (technology, product design) (Dev)
• Number of circular startups (Dev)

Environment Outcomes

First outcome

• Non-renewable resource extraction is minimised and renewable resource use is sustainable.

Linked Indicators to this outcome

• Raw Material Consumption (RMC)
• Raw Material Inputs (RMI)
• Circular Material Use Rate (CMUr)
• Recycling rate (Sub-indicators)
• Natural resources index

Second outcome

• The negative environmental impact of our production, consumption and disposal is minimised.

Linked Indicators to this outcome

• Total waste (Sub-indicators)
• Emissions from waste
• Carbon Intensity of Materials
• Global biodiversity impact

International Outcome

• The negative impacts experienced internationally from production, consumption and disposal are reduced.

Linked Indicators to this outcome

• Carbon footprint of managing Scotland’s waste outside of Scotland (Dev)
• Overseas emissions ratio
• Proportion of Scottish waste managed within Scotland

Social Outcomes

First outcome

• People and communities engage in and benefit from circular activities in a fair and inclusive way.

Linked Indicators to this outcome

• Jobs in CE sectors: total
• Population with access to circularity options (e.g. re-use/repair services) (Dev)

Second outcome

• Circular behaviours are the norm across business and society.

Linked Indicators to this outcome

• Household spending on product repair, maintenance and re-use services
• Societal behaviours for a Circular Economy (Dev)
• Business behaviours for a circular economy (Dev)