Scottish Government biodiversity duty report 2021-2023

4. Environmental Quality And Circular Economy

4.1 Introductory information

The Scottish Government is committed to moving towards a circular economy as a key response to tackle the climate and nature crises. Policy for circular economy and producer responsibility is led by dedicated divisions of the Scottish Government's Environment and Forestry Directorate.

4.2 Actions to protect and enhance biodiversity

A circular economy, based on sustainable consumption and production, is essential to power Scotland’s transition to a fair, green and sustainable economy, and critical to meeting our obligations to tackle the twin climate and nature emergencies.

Material consumption and waste are primary drivers of nearly every environmental problem Scotland currently faces, from water scarcity to habitat and species loss. Cutting our material consumption is one of the most important ways that we can all limit our impact on the environment, both in Scotland and globally. Around four-fifths of Scotland’s carbon footprint comes from the products and services we manufacture, use and throw away and 90% of global biodiversity loss and water stress is caused by extraction and processing of these products.

A primary driver of biodiversity loss internationally is extraction and manufacturing of raw materials, and the disturbance of soils, which are only recently being fully recognised as extremely important biodiversity ecosystems.

Sustainable resource use and a circular economy is key to tackling climate change and the nature crisis: Maximising the life of useful products and materials reduces mining and extraction practices associated with virgin extraction, thereby helping to protect habitats and the natural environment. The Scottish Biodiversity Strategy outlines real-world examples of how the circular economy contributes to halting biodiversity loss by 2030 and reversing declines by 2045.

We have and are undertaking a range of measures to progress a circular economy:

• To lay the foundations for the circular economy transformation required, and set out priority actions to accelerate more sustainable use of our resources and reduce associated emissions, a draft Circular Economy and Waste Route Map to 2030 was being prepared for consultation in January 2024.
• The Route Map sets out a range of proposals across the waste hierarchy which will have positive impacts on biodiversity. Measures are set out under four strategic aims, with underpinning objectives, as set out below:

1. Reduce and reuse: Drive responsible consumption, production and re-use; Reduce food waste; Embed circular construction practices

2. Modernise Recycling: Modernise household recycling and reuse services, improving and optimising performance; Support businesses in Scotland to reduce waste and maximise recycling.

3. Decarbonise Disposal: Understand the best environmental outcomes for specific wastes; Ensure there is an appropriate capacity to manage waste; Improve environmental outcomes for waste through innovation; Incentivise decarbonisation of the waste sector

4. Strengthen the circular economy: Provide strategic oversight and direction for the delivery of a circular economy in Scotland; Coordinate action across cross-cutting areas to support progress across the waste hierarchy; Robustly monitor and evaluate progress to enable agile working, take action where we are not on track, and learn from and implement what works.

• The Circular Economy (Scotland) Bill was introduced to the Scottish Parliament in June 2023, and contains provisions that require primary legislation to underpin Scotland’s transition to a circular economy, and modernise Scotland’s waste and recycling services.

The Bill and Route Map will complement the existing, wide-ranging measures we have delivered or are delivering to support our circular economy objectives:

• Current measures to divert waste from landfill, include a ban on biodegradable municipal waste going to landfill from 31 December 2025, and support for local authorities to secure contracts that comply with the landfill ban.
• We are working with the UK and devolved governments on reforms to extended producer responsibility schemes for packaging, waste electrical and electronic equipment (WEEE) and batteries, which will help drive circular economy outcomes.
• Our £70 million Recycling Improvement Fund was launched in March 2021, and as of December 2023 more than £60 million has been awarded to 24 local authority projects to improve recycling infrastructure, projected to save over 57,000 tonnes of CO2e per year.
• We remain committed to the delivery of a successful Deposit Return Scheme (DRS) for single-use drinks containers.
• Publishing and taking forward the National Litter and Flytipping Strategy and Year One Action Plan which recognises the impact of litter on the natural environment.
• The Scottish Government is taking concrete action to tackle single-use plastic issues at home as well as exchanging knowledge and practice with our international partners. From 1 June 2022 Scotland became the first part of the UK to implement a ban on some of the most problematic single-use plastic products through the Environmental Protection (Single-use Plastic Products) (Scotland) Regulations 2021. The regulations make it an offence for a person who, in the course of a business, supplies, offers to supply, or has in their possession for supply a range of single-use products, including cutlery, plates and beverage/food containers.
• The single-use plastics regulations sit alongside a broader range of initiatives already established or underway, including: a 10p-levy on single-use carrier bags from 2021; working with the other administrations on proposals to ban wet wipes containing plastic, with a UK-wide consultation held in Autumn 2023; a ban on the sale and supply of single use vapes in Scotland, following consultation in 2023. Draft Scottish regulations to ban single use vapes were published on 23 February 2024.
• Continuing work to deliver a charge on single-use disposable beverage cups to drive behaviour change towards re-useable items and tackle our throw-away culture, supporting us to use fewer natural resources and improve litter levels.
• As set out in the draft Route Map, we have proposed measures to focus on embedding circular construction practices to reduce resource needs, reduce waste and carbon, and encourage refurbishment and reuse. This includes a proposal to investigate and promote ways to reduce soil and stones disturbance, movement and volumes going to landfill. The organic matter in topsoil is a valuable carbon sink and a rich biodiversity habitat. The construction of buildings and infrastructure, as well as the drainage of soils to create public open space, can reduce levels of organic matter in soils and release carbon. This intervention will focus on better understanding the opportunities to reduce soil disturbance, and soil movement within and off site.

4.3 Mainstreaming biodiversity

The effects of the Circular Economy and Waste Route Map and its measures have been specifically considered with respect to impact categories, including biodiversity, flora, and fauna, through a strategic environmental assessment report. The draft assessment found that the proposals in the Route Map have the potential to cause net positive environmental effects across all of the impact categories assessed, including Biodiversity, flora, and fauna, primarily through sustainable production and consumption helping to address major drivers of biodiversity loss, for example the reduction in demand and extraction of virgin materials delivered by circular economy measures.

We consider the impact on biodiversity in the policy development and implementation process for individual policies as appropriate, and the Route Map’s environmental report highlights areas that future impact assessments, as deemed appropriate, may consider. The report notes that it is likely that there will be further impacts, especially in the short term, that have not been considered in the SEA but should be assessed, where appropriate, once the interventions have been fully defined and detailed.

4.4 Nature-based solutions, climate change and biodiversity

Sustainable resource use and moving to a circular economy is a key part of our response to climate change, and there are clear links between developing a circular economy and nature-based solutions, including:

• The link between food waste reduction and addressing the wider food system, including agriculture and land use.
• Maximising the lifespan of carbon and material intensive structures through promoting the refurbishment of buildings, and maximising reuse of materials within the construction sector. The construction of buildings and infrastructure, as well as the drainage of soils to create public open space, can reduce levels of organic matter in soils and release carbon.
• Nature positive repurposing of closed landfill sites, as we reduce the amount of waste we generate in Scotland through circular economy.

More broadly, policies driving sustainable resource use and circular economy contribute directly to emissions reduction, and are captured through the 2020 Climate Change Plan update. Further priority actions are set out by the draft Circular Economy and Waste Route Map (2024), highlighting the opportunities we will seek to take to decarbonise the waste sector and reduce wider ‘lifecycle’ emissions. Emissions from the waste management sector in 2021 were 76% lower than they were in 1990.

It is important to recognise that the transition to a circular economy is also key for sustainable inclusive growth, helping to embed our economy in the natural world, recognising the need to live within the sustainable limits of our single, shared planet.

4.5 Public engagement and workforce development

Key activities include:

• Extensive formal and informal engagement on a range of circular economy issues, and a number of public consultations on measures (as set out in Section 2). This includes two consultations respectively on the Circular Economy and Waste Route Map (2022 and 2024) and measures for a Circular Economy Bill (2019 and 2022), involving multiple public-facing and stakeholder-facing events, highlighting the key links between circular economy and biodiversity.
• A range of public communications by SG and its partners (e.g. Zero Waste Scotland, SEPA) to support sustainable resource use and circular economy, for example, through Let’s Do Net Zero communications on consumption and food waste.

Educational resources provided by Zero Waste Scotland Circular economy in education | Zero Waste Scotland. There are a range of resources to support teachers and lecturers, to cover sustainability in primary, secondary, further and higher education settings. These range from bite-sized resources including food waste, recycling, energy and litter to more structured programmes that focus on enterprise and innovation.

4.6 Research and monitoring

4.6.1 Research

Specific research has been commissioned by Scottish Government and Zero Waste Scotland on a range of circular economy and resource subjects, linked to the measures outlined in Section 4.2. This includes new research published alongside the draft Route Map (2024), for example reporting on carbon emissions of Scotland’s waste and a discussion of opportunities and challenges for emissions reductions; Commercial waste composition scoping; and developing a programme for improving the reuse of Scotland’s high value construction materials. The research commissioned directly informs policy direction, development and implementation for those policies referenced in Section 4.2.

4.6.2 Monitoring

• Scotland's Carbon Footprint highlights the greenhouse gas emissions associated with the spending of Scottish residents on goods and services, wherever in the world these emissions arise. Later in 2024, Zero Waste Scotland will publish the first outputs from a new Scottish Waste Environmental Footprint Tool, which will provide further insights on the full lifecycle climate and wider environmental impacts of Scotland’s waste. The Scottish Material Flow Accounts (MFA) helps to understand the scale and nature of Scotland’s consumption.
• As set out above, the potential effects of the Circular Economy and Waste Route Map and its measures have been specifically considered with respect to biodiversity, flora, and fauna through a strategic environmental assessment report.
• As set out by the draft Circular Economy and Waste Route Map consultation, we intend to set new circular economy targets, with work to develop a monitoring framework across 2024-25, drawing on existing evidence and progressing further research as required. The targets will cover the period to 2030 as a minimum. The measures set out in the draft Route Map are focused on the actions we must take to accelerate progress, setting the framework for the required transformational change in how we manage our resources across our economy and society in the years ahead. New circular economy targets can help us make this transition.
• The provisions in the Circular Economy (Scotland) Bill, if passed, will give Scottish Ministers enabling powers to set statutory circular economy targets where appropriate. This could include reducing the use of materials, increasing reuse, increasing recycling, linking to priorities within the circular economy strategy, and ensuring alignment with the Environment Strategy for Scotland and Biodiversity Strategy to 2045. The development of targets will also give explicit consideration to material-specific targets, rather than ‘catch-all’ indicators, as recommended by the Climate Change Committee (CCC), to provide a more powerful, targeted approach for the challenges we face today – including the climate and nature loss emergencies.

4.6.3 Trends and areas of concern

As above, the Route Map’s strategic environmental assessment found that the proposals in the Route Map have the potential to cause positive environmental effects across all of the impact categories assessed, including Biodiversity, flora, and fauna, primarily through the transition to sustainable production and consumption and towards reducing and transforming residues and waste, for example the reduction of demand and extraction of virgin materials. The positive impacts of the measures are expected to be partially offset by increased resource use, for example, through increased recycling activity, or additional product or building maintenance. However, the assessment has concluded that none of the packages in the Route Map are anticipated to have a net negative impact on any of the environmental topics assessed.

To maximise the potential for positive environmental impacts and to support and enhance the wider aims of the Route Map, it was recommended that all measures are implemented with consideration to alignment with other relevant environmental plans, programmes, and strategies, such as Scotland’s Environment Strategy, Biodiversity Strategy and the National Litter and Flytipping Strategy.

4.7 Biodiversity highlights and challenges

4.7.1 Main achievements

Scotland has made good long-term progress towards its circular economy ambitions, which directly supports Scotland’s response to the climate and biodiversity crises:

• The total amount of waste going to landfill in Scotland has dropped by over a third over the past decade (3 million tonnes or 30% of all waste managed was sent to landfill in 2021), over 56% of waste was recycled in 2021. In the same year we met our 2025 target to reduce all waste by 15%. Scotland had a target to recycle and reuse 70% of construction and demolition waste by 2020. This target has been met every year since 2011.
• Within Scotland, total greenhouse gas emissions have approximately halved since 1990, with waste management sector emissions reducing even faster during that period. In 2021, the waste management sector emissions stood at 1.5 MTCO2e, 76% lower than the 6.5 MtCO2e in 1990.
• Scotland has seen a 45% decrease in biodegradable municipal waste going to landfill since 2011, driven by the forthcoming ban on the practice (December 2025).
• We have taken steps to reduce waste and embed more sustainable approaches across sectors. This includes introducing a ban on certain single-use plastic items, funding re-use projects and infrastructure through the Recycling Improvement Fund, supporting businesses through Zero Waste Scotland, supporting sharing libraries and repair cafes, and introducing requirements through the National Planning Framework 4 to encourage developers to minimise waste and carbon intensity in construction projects.
• A range of food waste achievements, including communication campaigns to raise awareness of food waste; funding FareShare's 'Surplus with Purpose' scheme; and the Food Waste Reduction Business Support Service, run by Zero Waste Scotland. The Scottish Government’s £70m Recycling Improvement Fund (RIF) is helping to tackle food waste by enhancing food waste recycling collections.
• We have delivered and continue to progress key measures to modernise recycling in Scotland. Our £70 million Recycling Improvement Fund was launched in March 2021, and more than £60 million has been awarded to 24 local authority projects to improve recycling infrastructure, projected to save over 57,000 tonnes of CO2e per year.
• In June 2023 the Scottish Government published the National Litter and Flytipping Strategy which sets out how national and local government, business, third sector, communities and individuals can work together to support behaviour change, improve infrastructure and strengthen enforcement, in order to protect our environment, better value our resources as a society and prevent the escape of materials from the economy. The publication of this six-year Strategy is accompanied by a 2023-24 Action Plan, detailing specific actions and interventions that will be progressed in the first year of the Strategy.
• We continue to progress key policies, building on those already delivered, to move towards our vision of minimising the impacts of managing waste. Current measures to divert waste from landfill to recycling or other disposal, include The Landfill Tax (Scotland) Act 2014, a ban on biodegradable municipal waste going to landfill from 31 December 2025, and support for local authorities to secure contracts that comply with the landfill ban.
• We commissioned the independent review of incineration and have published our responses to both of Dr Church’s reports. The independent review found that, in terms of managing residual waste, incineration was currently preferable to landfill, and made clear recommendations around capacity and decarbonisation of energy from waste. We accepted, in principle or in full, all of the Review’s recommendations.
• In response to recommendations on capacity, our National Planning Framework 4 sets out that the Scottish Government will not support new developments of energy from waste facilities, except under limited circumstances.
• To drive decarbonisation of energy from waste, we have set a clear ambition to end the unnecessary incineration of plastics. In addition, we are working with other nations in the UK on the expansion of the UK Emissions Trading Scheme (ETS) to include incineration and energy from waste.
• We continue to support work to ensure we manage waste materials containing persistent organic pollutants (POPs) in a way that protects human health and the environment. However, the identification of waste materials containing POPs, above thresholds set out in the Stockholm Convention, and their destruction remains a key challenge. We will continue to work with and support regulatory agencies and other governments of the UK to develop research and guidance to support compliance with relevant regulations. We also continue to work with other UK governments and agencies on the development and implementation of a mandatory UK-wide digital waste tracking system, to provide a more comprehensive way to see what is happening to the waste we produce.

4.7.2 Main challenges in the next three years

Key challenges include:

• Ensuring accurate monitoring and availability of data to track the causal link and impacts of the move to circular economy on biodiversity. Activities such as the new Scottish Waste Environmental Footprint Tool and development of a circular economy monitoring framework will be important vehicles for considering ways to tackle this challenge.
• Ensuring maximisation of benefits: linked to the challenge above, system transformation of this scale is not a simple task. There is a need to ensure the range of actions that we are undertaking is both complementary and coordinated as part of our overall efforts to tackle the twin crises of climate change and biodiversity loss. This includes setting our circular economy objectives within the wider strategic framework and mainstreaming across policy to meet our objectives.
• Coordinating action across cross-cutting areas to support progress across the waste hierarchy: There are many common cross-cutting areas that are key to both making progress in embedding circular economy principles, and mainstreaming biodiversity. These include research, data and evidence to underpin successful delivery of our strategic vision and individual measures; sustainable procurement to enable and define how we demand products and services in a way that reduces climate and environmental impacts; and the skills and training required (e.g. to drive a fully circular economy in Scotland.)

The draft Circular Economy and Waste Route Map seeks to lay the framework to address these fundamental challenges.