Draft circular economy strategy: strategic environmental assessment

2 Introduction

2.1 Background

The Scottish Government is committed to transitioning to a circular economy as a means of addressing the climate and nature crises while delivering sustainable economic and social benefits. A circular economy keeps materials and products in use for as long as possible, thereby reducing demand for virgin resources, minimising waste, and maximising the value retained within the economy.

Around four-fifths of Scotland’s carbon footprint comes from the products and services we manufacture, use and throw away^[1] and 90% of global biodiversity loss and water stress is caused by extraction and processing of these products^[2]. The Scottish Government is committed to delivering a different approach to our economy, one where we move from a "take, make and dispose" model to one where we value materials and keep them in use for as long as possible^[3].

The Scottish Government has set climate change ambitions to become a net zero greenhouse gas emitting nation by 2045^[4]. Sustainable resource use is key to tackling climate change and will be vital for our efforts to reduce Scotland’s global carbon footprint, and for other sectors to deliver their own net zero goals.

The Circular Economy (Scotland) Act 2024 places a statutory duty on Scottish Ministers to publish or revise a Circular Economy Strategy for Scotland every five years^[5]. The Strategy is intended to provide a high-level framework for Scotland’s transition to a circular economy, setting out a broad vision and outcomes as well as priorities across policy mechanisms, priority sectors and product stewardship. It will also set out plans for monitoring and evaluating the impact of the Strategy via the Circular Economy Monitoring and Indicator Framework (CEMIF).

These priorities aim to support the Strategy “Vision” set out below:

“By 2045 Scotland will be a net zero and nature positive nation helped directly by the significant progress in transitioning towards a circular economy.

Scotland will have a thriving economy that meets societal needs and is based on circular economy principles, and we will have reduced the negative global impact of our production and consumption.

People, businesses and the public sector will have the skills and knowledge to benefit from opportunities arising from a circular economy and these will be fairly distributed across society.”

The Strategy builds on Scotland’s Circular Economy and Waste Route Map to 2030. While the Route Map focuses on sustainable resource use and reducing the carbon impact of our waste, the Strategy sets out the strategic direction for the future and how circularity will be embedded across the economy by looking at sectors, systems and products. Future interventions that relate to the Strategy’s priorities may include policy proposals, potential legislative measures, and supporting activity to drive systemic change across production, consumption and disposal of materials and products in Scotland.

2.1.1 Policy Context

The development of the Strategy will align, as far as practicable, with key Scottish Government commitments, as set out in section 4.10 below. The Strategy also reflects international commitments such as the UN Sustainable Development Goals^[6], the EU Circular Economy Action Plan^[7], and the Paris Agreement^[8].

The Scottish Government will also develop proposals for the introduction of circular economy targets following the publication of the Strategy and associated monitoring and indicator framework. This is also requirement of the Circular Economy (Scotland) Act 2024.

The Strategy is already supported by, and will be connected to, a wide range of existing and planned circular economy policies, interventions and activities. These include investment in reuse and recycling infrastructure resulting from our Recycling Improvement Fund, or product stewardship initiatives such as the packaging extended producer responsibility scheme, the Deposit Return Scheme, or measures on other product types. The Strategy builds on existing and planned activities to set a clear direction for Scotland for the systemic change required to transition to a circular economy.

What is Strategic Environmental Assessment?

Strategic Environmental Assessment (SEA) is a statutory requirement under the Environmental Assessment (Scotland) Act 2005 (‘the 2005 Act’), to assess the likely significant environmental effects that a public plan, programme, or strategy (PPS) will have on the environment if implemented. The process identifies how adverse environmental effects can be avoided, minimised, reduced or mitigated and how any positive effects can be enhanced. It also allows the public to give their view on the programme and its potential environmental impacts.

SEA comprises the following key stages:

1. Screening – determining whether a Plan/Programme/Strategy (in this instance, the Draft Circular Economy Strategy for Scotland) requires an SEA. The Screening Report was issued to statutory consultees on 4th July 2025.

2. Scoping – establishing the scope and approach of the SEA, including the initial environmental topics to include, the context (a review of other plans, programmes, and strategies and the environmental baseline), and the assessment methodology, with the information presented in a Scoping Report, which is subject to a 5-week consultation. The Scoping Report was issued to statutory consultees on 4th July 2025.

3. Environmental Assessment – identifying, describing, and assessing the likely significant effects of the proposed policy.

4. Environmental Report – outlining the findings from the environmental assessment, consistent with the requirements of Schedule 3 of the 2005 Act. This report is the Environmental Report.

5. Main consultation – consulting on the draft policy alongside the Environmental Report.

6. Post Adoption Statement (PAS) – producing a statement to outline how the assessment and consultation responses have been considered within the finalised plan. This will be produced once the final version of the policy has been agreed and adopted.

7. Monitoring – monitoring the effects of implementation. This will be an ongoing exercise to determine the impacts of the proposal and evaluate its success in achieving its aims.