We were commissioned by Zero Waste Scotland, in collaboration with academics from University College London (UCL), to quantify the economic contribution of circular economy sectors in Scotland.
The Circular Economy (Scotland) Act, passed in June 2024, establishes a legislative framework to accelerate the shift towards a more circular, resource-efficient economy in Scotland.
Zero Waste Scotland is supporting this goal by working to ‘rewire’ Scotland’s economic system to reduce consumption of natural resources through increased circularity and zero waste, which requires a clear understanding of where we are currently and the ability to track progress towards our goal.
However, the best way to quantify and track progress in gross value added (GVA) and employment from circular activities remains challenging.
Our research aims to close this knowledge gap by summarising evidence from the literature on existing quantification approaches and by estimating the value of circular economy activities across Scotland. We also outline current limitations and highlight opportunities to improve the measurement of the circular economy as data and methods evolve.
The analysis, conducted using 2021 data, revealed that circular economy sectors in Scotland generated an estimated GVA of £7.11 billion, equating to 4.7% of total Scottish GVA and 3.9% of GDP. In employment terms, 81,447 jobs were attributable to circular economy activities in the same year (4.4% of total employment).
The report also suggests ways to improve future estimates of circular economy activity in Scotland, such as expanding the definition of circular economy sectors, conducting sector-specific analyses to provide insights into specific industries and their circular economy practices, and developing more granular data.
By presenting an economy-wide valuation of circular activity in Scotland, this research offers insights to inform discussion and provide a robust reference point for measuring the country’s progress toward a thriving circular economy.
