News & Views

Scotland needs to rewire its economy to allow the nation to become fairer, greener and more prosperous, economists and environmentalists say.

A new thought leadership report published jointly today (Thursday) by the Economic Development Association Scotland (EDAS) and Zero Waste Scotland says the circular approach to the economy needs to be central to growth.

And it calls for ‘social provisioning’ to be placed at the heart of public policy to “reverse the idea that society operates for the benefit of the economy to one which ensures the economy’s purpose is to ensure benefit for the people and the planet”.

The think piece – ‘Circularity: a material development in economic innovation’ – argues for a greater alignment between economic development and circular economy principles, fostering an economy which moves away from the constraints of the traditional growth versus no growth debate in order to build resilience.

It has been released – and shared with senior Scottish Government officials – as part of a partnership between EDAS and Zero Waste Scotland to promote the principles of an innovative, successful and sustainable Scottish economy.

In the think piece, they write: “We stand at an inflexion point moving from a long-standing fossil-fuelled economic growth model – with unacceptable levels of poverty and inequality with unsustainable and linear material and resource use – to an emerging circular, greener, more universally generous wellbeing economic model, one which must effectively organise itself accordingly to society’s needs and wants.

“We need a rewiring of the economy which is not just tinkering at the edges. We must embrace real reform.”

While recognising that there is an increasing awareness of circular economy principles, the piece shines a light on the need for the Scottish economy to move away from the entrenched position of a linear ‘take-make-waste’ model and calls for urgent and coordinated action. 

Scotland’s current material footprint of 21.7 tonnes per person annually far exceeds sustainable levels. Yet, only 1.3% of materials are currently reused, highlighting a significant gap that must be addressed to transition away from the traditional ‘take-make-waste’ model.

Key recommendations from EDAS and Zero Waste Scotland include:

• Aligning policy and practice: while Scotland has strong policies such as the National Strategy for Economic Transformation (NSET), Circular Economy Act (2024), Green Industrial Strategy, and Just Transition Framework, these must be effectively integrated to accelerate circular economy adoption.
• Redefining Economic Growth: moving beyond GDP as the sole measure of success, the circular economy presents an opportunity for innovation, resilience, and equitable prosperity.
• Focusing on high-impact sectors: key industries, including housing and construction, renewable energy and food systems, must embed circularity to drive sustainable development and reduce waste.
• Strengthening collaboration: greater alignment between economic developers, sustainability leaders, policymakers and businesses is essential to breaking down silos and ensuring systemic change.

EDAS is the foremost membership organisation for economic development professionals working across Scotland.

Chair Neil McInroy, the Oban-based internationally-recognised  expert in community wealth building, said:  “The Scottish economy stands at a pivotal moment. As we transition from a longstanding linear growth model to an emerging circular well-being driven framework, we must fundamentally rethink the purpose of economic development.

“The alignment of economic development and circularity is not a marginal concern – it is central to Scotland’s future prosperity. We need greater innovation and bolder ambition to transform our economy and move beyond the constraints of the traditional growth versus no growth debate and create a thriving, resilient society.

“Scotland has an opportunity to be a true leader in integrating circular principles into economic development.

“Through our partnership, EDAS and Zero Waste Scotland are committed to advancing this dialogue and helping to drive the systematic changes necessary for a just and sustainable future.”

Zero Waste Scotland is Scotland’s circular economy public body, working with government, business and communities to rewire the economy and make the most of the materials we have.

Zero Waste Scotland Chief Executive Iain Gulland said: “For too long the circular economy has been painted as a ‘bolt on’ to business as usual; something that offers a degree of sustainability and opportunity around the fringes of the current economic model but only where circumstances allow and certainly not where it appears to get in the way of normal growth characteristics. 

“But if we’re serious about achieving a future that’s both environmentally and economically sound then circularity needs to become more central to the purpose of economic growth.

“It is the ultimate tool to help us increase prosperity in line with our net zero and anti-poverty objectives, realising lucrative opportunities for business growth, investment in innovation, upskilling of the workforce and create more resilient communities – as well as protect our natural environment.

“In Scotland we have a strong commitment to circularity at decision-making level, and through this partnership with EDAS we look forward to strengthening our work with the Scottish Government and key delivery partners to accelerate sustainable change for people, planet, and prosperity.”

The full Circularity: A material development in economic innovation’ report is available to view here

EDAS and Zero Waste Scotland are co-hosting an event that will focus on the shift to a circular economy on the 12th May. Tickets are available to book now – click here to book your place.