5.0 Circular Economy
Goal: Develop new models of production and consumption to reduce our reliance on natural resources
Figure 15 – Circular Economy Systems Diagram (Ellen MacArthur Foundation, 2019)
5.1 A circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources, as shown in figure 15. In our current economy, we take materials from the Earth, make products from them, and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place.
5.2 Developing a circular economy is essential for climate change but these market changes will benefit businesses by reducing costs. A move to models involving sharing, renting and leasing as well as extending the life of products by promoting repair and re-use wherever possible will create new skills and local jobs.
5.3 Coventry has always been a centre for innovation, and we are keen to showcase new environmental technologies alongside developing new manufacturing techniques that will grow the circular economy, including:
- West Midlands Gigafactory will be located at Greenpower Park, with a focus on battery manufacturing and recycling;
- Sherbourne Resource Park, a newly opened state of the art recycling facility for household recycling;
- Finding innovative ways to re-use materials, such as recycling lighting columns as part of the proposed LED replacement scheme, reducing carbon and saving raw materials.
Figure 16 – Waste generated in the UK, split by source (Defra, 2020)
5.4 The UK generated 191.2 million tonnes of total waste in 2020, with England responsible for 85% (162.8 million tonnes) of the UK total. As figure 16 shows, the most significant source is from construction, demolition and excavation (61%), followed by commercial and industrial waste (21%), household waste accounting for 14% of the total, whilst the 4% other waste includes sectors such as agriculture and forestry. The re-use/recycling rates for each sector varies, but there are challenges and opportunities in terms in creating a circular economy. We must transform our current system: how we manage resources, how we make and use products, and what we do with the materials afterwards. This will create a thriving circular economy that is good for people, business and the environment.
5.5 The UK Government’s Resource and Waste Strategy (2018) sets out long-term commitments and ambitions to eliminate avoidable waste by 2050, with a focus on prevention, achieved by adapting a waste hierarchy approach as shown in figure 17.
Figure 17 – Outline of the different circularity levels (Environmental Challenges, 2023)
5.6 More recently the Government consulted on a Waste Prevention Programme for England (2021) ‘Towards a Resource Efficient Economy’ which sets out priority actions to design out waste, create new systems and services which include collection and take-back services, encouraging reuse and repair and improve the data and information for waste and materials to support improved outcomes such as higher quality recycling and corporate reporting. Products and materials need not become waste with good design, systems and services, and data. This is critical as whilst businesses and the public have a role to play in behaviour change to help reduce waste going to landfill, companies have a significant role to play in driving down waste from the top.
How can we develop a circular economy in Coventry?
5.7 Coventry is uniquely placed to take a leading role in showing the UK how to develop a vibrant circular economy, as home to the world’s first AI-powered Materials Recycling Facility at Sherbourne Resource Park. Opened in 2023 it uses state-of-the-art technology to process residential recycling in the most sustainable and efficient way possible. It serves eight local councils and their 1.5 million residents and is fully flexible and can respond to changes in waste patterns, policy and legislation. The use of specialist AI technology leads to higher volumes of quality materials being sold to market to support a growing circular economy, which along with the other credentials set out in figure 18 demonstrate the city is at the forefront of residential recycling facilities. This is a good example of where AI can be useful and helps to speed up processes beyond human capability. The application of AI needs to be considered more widely in the context of replacing workforce jobs as part of the work to deliver a just transition.
Figure 18 – Sherbourne Recycling summary
5.8 Waste accounts for 10% of the city’s emissions. We know that household waste alone generated 122,000 tonnes of waste in 23/24 – around 10 million bins. Only 34.2% of Coventry’s household waste was recycled or composted last year, compared to 43.4% (2022, Defra) nationally. The city’s recycling rate is comparable with many other similar sized cities in the UK. The majority of the remaining waste incinerated for energy recovery, and a small minority sent to landfill. There is a huge chance for residents to play their part to divert waste for reuse, recycling and to create new products and generate new markets.
5.9 A typical breakdown of household waste is shown in figure 19. Many of the materials shown can either be re-used, recycled or composted.
Figure 19- Breakdown of the total household waste composition in England 2022, collected by Local Authorities (Defra Statistics, 2024)
5.10 Action is needed in Coventry to increase recycling participation. The Council tries to make it as easy as possible for residents to recycle – people are not required to separate out the recyclables. But this has not translated to higher recycling rates so it’s important to better understand the barriers to recycling experienced across the city and to involve the public in planning for the necessary change in behaviour.
5.11 Feedback to the consultation included requests to make recycling easier, including more clarity on what materials can be recycled or re-used and where to take it, alongside better access to household recycling facilities. People also raised the difficulty of storing recyclables in flats and high-rise apartments.
5.12 Involving communities in addressing this problem will help the Council understand the barriers to recycling and help increase the quality of recyclable materials and supply to the Materials Recycling Facility, directly helping to grow the circular economy.
Food Waste
5.13 Another important area to target is the collection of food waste. Government research on Food Waste in the UK reports that in 2021, total food waste in the UK amounted to 10.7 million tonnes. By weight, most food waste comes from households (60%), followed by farms (15%), manufacturing (13%) hospitality and food service (10%) and retail (2%). The value of the edible parts of household food waste (including waste to the sewer and home composting) in 2021 amounted to £17 billion. This is equivalent to £250 per person each year, or £1,000 for a family of four.
5.14 In Coventry just under 16% of household waste was composted last year. Government is providing funding to Local Authorities to introduce a weekly collection of food waste from households by March 2026. This will help to prevent contamination of other waste which could be usefully recycled and ensure food waste can be sent to anaerobic digestion facilities rather than landfill. This commitment is a really important step to tackle climate change as food waste releases gases including methane from its breakdown in landfill.
5.15 The volume of food waste collected in Coventry is currently low, which has been the case even before recent charges came into place for brown bin collection which potentially presents a barrier to increasing this. Evidence has shown that as people collect and separate out their food waste, they become increasingly aware of the levels of waste they produce, and they take steps to reduce their levels of waste by reducing unnecessary consumption and saving money. There are lots of resources available including cookbooks and websites with inventive recipes to use up whatever is left in the fridge, as well as cooking lessons offered at community centres. Action is also being taken by industry, with changes to packaging to help fresh food last longer switching to ‘best before’ and removing dates altogether on some products.
5.16 Only a small percentage of the city’s household waste goes to landfill (1.8%). Like 49% of local authority waste in the UK, the majority of Coventry’s non-recyclable waste is incinerated at a facility at Bar Road which was built in 1975 and serves four local authorities. It supplies heat to a number of buildings in the city via the Heatline network, including the Council estate, The Wave, Cathedral and will soon expand to provide heat to Coventry University campus. Options will need to be explored in terms of future waste management solutions in the city when the incinerator will need to be replaced (15-20 year’s time), giving consideration to how this can best support the city’s circular economy.
Commercial and Industrial Waste
5.17 Commercial waste provides an even greater opportunity for developing a circular economy. It is estimated that England generated 33.9 million tonnes of commercial and industrial (C&I) waste in 2021. The West Midlands Circular Economy Routemap recognises the very important role Coventry has to play, particularly in promoting the decarbonisation of the manufacturing sector, which will provide a major chance for the development of new products and services and support job creation.
5.18 Greenpower Park and the Gigafactory will grow the circular economy for battery manufacture and recycling and is expected to generate up to 6,000 new highly skilled jobs, as well as thousands more jobs in the supply chain.
5.19 Centres of Excellence in the West Midlands are carrying out research into the innovative management of waste and the potential to develop symbiotic relationships between companies, where one company’s waste becomes another’s raw material.
5.20 There are over 10,000 businesses in Coventry, the majority are small to medium enterprises. This is a huge untapped area of potential waste and resources that can be used more effectively to encourage a more circular approach. Figure 20 outlines the eight business cases that should compel businesses to adopt a more circular business model:
Figure 20 – 8 Business Cases for the Circular Economy (World Business Council for Sustainable Development, n.d.)
5.21 Support is needed to help local businesses develop new models and encourage more partnership working and symbiosis. There are some inspirational case studies of businesses already doing this that others can learn from. Through the Decarbonisation Net Zero programme and the Business Energy Advice Service (BEAS) programmes, the Council is helping small and medium businesses achieve more efficient use of energy, water, and waste. Business Sustain also provide support to medium and larger businesses locally and across the country.
5.22 The Council has a strong working relationship with local Universities, working to enable local businesses to access specialist support and advice supporting innovation in green technologies.
5.23 There is no specific data held on commercial waste at a city level, this is something that needs to be addressed to help develop circular economy opportunities.
Construction, Demolition and Excavation Waste
5.24 The construction, demolition and excavation sector are the largest producer of waste and is growing. There is an ongoing challenge to minimise the amount of waste being generated, improve productivity and reduce the environmental impacts of waste. Construction 2025 is a joint strategy between the British government and the construction industry setting out four key goals: reducing the initial and whole life costs of construction by 33%, reducing the time from inception to completion by 50%, reducing the greenhouse gas emissions in the built environment by 50%, and reducing the trade gap for construction products and materials by 50%.
5.25 There are a number of ways to we can take action to address this locally, through the design process, setting out procurement requirements to reduce construction waste at source and creating networks for re-use of surplus materials locally. We also need to explore innovative construction technologies, including modular buildings which can contribute to significant savings in waste.
Electrical Waste
5.26 The UK is responsible for 3.2% of the worlds electronic and electrical waste, often this waste can be kept in service through direct reuse or repair. The government is targeting zero e-waste to landfill by 2030. This is a particular area of interest for Coventry, where there is potential significant opportunity for business growth including Greenpower Park, which will be the first of its kind, offering an all-in-one solution for battery research, industrialisation, manufacturing, testing, recycling and electrified logistics designed to foster the UK’s growing battery ecosystem.
5.27 Addressing electrical waste can also lead to wider socio-economic benefits as well as environmental as demonstrated by the #CovConnects project.
5.28 The improper disposal of laptops and other electronics leads to the loss of valuable materials like gold, copper, and aluminium, costing the UK over £370 million annually in lost resources. Going forward, Coventry holds a longer-term ambition to become the nation’s leading city for waste electrical and electronic recycling.
Case Study - The #CovConnects Device Bank
The project has been developed through a partnership model between the Council, Warwick Manufacturing Group and organisations across Coventry to establish a citywide initiative, whereby end-of-use devices such as laptops, smartphones and tablets are donated by local organisations to be refurbished. In turn, the devices are gifted (following an application process) to members of the community who are digitally excluded.
We recognise that we need to have a supply of digital stock, to further support closing the city’s digital divide. In 2020 alone, the UK generated approximately 24.9 million discarded mobile phones, highlighting the sheer scale of electronic waste resulting from the turnover of these devices. However, we know that we need to source our digital stock in an economically and environmentally friendly manner.
This is accompanied by training to help boost digital skills, which in turns helps residents as beneficiaries to access online tools and services, improving their wellbeing and quality of life. So far, the Device Bank has benefitted over 200 voluntary, community and social enterprise organisations, Council and NHS services. Funding has been secured to further develop the project and build on its success.
Going forward, the project is exploring additional partnership opportunities to build the Device Bank. Other innovative ideas, such as holding more local repair cafes and digital waste amnesties, providing more opportunities and options for residents to get rid of e-waste in a socially beneficial way, are areas which #CovConnects hopes to explore more.
Further Opportunities for Growth
5.29 The Council has an important role to play in supporting the development of a more circular economy in Coventry, through its purchasing power, its energy and waste management roles and work it does with businesses and organisations across the city. There is scope to include circularity criteria in contracts for future projects, alongside embodied carbon to encourage more suppliers to adopt a more circular approach to waste and energy. This is something that could be adopted by other organisations across the city.
5.30 A great example of this innovative approach to circularity being explored is looking at recycling old street lanterns across the city as part of the LED upgrade project. Through saving carbon by avoiding producing new lamps and recycling existing, 2.5 tonnes of various materials such as porcelain, Nickel, Aluminium, Stainless Steel, Copper, non-Ferrous Alloys and plastics, can all be avoided.
5.31 There is an opportunity to use the city’s waste recycling facilities as a platform to form partnerships with material manufacturers to help ensure that responsible material recycling is managed as an end-to-end process and allow emissions reductions to be calculated at each stage. Partnerships like this are potentially unique in the UK and can support local and national business, keeping jobs in the UK and providing a market for circularity of material.
5.32 Heat zone networks are due to be rolled out as part of government legislation in 2025. This will require surplus heat to be captured from identified buildings across the city to supply those with demand. This will help to bring down energy bills and reduce energy wastage and carbon emissions.
5.33 There is significant scope to increase re-use and repair hubs in the city, where resources can be donated, exchanged or mended to be kept in circulation. There are a number of charities and social enterprises across the city which address the circular economy especially for those families on limited incomes who cannot afford to buy new goods and services. This includes furniture recycling, white goods repair, toy libraries, tool stores and also advisory services like Act On Energy. Support for the development of social enterprises in this sector will address the needs of those on low incomes and keeps waste out of landfill. As part of this, we could explore how re-use and repair hubs could be developed as part of a meanwhile strategy for City Centre South.
Recommendations
5.34 Tackling waste in Coventry is essential to support the transition to net zero, as waste accounts for 10% of the city’s emissions. Coventry is finding innovative new ways to tackle waste, and there are opportunities to open up more markets to support a circular economy, creating jobs, skills and new businesses to benefit local people. Key recommendations from the Circular Economy Pathway Group are:
- Corporations and businesses need to lead on reducing waste at source, through manufacturing, packaging and logistics. There is already significant support and expertise in the city to develop this to really benefit local businesses. The public sector has a role to play in ensuring that the circular economy is considered in procurement and promotes a more sustainable supply chain. Consumers can vote with their feet and opt for products with less packaging, as well as recycling and composting waste resulting in less waste going to the incinerator or landfill.
- In Coventry we need to build on and expand already existing reuse / repair / recycle projects and encourage responsibility for reuse, repair, remanufacture and recycling. This must be supported by building partnerships, using local expertise, involving the public in the delivery of these initiatives and being driven by innovation to enable Coventry to provide a place for circular businesses to develop, helping to grow the local economy.
- Coventry should aspire to be the nation’s leading city for electronic and electrical waste recycling, which provides an opportunity to create new markets and support business growth. Support must continue to grow digital recycling within the city to prevent electronic waste being crushed. Keeping ICT equipment in service will also help to address digital inequality, improving access to digital information needed for essential services. Greenpower Park provides a unique opportunity to scale up the city’s ambitions, particularly around battery manufacturing and recycling.