Policy Analysis
Supporting Document
A context analysis was conducted to determine which international, national and regional policies support a transition to the circular economy and what are best practice examples for the West Midlands region.
United Nations Sustainable Development Goals (2015)
Description: The United Nations (UN) set 17 goals for sustainable development that were adopted by UN Member states in 2015. The Sustainable Development Goals (SDGs) are intended to be achieved
by 2030. SDG7 Affordable and Clean Energy, SDG8 Decent Work and Economic Growth, SDG9 Industry, Innovation and Infrastructure, and SDG12 Responsible Consumption and Production are particularly relevant for the Circular Economy.
Focus on Circular Economy: Medium
Impact: Encourages consideration of circular economy concepts and inter-connectivity with wider development goals. Actively support other conceptual frameworks such as doughnut economics by Kate Raworth.
Ellen MacArthur Foundation, Policy-Maker Toolkit (2015)
Description: The toolkit was developed to provide insight for policy- makers in implementing the circular economy. In producing the toolkit, eight key insights have emerged and are explored in the document. The Foundation has also developed ten policy levers for circular economy transitions. More information on those can be found here.
Focus on Circular Economy: High
Impact: Provides clear guidance on policies necessary to transition to a circular economy with practical applications.
Paris Agreement and the Nationally Determined Contributions (2016)
Description: The Paris Agreement sets out a global framework to limit global temperature rise below 2°C, with a target of 1.5°C in accordance with the recommendations of the Intergovernmental Panel on Climate Change (IPCC). Signed by 175 countries, including the UK, it is the first legally binding global climate change agreement and came into force in November 2016. The circular economy is one method for countries to reduce their greenhouse gas emissions.
Focus on Circular Economy: Low
Impact: No significant impact on circular economy.
Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report AR5 (2018)
Description: Since the Paris Agreement the IPCC have called for increased action to achieve net zero carbon by 2030, including placing a higher price on emissions, shifting investment patterns, accelerating the transition to renewable energy and enabling demand-side mitigation and behavioural change. The circular economy forms part of solutions countries can take to achieve net zero carbon by 2030.
Focus on Circular Economy: Low
Impact: No significant impact on circular economy.
Ellen MacArthur Foundation, Universal Circular Economy Policy Goals (2021)
Description: The paper aims to create a common direction of travel in policy development for a faster transition to a circular economy. The new policy goals will enable governments and businesses to benefit from the circular economy, which offers solutions to key global challenges such as climate change, biodiversity loss, and pollution. It sets out five universal circular economy policy goals.
Worldwide
Doughnut Economics Action Lab (DEAL) (2019)
Description: DEAL was founded as a Community Interest Company in 2019. It launched an online community platform in 2020. Its aim is to change our economic models using Doughnut Economics as a conceptual framework. DEAL provides support to businesses and communities looking to adopt more circular processes and several tools are available on its website.
Impact: DEAL promotes transformational change by reframing economic narratives, influencing strategic policy and encouraging more innovations within the circular economy.
Lessons for WMCA: Adopting circular processes requires interventions at various scale (from industry-wide transformation to local, community-led projects). The use of digital platforms to share data and insights is important to enable local communities and businesses to adopt more circular processes.
Canada
Circular Economy Lab
Description: Launched by the Natural Step Canada in 2016,
the Lab brings together public and private sector leaders from different sectors and value chains to implement circular economy solutions. They have developed a Circular Economy Framework diagram to present a high-level map of how products and materials move through a circular economy. Their website also provides innovation pathways towards a circular economy.
Impact: Help public and private sector stakeholders in defining shared goals around a circular economy opportunity, accelerate the development of promising ideas and build momentum and commitment for change.
Lessons for WMCA: Convening and mobilising various partners across sectors and industries will be key to catalyse a circular economy in the West Midlands. The WMCA has an important role to play in brokering partnerships between different partners and helping set common goals.
Netherlands
Amsterdam Circular Strategy 2020-2025
Description: The aim of the strategy is to halve the use of new raw materials by 2030 and to achieve a fully circular city by 2050. As part of the strategy, the city mapped its main flows from entry to processing, in order to preserve valuable raw materials. The strategy then focuses on three value chains: food and organic waste streams, consumer goods, and the built environment.
Impact: Amsterdam has been developing a framework to monitor their progress towards circularity. This is the first city-wide level to assess circularity.
Lessons for WMCA: Amsterdam first produced a high-level flow analysis of its economy and based on the analysis focused on three value chains. This approach was successful and complemented by in-depth modelling of chosen ‘value chains’.
National Context
At the national level, the following policies and strategies relate to the circular economy and provide some guidance incentives and targets.
Climate Change Act, HM Government (2008)
Description: In 2008, the UK pledged to reduce greenhouse gas emissions by 80% against 1990 levels, by 2050. To achieve this they set carbon budgets and established the Committee on Climate Change. In 2019, the UK became the first nation to make net zero by 2050 a legally binding commitment. Moving to a circular economy model will help meet these targets, although the document does not make specific recommendations in relation to the circular economy.
Focus on Circular Economy: Low
Impact: No significant impact on circular economy.
Clean Growth Strategy, BEIS (2017)
Description: This strategy sets out the government’s proposal for decarbonising all sectors of the UK economy through the 2020s. The strategy aims to develop world-leading green finance capabilities, develop a package of measures to support businesses in improving their energy productivity by at least 20% by 2030, improve the energy efficiency of homes, roll out low carbon heating, accelerate the shift to low-carbon transport, deliver clean smart and flexible power, and enhance the benefits and value of our natural resources. The latter includes exploring new and innovative ways to manage emissions from landfill and invest £99 million in innovative technology and research for agri-technology, land use, greenhouse gas removal technologies, waste and resource efficiency.
Focus on Circular Economy: Medium
Impact: Allocates investments, supports innovation and mentions programmes of work that support a transition to the circular economy. It aims to support industries in transitioning to cleaner systems.
Litter Strategy for England, MHCLG DEFRA and DfT (2017)
Description: This strategy sets out how the UK government will work with different local groups, local authorities, Highways England and businesses to reduce litter. The UK will work to clean up the country, to change attitudes towards littering, and strengthen enforcement powers. This is the first Litter Strategy for England.
Focus on Circular Economy: Medium
Impact: Focuses on reducing littering and only addresses the waste components of the Circular Economy.
25 Year Environment Plan , DEFRA (2018)
Description: The environment plan sets out the UK’s goals to improve air and water quality, and protect threatened plants, trees and wildlife species. Targets are set around using resources from nature more sustainably and efficiently as well as minimising waste. Targets include doubling resource productivity by 2050, improving approaches to soil management, ensuring that food is produced sustainably and profitably, working towards zero avoidable waste by 2050, and eliminating avoidable plastic waste by end of 2042.
National context
At the national level, the following policies and strategies relate to the circular economy and provide some guidance incentives and targets.
Climate Change Act, HM Government (2008)
Description: In 2008, the UK pledged to reduce greenhouse gas emissions by 80% against 1990 levels, by 2050. To achieve this they set carbon budgets and established the Committee on Climate Change. In 2019, the UK became the first nation to make net zero by 2050 a legally binding commitment. Moving to a circular economy model will help meet these targets, although the document does not make specific recommendations in relation to the circular economy.
Focus on Circular Economy: Low
Impact: No significant impact on circular economy.
Clean Growth Strategy, BEIS (2017)
Description: This strategy sets out the government’s proposal for decarbonising all sectors of the UK economy through the 2020s. The strategy aims to develop world-leading green finance capabilities, develop a package of measures to support businesses in improving their energy productivity by at least 20% by 2030, improve the energy efficiency of homes, roll out low carbon heating, accelerate the shift to low-carbon transport, deliver clean smart and flexible power, and enhance the benefits and value of our natural resources. The latter includes exploring new and innovative ways to manage emissions from landfill and invest £99 million in innovative technology and research for agri-technology, land use, greenhouse gas removal technologies, waste and resource efficiency.
Focus on Circular Economy: Medium
Impact: Allocates investments, supports innovation and mentions programmes of work that support a transition to the circular economy. It aims to support industries in transitioning to cleaner systems.
Litter Strategy for England, MHCLG DEFRA and DfT (2017)
Description: This strategy sets out how the UK government will work with different local groups, local authorities, Highways England and businesses to reduce litter. The UK will work to clean up the country, to change attitudes towards littering, and strengthen enforcement powers. This is the first Litter Strategy for England.
Focus on Circular Economy: Medium
Impact: Focuses on reducing littering and only addresses the waste components of the Circular Economy.
25 Year Environment Plan , DEFRA (2018)
Description: The environment plan sets out the UK’s goals to improve air and water quality, and protect threatened plants, trees and wildlife species. Targets are set around using resources from nature more sustainably and efficiently as well as minimising waste. Targets include doubling resource productivity by 2050, improving approaches to soil management, ensuring that food is produced sustainably and profitably, working towards zero avoidable waste by 2050, and eliminating avoidable plastic waste by end of 2042.
Focus on Circular Economy: Medium
Impact: Provides specific targets that are aligned with circular economy principles.
Resources and Waste Strategy for England, DEFRA and EA (2018)
Description: The strategy sets out how the UK will preserve material resources by minimising waste, promoting resource efficiency and moving towards a circular economy. It provides steps to encourage
more sustainable production, to help consumers in choosing and using more sustainable products, to maximise resource recovery and waste management, to tackle waste-related criminal activity, to cut down on food waste, and to encourage innovation. It is worth noting a new ‘Waste Prevention Programme for England: a Resource Efficient Economy’ is being developed and currently under consultation.
Focus on Circular Economy: High
Impact: Provides specific steps and guidance to maximise resource use and minimise waste, but does not set clear targets. The West Midlands must prepare for upcoming the new waste prevention programme which is currently under consultation.
Sixth Carbon Budget, Climate Change Committee (2020)
Description: The report recommends that the UK sets a Sixth Carbon Budget to require a reduction in GHG of 78% by 2035 relative to 1990. The report recommends that the national government supports a shift towards a circular economy. It also encourages more circular processes within manufacturing in order to reduce demand on natural resources and rare minerals. The report also recommends moving towards a circular economy by ensuring that product design maximises re-use of materials and minimises waste over products’ lifetime.
Focus on Circular Economy: Medium
Impact: Recommends a transition to the circular economy without specific policies or measures to kickstart the transition or scale up circular economy activities.
Build Back Better: Plan for Growth, HM Treasury (2021)
Description: The Growth Plan focuses on three pillars of growth: infrastructure, skills and innovation. The government seeks to support net zero by investing £12 billion of funding for projects that will kickstart a Green Industrial Revolution. It will also include creating a new UK Infrastructure Bank which will crowd-in private investment to accelerate progress to net zero.
Focus on Circular Economy: Low
Impact: Supports a wider transition to a net zero, clean economy, allocating specific funding and encouraging innovation. Although it does not refer to the circular economy, it provides enabling mechanisms to support it.
Industrial Decarbonisation Strategy, HM Government (2021)
Description: The Industrial Decarbonisation Strategy covers the full range of UK industry sectors and aims to show how the UK can have a thriving industrial sector aligned with the net zero target. One of the key themes of the strategy is to improve efficiency. The strategy supports increased resource efficiency and material substitution within industry by driving the transition towards a circular economy model and increasing reuse, repair and re-manufacturing. The strategy also supports industrial symbiosis and the acceleration of low-carbon technology innovations.
Focus on Circular Economy: High
Impact: Encourages industrial symbiosis, and provides incentives for industries to transition to circular, net zero business models and operations.
London
ReLondon Circular Economy Routemap (2016) & Circular Economy Primer (2020)
Description: The Routemap focuses on five priority areas including food, textiles, plastics, electricals and the built environment. It estimates that actions will generate a £7bn opportunity for the capital. The Primer provides guidance for built environment professionals to embed circular economy principles into their projects and design processes.
Impact: ReLondon has demonstrated the wider benefits of transitioning to a circular economy by expressing its economic benefits. The Primer provides clear guidance and requirements to increase adoption of circular design.
Lessons for WMCA: Routemaps should focus on sectors that have the biggest impacts and should be complemented with additional policy guidance and documents targeting specific sectors or aspects of the circular economy.
Scotland
Circular Glasgow (2020) & Zero Waste Scotland (SWZ)
Description: Glasgow was the first UK city to sign the Circular Cities Declaration. Circular Glasgow is an initiative of Glasgow’s Chamber of Commerce, working alongside key partners ZWS and Glasgow City Council. It supports businesses in leading the way through innovation, design thinking and new circular business models. ZWS itself focuses on resource maximisation and waste reduction, using circular economy modelling exercises.
Impact: Circular Glasgow expresses the benefits of the circular economy to businesses and provides a free circular toolkit to businesses.
Lessons for WMCA: Specific initiatives supporting all businesses from all sectors are key to support a transition to a circular economy. Voluntary business commitments need to be supported by a comprehensive policy framework.
Wales
Beyond Recycling (2021) & Building the Circular Economy in Wales (2021)
Description: Wales’ aim is to keep resources in use for as long as possible and avoid waste. The government is committed to help businesses reduce their carbon footprints and become more resource efficient. It also aims to eradicate avoidable food waste, to update its procurement rules, and to achieve the highest
rates of recycling in the world. Circular Economy Wales (CEW), a Community Interest Company has also published a brochure outlining its ambition surrounding the circular economy.
Impact: Sets a clear direction for Wales in transitioning to the circular economy. CEW brochure addresses explicitly the social dimension of the circular economy.
Lessons for WMCA: Involvement with businesses and residents, using planning, procurement and policies are all required to accelerate the transition to a circular economy. WMCA can use the circular economy to achieve a more inclusive growth.
At the regional level, the following policies and strategies encourage a shift to a circular economy. However, they do not provide mechanisms or specific targets.
Local Industrial Strategy (2019)
Description: The West Midlands Local Industrial Strategy is a long-term plan aimed to increase productivity. It is locally led and developed in partnership with the government, based on clear evidence and aligned
to the national Industrial Strategy. It sets out how the West Midlands will meet the Future of Mobility Grand Challenge as the centre of transport innovation in the UK. It provides steps to develop new market opportunities in data driven health and life sciences, modern services and through the application of creative techniques and technologies in future industries. It aims to make sure all communities can contribute to and benefit from economic prosperity.
The strategy also builds on the five foundations of productivity, including targeted action on skills, housing and transport with plans to drive up levels of business innovation and the commercialisation of research and development. The Black Country Land and Property Investment Fund (LPIF) aims to provide a solution to the shortfall through investment in projects which will support the re-use of brownfield land and buildings and the delivery of supporting infrastructure.
Focus on Circular Economy: Medium
Impact: Supports a transition to the circular economy without specific policies or measures to kickstart the transition or scale up circular economy activities.
State of the Region, WMCA (2020)
Description: The document is an annual review of performance across the West Midlands. The document includes a summary of research to deliver the world’s first zero carbon industrial cluster in the Black Country.
Focus on Circular Economy: Low
Impact: Supports the circular economy and identifies that a structured approach is required to identify opportunity and drive the transition.
WM2041, WMCA (2020)
Description: In January 2020, WMCA members also launched #WM2041, a strategy which outlines 73 measures aimed at increasing the annual
rate of CO2 reduction in the area. The strategy highlights the need to
save energy and resources, to build more connected places, to deliver zero carbon developments and to ensure resilience to locked-in climate breakdown. It has a clear focus on the co-benefits delivered by climate actions, builds on the UNSDGs and the Doughnut Economics model by Kate Raworth. It aims to ensure that the transition to a low carbon future is an inclusive one, an objective that will also form part of Circular Economy Routemap.
Focus on Circular Economy: Medium
Impact: Supports a transition to the circular economy and identifies next steps to help achieve this transition.
Five Year Plan, WMCA (2021)
Description: The Five Year Plan provides clear guidance on the measures that will need to be implemented to reach net zero by 2041. The Five Year Plan supports the circular economy. Key priorities include energy, transport as well as the built and natural environment.
Additional policies, strategies and documents produced by WMCA have been taken into consideration when developing the Circular Economy Routemap. Some documents support a transition to the circular economy but none provide clear requirements or specific policies.
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A Science and Innovation Audit for the West Midlands, WMCA (2017): The audit determined that the region has assets to support wider innovation but these needs to be further expanded. It assessed that the region has enabling competencies including advanced manufacturing and engineering, digital technology and systems integration.
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Regional Energy Strategy for the West Midlands, Energy Capital (2018): The strategy seeks to influence the financial flows directed at local energy projects across the three LEPs of the West Midlands in order to deliver a vision for energy across the region.
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Levelling up the West Midlands, WMCA (2020): The roadmap focuses on community recovery following the COVID-19 pandemic. The roadmap aims to counter the rise in unemployment across the region by providing employment support, developing regional skills infrastructure, and supporting high streets and local businesses that have been hit hard by the pandemic.
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Recharge the West Midlands, WMCA (2020): This document summarises the region’s ask to the central government in order to kickstart the economy. The investment case will help create or safeguard 135,000 jobs, support 154,400 young people and workers and build 35,000 new homes as well as support a green economic recovery. They have identified three areas of focus including creating green manufacturing jobs, maximising job creation for local people and investing in healthcare innovation.
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Design Charter, WMCA (2020): It sets 12 design principles for WMCA and its partners to promote good-quality place-making.
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Advanced Manufacturing in Construction Roadmap, WMCA (2020): The roadmap aims to accelerate AMC in the region in line with wider aims to achieve net zero.
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Zero Carbon Homes Charter and Routemap, WMCA (2021): The document encourages the delivery of zero carbon homes in the region with a focus on promoting circular design, circular processes within construction and innovations.
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WMCA’s Digital Roadmap (2021): It outlines five missions goals, three of which relate to the circular economy. This includes sharing and using data to improve people’s lives, realising the potential of digital to transform our economy and build economic resilience, and using digital public services to build a fairer, greener and healthier region.
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West Midlands at COP26, WMCA (2021): The document informs the position of the West Midlands at the COP26 and sets its ambition to be the home of the green industrial revolution.
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Resetting the Region, WMCA (2021): WMCA is in the process of reviewing its local industrial strategy. This update focuses on five grand challenges: deliver good jobs, support thriving places and communities, embed our green ambitions, tackle inequality and level up, as well as prevent a lost generation.
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Inclusive Growth Programme, WMCA (2021): The WMCA is developing an inclusive growth framework, inclusive growth tests as well as inclusive growth decision-making toolkit.
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Towards an Ecosystem Approach for Growing the Social Economy, Stage 1 Report iSE Research Team (2021): The research is part of wider work to double the size of the social economy in the WMCA area. It provides initial information to inform the development of a ten year business plan.
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Social Economy Business Plan, iSE Research Team (2021): The plan aims to strengthen the social economy in the West Midlands and is currently being developed. Circular economy efforts should support the growth of a social economy in the region.
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Low Carbon Environmental Goods and Services Market Snapshot Reports, Midlands Energy Hub (2021): Three reports were produced for the LEPs in the West Midlands to understand where support is needed to grow low-carbon sectors in the region.
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Local Transport Plan, Transport for West Midlands (2021): A new Local Transport Plan is being developed to respond to the COVID-19 pandemic and support the region’s Strategic Economic Plan. It will replaced the current Movement for Growth Strategy.
The relevant policies of WMCA’s seven constituent local authority members and LEPs were analysed. Most of them do not mention the circular economy explicitly or set out specific policies to support a transition to it. However, more recent policies have started to recognise the importance of moving towards a low-carbon, circular economy, and include actions and policies to move towards such
an economy.
Solihull Sustainability Matters (2012)
This document aims to support the achievement of sustainable development in Solihull. One of the aims is to reduce household waste per resident and to increase the recycling rate. Part of the strategy is to promote sustainable consumption and production. It focuses on achieving more with less, reducing inefficient use of resources and taking into account impacts of products and materials across their whole lifecycle.
Sandwell Climate Change Strategy (2012)
The strategy is actively promoting the circular economy including encouraging the use of locally obtained materials within manufacturing processes. The strategy includes actions such as encouraging circular procurement and developing platforms for local businesses and residents.
Walsall Summary Report of WMCA Low Carbon Economy Programme Benchmark (2013)
The objective of the benchmark is to allow local authorities to demonstrate clear progress in addressing climate change and identify priorities for future improvement.
Dudley Borough Development Strategy (2017)
The document guides development within the Borough until 2026. The main policy of interest to circularity is the waste management, conservation areas and green network. The document refers to other guidance and policies rather than setting policies itself.
Birmingham Design Guide Vision Document for Creating Inclusive, Sustainable Places (2017)
The document includes five big design themes including building sustainable buildings, homes and neighbourhoods, ensuring sustainable connectivity and active streets, maximising green infrastructure and biodiversity as well as investing in energy efficiency, low-carbon development, digital infrastructure and waste management.
Birmingham Waste Strategy 2017-2040 (2017)
It provides a framework against which the Council can continue to determine the most appropriate ways to manage waste sustainably. Four principles have been adopted including creating a circular economy. The document encourages the creation of a circular economy and sets specific objectives to do so.
Birmingham City Council Plan 2018-2022 (2018)
The plan outlines five goal outcomes. The most relevant to the circular economy is priority 1 which states that they will work with their residents and businesses to improve the cleanliness of our city. They aim to improve cleanliness of streets and green spaces, increase recycling rates, reuse and green waste, as well as reduce household waste.
Solihull Single Use Plastic Strategy (2019)
The aim of the strategy is to make Solihull a single-use plastic free authority by the end of 2020. Undertook an audit which revealed that over 1.5 million items are used and then disposed of. The top five included plastic cutlery, food packaging, cups and lids, but also less obvious ones such as gloves. More detail of the audit can be found in the SUP Summary of Audits.
Solihull Council Plan 2020-2025 (2020)
Solihull’s Council Plan aims to deliver sustainable, inclusive grow. The document sets strategic actions to achieve this goal, including actioning their climate change declaration. Although there is no direct reference to the circular economy, the plan seeks to build a vibrant economy, enhance the area’s natural environment and revitalise towns and local centres.
Climate Change Strategy for Coventry (2020)
The strategy sets various goals including to define the necessary requirements to achieve a waste recycling rate of 50% for the city. It also sets a goal to set a procurement code for the city, to increase green space, protect habitats and encourage locally grown food. Additional aims that support a movement to a circular economy include supporting and encourage economic growth in low-carbon industries, ensuring climate change is considered in every aspect of operations, services and informs decision making in the city, as well as to be a resource efficient city using energy wisely and reducing/recycling waste.
Repowering the Black Country, Black Country LEP (2020)
This document sets out an ambitious and bold plan to deliver the world’s first zero carbon industrial cluster in the Black Country. It will enable clean GVA growth of £16 billion by 2030 and create or safeguard at least 20,000 skilled jobs. The document presents a number of fundable projects across diverse industrial supply chain. The circular economy is mentioned in the document. Indeed, reconfiguring supply chains for foundation industries in the region to be more circular can reduce industrial carbon emissions by between 40-50%.
Solihull Climate Change Prospectus (2020)
The Prospectus articulates Solihull’s low-carbon vision and how the area aims to be at the forefront of transitioning to a low-carbon economy. It sets a roadmap to achieve clean growth, clean air, improve the natural environment, and communicate, engage and educate local communities.
Solihull Net Zero Action Plan (2021)
As part of Solihull’s commitment to achieve net zero, the council is developing a Net Zero Action Plan. The upcoming Net Zero Action Plan will include several actions to promote a more circular economy. A green paper has been produced to inform the action plan, setting out the evidence base and interventions required to make Solihull Net Zero.
Coventry Social Value Policy (2021)
This policy describes the council’s sustainability and ethical criteria and considerations in relation to large-scale development applications, procurement and partnership activities. This policy mentions and encourages a circular economy in Coventry.
Our Future City Plan (2021)
This document outlines the plan to develop Central Birmingham over the next twenty years. It sets the vision for change, highlighting key challenges and opportunities. The circular economy is mentioned as a key concept to ensure Birmingham is an equitable city. Becoming a low-carbon and circular economy is one of the goals outlined in the plan.