Net zero: Investigating the role of site-based regulation in developing a circular economy: summary
Published 2 September 2025
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1. Chief Scientist’s Group report summary
This project investigated how circular economy principles have been adopted within ten industry sectors. It explored the metrics they use to measure the impact of these practices, and the barriers and drivers they face adopting them.
1.1 Background
The circular economy can be described as a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. Extracting, growing, processing, transporting and storing products requires energy, releasing greenhouse gases (GHG). Adopting circular economy principles would directly support the UK’s net zero objectives by making the economy more resource efficient.
The Department of Energy Security and Net Zero (DESNZ) undertook a project called Unlocking Resource Efficiency in 2023, which covered the steel, cement, construction, vehicle, textile, food & drink, glass, paper, chemical and plastic industries (‘the industry sectors’). These sectors were chosen because they have high potential for carbon reduction, raw material reduction and waste prevention. The DESNZ project aimed to fill the main gaps in the resource efficiency evidence base and identify a comprehensive list of resource efficiency measures across the different industrial sectors. These provided a starting point for this project to investigate the role of site-based regulation in enabling a circular economy approach within the industry sectors.
1.2 Approach
The project undertook a review of UK regulation most relevant to the Environment Agency’s responsibilities, including the Environmental Permitting Regulations, permitting guidance within the industry sectors, and the principle of using best available techniques.
Organisations within the industry sectors who are adopting circular economy practices were identified from published and grey literature. Using this evidence, alongside speaking to these organisations, the project explored the role of the Environmental Permitting Regulations in the move towards a circular economy in the UK.
1.3 Results
Twenty-four case studies were developed from across the ten industry sectors. Seventeen industry insights from the interviews were grouped into three themes: regulation; enforcement approach; monitoring and reporting.
Whilst some of the insights from the organisations are specific to an industry sector, many are relevant to all. For example, within the theme of regulatory changes, emphasising manufacturer responsibility and supporting a product circularity scheme are relevant to all.
In the enforcement approach theme, the industry insights relevant to all sectors were enhancing enforcement mechanisms for alternative material reviews and evaluating circularity benefits at the permit application stage.
The six insights within the monitoring and reporting theme were relevant to all ten industry sectors. These included accounting for GHG emission reductions when reporting permit requirement information; prescribing standardised GHG benchmarks and factors to enable consistent reporting of GHG reductions for each sector; and including sector-specific circularity metrics in reporting.
1.4 Conclusions
This research has improved the Environment Agency’s understanding of industry circular economy practices and views. The industry insights will be reviewed to determine whether they are appropriate, proportionate and achievable whilst still ensuring the level of environmental and human health protection provided within the current system.
1.5 Publication details
This summary relates to information from project SC23005, reported in detail in the following output:
- Report: SC230005
- Title: Net zero - Investigating the role of site-based regulation in developing a circular economy
- Project manager: Bob Barnes, Chief Scientist’s Group
- Research contractor: AECOM Limited
This project was commissioned by the Environment Agency’s Chief Scientist’s Group, which provides scientific knowledge, tools and techniques to enable us to protect and manage the environment as effectively as possible.
Enquiries: research@environment-agency.gov.uk.
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