Scotland unveils £18 million circular economy fund

Zero Waste Scotland has launched an £18 million fund to help small and medium-sized enterprises (SMEs) explore and pioneer ways to develop a circular economy.

“It’s vital to support small and medium enterprises [SMEs], as part of our work to stimulate and accelerate development of a circular economy in Scotland,” Iain Gulland, Chief Executive, Zero Waste Scotland, told Cities Today. “Not only are SMEs the bedrock of enterprise in Scotland, but their size and structure often makes them ideally placed to innovate and generate new business models. We see SMEs playing a key role in the circular economy, at local and national level.”

The Circular Economy Investment Fund is part of a wider £70 million programme, supported by European Regional Development Funds, which aims to improve business productivity and create a circular economy in Scotland. The Scottish Government recently launched an ambitious strategy for the circular economy, Making Things Last.

The fund aims to accelerate the development of business innovation, including support for developing new technologies and the infrastructure needed for a more circular economy, which could mean sharing, leasing or takeback models, encouraging repair or new recycling ideas.

“Moving to a circular economy will benefit Scotland’s economy and its environment,” added Gulland. “It’s about more than just recycling–it’s about keeping products and raw materials in productive use for as long as possible, rather than using and discarding them. This has tremendous potential benefits for business as well as society as a whole. It has the potential to increase productivity and create jobs, and create cost savings in raw materials and business processes while reducing carbon emissions and preserving valuable raw materials.”

Zero Waste Scotland will work with Scottish Enterprise and Highlands and Islands Enterprise to help promote the fund and support businesses that could potentially benefit from it. The funding will be spread over three years and be focused on key sectors such as the bio-economy, the built environment and energy infrastructure. There will also be funding available for key activities such as reuse, remanufacturing, repair and reprocessing.