Transitioning the water industry with the circular economy
The water industry needs to unlock the benefits of a circular economy approach by better managing resources, making and using products and regenerating natural and urban systems, according to a new report for the Water Services Association of Australia.
Two of the report’s authors, Pierre Mukheibir and Melita Jazbec, expand on water’s potential as a circular economy.
What are the current challenges facing the water industry that prompted this research project?
Over the past 100 years, the water industry has transitioned from the delivery of basic water, sanitation or stormwater services as discrete and separate systems, towards waterways protections and in some cases towards a whole-of-water-cycle approach to include the recycling of water.
A combination of expanding sustainability and liveability aspirations, operational challenges, network constraints and emerging contextual factors is forcing Australian water utilities to move towards a vision of integrated resource recovery and urban greening. The transition to circular economy is not without its challenges, arising mainly from the linear economy setting within which the water sector operates, together with the siloed planning approach for delivering integrated water services. However, such a transition creates clear benefits and opens a range of opportunities for both the utility and their local customers and community.
How would you describe the concept of a ‘circular economy’ and how can it benefit the water industry?
The circular economy concept has been proposed as an alternative to the current ‘take-make-dispose’ extractive industrial model, aiming to redefine growth and focus on positive benefits for all parts of society.
It entails gradually decoupling economic activity from the consumption of finite resources and designing waste out of the system, transitioning to renewable energy sources. It is based on three principles: (1) design out waste and pollution, (2) keep products and material in use and (3) regenerate natural systems.
The water industry can play a central role in the transition to a circular economy, as water is the most important shared resource across all aspects of our lives. Water utilities could become circular economy hubs, delivering organic resource management and extraction of energy and nutrients in addition to the service of delivering clean water. Some water utilities have already taken steps towards becoming energy efficient and energy neutral, therefore stepping towards a more circular economy operation model. These actions provide additional revenues for the water utilities but also to the environment and wellbeing of society.
The report outlines key steps towards a circular economy for the water industry. What are the main ones and how did you identify them?
Strong leadership from within the water sector is needed to drive the circular economy approach. This, together with stakeholder partnerships, is important to confirm the circular economy vision. Improving the sector knowledge and understanding of a circular economy approach and removing silos from within organisations are needed to foster collaboration and systems thinking approaches. And most importantly, water utilities need to understand the new resource markets that they will be working in. Specific actions have also been identified that industry peak bodies such as Water Services Association of Australia (WSAA) could lead.
We were able to make these suggestions based on our knowledge of the water sector and the work we have done with Australian utilities in understanding the implications of a circular economy approach.
Who is this report designed for/who will read it and take action?
The document is aimed at senior and middle managers. It provides a brief overview of circular economy plus a suite of illustrative global case studies spanning current sustainable practices through to more visionary regenerative opportunities on the horizon. It sets out the key elements for preparing a road map for actions, and some guidance on how to measure progress on this transition.
Read the more about this project on the WSAA website.
