The UK should increase energy security by building a circular economy for critical raw materials – Inside track

 This post is by Iain Gulland, chief executive, Zero Waste Scotland. 

As we enter a new political chapter there is a palpable feeling of optimism and hope, especially when it comes to the UK’s climate ambitions.  

Making Britain a clean energy superpower is one of Labour’s five key missions. In addition to decarbonising the energy supply and tackling fuel poverty, Labour asserts that GB Energy will increase UK energy independence and reduce reliance on fossil fuels imported from overseas. 

Equally important, but seemingly absent from the government’s agenda, is the risk of new dependencies on foreign actors for the supply of the critical raw materials needed to reach net zero ambitions. 

Let’s be clear, the transition to renewables is non-negotiable if we intend to meet our climate goals, and it is welcome to see a government taking a strategic and long term approach to net zero. But we must acknowledge that energy security in the coming decades will mean something very different to what it has in the past. 

Countries will compete for access to critical raw materials
We may no longer be subject to price hikes and supply shocks for oil and gas, but instead find ourselves competing for access to critical raw materials such as lithium, copper, and cobalt, which are essential inputs into many renewable technologies. 

The previous government recognised the importance of a circular economy for critical raw materials in its 2021 Critical Minerals Strategy, but progress has been slow, with levers to affect change spread across multiple government departments and without a clear strategic vision.  

To understand why, and how to expedite progress, Zero Waste Scotland and Green Alliance held two in-depth roundtables: one with businesses and trade associations from sectors dependent on critical raw materials, and one with civil servants across government departments. 

Third sector organisations and geopolitical experts were also present at these sessions, shedding light on the social and environmental harms prevalent in global critical material value chains. 

This research found that a new and ambitious approach to critical raw materials that prioritises demand reduction and circularity is urgently needed. 

Taking a smarter approach to material management by reducing unnecessary demand for materials is the most effective way to reduce our vulnerabilities. We can learn from countries, like Japan, that are incentivising smaller cars, which not only reduces overall environmental impacts but reduces the volume of critical raw materials required due to their smaller battery size. Systemic interventions, like investing in public transport so fewer cars are needed and better home insulation, can also help lessen energy demand, ultimately reducing the volume of critical raw materials needed. 

At the same time, we need to make better use of the materials already circulating within the economy. The UK exported an astonishing 37,100 metric tonnes of electrical and electronic waste in 2023, containing significant volumes of critical raw materials. This represents a leakage of valuable resources from our economy. 

Establishing circular value chains for these materials and the technologies they are embedded within can help to increase domestic economic activity and create jobs, while simultaneously reducing our vulnerability to supply chain risks. Research from the Coalition for Wind Industry Circularity has shown that remanufacturing just ten components for wind turbines using well established supply chains could create a UK market worth £9.6 billion, with more than 20,000 full time equivalent jobs created by 2035 and over 800,000 tonnes of avoided material to scrap. 

We know it is possible to establish these circular value chains; for example, the UK already has an established recycling sector for high value platinum group metals and many companies are exploring how to commercialise and scale up circular business models for critical materials. 

The government should create the right incentives
Now, we just need a government that understands the vital role of these materials in the energy transition and proactively shapes the market, creating the right economic incentives, or regulating to require reuse and recycling. 

It is encouraging to see the new government taking the energy transition seriously and recognising the economic value it will create. However, to truly succeed in this transition, it must take a more strategic approach to the critical materials that underpin a green future.  

Green Alliance, supported by Zero Waste Scotland, has set out a five step plan as a comprehensive blueprint to achieve these goals and ensure that the UK meets its climate ambitions, while building true energy independence and resilience in a future dominated by renewables.