Introduction

Australia needs more materials to produce each unit of wealth. The material intensity of the Australian economy increased from 0.56 to 0.61 kg/AU$ between 2015 and 2019. The report provides a high-level analysis of the Australian physical economy and facilitates the identification of major areas for the role of policy aimed at promoting sustainable materials management.

Material flows

Australia extracted and harvested 2,587 million tonnes (Mt) of materials from its territory, supplemented with 119 Mt of imports and 39 Mt of domestically recycled 5.1% in 2019. Material footprint exports are generally larger than physical exports. This category is also called raw material equivalent exports. The country operates at a material use level four times the world average, which demonstrates how policies can help address the potentially adverse environmental and human health effects of this material-intensive pattern.

Circularity indicators

In 2019, the theoretical maximum circularity rate achievable with today’s technology was observed to be 32.5%. On the other hand, Australia’s material intensity increased, suggesting the need to promote circularity better. Policies aimed at empowering circularity in Australia are increasing recycling to offset primary material extraction, material efficiency strategies, and the 3Rs (Recycle, Reduce, Reuse), and now 10Rs. The report identifies major areas where policy interventions can improve material intensity, resource efficiency, and waste minimisation.

Socioeconomic considerations

The material footprint of Australia’s economy is dominated by crops, livestock, and dairy exports, construction, and transportation. To align economic benefits with environmental objectives, the report suggests having well-managed agricultural, forest, and marine ecosystems. Policies to introduce a reinvigorated manufacturing sector in renewables, low-emission technologies, allowing for added value in the agriculture, forestry, fishery, and extractive sectors would considerably improve Australia’s economic complexity and sustainability credentials of its export industries.

Recommendations

The report recommends leveraging integrated assessment models and scenario analysis as two key tools to explore the complex interrelations between material use, economic growth, and productivity. Policies aimed at promoting sustainable materials management and circularity to achieve SDGs goal are suggested.