The Scottish Government has published a draft strategy outlining plans to transition the country towards a circular economy, as part of wider efforts to tackle climate change and reduce environmental impact.

The strategy, published for consultation, sets out a long-term vision for Scotland to become a “net zero and nature positive nation” by 2045, supported by a significant shift away from a traditional “take, make and dispose” economic model.

Move away from linear economy

At the core of the strategy is a commitment to keeping products and materials in use for as long as possible, reducing reliance on virgin resources and minimising waste.

The Scottish Government argues that current patterns of production and consumption are a major driver of environmental harm, with the majority of Scotland’s carbon footprint linked to goods and services that are manufactured, used and discarded.

The circular economy model aims to address this by promoting reuse, repair and recycling, while supporting more sustainable consumption patterns.

Legislative framework and targets

The strategy has been developed under the Circular Economy (Scotland) Act 2024, which requires ministers to publish a circular economy strategy and set targets to measure progress.

Under the Act, the strategy will be updated at least every five years, with a monitoring framework and indicators intended to track progress and inform future targets from 2027 onwards.

Key policy areas

The draft strategy identifies a range of policy mechanisms intended to drive systemic change across the economy. These include:

• business support and innovation
• behaviour change initiatives
• public procurement reforms
• skills and education development
• improved data and monitoring systems
• place-based approaches to implementation

Ministers say action across multiple policy areas will be required to reshape how goods are produced, used and disposed of.

Sector focus and economic impact

The strategy highlights priority sectors where circular approaches could deliver the greatest impact, including construction, energy infrastructure, textiles and food.

Measures under consideration include increasing reuse of construction materials, promoting repair and reuse models, and reducing food waste.

The Scottish Government says the transition could support economic growth by improving resource efficiency, reducing costs and creating new business opportunities, while also contributing to environmental goals.

Social considerations

The strategy also considers potential impacts on households and communities, including those on low incomes and in rural areas.

It notes that changes in pricing and access to goods may arise as circular economy measures are introduced, and that these impacts will need to be assessed as policies are developed.

Consultation and next steps

The draft strategy was published for consultation, with responses invited from businesses, public bodies and communities. The consultation closed in January 2026, with a final strategy expected to be published later in the year.

Overall, the strategy sets out a framework for transforming Scotland’s economy over the coming decades, with a focus on reducing waste, improving resource use and aligning economic activity with environmental limits.

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