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Aotearoa New Zealand · Circular economy

Realising Aotearoa New Zealand’s full potential

What will it take?

A strategic white paper on our future circular economy, designed to be your decision-making tool in the boardroom, the minister’s office and the council chamber.

The white paper is out. Launched Thursday 1 October 2026 at the University of Auckland Business School. Read it online
Why this, why now

New Zealand has what it takes to be a prosperous and resilient nation with natural edge.

We have the resources, the people, the innovative mindset, and the care for place that most countries can only aspire to. But right now, we are leaving an extraordinary amount of unrealised value on the table.

Our communities, businesses and environments are bearing the cost of linear, take-make-waste systems in the form of waste, productivity loss, inequity, insecurity, disconnection and environmental harm. These are challenges that require a system shift to a fundamentally different way of accessing, restoring, realising and retaining the value of resources.

Doing nothing costs more than acting. New Zealanders are already engaging in a wide range of circular behaviours, whether they know the term or not, and are open to doing more. What they face are systemic barriers.

What the evidence says

The scale of what we take, make and waste.

The global economic model still treats nature’s resources and services as if they were free, infinite and indestructible. They are none of those things.

160B

tonnes of materials extracted globally each year by 2060 on current trends.

93.1%

of everything entering the global economy is virgin material, not recycled or reused.

€25.4T

in value lost every year through linear material practices, nearly 31% of global GDP.

$640B

a year is what business-as-usual waste management will cost the world by 2050.

And what it means here.

Aotearoa New Zealand is a small island economy highly reliant on imported, non-renewable inputs. We are recognised as an innovative bioeconomy, yet most of what we design, make, buy and use still follows the same linear pattern.

  • 60% of our resource use is imported, including 100% of our refined fuel.
  • NZ$1.5 billion a year is spent importing the fertilisers that grow our food, and another $700 million on farm diesel.
  • 750kg of resources are sent to landfill by every New Zealander each year, 49% above the OECD average.
  • 15% of the roughly 450,000 tonnes of plastic waste we generate each year is recycled.
  • $222.8 million a year is the cost of divertible resources going to landfill.
  • $1,400 a year is what wasted food costs the average household.
The shift

A circular economy is our pathway to value.

It does not mean closing our economy to global trade. It is the practical work of realising and retaining the value embedded in our resources, products and services. We mine our economy for valuable resources, rather than our ecology.

This report uses the primary principles of a circular economy, a Western framework, because it is the language of our trading partners, regulators and financial systems. In Aotearoa those principles can align to te ao Māori principles and worldviews in ways that must be honoured and strengthened by all of us.

  1. 01

    Design out harm, waste and pollution

    Remove and replace toxic materials before designing for reuse and regeneration. Design for chemical transparency. Prioritise safe materials, so biological and technical cycles stay genuinely separate and genuinely safe.

  2. 02

    Keep materials in flow and at high value

    Redesign products and invest in the systems that let a product be maintained, repaired or remanufactured before it is ever recycled. The measure of success is the value unlocked from a single resource across its many forms and uses over time.

  3. 03

    Regenerate living systems

    Around 90% of global biodiversity loss linked to land use comes from extracting and processing raw materials. Every material kept in circulation is a material we do not need to mine, log or drill for again. To give more than we take.

The enablers

  1. →

    Circulate capital, not just materials

    A circular material economy layered on a financial system built for short-term, extractive returns will always be pulled back toward linearity. Ecosystem-level finance, risk pooling, concessional capital, distributed governance, is what gets shared infrastructure built.

  2. →

    Make flows visible and accessible

    Sensors, digital twins and material passports; data and AI that match a residue to a processor; verification without a gatekeeper; and funding that follows the visibility through, under Te Tiriti obligations and Māori data sovereignty.

  3. →

    Actively apply mātauranga Māori

    In te ao Māori, the reciprocal and cyclical relationship between people, resources and the environment is foundational. Kaitiakitanga is an intergenerational responsibility, not an aspiration.

The choice

Weak circularity, or strong circularity.

Āmiomio Aotearoa research distinguishes between these two approaches, the former being our current trajectory. This paper advocates for strong circularity.

01

Weak circularity

A narrower focus on market-led approaches, entrepreneurism and changing consumer behaviour, with an expectation that economic growth will be maintained or accelerated. More emphasis on recycling and technological innovation for materials at the end of their (short) life, without redesigning products and business models to avoid harmful resources and retain value.

02

Strong circularity

A focus on the economy’s entire flow of materials across the full spectrum of impacts, at extraction, production, transportation, consumption and disposal, with government taking active leadership through regulation, incentives and education. Unlike weak circularity, the strong version balances environmental, economic, social and cultural value.

New Zealand’s small steps towards a circular economy have to date mostly epitomised 'weak' circularity, focusing on economic growth rather than human and environmental wellbeing, and on waste management rather than reducing the amount of waste that needs disposing of.
Hodge, Barrett and KurianKōtuitui: New Zealand Journal of Social Sciences Online, 2025
Circularity is no longer only about minimising waste at the margins. It is about regaining control over resources and operational capacity that determine whether growth plans are realistic or aspirational. No industry is exempt from this shift.
The opportunity

This is an opportunity for all New Zealanders.

Circularity strengthens both our domestic and export positions, reducing dependency on imported inputs, building resilience against supply chain disruption, and meeting the standards our trading partners now require.

  • $5.2 billion sits in sellable pre-loved goods in New Zealand homes. 75% of us have unused items worth $1,300 on average.
  • A high-ambition textile stewardship scheme could deliver $602 million in net benefit by 2038, and grow sector employment by up to 6%.
  • Two independent estimates put our circular bioeconomy in the tens of billions: $22–33 billion a year by 2035–2050.
  • In Auckland alone, circular approaches would create $6.3–8.8 billion in additional economic activity by 2030.
  • More than half of global demand for battery materials could be met by recycled secondary supply by 2050. That is value we could capture, if we build recovery capacity now.
  • 351+ organisations have invested in circular economy training, and 88% implemented their plans within 6–12 months.

In te ao Māori, the reciprocal and cyclical relationship between people, resources and the environment is foundational.

Here in Aotearoa New Zealand, Te Tiriti o Waitangi is foundational. How we transform our economy must honour and strengthen leadership by mana whenua, navigating together who decides, who benefits, and how we restore what has been taken.

Circularity in Aotearoa must uphold Te Tiriti, protect mātauranga Māori, and recognise Māori-led, place-based approaches as central to the transition. That means resourcing kaupapa already practising circularity, protecting Māori data sovereignty, and measuring success through restored mauri and shared wellbeing alongside emissions reduction, waste reduction and productivity gains.

Kaitiakitanga as an intergenerational responsibility, not an aspiration.

Get involved

The question is not whether there is value in circularity.

It is whether we have the courage to envision circular futures, so that we can do what it takes to build them strategically and systematically.