Closing the Loop in Net Zero: Exploring the Intersection of Circular Economy and Net Zero Policies in Australia

As Australia advances toward a net zero economy, system-wide transformations in the energy sector are becoming increasingly necessary. This transition entails the electrification of key sectors, the integration of renewable energy sources, and the decommissioning of aging infrastructure. However, alongside technological change, there is a growing need to manage emerging forms of waste such as solar panels and batteries and to embed circular economy principles into the transition framework. This paper presents findings from a qualitative study conducted to understand key stakeholder perspectives on policy coherence between net zero and circular economy policies in Australia. The study reveals that there is significant gap in conceptual understanding of both circular economy and net zero transitions and a lack of clear definitions within these policies leading to two classical systems traps: policy resistance and seeking the wrong goal. The focus on recycling and operational emissions within CE and net zero policies respectively, typically lead to suboptimal outcomes being pursued for both policies. These findings underscore the critical need for capacity building, clearer policy articulation, and targeted educational strategies to foster a socially informed, circular approach to decarbonization. By integrating the clean energy transition within broader social and institutional contexts, this paper contributes to a more inclusive and systemic understanding of Australia's net zero future.