A budget that fails to grasp the needs of a circular economy.
As we await the detail of the bill, a lot can be gleaned from the minister's speeches in the Dáil yesterday, both in terms of what was announced, and how it was delivered.
Most notably, the term ‘circular economy’ was not mentioned once throughout the budget speech. Whilst climate got a significant mention (and there is very good analysis of whether this was an adequate budget for climate change here, the failure to mention the circular economy, or directly address the concepts within it, shows that the ambition outlined in the Circular Economy Strategy is not being fully integrated across government departments, or integrated into the thinking.
Perhaps the closest we get to it, is within the funding announced for the Infrastructure Climate and Nature Fund (€3 billion) to be invested in just transition and a greener future (the minister specifically mentioned that this is to reduce greenhouse gases, improve nature and biodiversity), ticks about 1.5 of the 3 concepts of the circular economy.
Also to be found within the national training funds is a focus on climate and green skills, as well as capital funding supports through the IDA to support environmental aid for their clients – both of which could be put towards supporting a greener, more circular future.
But we see no step-change in the tax system to incentivize a move toward more circular use of materials, of placing a value on the things we have in circulation already; we have called for relief of re-use and repair activities, but they are nowhere to be seen.
The VAT reduction on heat pump installation, which will support a move to a more sustainable grid and heating system, is to be welcomed, as is the investment in active travel and public transport but again, has it gone far enough? There is a promise for investment in public transport, but as we witness demonstrations in Cork relating to the unreliability of the bus service, it seems this is the bare minimum needed to maintain the system outside of Dublin (another example of this Dublin-centric model being that the ‘90 minute fare’ is not available anywhere else).
But perhaps most symptomatic of the issues at the heart of this budget was in the announcement on e-vapes; to be clear this was an increase in the cost of VAPE liquid, however the minister incorrectly used an example of the single use (disposable) vape and the increase in costs this would put on this item… an item which has now been banned, and will soon no longer be available within the state. The minister using a soon-to-be outlawed item as an example within the most watched speech of the year speaks to the lack of coordinated thinking on these issues.
As ever, a Budget has left a lot of people examining the purse strings and calculating how they will be impacted for good or for ill. From a circular economy perspective, there are some positives to read but this budget will do little to address waste generation, support reuse, or reduce the impacts on the environment. Leaving us all with a lot more work to do and less time in which to do it.
