The all-island opportunities in the circular economy
InterTradeIreland’s recent research on the circular economy shows how working together across the border can drive solutions at scale, as InterTradeIreland’s Research Manager, Stuart Mathieson explains.
Businesses today have to focus on major challenges like sustainability and skills shortages to remain competitive and drive long-term growth.
The circular economy is often thought of as an environmental or sustainability initiative. However, its economic benefits, particularly for businesses and the wider economy, are equally compelling and deserve greater attention. At its most basic, the circular economy is a way of doing business that focuses on reducing waste by reusing, recycling, and repurposing materials. Instead of the linear ‘take, make, dispose’ model, it keeps resources in circulation for as long as possible, retaining and even creating value while protecting the environment.
The figures illustrate the potential. In Ireland, a 5 per cent improvement in resource efficiency across the economy would deliver over €2.3 billion annually. Meanwhile, in Northern Ireland, circular economy activity in priority sectors could contribute an additional £474 million in gross value added (GVA). These statistics demonstrate the untapped opportunities businesses and policymakers alike must address to unlock significant value.
At InterTradeIreland, we recently published a report identifying circular economy opportunities on the island of Ireland. The findings underscore how circular principles can influence key areas, including resource efficiency, waste management, skills development, innovation, and climate change. A key takeaway is that resource efficiency, including industrial symbiosis – the use of waste from one production process as raw material for another – will play a crucial role in achieving carbon reduction targets. For an island of this size, collaboration between both jurisdictions is essential to reach the economies of scale that will allow the circular economy to compete against the deeply embedded linear economy.
For instance, in the furniture manufacturing industry, sourcing materials already in circulation on the island, rather than importing virgin raw materials from abroad, is not just more sustainable – over the long term it is also more cost-effective. With global trade dynamics shifting, including the possibility of tariffs under an incoming US administration, local sourcing has never been more important for businesses seeking to protect supply chains and reduce costs.
“Across the island there are many shared policy priorities and economic opportunities that can best be addressed by maximising collaboration with partners..”
Stuart Mathieson, Research Manager, InterTradeIreland
Our analysis identifies construction, the bioeconomy, and advanced manufacturing as critical sectors for implementing circular economy practices. By adopting these principles, businesses can achieve significant cost savings, develop innovative products, and reduce their carbon emissions. However, the report also highlights the need for stronger collaboration between policymakers across the island to maximise these opportunities. Joint initiatives, such as harmonising waste regulations, establishing green public procurement frameworks, and creating a shared resource matching service, are essential to realise the full potential of the circular economy.
Both Ireland and Northern Ireland align with the European Commission’s Circular Economy Action Plan, providing a framework for a consistent approach to circular economy practices. This alignment presents a significant opportunity for collaboration, particularly in areas such as public procurement, where both jurisdictions recognise its potential to drive innovation and skill development in SMEs.
As part of these efforts, InterTradeIreland has established the All-Island Circular Economy Forum, bringing together government departments, agencies, and key stakeholders. The forum’s inaugural meeting laid the groundwork for ambitious plans, including exploring the feasibility of an all-island resource matching service to connect industries with available materials and reduce waste. The forum will continue to meet throughout 2025, incorporating a broader range of participants to ensure a diverse and representative approach.
However, more must be done to address barriers, including waste classification issues. Current regulations make it difficult to reclassify waste as a reusable resource, which can discourage businesses from engaging in circular practices. Misaligned waste regulations between jurisdictions further complicate cross-border collaboration, leading to inefficiencies such as sending and sourcing materials from Britain instead of neighbouring counties on the island. Working together on legislation that eases end of waste and transfrontier shipment difficulties, alongside providing clearer guidance to businesses, would remove significant obstacles and unlock new opportunities.
With the right policy support and collaborative action, the circular economy presents a transformative opportunity for the island of Ireland. By prioritising innovation, resource reuse, and cross-sector collaboration, businesses can reduce environmental impacts while boosting growth and profitability.
InterTradeIreland’s research and initiatives, such as the All-Island Circular Economy Forum, demonstrate the value of a collaborative approach to addressing shared challenges and seizing economic opportunities. Policymakers must continue to work together to enable a seamless circular economy that benefits businesses, communities, and the environment.
Together, we can create an island where waste is no longer a problem, but a resource—and where the circular economy drives sustainability, resilience, and prosperity for future generations.
Case study
InterTradeIreland’s report on Identifying Circular Economy Business Opportunities on the island of Ireland recommends sharing success stories from SMEs that have adopted circular guide economy principles as essential to inspire and other businesses. The research has a number of case studies that translate high-level discourse on the circular economy into actionable strategies linked to key sectors.
For example, InterTradeIreland has worked with BiaSol in County Offaly. The company takes spent grains from the brewing industry and uses them to make a fibre-rich ingredient which is now available in supermarkets across Ireland. BiaSol participated in an InterTradeIreland Synergy initiative and as a result were introduced to a new investor.
Niamh Dooley from BiaSol said: “By 2050, we need to increase our food production by 60 per cent and with climate change on top of that, we need to do it in a circular way. One-third of all food produced, ends up as waste, and that’s mostly at the manufacturing level. There is definitely lots of potential for SMEs in various sectors to get involved in the circular economy. It takes work, but it’s worth it. We’ve also found that circular principles are attractive to investors too.”
Read the report on InterTradeIreland’s website, Identifying Circular Economy Business Opportunities on the Island of Ireland.
https://research.intertradeireland.com/circular-economy-business-opportunities
