New research finds that capital is available, but greater policy certainty, stronger markets and more targeted public investment are needed to accelerate reuse, repair and recycling infrastructure

Coordinated action across government, industry and investors is needed to create the conditions to unlock investment in the UK’s circular economy infrastructure, according to new research commissioned by CIWM.

The report, Unlocking investment in circular economy (reuse, repair and recycling) infrastructure in the UK, commissioned by the CIWM Policy & Innovation Forum and undertaken by Resource Futures in partnership with The Circular Economy Institute, finds that investors continue to view circular infrastructure as high risk, with weak market signals, uncertain end markets and insufficient long-term policy clarity holding back investment.

Central to this, CIWM is calling for the timely publication of the Government’s Circular Economy Growth Plan and accompanying sector-specific roadmaps, providing the long-term direction and policy certainty needed to give investors greater confidence.

The report argues that the UK is at a pivotal point in its transition to a circular economy. While the last generation of resources and waste strategies drove important changes in recycling infrastructure, the next must go further, supporting higher-quality recycling alongside reuse, repair and product takeback at scale. It says circular economy infrastructure should increasingly be treated as critical national infrastructure, supporting the UK’s resource security, resilience and competitiveness.

It also highlights a fundamental timing challenge: investors need long-term policy certainty before committing capital, but waiting until policies are implemented before investing risks leaving the UK without the infrastructure needed to deliver them.

Among its recommendations are stronger demand signals for domestically recycled and reused materials; greater use of public investment to de-risk projects and attract private capital; targeted support to address the ‘missing middle’ between early-stage innovation and commercial deployment; and directing a proportion of (the now-delayed) UK Emissions Trading Scheme revenues towards circular economy infrastructure.

The report also calls for a broader approach to assessing value. While financial returns remain a primary driver, environmental and socio-economic benefits including resource security, job creation, waste prevention and reduced pollution are not consistently measured or prioritised in investment decisions.

Dan Cooke, CIWM Director of Policy, Communications and External Affairs, said: “The UK has a significant opportunity to make the circular economy an important part of a more resilient, productive and competitive economy. Encouragingly, this research tells us that capital is available, but it will go where the conditions are right. We need to give investors the confidence to deploy it here in the UK.

“We are at a pivotal moment, which makes publication of the Circular Economy Growth Plan and sector roadmaps – including one for the resources and waste sector - increasingly important. Other countries including China and the EU are potentially stealing a march on the UK in recognising the benefits that investment in critical infrastructure can bring.

“Alongside providing that long-term direction, we need stronger markets for recycled and reused materials and to recognise the wider value this infrastructure can create, from jobs and resource security to environmental benefits and greater economic resilience.”

The research examines investment barriers and opportunities across four priority material streams:

EEE and WEEE: Significant untapped value exists, including critical raw materials, but investment is constrained by poor collection, low-value recycling outputs and limited policy incentives. Priorities include better take-back and sorting systems, reuse and repair hubs and greater domestic processing capacity.

Plastics: Exposure to virgin material prices means even established recycling technologies can be viewed as high risk. Investment is needed in advanced sorting and reprocessing, infrastructure for flexible and contaminated plastics and reuse systems, supported by stronger demand for recycled content.

Consumer packaging: Contamination, complex materials and weak end markets remain barriers, while reuse systems are difficult to scale. Priorities include reuse infrastructure, increased domestic reprocessing capacity, advanced sorting and stronger markets for domestically reprocessed materials.

Textiles: While higher-value reuse is growing, repair remains underdeveloped and fibre-to-fibre recycling is still early-stage. Greater policy certainty, investment in emerging technologies and stronger domestic demand for recycled fibres are needed.

“The report shows that the key issue is not a lack of available capital, but a lack of conditions to attract investment,” explains Max Goodliffe, Senior Consultant at Resource Futures. “Our interviews with the investment community highlighted not only the barriers but the key ways that this can be enabled, such as aligning the role of public investors with national circular economy ambitions, policy stimulus for reuse and repair services, and greater dialogue and collaboration between government, industry and the investment community.”

The report concludes that coordinated action across government, industry and investors will be essential to retain more value from UK resources and realise the economic, social and environmental opportunities presented by the transition to a circular economy.

Read the full report: Unlocking Investment in Circular Economy (Reuse, Repair, and Recycling) Infrastructure in the UK.