Why steel is central to Australia’s circular economy
Australia’s steel industry has long been defined by its resilience and adaptability. Now it stands at the centre of Australia’s shift to a circular economy that will fundamentally reshape design, construction and material reuse across the entire country.
The release of Engineering for Australia’s Circular Economy: A National Strategy marks a turning point. Authored by Circular Australia’s chief circular engineer, Professor Ali Abbas, the white paper provides the country’s first engineering-led roadmap to embed circularity across key sectors—starting with waste and construction.
ASI has welcomed the nation’s first engineering-led roadmap to accelerate circular economy implementation across Australia.
“This is good news for steel,” says ASI sustainability adviser Jerusha Beresford. “It aligns closely with what the industry has been advocating for: recognising the inherent circular advantages of steel and embedding them into future design and procurement frameworks.”
A system under pressure
The urgency behind the circular shift is clear. Australia’s current “take–make–dispose” model is no longer sustainable, particularly in construction.
The white paper highlights the scale of the challenge: the construction sector generates around 29 million tonnes of waste annually and consumes roughly 23 per cent of Australia’s raw materials, while cement and steel production account for up to 20 per cent of industrial emissions. At the same time, national recovery rates remain incomplete, and circularity rates are still low, estimated at just 4.3 per cent in 2024.
In short, Australia is building more than ever, but wasting more than it should. For steel, however, this represents not a problem, but an opportunity.
Steel’s natural advantage in a circular economy
Few materials are as well positioned for a circular future as steel. With its 100 per cent recyclability, long service life, and ability to be reused without loss of performance, steel already embodies many of the principles the circular economy seeks to achieve.
Melinda Coles, ASI’s sustainability scheme manager, is unequivocal: “The focus on circularity is what we’ve been calling for. Steel’s recyclability and durability mean it is already one of the leading materials when it comes to advancing circular outcomes in the built environment.”
The white paper reinforces this view, identifying steel as a critical enabler of circular design, particularly through its compatibility with modular construction, disassembly and reuse systems.
Steel has long been part of the circular economy through recycling, with scrap routinely recovered and used in electric arc furnaces (EAFs) to make new steel. Australia also exports significant volumes of scrap, reflecting the material’s ongoing value beyond first use.
However, the circularity conversation is now shifting beyond recycling alone. The next frontier is reuse: retaining steel members in their existing form and redeploying them in new structures. This delivers a far greater embodied carbon benefit than recycling, because it avoids the emissions associated with remelting and reprocessing. In that sense, reused steel is emerging not only as a recyclable material, but as a low embodied carbon material that can make a meaningful contribution to the white paper’s target of a 50 per cent reduction in embodied carbon.
From demolition to deconstruction
At the heart of the new strategy is a fundamental shift in thinking: buildings are no longer seen as end products, but as material banks for the future.
Under Pillar 1—Circular Design and Construction—the objective is clear: Transform design and construction practices so that buildings generate minimal waste and can be easily deconstructed and repurposed at end-of-life. This has profound implications for steel.
Unlike many composite materials, steel components can be unbolted, recovered, and reused in new structures. The white paper explicitly calls for:
- Design for disassembly, favouring bolted over welded connections
- Material passports, digitally tracking components for future reuse
- Modular and prefabricated construction systems
- Increased use of high recycled-content materials
For structural steel, this represents a natural evolution rather than a disruptive change.
In fact, the white paper suggests a future where demolition as we know it disappears entirely, stating that “by 2040, demolitions should be more aptly described as deconstructions—systematic harvesting of materials”.
Policy momentum is building
The white paper does not exist in isolation. It arrives alongside growing policy momentum, most notably from the Green Building Council of Australia (GBCA). The GBCA’s upcoming Responsible Products Framework (RPF) Version B, due in 2026, is expected to introduce a stronger focus on circularity. Proposed criteria include:
- Measuring product circularity
- Designing for reuse, disassembly, and modularity
- Reducing material use and packaging
- Implementing product stewardship programs
- Introducing digital product passports
These measures align closely with the engineering roadmap outlined in the white paper, particularly around traceability and lifecycle performance.
For project specifiers, designers and architects, the convergence of policy and engineering frameworks signals a clear direction: circular performance will become a core material differentiator.
Engineering the transition
What distinguishes the Engineering for Australia’s Circular Economy: A National Strategy white paper is its focus on implementation. Rather than simply outlining ambitions, it provides a detailed roadmap structured around five pillars:
- Circular design and construction
- Resource recovery and remanufacturing
- Policy and standards
- Culture, skills and capacity
- Innovation and digital tools
Together, these pillars aim to deliver measurable outcomes nationally by 2040, including:
- 90 per cent resource recovery rates
- 95 per cent diversion of construction and demolition waste from landfill
- 50 per cent reduction in embodied carbon
- 30 to 50 per cent reduction in virgin material use
- Creation of 50,000 new jobs
For steel, each pillar reinforces its role:
- As a recoverable material in resource recovery systems
- As a standardised product benefiting from harmonised regulations
- As a trackable asset via digital material passports
- As a low-waste solution in modular and prefabricated construction
- As a low embodied carbon material when steel is reused
The rise of digital traceability
One of the most transformative elements of the strategy is the introduction of digital material passports. These systems will track materials throughout their lifecycle, recording composition, location, and reuse potential.
For steel, this could unlock entirely new value streams. Imagine a structural beam installed today, digitally tagged and recorded. Decades later, when the building reaches end-of-life, that same beam can be identified, recovered, certified and reused, retaining both its structural integrity and economic value.
This shift—from waste to asset—has significant implications for supply chains, procurement and asset management.
Leading the transformation
Australia’s transition to a circular economy is gaining strong momentum, supported by growing industry alignment and practical action. The white paper highlights key areas for improvement, such as expanding design-for-disassembly practices, strengthening consistency in standards and regulations, building demand for reused materials, and enhancing material tracking systems. Encouragingly, many of these areas are already being advanced through industry-led initiatives, including those driven by the Australian Steel Institute and Steel Sustainability Australia.
As Professor Abbas emphasises in the white paper, “Engineers will lead this transformation…embedding circularity into the DNA of Australia’s infrastructure and economy.” Steel, by its very nature, is already integral to that foundation.
With the Engineering for Australia’s Circular Economy white paper released, and the GBCA’s updated Responsible Products Framework on the horizon, the direction is clear: circularity is moving from aspiration to expectation. For the steel industry, the opportunity is not just to participate, but to lead.
As the ASI prepares to align Steel Sustainability Australia with this new framework, the message is simple: the future of construction is circular, and steel will be at its core.
The role of Steel Sustainability Australiaa
The Steel Sustainability Australia (SSA) certification program offers a clear and credible pathway for steel businesses to operate responsibly, transparently, and sustainably. Designed to reflect the diversity of the steel supply chain, the program provides four levels of certification, enabling broad participation across the industry and allowing companies of all sizes to demonstrate their commitment to sustainability.
As an independent third-party certification scheme, SSA gives the construction sector confidence that certified suppliers meet rigorous standards for ethical, responsible, and sustainable steel production.
SSA is also recognised by the Green Building Council of Australia’s Green Star and the Infrastructure Sustainability Council rating systems, with certified suppliers contributing to valuable points for projects pursuing these sustainability ratings.
From buildings and community precincts to bridges, railways, and major infrastructure, SSA-certified steel supports projects striving for best-practice sustainability outcomes.
