# Why aren't we there yet?
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With the benefits and opportunities highlighted in the previous sections, a fair question would be: ‘why aren’t we there yet?’ If the need to transition to a circular economy is so dire, and if the evidence is there to suggest that we’ll benefit from doing so, what is holding us back?**
Arguably, the biggest reason for this is as simple as it is pervasive: circularity, as a concept, is new. *Circular economy* is an idea that builds on a lot of established systems ecology literature from the past 50 years or so. But when it comes to implementation, momentum has only really picked up in the last 15 years. For something that is proposing systemic changes to our economy, that is not a long time; According to href="https://circularity-gap.world/2025" target="_blank" rel="noopener" (https://circularity-gap.world/2025), circular economy, as a term, has only reached megatrend status since the start of 2024.

Because it is relatively new, circularity is poorly understood. Our href="https://www.sustainability.vic.gov.au/research/state-of-sustainability-report/state-of-sustainability-report-2024" target="_blank" rel="noopener" (https://www.sustainability.vic.gov.au/research/state-of-sustainability-report/state-of-sustainability-report-2024) research concludes that about two-thirds of Victorians don’t really understand what the term ‘circular economy’ means, and that 38% of Victorians have never even heard of it before. Research done by the href="https://acehub.org.au/documents/circularity-in-australian-business-2023-perceptions-knowledge-and-actions" target="_blank" rel="noopener" (https://acehub.org.au/documents/circularity-in-australian-business-2023-perceptions-knowledge-and-actions) suggests that while industry awareness of the circular economy appears high, knowledge is moderate. Similarly, research done by the href="https://assets.sustainability.vic.gov.au/cebic-microsite/Report-CEBIC-Research-Victorian-Circular-Activator-ecosystem-mapping.pdf" target="_blank" rel="noopener" (https://assets.sustainability.vic.gov.au/cebic-microsite/Report-CEBIC-Research-Victorian-Circular-Activator-ecosystem-mapping.pdf) highlights that a lack of understanding is one of the primary challenges in transitioning to circularity. Naturally, this means that we are simply not yet as effective as we could be in embarking on this transition

Our current, linear way of working tends to be siloed, with a clear reluctance to be transparent about information and performance data. Adopting a systemic approach where different parts of the economy need to work closely together is made difficult by this lack of transparency. Combined with the aforementioned lack of understanding, the result is that we do not yet have a clear roadmap towards a circular economy. There is no clearly defined goal or vision, a lack of detailed metrics, and policy and legislation are lagging behind.

One might nominate governments as the clear party responsible for turning this list of cascading causes and effects around, but action from industry and the community is just as important. We’ve operated in a linear fashion for a long time, so businesses have naturally adapted to these circumstances.

Consider the impact of some of these examples:**

- Financial systems are set up to support investment in extractive processes. When you decide not to worry about a project’s impact years down the track, it becomes easy enough to focus solely on the short-term benefits. The pay-off of circular solutions tends be long-term, so investment opportunities are naturally drawn to linear, extractive processes that offer a quicker return on investment. Consider the href="https://tnfd.global/" target="_blank" rel="noopener" (https://tnfd.global/), which intends to change this vicious cycle.

- Many negative externalities are not costed or included in product pricing. Although the production of many products causes emissions and pollution, affects biodiversity or simply causes harmful waste upon littering, these impacts are usually not reflected by the purchase price of the product. The price of a single-use coffee cup does not reflect the cost of its impact on the environment, or the cost of cleaning it up if it gets littered in the bushes. These impacts are examples of negative externalities, and when they are not costed into the product’s price, it can make linear products look cheaper than they really are. This makes it difficult for circular solutions to compete on a level playing field. Check out this href="https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Externalities" target="_blank" rel="noopener" (https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Externalities)to learn more.

- The development of large infrastructure tends to have a large cost attached to it. This is true for building roads, bridges, and office buildings, but also things like waste incinerators or landfills. For this reason, the return-on-investment period of large infrastructure is long which prevents quick changes from being made without a huge loss of capital. Effectively, this means that landfills and other linear infrastructure are locked in for a long period of time, despite being incompatible with a circular economy and our desire to make changes. This href="https://gbca-web.s3.amazonaws.com/media/documents/australias-wasted-opportunity---2025-benchmarking-report.pdf" target="_blank" rel="noopener" (https://gbca-web.s3.amazonaws.com/media/documents/australias-wasted-opportunity---2025-benchmarking-report.pdf) shows how our linear way of construction is wasting materials and therefore also a lot of money.

When you combine all the elements discussed in this chapter, you might agree it creates a situation where doing circular business can be risky and simply not always financially viable in the short term. Our economy is set on a self-reinforcing trajectory with a strong inertia that resists change. It is important to be aware of these challenges and acknowledge the complexities of transitioning our economic system from a linear to a circular one.

But every single one of these challenges also represents an opportunity for innovators, early adopters and pioneers in the circular economy. The systemic nature of circularity might create complexity, but it also creates a platform for anyone, in any sector, and with any background to work on solutions.

In the next section, we’ll take a look at some of the things that are happening to shift the dial.
