# Read: Role of government in Circular Procurement
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##### The strategic role of government in circular procurement

Governments are not just participants in the market; they are major catalysts for change. Their role in advancing circular procurement is multifaceted and critically important.

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Figure: Key role of government in driving circular procurement*

##### Why local governments should lead the way?

For local governments, adopting circular procurement is not just an environmental gesture, it's a strategic imperative with compelling benefits:

- **Demonstrates leadership:** **By prioritising sustainability, councils set a powerful example for businesses, communities, and other stakeholders, creating momentum for wider circular economy adoption.

- Drives local economic growth:** **Circular approaches often involve localised activities like repair, refurbishment, and remanufacturing. This can stimulate local job creation and support small-to-medium enterprises that innovate in the circular space.

- Delivers positive environmental outcomes:** **Direct benefits include reduced waste to landfill, lower carbon emissions, and conservation of natural resources, contributing directly to council's climate and sustainability targets.

- Meets community expectations:** **Communities increasingly expect their local governments to operate sustainably and be transparent about their environmental impact. Circular procurement demonstrates a commitment to these values.

- Promotes innovation:**
By incorporating circular criteria into tender processes, governments incentivise suppliers to develop new, sustainable solutions. This pushes the entire market toward innovation.

##### The power of public spending

Government spending accounts for a significant portion of most economies' GDP. This immense purchasing power means that when governments demand circular products and services, they create guaranteed markets for them. This "demand pull" effect is one of the most powerful tools for triggering market-wide shifts towards a circular economy. Furthermore, by showcasing the use of recycled materials in public infrastructure — like roads made with crushed glass — governments can play a vital role in educating the community and building public trust in circular products and approaches, including closing the loop on kerbside recyclables.

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Figure: Why is circular procurement important?*
