Digital technologies, digital twins and the circular and bioeconomy

Executive Summary

This report presents an overview of the current and potential role of digital technologies in the development of the circular economy and bioeconomy in New Zealand. It has a particular focus on digital twins. Our research included a literature review and engagement with 50 key stakeholders in October and November 2023.

We define the concept of the circular economy as “an economic system that promotes the continual use and reuse of resources, minimizing waste through recycling, refurbishing and sustainable practices.” It also incorporates a systemic transition to renewable energy. It is closely linked with the ‘bioeconomy’: the use of renewable biological resources to produce food, products and energy.

Digital technologies are already playing a variety of roles in New Zealand’s economy. However, the current development of digital twins in New Zealand is not primarily driven by circular economy development. Instead, the focus is on costs, resource management and efficiency. These drivers significantly overlap, and digital twins have the potential to contribute to the development of the circular economy and bioeconomy in New Zealand in a range of ways.

These include:

• Efficient monitoring, tracking and optimisation of resource flows throughout the entire
  lifecycle of products and materials.
• The data driven use of artificial intelligence (AI) and Internet of Things (IoT) devices to
  innovate and achieve cost efficiencies.
• Gaining valuable insights into their supply chains, facilitate collaborations between
  various stakeholders and enabling the exchange of resources and knowledge