The Australian Government’s Packaging Impacts Decision Regulation Impact Statement took four years to complete. It analysed ten options to manage packaging waste and litter, including container deposit and industry-based approaches and assessed the cost-effectiveness of each.
This is a summary of the options:
|
Approach |
Option |
Summary of option |
|
|
No new regulation |
1 |
National Packaging and Litter Strategy |
A nationally coordinated government initiative targeting packaging recycling and litter |
|
Co-regulatory product stewardship |
2a |
Australian Packaging Covenant replaced by co-regulatory product stewardship under the Product Stewardship Act 2011 (PS Act) |
An industry run co-regulatory product stewardship scheme under the PS Act to replace the existing Covenant |
|
2b |
Industry Packaging Stewardship |
An industry run co-regulatory product stewardship scheme under the PS Act based on the National Bin Network proposal developed by companies in the packaging and packaged goods industries |
|
|
2c |
Extended Packaging Stewardship |
An industry run co-regulatory product stewardship scheme under the PS Act that goes beyond the commitment from industry groups under option 2b |
|
|
2d |
Beverage Container Stewardship (new option) |
A co-regulatory product stewardship scheme under the PS Act that makes the beverage industry responsible for achieving an 80 per cent national beverage container recycling rate by 2025 While modelled for beverage containers this option has the potential to adopt a broader definition of ‘beverage container’ than Option 4, reflecting the prevalence of drink cups in litter. |
|
|
2e |
Extended Australian Packaging Covenant (new option) |
A co-regulatory scheme modelled on the existing Australian Packaging Covenant with a greater financial commitment from industry
|
|
|
Mandatory product stewardship |
3 |
Advance Disposal Fee |
An advance disposal fee on all packaging materials that generates revenue to fund packaging recycling and litter programs |
|
4a |
Boomerang Alliance container deposit scheme |
A national container deposit scheme proposed by Boomerang Alliance with a ten cent upfront deposit (payable by domestic producers and importers of sealed beverages) and a ten cent refund for redeemed containers |
|
|
4b |
Centralised container refund scheme |
A container refund scheme managed by a single national coordinator which allows consumers to receive a ten cent refund when they return their containers to an approved depot |
|
|
4c |
South Australian container refund scheme (new option) |
A national container refund scheme based on the South Australian scheme which allows consumers to receive a ten cent refund for eligible containers they return to approved depots |
|
And this is the National Packaging Covenant Industry Association’s statement about its decision:
The NPCIA welcomes the release of the Packaging Impacts Decision Regulation Impact Statement (DRIS).
The DRIS has recommended an extended Australian Packaging Covenant-type arrangement for implementation.
After more than 4 years of analysis and assessment, Australian governments have released their study
whose purpose was to recommend the most effective approach to increase packaging resource recovery
and recycling and decrease packaging litter.
The DRIS process was commenced in July 2010 and is a comprehensive study of some 10 regulatory
options to achieve government objectives. It notes that a strengthened national approach and increased
investment by the packaged goods industry will deliver improved outcomes, address the problems of
future regulatory fragmentation and leverage existing administration mechanisms, while the co-regulatory
arrangement optimises outcomes because it targets all packaging.
Chair of the NPCIA, Grant Musgrove, commented, “We welcome the release of the DRIS as this
is the opportunity to remove uncertainty for industry and get clarity for the future regulation of consumer
packaging. There is some urgency as current administrative arrangements expire on 30 June 2015.
“The DRIS is a significant and seminal work and we will need to work through the detail. We look forward
to working with Australian governments to agree the detail of future arrangements.”
An extended Australian Packaging Covenant was judged to be the best approach for tackling recycling and litter rates. According to the proposed scheme, the APC will continue its work “to change the culture of business to design more sustainable packaging, increase recycling rates and reduce packaging litter.” It will be given more financial resources to do so - $50m per year in funding for five years, for litter reduction and recycling projects by the. It has been working with a $3 million per year commitment since inception.
The new funds are expected to help boost the packaging recycling rate by 78.5% and reduce the average yearly amount of litter by 377,800 tonnes (23%) by 2035.
Brand owners are to be encouraged to sign the agreement, become members and commit to funding or face regulation. Each company’s financial contribution will be determined using a formula based on annual packaging related turnover. Members will also be required to undertake action in their own businesses to reduce the environmental impacts of consumer packaging. The proposed scheme will include a grants programme, data gathering and R&D to improve packaging design, increase recycling capability and address obstacles in the market – as well as funding to reduce litter.
The Australian Packaging Covenant and NSW government have not yet reached common ground regarding the government’s proposed container deposit scheme.
