Monday 19 August 2024

New APCO strategy maps an ambitious path for change 

Today the Australian Packaging Covenant Organisation (APCO) has published its 2030 Strategic Plan, challenging the status quo to deliver on ambitious national packaging targets. 

In an Australian first, the strategy sets out a pathway for industry to take on greater responsibility for delivering the increase in recycling needed to meet national targets. 

The strategy calls for a membership fee structure that will incentivise packaging material circularity and allow brands the social licence to continue to operate in Australia. 

Following a thorough analysis and Member consultation process, from FY27 APCO’s fees will move to be based on the types and volumes of packaging brands place on the market, with higher fees paid for materials that are more costly to recover, recycle and or dispose. This will incentivise those brand owners that eliminate and reduce packaging, adopt reuse models, and transition to materials and formats that are easier to recycle.  

Importantly, funds raised through the new fee model will be invested in the downstream system to overcome economic barriers that have hindered progress towards national packaging targets.  

The funds will be directed to supporting end markets, building reprocessing infrastructure and strengthening collection networks. 

While this approach is new to Australia, it has proven successful in countries like the Netherlands, Belgium and France. 

The strategy was developed following a comprehensive review of Australia’s packaging targets undertaken by APCO in 2022, which found that significant technical and economic barriers and gaps were preventing higher recycling rates.  

APCO’s CEO, Chris Foley, said “We know that our members have made great strides in improving the recyclability of packaging and genuinely want to see our recycling rates improve. But the analysis is clear: we need to take a more hands-on approach to recycling if we’re going to see the results that the community expects.” 

Foley added that the new strategy will add to, rather than replace, Australia’s existing recycling system and activity. “We’re aiming to support and grow the existing system”, he said. “Local governments and the waste and recycling sectors are key. Together, we need to collect and work out where funds can be most effectively applied to drive up recycling. That could be collection systems for problematic materials such as expanded polystyrene or a national consumer education campaign to increase recycling rates at kerbside.” 

APCO is accountable to Australia’s Environment Ministers for delivering the national packaging targets. The goals of the Covenant remain the same under the new strategy which is to optimise the recovery of packaging and materials and prevent the impact of litter. 

The goals of the Covenant will be tracked using new indicators, including the reduction of materials sent to landfill. By 2030, this reduction target is set at 1 million tonnes. 

The strategy was developed in consultation with APCO’s over 2400 industry members as well as key stakeholders including the waste and recycling sectors, industry associations and governments.   

“At Unilever, we believe EPR schemes where companies pay to support the collection and processing of packaging can help to improve recycling systems. The eco-modulated fee structure being developed by APCO is a significant step towards enhancing packaging material circularity in Australia. This initiative aligns with Unilever’s plastic reduction goals and reinforces our commitment to lead by example for systems change on a global scale.” Brooke Sprott, Head of Sustainable Business and Communications – Unilever ANZ.  

“This collaborative and forward-thinking approach is a game-changer, aiming to enhance packaging material circularity and drive improvements across the entire supply chain. We welcome the focus on creating investment certainty and markets for the recycling system, supporting community confidence and delivering environmental benefits.” Suzanne Toumbourou, CEO, Australian Council of Recycling (ACOR)  

The strategy commenced on 1 July 2024. The strategy will be updated as required in response to the packaging reform process currently underway under the leadership of the Commonwealth Department of Climate Change, Energy, the Environment and Waste (DCCEEW). 

Access the full strategy here. For more information sign up for APCO’s webinar being held on Thursday, 22 August 2024.