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Australia Plans Major Packaging Regulation Reform

2024-10-29
On September 28, 2024, the Australian government initiated a consultation process aimed at reforming packaging regulations to reduce waste, improve recycling rates, and promote a circular economy for packaging. According to data from 2021-22, 56% of packaging in Australia is recyclable, but "plastic packaging is particularly problematic, with a recycling rate of only 20%." This situation not only exacerbates environmental burdens but also poses challenges to the country's sustainability goals.

Reform Proposals

The government's reform proposals include:


1. Strengthening the Existing Framework: Enhancing current co-regulatory arrangements without fundamentally altering their structure. This option aims to increase the enforcement of existing policies and clarify responsibilities to manage packaging waste more effectively.


2. Mandatory National Standards: Implementing compulsory national requirements for packaging recyclability, including the prohibition of problematic materials and concerning chemicals (such as carbon black, oxo-degradable plastics, and PFAS). All packaging entering the Australian market will be regulated and must be designed for large-scale recyclability. Gradual bans on packaging that fails to meet minimum recyclability thresholds will be introduced, along with clear and consistent recycling labels to enhance consumer education.


3. Extended Producer Responsibility (EPR) Scheme: Developing an EPR scheme for packaging, providing economic incentives to drive change. This scheme requires manufacturers to take responsibility for the lifecycle of their products, encouraging them to consider recyclability and sustainability in the design phase.


Chemical Additives and Packaging Standards

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has proposed banning or phasing out various chemicals and materials that hinder recycling. Design elements under consideration for restrictions include:


- The use of mixed or multiple polymers.

- Colors used in plastic packaging.

- Materials such as PVC/PDVC, EPS/PS, and PETG.

- Excessive packaging, voids, and packaging that cannot be easily emptied.


Furthermore, the DCCEEW emphasizes that chemical additives will only be permitted when clear and necessary benefits are provided. This stance aligns with the announcement made during the reform process in August 2023, aimed at protecting public health and the environment.


Consultation and Feedback

The consultation for the DCCEEW proposals will close on October 28, 2024. New South Wales is also consulting on actions to reduce plastic waste and harmful chemicals, with consultations scheduled to end on November 4, 2024. The New South Wales proposals include releasing a "green list" of acceptable chemicals for food packaging and a "red list" of chemicals slated for phased-out use to ensure public safety.


Global Actions Against Plastic Pollution: Key Updates

Globally, countries are taking measures to combat plastic pollution. Nigeria recently announced a comprehensive ban on single-use plastic products to reduce environmental pollution and enhance ecological safety. This ban covers all single-use plastic bags, utensils, and beverage containers, and while it does not specifically target Polyethylene Terephthalate (PET) products, it aims to promote sustainable alternatives and protect environmental and public health. This policy is expected to have a profound impact on the local economy, encouraging the growth of green industries.


Meanwhile, Malaysia is advancing its EPR program, requiring manufacturers and importers to take greater responsibility for the recycling and disposal of plastic packaging. Malaysia's EPR scheme is expected to promote more environmentally friendly packaging designs and raise public awareness of plastic pollution. The plan also includes incentives for manufacturers to adopt renewable and biodegradable materials.


Guinea has recently taken action to implement a ban on single-use plastic bags by 2025. This ban aims to reduce the impact of plastic waste on the environment, particularly concerning marine ecosystems. The Guinean government hopes this measure will foster the use of sustainable alternatives and raise public awareness of plastic pollution.


In the PET industry, improving recycling rates has become a focal point. Many countries and regions are enforcing stricter regulations to encourage the use of recycled PET (rPET) and enhance its recycling rates. The European Commission proposed a new policy in October 2024 requiring that by 2025, all new PET bottles produced must contain at least 25% recycled material, aimed at boosting plastic recycling and reducing reliance on new plastics. The Indian government launched a new plastic recycling initiative in September 2024, with a specific focus on recycling PET bottles, targeting an 80% recycling rate by 2030.


According to market research firm Statista, the demand for rPET in the Asia-Pacific region is expected to grow by 20% by 2025, primarily driven by China and India, which are strengthening their plastic recycling policies.


Additionally, several international brands, including Coca-Cola and PepsiCo, have announced plans to gradually increase the proportion of rPET used in their products over the next five years, aiming for 100% recyclable packaging by 2030.


A Comprehensive Approach to Regulatory Compliance

In response to global actions against plastic pollution, stakeholders across various industries, including the PET resin sector, must adopt a thorough strategy to meet evolving regulatory requirements and promote sustainable development.


Upstream PET resin manufacturers should prioritize investments in research and development to innovate production processes that enhance recyclability. This includes avoiding the production of composite polyester materials that are challenging to recycle, focusing on creating single-polymer PET, and exploring renewable or bio-based PET alternatives.


Downstream bottle packaging manufacturers must select recyclable materials, implement lightweight designs, and simplify bottle structures to ensure compliance with the new regulations. Engaging with industry associations is also vital for staying updated on policy changes, facilitating the establishment of an effective recycling system.


The entire industry needs to closely monitor the new standards proposed by the Department of Climate Change, Energy, the Environment and Water (DCCEEW). Active participation in government consultations and providing feedback on industry needs will be crucial for shaping effective policies.


Additionally, in terms of Extended Producer Responsibility (EPR), companies within the PET resin sector should collaborate with local governments and recycling organizations to set internal recycling targets. This collaborative effort will not only enhance overall recycling rates but also contribute significantly to the development of a circular economy.


Conclusion

Australia's reform proposals, along with global initiatives like Nigeria's ban and Malaysia's EPR program, demonstrate a collective effort among nations to address plastic pollution and promote sustainable development. These measures will help build a more effective plastic management system, protect the environment, foster the development of a circular economy, and provide a framework for collaboration and progress among countries. Particularly in the management and recycling of PET, these policies will lay the foundation for improved recycling rates and the use of renewable materials.


References

DCCEEW (September 2024). “Reform of Packaging Regulation.” Australian Government

Kerry Hebden (October 15, 2024). “Australia must urgently fast-track and expand PFAS ban, says national waste body.” Chemical Watch News & Insight

New South Wales EPA (September 2024). “NSW Plastics: The way forward.” New South Wales Government. (pdf)

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