This story first appeared in our stablemate PKN Pakaging News, links in the story will take you to its website.
In the wake of the ‘Roadmap to Restart’ plan announced by the supermarket-led Soft Plastics Taskforce, which will see in-store soft plastics collection resume by the end of this year, PKN summarises the state of play and weighs up what this means for key stakeholders.
In the latest development in the ongoing soft plastics recycling saga, the big three supermarkets, Woolworths, Coles and Aldi, have announced, through the 'Roadmap to Restart', their intention to run a pilot soft plastics collection scheme in select stores to support a recycling programme by the end of the year.
[Ed's note: The story so far, in case you missed it: The REDcycle collection scheme, which operated largely through collection points in supermarkets nationally, was suspended in November last year; major supermarket retailers ALDI, Coles and Woolworths formed a Soft Plastics Taskforce with a mandate to develop an interim solution to restore community access to soft plastic recycling; REDcycle was declared insolvent after agreeing that the Taskforce can take over management of the stockpiled soft plastics.]
What the Taskforce says
Under the plan, an initial in-store collection pilot is anticipated to launch in select stores in late 2023 – provided that REDcycle’s existing soft plastic stockpiles can be cleared prior. The new programme would then be gradually rolled out nationwide next year.
However, the Taskforce is unable to guarantee that enough domestic recycling capacity will exist by then to recycle the mixed polymer soft plastics. Current infrastructure capacity is limited and unable to process the amount of soft plastics collected through a supermarket bring-back programme, as amply demonstrated by the REDcycle example.
The Taskforce says it has plotted the reinstatement of in-store collection of household soft plastics to match the projected gradual increase in Australian soft plastic recycling capacity over the next year, anticipating that new recycling operators will launch, and existing processors will expand.
It notes that the best way to accelerate nationwide access to soft plastic recycling is through continued investment in recycling facilities to bring forward existing plans to expand domestic capacity.
In the meantime, the supermarkets intend to work through options to export the stockpile of 12,400 tonnes of REDcycle soft plastic to “trusted recycling facilities” overseas, which they say would need to have the necessary transparency, traceability and government approvals. This would allow access to advanced recycling beyond Australia’s existing domestic capabilities.
A spokesperson for the Taskforce said: “For most Australian households, the only avenue to recycle their soft plastic waste has been through the REDcycle bins available at Coles and Woolworths supermarkets.
“Restoring public trust in soft plastic recycling is paramount, and the Taskforce will reintroduce soft plastic collections when it can be confident that it will be properly recycled. We owe it to consumers to get this right.”
The Taskforce said it recognises that in the long-term, more soft plastic could be diverted from landfill if future schemes are more convenient for consumers and can meet soft plastic at the point where it becomes waste – the household.
“It is crucial that this opportunity to rethink Australia’s future national soft plastic recycling model is not overlooked,” a spokesperson said.
The Taskforce commended the trials underway in Victoria, NSW and SA for the National Plastics Recycling Scheme, a new kerbside model to collect more household soft plastics developed by the Australian Food and Grocery Council with funding support from the Australian Federal Government’s National Product Stewardship Investment Fund. (See comment from AFGC below.)
The scheme is based on a model which would see food and grocery manufacturers pay a levy to support the recycling of the soft plastics they create. It is currently being trialled in select areas.
The Victorian Government has announced a future state-wide rollout of kerbside soft plastic recycling, pending the success of the current NPRS trial. The Taskforce applauds this move and strongly encourages state and territory governments to support their local councils to do the same to ensure as much household soft plastic is saved from landfill as possible.
What Government says:
Minister for Environment and Water, Tanya Plibersek, has been vocal in her response to the soft plastics recycling crisis, as the country wrestles with how to deal with the 450,000 tonnes of soft plastic used each year. In recent months she has made it clear that government intervention through legislation on plastic waste management is a distinct possibility.
She acknowledges the problem needs to be tackled with support from government but says “it is also the responsibility of industry to step up”.
She said government is committed to helping the supermarkets resume collection of soft plastic and welcomes announcements that the supermarkets remain committed to this.
Plibersek said, “We absolutely see that the government has a role in this – we’ve got $250 million set aside for new recycling facilities, $60 million specifically for hard to recycle plastics like soft plastics. We’ve got 48 new facilities being built or upgraded at the moment, and we’ve opened 11 facilities.”
Importantly though, she makes it very clear that the responsibility also lies with manufacturers and packagers.
“We see that we have a role, but I tell you what, so do the companies that are generating all of this waste, and we know as Australians that we have to use less plastic in the first place, particularly virgin plastics. We have to dispose of what we are using much better than we are, and while the government has a role, so do the businesses generating the waste, and of course, so do consumers who are so keen to do the right thing by the environment.”
What APCO says:
The Australian Packaging Covenant Organisation (APCO) told PKN it commends the “proactive approach and leadership demonstrated by the supermarkets to deliver a long-term solution to the REDcycle situation”.
APCO CEO Chris Foley said, “The newly released roadmap demonstrates that a sector-wide approach is required to create a comprehensive soft plastics recycling system and stewardship solution that mitigates the challenges recently experienced with REDcycle. Clearly this will take time to develop, but it’s critical that a robust, lasting solution is delivered.”
Foley said that while the last few months have been challenging, the roadmap demonstrates a commitment from the sector to lead in the delivery of the circular outcomes the supply chain seeks to achieve for soft plastics. He said APCO looks forward to continuing to contribute to these efforts in the best interests of the sector and community. (Read more here about APCO's initiatives for circularity and sustainability in the soft plastics sector.)
What a packaging manufacturer says:
Amcor is the leading flexible packaging converter in the region, and a key participant in several cross-industry collaborative projects seeking circular solutions for soft plastics. The company supplies major multinational brands, like Nestle, which has via the ARL subscribed to the 'return to store' model for recycling collection of their soft plastic packaging, and is also exploring kerbisde collection trials.
Richard Smith, director of sustainability Amcor Flexibles Asia Pacific, told PKN Amcor is pleased to see the recent announcements from the Soft Plastics Taskforce regarding a Roadmap to Restart.
“We can see that industry is collaborating across the value chain to ensure circularity of soft plastics, and that continued investment in recycling facilities as one key enabler. Our recent announcements regarding our MoU with Licella is a clear example of how Amcor is demonstrating our commitment to circularity of soft plastics in Australia.”
What a key recycler says:
[Ed's note: In case you missed it: Close the Loop in Victoria was the biggest processor of REDcycle collected soft plastics, for use in its TonerPlas material for roads, but a fire at its facility last year meant it could no longer process REDcycle material. It’s expected to come back on stream in the second half of this year, although a date for commissioning of the new line has not been confirmed.]
Steve Morriss, director at Close the Loop said, “We are aware that supermarkets plan to resume their soft-plastics collection programs, and we remain committed to continuing the recycling and reuse of post-consumer soft plastics in Australia from such retail programs, as well as other sources.
Morriss confirmed Close the Loop has allocated processing capacity for the retail collections upon commissioning of its new TonerPlas line. In addition to this allocation, it has commitments to recycling further volumes of waste soft plastics from council and industry partners.
“Close the Loop understands that the major retailers have taken responsibility for the warehoused material, but further information regarding processing of these materials and timeframes to reduce these stockpiles are yet to be communicated,” Morriss said. “We are keen to collaborate with key stakeholders and to contribute to a solution for existing and new materials.”
What AFGC says:
The Australian Food and Grocery Council (AFGC) welcomed the Soft Plastics Taskforce’s Roadmap, and its recognition of the industry-led National Plastics Recycling Scheme (NPRS) as the model for the future of soft plastic packaging recycling in Australia.
AFGC CEO Tanya Barden noted that return-to-store collection will be reintroduced as a transitional solution and the Taskforce supports the NPRS as a model for a sustainable, long-term solution to divert more plastic packaging from landfill.
Barden said the Taskforce Roadmap has highlighted the importance of increasing Australia’s soft plastics recycling capacity and developing end markets for recycled packaging content.
“The AFGC agrees that there is a crucial opportunity now to rethink the model for soft plastics recycling in Australia,” Barden said.
“The NPRS is a whole-of-supply chain plan that makes soft plastic recycling easy for consumers with kerbside collection. It has also stimulated commitments to invest in new advanced recycling infrastructure here in Australia,” Barden said.
“Manufacturers, local councils, waste collectors and processors, advanced recyclers and plastics manufacturers are united in this plan for sustainable soft plastics recycling. “Australia’s food and grocery manufacturers are committed to growing Australia’s recycling and circular economy infrastructure. The model for a soft plastics solution exists.”
What Boomerang Alliance says:
Environmental lobby group Boomerang Alliance has said that the supermarket’s announcement of the Roadmap to Restart program is an admission of failure over the past five years, and does little to inspire confidence that the problem will be solved.
Boomerang Alliance remains opposed to voluntary action, it still wants government to legislate. Its CEO Jeff Angel said, “I don’t think the community trusts the supermarkets and packaging sector to get it right on their own. It is absolutely vital that government regulates the sector to lock in the targets; broadscale collection systems for households; funding by producers and big retailers; and recycled content or less plastic or other alternative materials, in new packaging.’’
Angel noted the industry has had a clear picture of the challenges with a Soft Plastics Working Group back in 2018 under the auspices of APCO.
Angel said, “It presents as if they had only discovered there’s a problem with plastic recycling, when in fact the industry had a clear picture of the challenges with a Soft Plastics Working Group in 2018 under the auspices of the Australian Packaging Covenant. Now they can't even restart collections at the end of the year at the scale of the small REDcycle scheme.’’
Ed's final note: Clearly, finding a soft plastics solution is a formidable challenge, with layers of complexity that we've barely scratched the surface of in this report. I am aware from the many off the record conversations I continue to have with industry members, that there's a degree of frustration at the lack of transparency on how the numbers stack up. Our role at PKN is not to sensationalise the shortcomings, but to support the industry changemakers, while painting as full a picture as possible with the information we have at our disposal.
