Australia's Packaging Regulatory Reform

Australia is on the brink of making significant changes to its packaging regulations, aiming to foster a more sustainable future. The new proposal, released by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), focuses on packaging design, production, and disposal and is set to impact businesses across the nation. This reform is essential to achieving Australia’s waste reduction goals, aligning with the nation’s commitment to environmental accountability and its vision for a circular economy.

Understanding the Proposed Reform

Australian organisations currently follow voluntary packaging sustainability guidelines set by the Australian Packaging Covenant Organisation (APCO). Despite significant industry efforts, this approach has fallen short of achieving the desired waste reduction targets. To drive more effective change, DCCEEW has put forward a new regulatory framework designed to accelerate Australia’s shift towards sustainable packaging. The proposed measures explore industry-led, co-regulatory, and extended producer responsibility (EPR) models, aiming to create a balance between environmental benefits, social responsibility, and economic considerations.

Enhancing the Current Co-Regulatory Framework: This option involves strengthening the current system by improving compliance and enforcement of the existing policies, and continuing voluntary product stewardship with limited government intervention. While this approach may be the least disruptive to businesses, it lacks the enforcement mechanisms required to drive substantial improvements in packaging sustainability.
Introducing National Mandatory Requirements: This approach would introduce a nationally regulated scheme, ensuring uniform and mandatory packaging standards across Australia. Potential measures could include prohibiting harmful materials like oxo-degradables and PFAS, enforcing mandatory recycling labels, and gradually phasing out non-recyclable packaging. Businesses would need to register, adhere to these regulations, and submit annual progress reports. While this framework provides a robust strategy for reducing harmful packaging and promoting industry-wide consistency, its success would depend on effective oversight and enforcement.
Implementing an Extended Producer Responsibility (EPR) Scheme: This option establishes a mandatory framework where producers are legally responsible for the entire lifecycle of their packaging. This model includes clear requirements for packaging design, waste recovery, and material reuse, ensuring accountability and fostering innovation in sustainable packaging solutions. This approach also provides ongoing financial support for the recycling system offering a scalable and uniform solution to addressing packaging waste.

At Compost Connect, we advocate for the EPR Scheme, as it provides a structured and enforceable approach to achieving a circular economy for packaging. Holding businesses accountable and encouraging sustainable packaging practices ensures long-term environmental benefits and waste reduction – Italy has successfully implemented such EPR scheme.

Why Extended Producer Responsibility (EPR) is Essential

EPR for packaging ensures that producers take responsibility for the waste generated by their products, reducing the burden on consumers and local governments. Below are the key benefits of the EPR system.

Cost-Effectiveness and Alignment with Global Standards
The Extended Producer Responsibility (EPR) is the preferred choice due to its cost-efficiency and adherence to global best practices. Under an EPR model, businesses assume financial responsibility for managing their packaging waste, shifting this burden away from taxpayers. This approach is widely recognised as effective, as it holds producers accountable for the environmental impact of their products, promoting a circular economy that reduces waste and enhances resource recovery.

Ensuring Sustainable Recycling Funding
EPR guarantees ongoing, independent funding for recycling initiatives. By establishing a continuous financial stream, EPR strengthens recycling infrastructure and encourages businesses to innovate in packaging design. This leads to improved recyclability rates and a reduced environmental footprint for packaging materials.

Alignment with Key Reform Principles
The EPR framework upholds essential reform principles, including clear, enforceable industry obligations and the flexibility to drive innovation in recycling processes. Moreover, EPR aligns with international standards, fostering a more transparent and accountable system for managing packaging waste.

By integrating EPR, businesses actively contribute to a circular economy and help address the growing issue of packaging waste in Australia.

Our Recommendations for a More Comprehensive EPR Scheme

The EPR scheme has the potential to truly shake up the packaging industry in Australia. However, to ensure its success it needs to consider unique local needs and several key factors should be addressed:

Recognising Composting as a Recycling Pathway
Composting is a crucial method for diverting organic waste and packaging from landfills, supporting a circular economy. To maximise its impact, compostable materials should be officially classified as “recyclable” within the framework. This recognition would enable compostable packaging to be fully integrated into Australia’s waste recovery system.

Strengthening Australian Compostability Standards
Clear, nationally recognised compostability standards are essential to prevent confusion among businesses and consumers. Compost Connect supports the adoption of consistent home and industrial composting certifications, ensuring packaging is designed to break down effectively in local composting facilities.

Investment in Composting Infrastructure
Increased investment in composting facilities is necessary for compostable packaging to reach its full potential. A portion of the funds from an EPR tax should be allocated to expanding composting infrastructure, enabling responsible processing of compostable packaging and organic waste while reducing landfill dependency.

Exemptions for Food Packaging Regarding Recycled Content Mandates
While using recycled content reduces reliance on virgin materials, food safety must remain the top priority. Compost Connect advocates for exemptions or flexible requirements for food-contact packaging to ensure hygiene standards are met while still promoting sustainable material choices.

The Role of Compostable Packaging

A key challenge in the evolving regulatory landscape is the lack of strong support for compostable packaging, despite its proven alignment with circular economy principles.

Each year, over one million tonnes of paper and fibre materials end up in landfill due to contamination and limited repulping capacity. Compostable packaging ensures these materials can be processed alongside organic waste, diverting them from landfill. It also replaces fossil-based plastics with bio-based alternatives, reducing dependence on finite resources while eliminating food contamination in traditional recycling streams. Additionally, composting provides a hyper-local waste solution that supports regional economic development and infrastructure. Beyond waste reduction, compostable packaging contributes to regenerating natural systems by transforming food and packaging waste into nutrient-rich compost, which replenishes soils, enhances agricultural productivity, and aids carbon sequestration.

Compost Connect Is Closing the Loop on Packaging Waste

At Compost Connect, we are dedicated to assisting businesses in navigating these regulatory changes. Our mission is to connect companies with composting services and provide resources to facilitate the transition to compostable packaging solutions. By fostering collaboration between businesses, composters, and consumers, we aim to create a closed-loop system that benefits both the economy and the environment.

The proposed packaging reforms represent a significant step towards a more sustainable future for Australia. Businesses that proactively adapt to these changes will not only ensure compliance but also position themselves as leaders in environmental stewardship. By embracing sustainable practices and innovative solutions like compostable packaging, we can collectively work towards a greener and more sustainable Australia.

For more information on composting and compostable packaging and how to implement sustainable practices in your business or at home, explore our resources.