Recycling & Composting

Compostable Packaging: Sorting the Myths from the Facts

Team Compost Connect, 19 February 2025
Compostable Packaging: Sorting the Myths from the Facts

The debate around compostable packaging is heating up! NSW has already banned compostable packaging from FOGO while Victoria and several councils across Australia are currently considering restrictions or outright bans on these products in their organic waste streams. These moves are often framed as necessary precautions to manage perceived “risks” and “uncertainty”.

Compostable packaging has been carefully designed over decades, with certified products playing a key role in the circular economy by reducing landfill waste and improving food organics recovery. Yet, broad bans on these solutions could slow progress toward better waste management, leaving Australia grappling with low recycling rates, contaminated organics streams, and inefficient recovery systems.

In this article, we cut through the confusion and examine the science behind compostable packaging, shedding light on its real impact. Let’s explore why informed, research-backed decisions are essential to driving Australia’s circular economy forward.

Certified Compostable Packaging: What the Science Really Says

Is certified compostable packaging genuinely a risk to organic waste recovery systems, or is misinformation getting in the way? The Australasian Bioplastics Association (ABA) commissioned an in-depth study titled A review of the benefits and risks of including certified compostable packaging in organic food recovery systems. Led by Bill Grant, Research Fellow at Federation University’s Future Regions Research Centre, the study examines and challenges the NSW EPA’s claims that led to the exclusion of compostable packaging from FOGO (Food Organics and Garden Organics) kerbside bins.

Grant’s research focuses on two key areas:

  • Evaluating the overall environmental and social benefits of recovering fibre-based coated and bioplastic packaging through FOGO systems
  • Identifying and managing any potential risks

Key Takeaways from the Research

Certified compostable packaging that meets Australian Industrially Compostable AS4736 and Home Compostable AS5810 Standards, along with ABA’s additional certification requirements, poses little to no risk to commercial composting systems. In fact, these products can enhance food organics recovery when incorporated into FO and FOGO programs.

When paired with proper community education and effective contamination management at composting facilities, compostable packaging helps maintain cleaner organic waste streams. Concerns about chemical contamination, microplastics, or ecotoxicity from certified compostable materials are not backed by rigorous scientific evidence.

Read the full research here.

Compost bin filled with food waste, compostable cups, and utensils.

Addressing Contamination Fears: What the Research Really Says

The NSW EPA’s reports on the chemical and toxicity risks of compostable packaging have shortcomings and do not accurately reflect the impact of most ABA-certified compostable products. Their analysis focused on a limited selection of uncertified, non-compostable items, overlooking fibre-based materials and the rigorous testing that certified products undergo.

Bill Grant’s research challenges these misconceptions and provides a clearer picture of the three key risks:

  1. No Significant Contamination Risks
    PFAS and PFOS contamination in food packaging is a known issue, but the risk from certified compostable products is minimal. Many packaging manufacturers are already phasing out PFAS voluntarily, with legislative bans set to take effect in 2025. The primary concern comes from recycled paper packaging made from contaminated sources, not from compostable products. ABA certification ensures that PFAS is never intentionally added, removing this risk entirely from certified compostable packaging.
  2. The Declining Risk of PFAS Contamination
    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.
  3. No Lasting Microplastic Pollution
    Certified compostable plastics are designed to fully break down in composting environments. Any small residues left in the final compost continue to biodegrade over time, ensuring they do not contribute to long-term microplastic pollution in soil or ecosystems.

The risks associated with compostable packaging can be effectively managed through proper certification and regulation. Enforcing compliance with ABA standards, coupled with routine testing of ABA-certified products, ensures that compostable packaging remains a safe and sustainable solution for organic waste recovery

Bulldozer moving waste at a landfill.

Managing Contamination Risks in Composting Facilities

To ensure organics recovery systems operate effectively, processing centres can implement screening technologies, sorting procedures, and trained staff to remove non-compostable contaminants, ensuring that certified compostable packaging is processed correctly. Councils and businesses can further support this by setting contract conditions with their waste management providers that mandate the inclusion of compostable packaging in FO and FOGO services. Selecting composters with the right systems in place, such as those that exclude short-period organic processors, helps manage compostable packaging effectively, reducing contamination and improving organic waste recovery.

Regulation and Awareness: Key to Stopping Lookalike Packaging

Stronger regulation is essential to reducing the number of misleading, lookalike products that closely resemble certified compostable packaging. These deceptive products create confusion and cause the contamination of FOGO services, undermining efforts to keep organic waste streams clean. To address this issue, clear packaging standards and labelling regulations must be implemented to prevent non-compostable packaging from being mistaken for compostable alternatives.

However, regulation alone won’t solve the problem. Education plays a crucial role in helping both consumers and businesses recognise compostable certifications, distinguish certified products from lookalike packaging, and understand the correct disposal methods to ensure compostable packaging reaches the right waste stream.

At Compost Connect, we offer a wealth of educational resources for both businesses and individuals looking to manage their waste and compost. Through initiatives like Compost for Climate, they can become champions for composting by learning how to compost at home or in their business, understanding home and industrial compostable logos, knowing what belongs in their compost bin, and urging local councils to expand composting programs.

Compost for Climate key visual with a seedling and a campaign logo.

How Compostable Packaging Supports the Circular Economy

Critics claim that certified compostable packaging does not align with circular economy principles. But such arguments overlook several key benefits:

  • Enhanced Organic Recovery: Compostable packaging helps capture food waste that might contaminate recycling streams or end up in landfill.
  • Soil Regeneration: Compost from FOGO systems replenishes nutrients and captures carbon in the soil, supporting agriculture and reducing the need for synthetic fertilisers.
  • Reducing Fossil-Based Plastics and Contamination: Compostable packaging helps reduce the use of non-recyclable, low-value plastics, which often contaminate recycling and composting systems, making them less effective.
  • Renewable Resources: Compostable packaging reduces dependence on finite fossil-based resources by using agricultural residues and plant-based as raw materials, contributing to a more sustainable materials cycle.

The NSW EPA’s claim that compostable bioplastics do not add value to compost misses the bigger picture. While compostable materials provide similar carbon benefits to some food organics, their true impact lies in boosting food waste recovery, reducing contamination, and preventing microplastic pollution in soil.

Infographic presentation of Compost Connect and the Circular Economy with images of food scraps, food packaging materials, and compost.

FOGO’s True Purpose and the Role of Compostable Packaging in Its Success

The core mission of Food Organics and Garden Organics (FOGO) services is to divert food waste from landfill, cut greenhouse gas emissions, and turn organic waste into nutrient-rich compost. This aligns with the circular economy by ensuring that waste is transformed into a valuable resource rather than being discarded.

Policies or misconceptions that limit the role of compostable packaging risk undermining FOGO’s effectiveness. Restrictive measures can reduce food waste recovery and diminish the environmental benefits of organics recycling programs.

International case studies show the positive impact of integrating certified compostable packaging into FOGO systems. Italy and South Australia embrace compostable solutions and have reported lower contamination rates and higher-quality compost, demonstrating that certified compostables can enhance organic waste recovery rather than hinder it.

Six Key Strategies for Effectively Integrating Compostable Packaging into FOGO

Rather than viewing certified compostable packaging as a challenge, recognising it as a solution can help align policies with broader sustainability, resource efficiency, and environmental regeneration goals. To unlock the full potential of compostable products in FOGO systems, here are six practical steps:

  1. Enforcing Certification Standards: Implementing stricter regulations to ensure that only ABA-certified compostable products are accepted in FOGO programs will address concerns about contamination and maintain material quality.
  2. Enhanced Community Education: Providing clear guidelines for households and businesses on what belongs in FOGO bins will help reduce contamination and support correct waste sorting.
  3. Investing in Infrastructure: Expanding composting facilities with the right processing technology and contamination management systems will ensure that certified compostable materials are processed effectively.
  4. Periodic Testing: Conducting regular testing of certified packaging and compost will confirm compliance with safety and quality standards, reinforcing trust among councils, businesses, and consumers.
  5. Creating Market Incentives: Providing financial support, such as subsidies for businesses using compostable packaging and funding for composting infrastructure, will help drive wider adoption and scale up circular practices.
  6. Collaboration with Research Institutions: Partnering with universities and environmental organisations will promote innovation in compostable material design and composting technologies, ensuring continuous improvement in organic waste management.
A person placing compostable packaging and cup into a green-lid bin.

Why Banning Compostable Packaging is a Step Backward

Restricting compostable packaging from FOGO is a step in the wrong direction. Excluding these undermines Australia’s progress toward a circular economy and creates unnecessary roadblocks to effective organic waste recovery. By banning compostable products, we risk:

  • More Waste Sent to Landfill: Food-contaminated packaging that could be composted will instead end up in landfill, increasing greenhouse gas emissions, wasting valuable resources, and exacerbating Australia’s landfill capacity crisis.
  • Slowing Innovation and Industry Growth: The compostable packaging industry offers Australia an opportunity to lead in sustainable material innovation, creating jobs and export opportunities. 
  • Missed Educational Opportunities: Excluding compostable products from FOGO services limits public education efforts and prevents behavioural shifts that support responsible waste management and circular practices.

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