Good news for sustainable packaging. On the 10th of November 2023, Australia’s Environment Ministers released a series of announcements following the Environment Ministers’ Meeting which discussed the critical next steps to transition Australia to a circular economy.
Excitingly, the Federal Government has set ambitious national targets for the transition to a circular economy by 2030, which will ultimately shape the sustainable packaging industry in Australia.
These targets include the Federal Government:
- Stepping up to become the regulator of packaging design standards
- Setting minimum recycled content requirements
- Prohibiting the use of harmful chemicals in packaging
In light of these announcements, let’s explore the circular economy, why it’s important, what the latest announcements mean for the packaging industry, and most importantly, what businesses can do to prepare.
What Is the Circular Economy?
The circular economy is an approach to sustainable consumption and production. In a circular economy, products are shared, leased, reused, repaired or recycled for as long as possible, after they’ve served their initial purpose.
This is contrary to the linear economy we favour right now, where raw materials are used to create products that are thrown away after use. It’s an unsustainable ‘take, make, dispose’ model.
Why Is the Circular Economy Important?
The Ellen Macarthur Foundation, a charity committed to creating a circular economy, states that through a circular economy we can address three key principles:
- Eliminate waste and pollution
- Circulate products and materials
- Regenerate nature
Not only that, by shifting to a circular economy we can get more value out of the materials already in circulation. This can build an economy that benefits people, businesses and the planet at large.
Why Do We Need a Circular Economy for Packaging in Australia?
Packaging often gets a bad rap. But when it comes down to it, our current society needs packaging – whether it be for safety, security or transportation means.
The problem is that most packaging is still made from raw materials, following the linear ‘take, make, dispose’ model.
Let’s look at some stats. In Australia in 2020 - 2021, there were 6.74 million tonnes of packaging placed on the market. Of that, 86% of the packaging had good recyclability, and yet a whopping 44% of packaging was sent to landfill.
If all that packaging had been recycled instead, we’d have reduced our national greenhouse gas emissions by 2.2 million tonnes (source).
So, it’s clear that while packaging isn’t going anywhere anytime soon, the way we approach it ought to change for the good of the environment.
The good news is the federal government are taking action. A collective sigh of relief.
The Environment Ministers Meeting Set Ambitious Targets To Transition to a Circular Economy By 2030
After meeting in Adelaide on the 10th of November 2023, Australia’s Environment Ministers have set a new course for sustainable packaging in Australia.
The Federal Government agreed to work alongside the private sector to design out waste and pollution and embrace a circular economy by 2030. This builds on the existing National Waste Policy – a framework for waste and resource recovery in Australia.
Not only that, the Minister for the Environment and Water, Tanya Pilbersek, has established the Circular Economy Ministerial Advisory Group to help guide the government through the transition.
Three Key Takeaways From the Announcement
1. The Federal Government Will Regulate How Packaging Is Designed
The Federal government are stepping up as the regulator of packaging standards. This means they will collaborate with the private sector to ‘design out’ waste (for example, shifting from conventional plastic to the innovative plant-based materials we use at BioPak). They will ultimately have the final say over how packaging is designed.
On top of this, the Federal government will also set minimum recycled content requirements, which will increase demand for recycled content, and as a result, recycling rates.
The Federal government will also prohibit the use of harmful chemicals, like PFAS (AKA ‘forever chemicals’ that persist in the environment). This is in line with the national PFAS Position Statement that states more effort should be spent on preventing more PFAS from entering the environment. At BioPak, the majority of our products don’t have intentionally added PFAS and we’re on track to be the first in our industry in Australia to phase out PFAS completely from our production by the end of 2023.
By mandating packaging design, setting minimum recycled content requirements and prohibiting harmful chemicals, the Federal government will make purchasing packaging more straightforward for businesses and consumers alike. It will also prevent various forms of greenwashing, as everyone will need to adhere to these mandates. Not only that, it will work to minimise waste going to landfills and support the circular economy.
2. There Will Be a National Traceability Framework for Recycled Materials
This involves more information and transparency surrounding where recycled material has been sourced from – whether that’s Australia or overseas. The national traceability framework will give businesses and consumers more confidence about what they’re buying. This also helps to ensure recycled materials are free from hidden harmful chemicals, like PFAS.
3. Framework To Improve Product Stewardship
Product stewardship is all about Brand Owners stepping up by managing the environmental impacts of their products and materials throughout their production, use and disposal. As part of this recent announcement, Environmental Ministers have set up a framework to accelerate product stewardship by improving coordination between state and territory governments.
This will ultimately hold producers accountable for their role in the circular economy. It’s important to note, that if voluntary product stewardship doesn’t work in certain industries, the government can take further action through regulation.
What Does This Mean for the Foodservice Industry?
The recent announcement highlights that changes to single-use packaging are on the horizon, which will have a direct impact on the foodservice industry (as well as many other industries that require packaging). This means that businesses should start to prepare now to stay well ahead of any firm regulations and bans.
If you’re a foodservice business that partners with BioPak, you can rest assured you have a futureproof packaging solution. At BioPak, we collaborate with industry and government to set new legislation, so we’re always ahead of any bans. We invest in continuous research and development, so we’re always bringing the most viable solutions to market. Not only that, we’re on track to be the first in our industry in Australia to completely phase out intentionally added PFAS from our production.
Finally, these announcements from Australia’s Environment Ministers present a promising future for Australia’s packaging industry. A future where plant-based packaging made from innovative materials and designed for the circular economy will lead the way. A vision we share at BioPak.
