Australia's Packaging Regulatory Reform: BioPak’s Response

As the global packaging landscape shifts, Australia is making strides to reshape its approach to packaging regulation. Recently, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) released a proposal outlining new strategies to tackle the challenges posed by waste from single-use packaging. This packaging regulatory 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.

Currently, Australian organisations operate under voluntary guidelines for packaging sustainability, managed by the Australian Packaging Covenant Organisation (APCO). However, despite substantial industry effort, the voluntary approach has not achieved the targeted reduction in waste. Recognising the need for a more impactful strategy, DCCEEW has proposed a new regulatory framework aimed at strengthening Australia’s transition to a more sustainable packaging system. The proposed solutions include options for industry-led, co-regulatory, and extended producer responsibility (EPR) models, with the intention of balancing environmental, social, and economic impacts.

This option proposes to maintain Australia’s existing co-regulatory packaging system but strengthen it by improving compliance and enforcement. While it could enhance packaging sustainability to some extent, it relies heavily on state and territory governments for enforcement. This approach has historically struggled with systemic issues, including addressing non-compliant businesses, which limits its potential to meet the overarching goals of packaging reform.

This option would establish a Commonwealth-led regulatory scheme with consistent, mandatory packaging requirements across Australia. It may include measures such as bans on problematic materials (e.g., oxo-degradables, PFAS), mandatory recycling labelling, and progressive restrictions on non-recyclable packaging. Businesses would be required to register, comply with these requirements, and report annually on their progress. This approach offers a strong framework for eliminating harmful packaging and ensuring consistency across industries, though its implementation would need careful monitoring.

The EPR scheme introduces a national framework that places financial and regulatory obligations on producers to manage the lifecycle of their packaging. By incorporating eco-modulated fees, it encourages businesses to innovate in packaging design, prioritising recyclability and reducing environmental impact. This option also ensures continuous funding for the recycling system and fosters behaviour change across industries, presenting a scalable and consistent approach to tackling packaging waste.

BioPak welcomes the DCCEEW’s proposal and supports Option 3 for its potential to create a more accountable system. The extended producer responsibility (EPR) model, places significant responsibility on producers for the lifecycle of their packaging, from production to disposal. This approach encourages businesses to innovate with packaging that’s either recyclable or designed for a circular economy, reducing waste through repurposing and responsible end-of-life solutions. Such a scheme could transform how organisations manage packaging and waste, pushing the industry closer to a model that benefits people, businesses, and the planet alike. However, we believe there are critical areas that require further consideration to make this model effective for Australia’s unique needs:

1. Inclusion of Composting in Recycling Definitions
   Composting plays a vital role in diverting food and packaging waste from landfills. Recognising composting as a form of recycling is essential, as it allows for the recovery of organic material, aligning with the circular economy model. By classifying compostable materials as “recyclable” within this framework, the reform can fully integrate compostable packaging as a legitimate recovery pathway.
2. Support for Australian Compostability Standards
   BioPak advocates for Australian standards that clearly define compostability for packaging products. Without a consistent national standard, businesses and consumers face confusion about which materials are compostable. Recognising existing home and industrial composting certifications could help businesses develop packaging designed to break down efficiently and safely within Australia’s composting facilities.
3. Increased Investment in Composting Infrastructure
   To achieve meaningful impact, it’s critical that a portion of the funds collected from an EPR tax be channelled towards expanding composting capacity across Australia. Building this infrastructure will support the growth of a system where compostable packaging and organic waste are processed responsibly, reducing the environmental burden on landfills and strengthening local composting operations.
   
   Italy’s EPR system serves as an example of a well-balanced regulatory approach that incorporates compostable packaging into its waste management strategy. The Italian model highlights the potential of combining composting standards and investment in composting infrastructure to create an efficient, low-waste future. By considering similar provisions in Australia, DCCEEW’s reform could provide greater opportunities for sustainable packaging innovations.
4. Exemptions for Food Packaging Regarding Recycled Content Mandates
   We recognise that recycled content reduces reliance on virgin materials. However, maintaining stringent safety and hygiene standards is paramount for food packaging. BioPak recommends that recycled content requirements for food-contact packaging be adapted s to ensure consumer safety while allowing producers to continue delivering quality, food-safe packaging solutions. Some options like reclaimed sugarcane fibre or PET made from recycled bottles are safer than others.

As Australia takes this pivotal step forward, BioPak is committed to taking a stand for the environment by advocating for policies that prioritise a circular economy, reduce waste, and support the broader transition towards sustainable packaging.

1. Cost-Effectiveness and Global Best Practice
   BioPak supports Option 3 for its cost-efficiency and alignment with global best practices. Under EPR, businesses bear the costs associated with managing their packaging waste, shifting this responsibility from taxpayers to producers. This model is widely regarded as effective, as it holds companies accountable for the impact of their products, fostering a circular economy that minimises waste and maximises resource recovery.
2. Assurance of Sustained Financing for Recycling
   Unlike other reform options, Option 3 ensures ongoing, independent financing for recycling initiatives. By establishing a continuous funding stream, EPR incentivises the development of a more resilient recycling infrastructure. This approach encourages businesses to innovate in packaging design, improving recyclability rates and reducing the environmental impact of packaging.
3. Commitment to Reform Principles
   BioPak values the principles underlying the EPR framework, including clear, enforceable industry obligations and flexibility to innovate in recycling processes. Importantly, EPR aligns with international standards, fostering a more transparent and accountable system for packaging waste management in Australia.

To maximise the impact of EPR, BioPak has outlined specific recommendations aimed at enhancing the effectiveness of the scheme and promoting packaging designed for a circular economy:

1. Advanced Fee Modulation
   BioPak advocates for advanced fee modulation, where fees are adjusted based on packaging materials and their optimal disposal methods. For instance, a portion of fees collected from compostable packaging could fund composting infrastructure, supporting the development of systems that align with the circular economy. By directing resources towards suitable end-of-life solutions, advanced fee modulation could strengthen Australia’s recycling and composting capacities.
2. Eco-Modulated Fees
   In addition to advanced fee modulation, BioPak supports eco-modulated fees, which reward packaging options that are better for the environment, such as those made from renewable resources, certified compostable materials, and free from harmful substances like PFAS. This fee structure encourages the production of sustainable packaging, reducing the environmental footprint of the industry and driving sustainable packaging innovation.
3. Mandatory Recyclability Labels and Recycled Content Thresholds
   BioPak believes mandatory recyclability labels and recycled content requirements are critical for an effective EPR system. Clear labels educate consumers on responsible disposal methods, while minimum recycled content thresholds reduce dependence on virgin materials. Such measures promote a more informed approach to waste management, ensuring packaging is disposed of responsibly and consistently.

Furthermore, BioPak advocates for recognising compostable packaging within the circular economy framework. Compostable materials provide an essential solution for food-contact packaging, where contamination often complicates mechanical recycling. By including composting as a form of recycling and recognising Australian compostability standards, the EPR scheme can encourage the growth of packaging solutions that are both practical and beneficial for Australia’s unique waste management challenges.

BioPak is committed to taking a stand for the environment by supporting a packaging regulatory reform that prioritises environmental accountability, industry responsibility, and innovation. With the right framework, Australia can achieve its national targets, reduce packaging waste, and establish a fair, competitive landscape for the industry. Through extended producer responsibility (EPR), BioPak envisions a future where packaging is designed for a circular economy—an approach that balances the needs of people, the planet, and business, ensuring a more sustainable and responsible future.

For further reading on Australia’s journey toward a circular economy, see BioPak’s insights on the Australian Government and the Circular Economy.