BioPak’s Review of Australia’s Circular Economy Framework

The Australian Government has taken a significant step towards sustainability with the introduction of Australia’s Circular Economy Framework. This ambitious strategy aims to double the country’s circularity rate by 2035, supporting a transition where waste is designed out, resources remain in use for as long as possible, and natural systems are regenerated. While the framework sets a positive direction, it remains a high-level vision that requires tangible regulatory support to ensure its success.

Australia's circularity rate, which measures the proportion of materials used that are not virgin resources, is estimated at just 4.6%, which is much lower than the global average of 7%. 

Circularity is assessed through various metrics, including materials use, energy consumption, emissions, and economic factors. As a major exporter of raw materials, Australia generates large volumes of low-value waste, such as mine tailings, unlike regions like the EU, which import resources and externalise these waste streams.  

Australia's geographic size, dispersed population, and high infrastructure demands further impact its circularity potential. These factors mean that even a 1% improvement is significant, and doubling circularity is more challenging than in other nations. 

At its core, the framework establishes clear targets, including reducing Australia’s material footprint by 10%, increasing material productivity by 30%, and safely recovering 80% of resources. 

We’re pleased to see that these targets prioritise circular packaging as well as durable, reusable and sustainable goods. They also highlight the need to reduce the amount of food waste going to landfill, a cause BioPak actively supports through Compost Connect.

Achieving these goals would have substantial environmental and economic benefits, including a projected annual GDP increase of $26 billion, diversion of 26 million tonnes of materials from landfill each year, and a reduction in greenhouse gas emissions by 14% by 2035.

The Department of Climate Change, Energy, the Environment, and Water (DCCEEW) has also aligned the framework with broader sustainability initiatives, such as the National Waste Policy and Australia’s Climate Change strategies, reinforcing the shift towards a regenerative economic model. Additionally, the framework supports international commitments like the Global Biodiversity Framework, the Basel Convention, and the UN Sustainable Development Goals, positioning Australia as a leader in global sustainability efforts.

mandatory regulatory intervention crucial. As such, the framework’s success will depend on the development of supporting federal and state laws that create accountability for the government, the industry and businesses. Australia's Packaging Regulatory Reform, currently under development, is one such initiative that could help align policy with the framework’s objectives.

Additionally, policymakers should take note of the recent study by the Product Stewardship Centre of Excellence which highlights how intelligent regulation, in the form of mandatory product stewardship schemes, is a proven and effective approach to:

• Stimulating investment: Regulation provides incentives for private sector investment, including in more challenging economic conditions.

• Ensuring that the investment is efficient: Well-designed regulation ensures that investment is aligned with the long-term interests of the community, promoting long-run economic efficiency.

• Driving productivity and competitiveness: Regulation provides incentives for innovation and technological growth, driving productivity and competitiveness. 

This approach is key to ensuring that the circular economy transition is not just aspirational but actively enforced and successful. 

One area of concern within the evolving regulatory landscape is the lack of strong support for compostable packaging. It has been proven that certified compostable packaging aligns well with the circular economy by reducing reliance on fossil-based plastics, supporting organic waste diversion, and replenishing soil health through composting.  

BioPak supports a framework that clearly defines the role of compostable packaging in applications, like the foodservice industry, where it contributes to the nation’s environmental goals, utilisation of existing infrastructure, and business operations. BioPak advocates for the national ban of harmful substances like PFAS, mandatory certifications, and product labelling to prevent greenwashing, lookalike products and disposal confusion.

A clear stance and intelligent regulation of compostables at the national and state levels will provide certainty for businesses and encourage stakeholders to invest in research, new compostable materials, waste sorting machinery, and optimised composting processes at commercial composting facilities.

Certified compostable packaging has many business and environmental benefits that directly support Australia’s transition to a circular economy by addressing several key challenges:

• Reducing Landfill Waste: Over 1 million tonnes of paper and fibre materials are sent to landfill annually due to contamination and insufficient repulping capacity. Compostable packaging enables these materials to be processed alongside organic waste.

• Replacing Fossil-Based Plastics: By substituting single-use plastics with bio-based materials, compostable packaging reduces reliance on finite resources and eliminates food contamination of traditional plastic recycling.

• Supporting Local Composting Infrastructure: Composting provides a hyper-local solution, reducing reliance on landfill and supporting regional economic and infrastructure development.

• Regenerating Natural Systems: Compostable packaging and food waste can be turned into nutrient-rich compost, which is used to replenish soils, enhance agricultural productivity, and aid carbon sequestration.

1. Policy and Regulation

• Maintain a Clear Role for Compostables: Compostable packaging should not be sidelined in new packaging regulations. Instead, it should be allowed where appropriate, with strict guidelines on its use and disposal.

• Regulate Effectively: Regulations should include bans on harmful substances such as PFAS, and require clear certification and labelling to ensure compostable materials are properly distinguished from traditional plastics.

2. Infrastructure and Investment

• Invest in Composting and Sorting Technology: Extended Producer Responsibility (EPR) fees should be reinvested into building composting capacity and contamination reduction technology.

• Provide Market Certainty: A national and state-level policy framework that recognises the role of compostables will allow industry stakeholders to invest confidently in innovation, infrastructure, and certification.

3. Consumer Awareness and Global Best Practices

• Strengthen Consumer Awareness: Public education campaigns should be expanded to increase awareness of compostable packaging and correct disposal methods. This will reduce contamination and improve the efficiency of organic waste recovery systems.

• Leverage Global Best Practices: Australia should look to international leaders in circular economy practices, such as Italy, which has successfully implemented an extended producer responsibility scheme for the bioplastic industry..

4. Research and Innovation

• Expand Research and Development: Continued investment in material science and composting technologies will drive further innovation in compostable packaging solutions.

The transition to a circular economy will require significant effort, but with clear guidance, strong regulatory support, and multilateral collaboration, Australia can successfully shift towards a sustainable, low-waste future. BioPak supports the framework’s ambitions and urges policymakers to ensure compostable packaging is properly integrated into the circular economy framework.  By leveraging existing research, technology, and infrastructure, Australia can make meaningful progress and establish itself as a global benchmark for waste reduction and material efficiency.