The Australian Retailers Association (ARA) have raised caution on a recycling traceability framework that was endorsed by Australia’s environment ministers at a meeting last week.
According to the meeting’s communique, a national traceability framework will give businesses confidence in what they are buying when purchasing recycled materials or products made from recycled materials.
“This is a world-leading initiative and other countries are looking to Australia to show how this can be done,” the communique read. “A traceability framework is key to driving the reuse of recovered plastics, glass and other materials, into new products – and to our transition to a circular economy.
“Users of recycled content will be confident that material they are using is free of hidden harmful chemicals or other contaminants, as well as where that material has been sourced from – whether Australia or overseas.”
ARA CEO Paul Zahra said the association remains cautious about the proposed recycled content traceability framework.
“[This] will add complexity and cost for retailers who want to use more recycled content, potentially creating an undesirable outcome where virgin material remains more attractive,” Zahra said.
“The proposal to develop robust processes around traceability has our overall support but this is a very ambitious initiative without any global precedent.
“It is critical that any framework starts as voluntary to incentivise the early movers who will invest in innovation and infrastructure, without presenting an unacceptable and potentially unavoidable compliance risk for the rest of the sector.”
The environment ministers also agreed to a framework that will accelerate product stewardship schemes by “better-coordinating work across governments”. They said these schemes play a key role in holding producers accountable for managing their waste and driving circularity.
“However, these schemes are not open-ended, and where industry does not respond sufficiently government will regulate – as is happening with photovoltaic systems, electrical and electronic equipment, problematic single-use plastics and packaging – including oil containers,” the communique read.
“Others, such as the clothing textiles industry, are on notice for the need for action: if voluntary product stewardship doesn’t work, government will regulate.”
The ministers also agreed that the Federal government will step up as the new regulator of packaging standards. They said the Federal government will mandate how packaging is designed, will set minimum recycled content requirements, and prohibit harmful chemicals being used.
“This will make decisions at the checkout much easier for shoppers, who won’t have to spend precious time comparing the environmental credentials of different products.
“Australia’s new Federal national packaging laws will provide regulatory certainty and consistency, and make businesses take responsibility for the 6.7 million tonnes of packaging they place on the Australian market.”
In response, Zahra said while retailers have made progress in shifting packaging and embracing circularity, a lack of harmonisation and collaboration across the states and territories has made the changes more complex and costly than necessary.
“Minimising the environmental impact of packaging is a critical issue for our sector," Zahra said. "But the current approach has limitations that have resulted in an uneven playing field, constrained innovation and slowed the transition to sustainable packaging.
“Provided government regulation does not cost more than co-regulation, we welcome the shift to regulate packaging design and mandate minimum recycled content standards. We believe this will provide retailers and suppliers with the certainty they need to swiftly and confidently implement positive change.
“We also acknowledge the common intent of all levels of government around product stewardship, which will play a key role in the transition to a circular economy. With more than 100 schemes already in place, retailers are well-versed in implementing and managing these schemes, which are already making a positive difference for consumers and the environment.”
The communique also outlined measures to improve planning and response to reduce the environmental impact of natural disasters, which the ARA also commended.
“However, we renew our call for national resilience planning measures to be established in collaboration with industry to help steer and support communities through climate-related crises such as bushfires and floods,” Zahra said.
“Collectively, governments, business and community organisations have learned a lot from the recent disasters. We know these risks are increasing but we have yet to see a national framework with a set of agreed protocols around our response when these disasters strike.
“Whether it be managing the impact of natural disaster, accelerating the transition to a circular economy or embracing product stewardship, we will only be successful if governments, industry and communities understand the plan and work together.”