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Credit: Marcell Viragh

Australia’s packaging industry faces mandatory regulations

Australia’s packaging industry is set for a major overhaul as mandatory regulations are introduced to combat waste and address the use of harmful chemicals. 

In response to the industry’s failure to meet voluntary targets, federal, state, and territory environment ministers have unveiled initial details of the upcoming regulations.

Manufacturers must now comply with new design standards, prioritising waste reduction from the early stages of packaging production. These standards will encompass various aspects, including the incorporation of recycled materials. Moreover, regulations will be implemented to ensure the safe and sustainable use of chemicals in food packaging, with a focus on protecting consumer well-being and the environment.

In a joint statement, the ministers emphasised the critical role of waste-minimizing packaging design. They underlined that more than 70% of an item’s environmental impact is determined during the design phase, long before it reaches consumers or enters the reuse and disposal cycle. The ministers called on packaging companies to take full responsibility for managing their waste and reducing their environmental footprint.

Last month, federal government officials confirmed the impending introduction of mandatory regulations following the Australian Packaging Covenant Organisation’s failure to achieve voluntary targets for significant landfill reduction and increased packaging recovery and reuse by 2025.

The fashion industry has also been put on notice, potentially facing regulation if a new voluntary waste reduction levy fails to deliver the desired outcomes. Federal minister Tanya Plibersek recently launched the scheme, which will be funded through a four-cents per item levy for participating businesses. Plibersek emphasised her readiness to enforce the levy herself if the industry fails to proactively adopt it.

The ministers reiterated the commitment of Australian governments to regulate the packaging industry, building on their existing efforts in this area. They additionally agreed to develop a national roadmap aimed at improving consistency in kerbside collection methods, with further discussions scheduled for the coming year.

The Australian Retailers Association (ARA), the leading representative body for the retail industry, has welcomed the decision made today at the National Meeting of Environment Ministers to introduce national standards and design rules for packaging. This significant move towards a circular economy is seen as a positive step, providing greater clarity for retailers and contributing to the reduction of environmental waste.

ARA CEO Paul Zahra expressed his satisfaction with the announcement, highlighting that the ARA has been a staunch advocate for a unified national framework aimed at reducing the challenges and expenses associated with enhancing packaging recyclability. This development will greatly assist retailers in their transition towards more sustainable practices.

“With the profound shifts in environmental challenges and customer expectations, retailers have a strong appetite to reduce waste and embrace more sustainable materials. It’s pleasing to know that they have the Federal Government’s support in undertaking this transition.  

“Many businesses – particularly those who operate nationally – have found it extremely challenging to respond to incremental state by state bans, such as what we’re seeing with single-use plastics. Having a national approach reduces cost, complexity and increases compliance.  

“Consumers and businesses alike are fully supportive of embracing a circular economy, and this decision takes us one step closer.” 

Mr Zahra said it will be important for the Federal Government to complement this decision with increased investment in recycling infrastructure.  

“The RedCycle issue showed us that no single business or entity can take on this vital job alone. We hope the Government will commit to funding further recycling infrastructure to support this transition.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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