ACCC backs new soft plastics recycling scheme

The Australian Competition and Consumer Commission (ACCC) is supporting a new push to address the nation’s mounting soft plastics waste, almost three years after the collapse of the REDcycle program.

The proposal involves a voluntary recycling initiative led by the Soft Plastics Stewardship of Australia (SPSA). Its goal is to re-engage the public in returning soft plastics, such as shopping bags, bread bags, and snack wrappers, for proper recycling rather than landfill disposal.

REDcycle, once a high-profile soft plastics collection service, ceased operations in November 2022 after it was discovered that huge quantities of collected materials had not been processed. Instead, they were stored in warehouses across multiple locations, leaving an enormous backlog of unrecycled plastics.

Following this collapse, the ACCC collaborated with major supermarket chains through the Soft Plastics Taskforce to remove the stockpile intended for REDcycle. The interim solution saw more than 120 supermarkets nationwide introduce in-store collection points for soft plastics, a service that is expected to continue until July next year.

The new SPSA scheme aims to build on these temporary arrangements and expand collection capacity. The plan involves not only continuing in-store drop-off options but also exploring kerbside collection pilots to make recycling soft plastics easier for households. This approach is intended to divert significant amounts of plastic waste from landfill while also restoring public confidence in the system.

Several leading retailers and food manufacturers have committed to the initiative from the outset. Founding members include Aldi, Woolworths, and Coles, along with Nestlé, Mars, and McCormick Foods. These businesses will play a role in funding and supporting the collection, transportation, and recycling processes required to keep soft plastics in circulation.

The ACCC sees the SPSA program as a critical step in building a sustainable nationwide solution for soft plastics recycling. It is designed to operate within a voluntary framework, allowing businesses to contribute collaboratively without creating excessive compliance burdens. The initiative is expected to help close gaps left by REDcycle’s collapse and lay the groundwork for a more resilient recycling system.

The plan also recognises the challenges that have historically hindered soft plastics recycling in Australia. Processing these materials requires specialised equipment and facilities, and the costs of collection and recycling often outweigh the value of the recovered plastic. By pooling resources and commitments from multiple industry players, the SPSA aims to address these issues in a coordinated way.

As part of the scheme, participating supermarkets will maintain designated collection points where customers can deposit clean, dry soft plastics. The collected material will then be transported to approved recycling partners capable of converting it into usable products, such as outdoor furniture, building materials, or packaging components.

The introduction of kerbside pilots under the scheme will be particularly significant. This approach has the potential to make recycling soft plastics more convenient for households by allowing them to include these materials with other recyclables, provided they are prepared correctly. Kerbside collection could also help capture more material from regional and rural areas where in-store drop-off options are limited.

The ACCC’s role will include monitoring the scheme’s performance and ensuring participating companies follow through on their commitments. By fostering transparency and accountability, the commission aims to avoid the setbacks that plagued earlier efforts.

The SPSA initiative is also expected to educate the public on how to recycle soft plastics effectively. Clearer guidelines on what can and cannot be recycled, along with reminders to ensure items are clean and free from food residue, will be essential to improving recycling rates.

Longer-term, the hope is that the scheme will help develop domestic markets for recycled soft plastics, reducing reliance on overseas processing and creating local employment opportunities in the recycling sector. The involvement of large retailers and manufacturers from the outset is likely to provide the scale and funding needed to make this possible.

If successful, the SPSA program could mark a turning point for soft plastics recycling in Australia. By combining supermarket convenience, industry backing, and regulatory oversight, it has the potential to rebuild public trust, reduce environmental impact, and establish a more sustainable approach to managing this challenging waste stream.

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