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NATIONAL PLASTICS RECYCLING SCHEME

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A new path for soft plastic packaging in Australia 

The National Plastics Recycling Scheme (NPRS) project is being developed by
Australia’s food and grocery manufacturing industry with funding support from
the federal government. The NPRS project is designing Australia’s largest
industry-led plastics recycling scheme, taking hard-to-recycle soft plastic
packaging out of waste streams and giving it new life.

The NPRS project will make it easier for people to recycle soft plastics at home
and creates a new advanced recycling industry here in Australia that can turn
used soft plastics back into new food-grade packaging. This creates a circular
plastics loop and cleaner recycling streams for all materials, including paper
and cardboard. The NPRS project unites brand owners, manufacturers, recyclers
and consumers in one powerful, nationwide scheme to transform our plastics
problems into circular solutions.



The Australian Food and Grocery Council is developing the NPRS with funding
support from the Australian Federal Government’s National Product Stewardship
Investment Fund.


HOW IT WORKS

 * The NPRS will collect soft plastic packaging, things like bread and cereal
   bags, frozen vegetable packets, confectionery wrappers and plastic toilet
   paper wrap.
 * As an industry-backed scheme, food and grocery manufacturers pay a small levy
   to support the cost of collection and administration.
 * Collection will be through an expanded kerbside collection program.
 * The bags are extracted from recycling streams at sorting facilities and sent
   for processing.
 * After being sorted, cleaned and shredded, separate soft plastic types are
   sent to advanced recycling facilities where high-tech processes break the
   plastic back down into oil – the same type of oil that plastic is made from
   in the first place.
 * That “plasticrude” oil is then ready to be made back into clean, food-grade
   plastic packaging.


TRIALS AND PILOTS

About the trials |The National Plastics Recycling Scheme (NPRS) project is
driven by Australia’s food and grocery manufacturing industry. Led by the AFGC,
the NPRS project is designing a scheme to take hard-to-recycle soft plastic
packaging out of the waste stream and recycle it into new, food-grade material.
As a true circular economy model, the NPRS project aims to make it easier for
people to recycle soft plastics at home and support the development of a new,
advanced recycling industry here in Australia. 



Collecting at scale | The AFGC received federal funding for the NPRS project in
2020 and since that time our work, and FMCG company commitments to purchase
recycled content, have changed the landscape for soft plastics recycling in
Australia. New confidence has led to announcements by several companies to make
capital investments in new, advanced recycling infrastructure and a supply chain
that can create food-grade recycled soft plastic packaging.  

The NPRS project is now focused on scaled collection and has secured broad
support from local councils and the waste and recycling industry for kerbside
collection of soft plastics. To find the best model for expanded kerbside
collection and processing, limited trials of kerbside collection are being
carried out in six Local Government Areas across Victoria, New South Wales and
South Australia from November 2022 to March 2023.  

Dedicated kits for bag-in-bin trials | Households in trial areas receive
specially produced kits containing information on what soft plastics can be
recycled and how to recycle them. The kits contain special recycling bags
produced and printed for the trial. Participants will be instructed in how to
fill the bags, close them and put them in their yellow-lid kerbside recycling
bin. Only households in the selected trial areas can take part in the bagged
soft plastics recycling trial. 

The bins will be collected and taken to a Materials Recovery Facility (MRF) as
usual. At the MRF, the recycling bags will be extracted from the waste stream
and sent for sorting and processing. The trials will help design the model for
kerbside collection and sorting, one that provides a clean stream of used soft
plastics and can be scaled up for an emerging advanced recycling industry.  

Gathering data | Some councils have decided to run their trials for up to 12
months but the NPRS project will gather data at the three month point to assess
the uptake and effectiveness of collection and sorting, as well as quality of
material returned. A customer satisfaction survey will also be conducted. All
this information will map the landscape of Australian soft plastics recycling
for the first time.

AFGC member companies have signed on as Foundation Supporters of the NPRS
project, committing funds to the trials and pilots. To view the full list of our
valued Foundation Supporters go to our USEFUL LINKS section and scroll down to
NPRS PROJECT FOUNDATION SUPPORTERS.


MEETING AUSTRALIA’S NATIONAL PACKAGING TARGETS

The NPRS is a key plank of helping to meet Australia’s National Packaging
Targets. By laying out a plan for plastics recycling from collection, through
recycling and onto new end markets, the NPRS will help build a genuine circular
economy for plastic packaging.


THE CHALLENGE

The NPRS aims to increase the amount of plastic recovered by 190,000 tonnes a
year – that’s almost 38,000 five-tonne garbage trucks and one third of the soft
plastic waste that currently goes to landfill each year.



This will be achieved through kerbside collection of soft plastics and expanded
bring-back systems to create a clean stream of valuable materials to be recycled
and remanufactured as new plastic packaging, ready to head back to the
supermarket shelf.


COUNCILS AND SUPPLY CHAIN

Q: What packaging materials are in scope of the NPRS?

A: Subject to trial results, the scheme plans to collect household post-consumer
soft (flexible) plastic packaging from food, grocery, fashion, hardware,
healthcare, electrical and general merchandise, and plastic shopping bags used
in retail stores or for online shopping. The scheme will not initially focus on
post-industrial or post-commercial soft plastics as we understand collection
services are developing quickly for those materials. 

The focus on soft plastics is aimed at providing the critical feedstock required
for infrastructure investment. Creation of that infrastructure will then allow
for processing from other sectors and materials, such as bottle lids from glass
beneficiation, agricultural plastics and other multi-layered commercial films. 

 Q: How will the soft plastics be collected and why?

A: The proposed NPRS is open to collection methods that meet the criteria of
community convenience – essential for high volumes of material – and
high-quality inputs to meet processing quality specifications.  

To attain high volumes, the focus will be a “bag-in-bin” kerbside collection
model. A cost benefit analysis provided by a waste consultant recommended
kerbside collection as the most efficient and effective collection method, due
to economies of scale and consumer convenience.  

It is proposed that households will use a purpose-designed bag to collect soft
plastics. The bag is tied shut and placed in kerbside “yellow lid” recycling
bins. Large-scale kerbside collection can be complemented by return-to-store
collection initiated by the supermarket retailers comprising the Soft Plastics
Taskforce. In areas not serviced by kerbside or return-to-store services,
collection via other community waste collection centres will be utilised. 

 Q: What products are going to be created from the material?

A: After being shredded, decontaminated and sorted, the soft plastic will be
sent for further processing according to a waste hierarchy, with priority given
to the creation of high-quality, food-grade plastic packaging through advanced
recycling. Advanced recycling breaks plastic down into oil that can be used to
make food-grade soft plastic packaging, reducing the use of virgin materials.
Lower value products in scope include mechanically recycled products such as
garbage bags, fence posts, asphalt and concrete additives.  

 Q: What infrastructure is required to do all this – collection, pre-processing,
processing, greenfield developments and site upgrades?

A: The NPRS will contract service providers in areas of the resource recovery
supply chain where there is a confirmed market failure. These can include
collection, sortation of soft plastics from other recyclables at MRFs,
pre-processing to meet quality specifications and advanced mechanical and
chemical recycling. 

The cost benefit analysis recommends collection using existing council recycling
kerbside collection services. There is scope within the NPRS to consider funding
to facilitate MRF upgrades, and contracts to design, build and operate
pre-processing facilities. Consideration is also being given to funding support
for advanced recycling, pending ACCC approval and recommendations from a
top-tier consulting firm. The AFGC is aware the federal government has confirmed
$60M in the Recycling Modernisation Fund (RMF) to specifically support
increasing the circularity of hard-to-recycle plastics, such as soft plastics,
as well as funding potentially being available through the National
Reconstruction Fund (NRF).  

 Q: How do the economics work, including how does the proposed scheme work?

A: The NPRS proposes to collect levies from brand owners (including
manufacturers and retailers of consumer products) across a broad range of
sectors, based on the amount of consumer soft plastic they place on market.
Levies will be structured to drive improved packaging design, recyclability and
increased use of recycled content through incentives and penalties. Levies
collected will be used to assist funding economic gaps in the soft plastic
recycling supply chain, including collection, sortation, pre-processing and,
potentially, advanced recycling. 

The levy structure for supporters of the pilots is currently being determined
and will be based on the supporter’s tonnage of soft plastic packaging placed on
market (excluding business-to-business soft plastic such as pallet wrap). As the
scheme moves into an operational phase, the levy paid will be eco-modulated,
providing incentive and penalty adjustments for recyclability and recycled
content in soft plastic packaging. 

The levy design is a result of extensive research and has been based on the
global best practice models of the Fost Plus and Nedvang schemes that operate in
Belgium and the Netherlands respectively. These schemes have been successful in
driving high recycling rates by maximising the investment in the recycling
sector. The scheme designs drive two outcomes: 

 1. As they are based on recyclability and recycled content, the recycling
    yields and market demand will increase, and
 2. The funds collected are directly invested in recycling infrastructure with
    longer-term, national contracts to drive investment confidence.  

These schemes differ significantly to the UK plastics tax, that is currently
being reviewed due to an apparent failure to drive investment in recycling
infrastructure and the inadvertent introduction of a barrier to increased
recycled content demand. By eco-modulating these levers within a scheme the
results can be assessed annually with periodic adjustments made to the levy
incentives and disincentives to drive real outcomes. The NPRS design is being
assessed by a top tier consulting firm with circular economy, economics and
capital investment expertise who will liaise with relevant parties in the coming
months. The results will be shared with relevant parties in due course.  

 Q: When will this be launched?

A: Initial trials began in late 2022 and the pilot phase, covering additional
households and expanded assessments on MRF impacts, is due to begin in late 2023
and continue into 2024. Pending positive outcomes from the pilots, the rollout
of an operational scheme is envisaged to start from 2025. It is important to
note that kerbside recycling collections will only be expanded in line with
contracted processing capacity.  

 Q: How will the NPRS ensure the majority of plastics is covered and that there
is and will continue to be high take-up from AFGC members?

A: To ensure the majority of plastics is covered, the AFGC is recruiting AFGC
members, retailers and users of soft plastics from other sectors such as food,
grocery, fashion, hardware, healthcare, electrical and general merchandise, and
plastic shopping bags used in retail stores or for online shopping.  

To be effective and equitable and to provide the required funding levels for
infrastructure development, the NPRS needs a broad base of participants. In
collaboration with the packaging co-regulator, APCO, industry participation will
be monitored to determine the proportion of liable parties that have joined the
scheme and identify problematic free riders. The federal environment minister
has made it clear in numerous public statements that regulation will be
considered should the scheme not be successful.  

 Q: Will the NPRS leave councils bearing scheme costs and risks?

A: The NPRS is being created to address market failures and economic gaps in
Australia’s soft plastic supply chain. It follows the established FOGO model
where landfill savings are invested in the system – such as in sortation and
processing infrastructure. NPRS levies paid by brand owners support those parts
of the system where there are identified funding gaps to avoid additional cost
on councils or ratepayers.  

Collection of soft plastics will only be scaled up in line with the addition of
contracted processing capacity in the NPRS scheme. This is a control to avoid
stockpiling situations and mitigate risks to councils and processors.
Collections may be via kerbside bins or drop-off at designated facilities. All
councils involved in the NPRS trials collaborated in designing collections,
messages, bags, audits and distributions. In the trials, all councils opted for
kerbside collection. While scheme design is yet to be finalised, collected
bagged material ownership is likely to remain with the NPRS to reduce the risk
for MRFs and councils and to ensure collected material is recycled. 

Q: Does the NPRS impose obligations on producers to utilise recycled content
collected or adhere to the CEFLEX design standard?

A: To incentivise recyclable packaging design, and maximise the recycling yield
and demand for PCR, the NPRS proposes to introduce higher levies for packaging: 

 1. not meeting CEFLEX design standards, and
 2. not containing targeted levels of PCR

 Q: Will soft plastic collections through MRFs contaminates other material
streams?

A: The NPRS understands this concern, and this is a primary driver of
undertaking extensive and costly trials and pilots. To assess and validate the
impacts on MRF operations and outbound material quality an independent auditor
has been engaged to provide qualitative and quantitative assessments of inbound
and outbound material quality, of trial material versus control samples.  

Additional independent reports assessing community feedback and the polymer
composition of collected materials will be shared in due course.  

 Q: Is there a lack of end market demand for recycled content?

A: Due to the current global shortage of food grade post-consumer recycled
content (PCR) for soft plastic packaging, brands cannot procure packaging
containing PCR to meet stringent food safety regulations. It is commonly
misunderstood that mechanically recycled resin can be used in packaging grade
soft plastic film manufacture, however this is incorrect as mechanically
recycled resins do not meet the specifications required for soft plastic
manufacturing.  

 Due to these factors, a recent report commissioned by Qenos determined a 99%
unmet demand for post-consumer soft plastic resin globally. That means current
supply only meets 1% of global demand. This global demand has driven the current
infrastructure development plans (see below). 

 Q: Is there a lack of end market processing capacity?

A: The NPRS has been designed by prioritising creation of end market capacity
that meets global food grade standards and will only expand collections once end
markets processors are contracted.  

Currently, recycling infrastructure can only meet 1% of global demand for
post-consumer recycled content that meets food-grade soft plastic manufacturing
standards and specifications (see above). Due to this market opportunity, there
are currently several published recycling infrastructure developments in various
stages of planning and commercialisation in Australia. These include: 

 * APR Plastics: Currently operating a research and development site with
   additional capacity scheduled for the second half of 2023.  
 * Qenos and Cleanaway: Currently planning investments in facilities capable of
   recycling 100,000 tonnes per annum. 
 * Licella: Through its subsidiary, Advanced Recycling Victoria, Licella has
   received government funding and planning approvals for stage 1 of the
   facilities capable of recycling up to 120,000 tonnes per annum.  
 * Brightmark: Currently seeking planning approval to construct a 200,000-tonne
   facility in central NSW. 

 * Viva Energy: Announced plans to accept 25,000,000 litres of bio-crude from
   quarter 1, 2024 at their Geelong facility for recycling back into food grade
   plastics. 




RESIDENTS TAKING PART IN COUNCIL-RUN TRIALS OF BAG-IN-BIN” SOFT PLASTICS
KERBSIDE RECYCLING

The AFGC and a number of local councils in Victoria, South Australia and New
South Wales are conducting trials of kerbside soft plastic packaging collection
in specially selected, designated areas. Residents in designated areas will
receive information about the trials from their local council and are urged to
participate. Here are some answers to common questions about the trials.

Q: I am in the trial area and I have received a kit. What do I do now?

A: Your household has been provided with a pack which contains special bags to
collect soft plastic packaging. When a bag is full like a pillow, place it in
your recycling bin for the regular council kerbside collection.

Q: I have received a pack, do I have to participate?

A: Taking part in this trial is not compulsory but we’d love you to participate.
Full participation in the trial will help build the right model for successful
bagged soft plastics recycling in Australia. And you might be surprised at how
much more space you have in your regular rubbish bin come collection night.  

Q: Is this trial free?

A: Yes, the trials are free. Thanks to the support of the Australian Food and
Grocery Council, the Australian government, the food and grocery manufacturing
industry and participating local councils, this trial service is provided at no
cost to participating households.   

Q: What do we mean by “soft plastic packaging”?

A: Soft plastic packaging includes the “scrunchable” plastic bags and wrappers
that food, grocery and other products come in. This includes bread bags,
breakfast cereal bags, frozen vegetable bags, ice cream wrappers, confectionery
bags, cling wrap, bubble wrap and plastic wrapping from toilet paper.

Q: How does the pause of the REDcycle soft plastics recycling scheme affect the
trial?

A: This trial is not connected to the REDcycle store drop-off scheme and is not
affected by the recent announcement that REDcycle has temporarily paused its
scheme. The council trial will continue uninterrupted and the plastics collected
in the trial will go for processing at an advanced recycling centre in Victoria.

Q: How do I check what to put in my special recycling bag during the trial?

A: Soft plastic packaging displaying the REDcycle logo and/or the Australian
Recycling Label (ARL) “Return To Store” or “In-store Drop-off” logo
(Australasian Recycling Label – Planet Ark Recycling Near You) can be included.
Even though the REDcycle scheme is paused, you can use REDcycle’s list of what
soft plastics can be recycled (What To Redcycle – Redcycle ) as a guide.
Residents in trial areas in participating councils can also contact their local
councils.  

Q: I’ve always been told not to put soft plastics in the recycling bin, and not
to put bags full of recyclable items in the recycling bin. Why is this changing
now?

A: It’s still the case that loose soft plastics, or any bag holding recyclable
items recyclable items, must not go in your recycling bin. Loose soft plastics
jam up recycling machinery in trucks and at sorting facilities. The specially
made trial bags have been provided specifically to be the right strength and
easy to identify and sort when filled and sealed correctly. It’s very important
to keep all other items in your recycling bin loose.

Q: Why is this trial happening?

A: Soft plastic packaging does an important job keeping food fresh and safe and
keeping products intact and it can be recycled instead of going to landfill. The
bagged soft plastics kerbside recycling trial is part of work to design an
industry-led scheme for recycling soft plastic packaging in Australia. The
scheme aims to create an advanced recycling industry producing recycled,
food-grade soft plastic packaging, which currently isn’t made in Australia. The
trial is one of a number being conducted to help design the model for kerbside
collection and sorting of used soft plastics.  

Q: I didn’t get a trial kit. Can our household take part in the trial?

A: Sorry, but only households in the selected trial areas can take part in the
bagged soft plastics recycling trial. Please don’t put any soft plastics in your
recycling bin if you aren’t part of the trial. With the pause of the REDcycle
store drop-off program from 9 November 2022, REDcycle has advised that soft
plastics should be placed in your household rubbish bin. Read Redcycle’s
statement >>


AFGC MEMBER COMPANIES (MEMBER LOGIN REQUIRED)

For AFGC member companies seeking industry-specific information on the NPRS
trials and NPRS scheme design, please go to the FAQs in the AFGC Member
Centre (member login required).


SUPPORT

On this page you can find details about the Foundation Supporters making the
NPRS trials possible, plus our recycling partners. 


NPRS PROJECT FOUNDATION SUPPORTERS 

As an industry-led product stewardship model, funding support from AFGC member
companies has been vital to making trials of kerbside collection happen. 

The NPRS Project Foundation Supporters are:

       



 


NPRS PROCESSING PARTNERS

 * APR Plastics
 * AFGC in discussions with Cleanaway and Qenos >>

 


NEWS

On this page you can find links to information about the councils participating
in NPRS project trials, along with associated news and media. 

Councils participating in NPRS soft plastic packaging kerbside collection
trials: 

 * Macedon Ranges Shire Council
 * Albury and Wodonga councils
 * City of Adelaide
 * City of Charles Sturt
 * City of Port Adelaide Enfield
 * Central Adelaide Waste and Recycling Authority (CAWRA) (A joint initiative of
   the Cities of Charles Sturt and Port Adelaide Enfield)
   x
 * Advanced recycler APR Plastics is receiving soft plastics collected during
   the trials


LEARN MORE ABOUT PLASTIC WASTE AND SOFT PLASTICS RECYCLING

 * Nestlé KitKat wrapped with 30% recycled plastic
 * The CSIRO Tackling Plastic Waste mission
 * Development licence approved for Licella’s Advanced Recycling Victoria
   plastic resource recovery plant
 * Amcor & Licella partner on new soft plastics advanced recycling facility


NPRS NEWSLETTER ARCHIVE

 * October 2022 (Issue #1)
 * December 2022 (Issue #2)
 * February 2023 (Issue #3)
 * March 2023 (Issue #4)
 * April 2023 (Issue #5)
 * May 2023 (Issue #6)
 * June 2023 (Issue #7)
 * July 2023 (Issue #8)

Subscribe to the NPRS Newsletter >>




MEDIA RELEASES

Following are links to associated AFGC media release.

 * Kerbside trials win new recruits to soft plastics recycling
 * Cleanaway and Qenos engage with the NPRS
 * Food and grocery manufacturers driving progress on solutions for plastic
   packaging recycling
 * Soft plastics taskforce supports industry-led recycling scheme as the way
   ahead for Australia
 * Kerbside recycling trial aims to close the loop on soft plastic packaging
 * Food and grocery industry supports closing the loop on soft plastic packaging
   with new recycling trials
 * Statement on RedCycle
 * AFGC applauds joint action on soft plastics recycling


RESOURCES

COMMUNICATIONS PACK (MEMBER-ONLY LOGIN REQUIRED)

The AFGC has compiled an associated communications pack for members containing
relevant templates and other collateral to disseminate to their audiences about
joining the NPRS. Messages have been provided to ensure consistency and accuracy
is shared about the scheme. Communications can be directly lifted or adapted
into brand style. Click on the image below to access…



GENERAL RESOURCES

The following general resources may also be used to promote the NPRS across your
networks and acknowledge your involvement as a foundation supporter accordingly.

SOCIAL MEDIA

LinkedIn showcase page >>
Follow us for the latest updates and information on the National Plastics
Recycling Scheme project.

LinkedIn tiles
Additional tiles will be added in due course.



IMAGE GALLERY

A selection of downloadable imagery related to the NPRS (more to be added
shortly).



 


Industry Resources
 * State of the Industry
 * National Plastics Recycling Scheme
 * Sustaining Australia: Food and Grocery Manufacturing 2030
 * COVID-19 Information for Industry
 * Food Labelling & Allergen Guide
 * Product Information Form – Version 6
 * Product recall
 * Responsible advertising & marketing to children
 * State of the Industry
 * Accessing the China Market
 * Cold Chain Guidelines
 * Food & Grocery Code of Conduct
 * Trading Partner Forum Resources

© 2023 Australian Food and Grocery Council

Unit 5G, 65 Canberra Avenue
Griffith ACT 2603
T: +61 2 6273 1466
www.afgc.org.au
ABN 23 068 732 883

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