The future of Australia's soft plastics recycling industry is at a critical juncture, with a complex web of issues threatening its viability. From illegal exports to the lack of available waste, the industry is facing an uphill battle.
The Recycling Industry's Plea
Australian soft plastics recycling companies are sounding the alarm, arguing that the current situation is unsustainable. With too much waste being exported, the price of locally available waste has skyrocketed, making it difficult for these companies to operate profitably.
The government's initial ban on exporting recyclable waste, which came into effect in 2021, was a step in the right direction. However, the subsequent exemptions granted to the industry have backfired, with some operators allegedly exporting waste illegally to avoid the higher costs associated with domestic recycling.
The Cost of Doing Business
At Australian Soft Plastics Recycling, the reality of the situation is stark. Despite having the capacity to recycle much more plastic waste, the company struggles to source enough product to keep its operations running at full capacity. The cost of plastic waste has increased significantly, and the availability of this waste is inconsistent, making it challenging to scale the business.
Clive Townsend, the company's director of growth and partnerships, highlights the issue: "We can't get enough—we're paying a lot, but it's just not available." This situation not only affects the company's bottom line but also its ability to employ and invest in new technologies to recycle different types of soft plastics.
The Need for a Local Industry
The war in Iran has brought into sharp focus the importance of a robust local recycling industry. As Suzanne Toumbourou, CEO of the Australian Council of Recycling, points out, "That's provided a real opportunity because it demonstrates the need for sovereign capability."
The broader recycling industry is facing similar challenges, with a lack of accessible plastic waste hindering its growth. Toumbourou adds that illegal exports are a significant concern, especially for companies recycling cleaner soft plastics, as they undercut the market and erode confidence in the rules and regulations.
Government Action and Industry Calls
The federal government, through Environment Minister Murray Watt, has acknowledged the issue and is taking steps to address it. Watt has confirmed that export exemptions will be wound back, with future exemptions granted only in limited circumstances and with a clear consideration of domestic market impacts.
The government's focus is on building a sustainable industry to manage waste responsibly in the long term. This includes preventing unlawful exports of waste plastics, which is a priority for the Albanese government, as stated by Watt.
However, the Greens, through Senator Peter Whish-Wilson, argue that a broader perspective is needed. Whish-Wilson highlights what he calls "market failure" over decades, where it has been cheaper to export waste than to recycle it domestically due to a lack of demand for recycled content in Australia.
Whish-Wilson calls for the federal government to mandate recycled content targets, such as requiring 30% of all plastic packaging in supermarkets to come from recycled Australian content. This, he believes, will create the necessary demand to support the domestic recycling industry.
Conclusion
The soft plastics recycling industry in Australia is at a crossroads. While the government is taking steps to address the issue of illegal exports and build a sustainable industry, more needs to be done to create a robust domestic market for recycled content. The future of this industry, and its ability to contribute to a more sustainable Australia, depends on the actions taken today.
