WMRR is determined to drive local Australian remanufacturing infrastructure investment and markets demand (ie market creation) for Australian recycled materials, with one (1) of our three (3) Guiding Principles (GP3) being - WARR infrastructure is strategically planned and valued given the significance as both an essential service and the producer and remanufacturer of secondary raw materials for the Australian economy.
However the reality is in early 2023 we still have insufficient processing capacity or demand. As such, WMRR assisted Oatley Resources Australia with the recent application for an export exemption for MRF grade and coloured PET, along with a number of MRF operators who currently face real challenges with finding processing capacity locally for PET sorted through MRF networks (as well as coloured PET through CDS), given this current shortfall. I am also acutely aware that there is a real challenge to develop the necessary infrastructure onshore without the certainty of feedstock, however seeking a time banded exemption was far better than the alternative of disposing this material.
According to the Australian Plastic Flows and Fetes Study 2020-2021 there is over 150,000 tonnes packaging PET and a total of 354,400 tonnes of all PET types consumed each year. Table 51 in the report states that by the end of 2025, there will be 105,500 tonnes of PET processing available- this is well short of the volume ultimately required. Similarly we consume 643,000 tonnes of HDPE (~300,000 tonnes being packaging) that by the end of 2025 we will have onshore processing capacity of 168,000 tonnes. These are big numbers and big gaps that requires real Australian infrastructure and real Australian demand for these recycled materials.
In my view this significant shortfall cannot be addressed until such time as we have real regulation in Australia, creating obligations on those that use this material as well as a level playing field for those that have invested in Australian remanufacturing. We absolutely require this recycled material to be preferenced for purchase by those that use packaging material, for many reasons- not just the export restrictions, but also because it is the right thing to do from a carbon, energy and Australian job creation perspective. Also, what is the alternative- ongoing downcycling?
I genuinely hope that the mention of a mandated regulatory scheme for packaging at Senate Estimates two (2) weeks ago, will recognise this need, as well as the fact that what we actually need is a systems shift in Australia that addresses all packaging, across all streams and links to the regulated export bans and tracking of materials. Further, we need to recognise that current claims like ‘traceability’ are yet another distraction in Australia, when you look to what is occurring in for example the UK Plastics Pact that has more than doubled its recycled content in plastics (9%- 21%) in three (3) years due to a systems based approach that ties in to accredited facilities, design standards, eco-modulation and a packaging recoverability note scheme (PRN). We do not have to re-invent the wheel! But we do need to create the Australian market, quickly!
Going back to WMRR’s GP3, we also need the infrastructure, and it is the market demand that will deliver this (not collecting and storing tonnes). It is genuinely difficult to keep on top of what facilities are in existence (across all streams), or what is planned, for example does anyone know if the National Infrastructure Database is being kept up to date, the last version I can find is April 2022 and this does not appear to correlate with the RMF Data viewer. We desperately need nationally, a point of truth when it comes to infrastructure and data, in order that we can invest and deliver, particularly if we are bona fide in achieving ‘80% average recovery rate from all resource-recovery streams, following the waste hierarchy by 2030’ (Target 3 of the National Waste Action Plan). To recover material, we need facilities and markets. Australia also requires genuine strategic infrastructure planning across all streams with industry at the table, as well as EPAs and planning departments to ensure that there is a reality check in what can and cannot be delivered and by when. This can then be backed up by grants that provide assistance with capital but are not enough on their own- as we need market demand (sales just like any other viable business), as well as appropriate levy settings to recognise the value of materials and to ensure that disposal is not more attractive (ie cheaper).
Yep, there is a very long way still to go, and as we know our system is complex, but is also super essential. Let’s hope with the Environment Ministers Meeting on Friday 9 June 2023 –issues like markets, regulation, levy settings and infrastructure get an airing!