Mandatory product stewardship cost on consumers calculated

Mandatory product stewardship cost on consumers calculated

A new analysis for the Australian Council of Recycling (ACOR) by independent consultancy firm Equilibrium has estimated the cost of mandatory product stewardship schemes on consumers.

The analysis looked at mandatory product stewardship approaches for different products, and estimated the potential dollars per unit that a mandatory scheme would cost.

Under the current Product Stewardship Act 2011, schemes can be established for a variety of different products and materials to lower their lifecycle impacts.

Mandatory schemes involve enabling regulations to be made that require some persons to take specific action on products, according to the analysis. This could include restricting the manufacture or import of products, prohibiting products from containing particular substances, labelling and packaging requirements and other requirements for reusing, recovering, treating or disposing of products.

For a mandatory e-waste scheme, the cost is estimated to be between $1.55 and $1.85 for an e-waste unit size equivalent product of 0.75 kilograms. For mattresses, the cost of a mattress unit (standard double size) would be between $14.50 to $16.50. A mandatory tyre scheme would cost about $3.50 to $4.00 equivalent passenger units.

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ACOR CEO Pete Shmigel said the Australian community has long supported recycling and overwhelmingly wants to be able to recycle more products and items.

“This new data shows that we can do so affordably. In all cases, the cost of recycling these items is likely to be lower than two per cent of their consumer price. Therefore, cost concerns should not be a key barrier to action by our policy-makers,” he said.

Mr Shmigel said that recycling of these items is a well-established practice overseas, including in much less developed countries, and it is difficult to understand why it is not here too.

“Indeed, the formal review of Australia’s Product Stewardship Act has disappeared and is significantly overdue, the new National Waste Policy has a blank space for product stewardship, and there has been no news following ministers’ apparent discussion of product stewardship at the December 2018 Meeting of Environment Ministers.”

ACOR also believes the major political parties need to make commitments in the areas of recycling infrastructure investment, incentives for and procurement of recycled content products and community education. It has submitted industry analysis for consideration.

Equilibrium Managing Director Nick Harford said that while they can be improved, the current co-regulated TV, computer and mobile phone product stewardship schemes are producing good results. He added that there has been no demonstrable consumer concern about their cost.

“While the current schemes are not mandatory, and research estimates that mandatory schemes may have higher administration costs, the estimated cost per unit in relation to the total product cost is generally reasonable,” he said.

The analysis of the potential impacts of mandatory schemes covered factors including:

  • Collection and transport
  • Processing and recycling
  • Compliance, monitoring, audit and reporting
  • Safety and environmental management
  • Sales
  • Administration
  • Marketing, communications and education
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