Shaping the sector

Waste Management Review catches up with Sustainability Victoria CEO Stan Krpan to discuss his achievements in waste over the past decade as he moves on to Solar Victoria.

Stan Krpan has immersed himself in the waste sector for more than 10 years, mobilising organisations and stakeholders towards structural and environmental reform.

His work at statutory authority Sustainability Victoria (SV) has been instrumental to shaping the agency’s decade-long shift towards resource recovery.

Earlier this year, Stan announced he would leave his position as CEO of SV after being appointed inaugural CEO of Solar Victoria.

Waste Management Review caught up with Stan to discuss his future plans with Solar Victoria and past achievements at SV.

While he has held senior legal positions at WorkSafe Victoria, CEO of the Victorian Cladding Taskforce and the Chair of social enterprise Infoxchange, over time Stan discovered his true passion in sustainability.

“I was a lawyer by training and had a strong background in regulation, but I’d worked out towards the end of my time at WorkSafe that I really wanted to be a part of making the future in terms of sustainability and climate change,” he says.

Between 2009 and 2010, the EPA Victoria commissioned Stan, the former Director of Legal Services and Investigations at WorkSafe Victoria, to conduct an independent review into the EPA.

More than 119 recommendations were made, including a need for the EPA to make more transparent decisions to tackle human health and refocus its priorities on supporting duty holders with compliance.

“It was from that moment that I walked in the door I thought this is something that I want to be a part of,” Stan says.

From there, Stan ended up at SV in 2011 assuming the CEO’s chair a year later.

He says that it was a difficult decision to leave SV after just over eight years.

“The opportunity for me around Solar Homes is really on the renewable energy transition. Although SV set it up, I really wanted to be a part of that transition,” he says.

“We will reach three quarters of a million households in Victoria to bring the total of solar homes to well over a million. We’re now leading the country for the last couple of months in terms of installation.”

Solar Victoria is a new “portfolio” entity which will commence within the Department of Environment, Land, Water and Planning after being transferred from SV.

Tasked with delivering the Victorian Government’s 10-year $1.3 billion Solar Homes Package, Solar Victoria forms part of the government’s target of 50 per cent renewables by 2030.

The Victorian Government’s key election commitment in 2018 was to expand its Solar Homes package to 770,000 households from July 1.

Eligible households can claim a rebate of up to $2225 on the cost of a solar photovoltaic (PV) panel system or a $1000 rebate for replacing hot water systems.

The next step for Stan will be to ensure that regulation and policy keep pace with the 10-year rollout.

As he moves to Solar Victoria, his core focus will be helping Victorians with the transition to renewable energy.

Ultimately, all of Stan’s experiences have culminated in joining Solar Victoria, with a significant career background in health, safety, environment and climate change and renewable energy.

SV EVOLUTION

When he arrived at SV, the agency had been the subject of a critical report from the Victorian Auditor-General which found it had lost its way on waste and had not delivered on its statutory obligations in waste planning.

“We led a review for the then-minister around that focus on resource recovery. Essentially we’ve gone from that really being just a side project to actually being pretty much the core of the organisation and focused on delivering our statutory responsibility on statewide planning,” Stan says.

Stan says the review precipitated the country’s first ever waste infrastructure plan in 2015 – the Statewide Waste and Resource Recovery Infrastructure Plan (SWRRIP).

Through a network of hubs and spokes, the model identified a move to increase transfer stations, reduce landfills, including in Melbourne’s south-east, and replace them with a network of resource recovery facilities.

The SWRRIP paved the way for developers and waste managers to work together on long-term planning. Its focus was on mobilising stakeholders in the waste sector and government and partnering with other state-based agencies across Australia.

Plans have since been generated in SA and committed in WA and NSW.

On his proudest achievements, Stan says that partnering with industry on better outcomes for the community along with market development and developing a waste education strategy are top of the list.

“One thing I particularly liked is the way we used the SWRRIP as a way of providing policy certainty to potential investors. We set up an investment facilitation service which essentially worked with proponents of new technologies and helped them enter the market,” Stan says.

Over the years, SV significantly expanded its role in resource recovery, including establishing a Market Development for Recovered Resources Strategy and programs.

The strategy supported the practical use of materials, including recycled glass on major projects such as Melbourne’s Tullamarine Freeway.

It also led to improved product specifications for recyclables in pavements, while accelerating product procurement in organics and partnering with product stewardship organisations for tyres, paint and PV systems.

“The figures are really compelling. Over the last three years we’ve invested $40 million on behalf of the government into resource recovery infrastructure, but we’ve leveraged over $100 million of private sector investment,” Stan says.

“Government procurement is obviously an area we still feel is unfinished business and we’re getting closer to finalising our first systematic assessment of state government procurement categories to understand where the opportunities might be.”

Stan points out that the Victorian Government last year adopted the Social Procurement framework.

As a result of SV’s advocacy, it includes a requirement that very large projects over $10 million consider recycled content.

“There is still more work to be done to understand the emissions profile of the sector, but one of the things I feel is unfinished business, particularly for local government procurement is that we could do more to encourage innovation and investment in low emissions transport or technologies.”

As government is the largest procurer of some materials, a common discussion by industry groups is whether mandatory procurement of recyclables is needed.

Stan points out that this is a topic also being discussed in other jurisdictions such as California and Scotland, while there are a number of targets already for specific applications such as roads.

On the subject, he says he is reluctant to make recommendations for a set target on mandatory recyclate due to the technical nature of the end use, with product safety essential.

“I am attracted to things like the EU target around green procurement which essentially says that you should incorporate criteria around recycled content even though it’s not quantified,” he says.

TAKING IT FORWARD

He says that now that SV is well established in infrastructure, the goal for the agency going forward will be to work upstream in manufacturing and new product, and materials and upcycling.

This year’s state budget included an additional $35 million for waste and recycling to build onshore processing and remanufacturing.

Stan says that Victoria’s 67 per cent recycling rate is a positive step, given the growth in population and economy, but more work is needed to raise the bar.

According to the Victorian Recycling Industry Annual Report 2016-17, solid waste diversion rose by 10 per cent to 67 per cent between 2007-08 to 2016-17. That’s despite a 1840-tonne increase in waste generation over the same period.

He says that SV has been an important part of adding an extra two million tonnes of extra capacity over the last 10 years supported by government grants and investment.

“I’ve been delighted to see the level of investment in organics processing grow in Victoria during my time since 2012 with very large companies investing in Victoria as a stable place.

“That’s very different to when I arrived at the EPA in 2010 where effectively the failure of the waste sector was attributed to the challenge of regulating and supporting the organics sector and developing new markets.”

Stan says the sector has come a long way over the past 10 years, but there is still more work to be done locally given the exposure to global commodity markets.

“To see SV grow its footprint in waste and resource recovery even though we know there’s so much more needed with the change in global commodity prices and dynamics, I’ve loved being a part of growing it,” he says.

Last year was another growth spurt for SV, increasing to over 200 staff.

One of the areas Stan says can be improved is thinking of resources in the context of the broader economy, including imports, extractive industries and eliminating waste at the design stage.

From a circular economy perspective, he says manufacturers need to partner with waste collectors and recyclers to reduce food waste, use recyclate for new packaging and eliminate unnecessary packaging from the supply chain.

Stan says that concepts such as extender producer responsibility can also be better understood and supported in Australia, as community sentiment is shifting.

SOLAR PRODUCER RESPONSIBILITY

Extended producer responsibility lifespan will become ever increasingly important for solar PVs as many installed at the beginning of the millennium reach their end of life.

SV, on behalf of the state government, is leading a national investigation into extended producer responsibility options for solar PVs and batteries.

Stan is pleased with the level of engagement from peak bodies such as the Clean Energy Council and manufacturers and suppliers of solar PVs and household batteries, with consideration to a scheme to be given later this year through the meeting of environment ministers.

“Certainly something that I’m now well placed to explore in Solar Victoria is whether we can use that program to stimulate stewardship and recycling of solar panels.

“We know there are technologies in Germany and Singapore that are already doing this.”

Stan says that SV will also be looking towards the Federal Government’s review of the Product Stewardship Act once released to help accelerate the development phase.

While extensive efforts have gone into increasing SV’s involvement in waste, Stan is pleased with the input of stakeholders to make many of the agency’s achievements over the past decade a reality.

“The thing that I’ve been most proud of is the level of support and engagement that we’ve had from the waste and resource recovery sector. We couldn’t have done any of this without them.”

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Sustainability Victoria CEO moves to Solar Victoria

Stan Krpan will leave his position as CEO of Sustainability Victoria after being appointed inaugural CEO of Solar Victoria.

Mr Krpan said it was a privilege to lead Sustainability Victoria and watch its impact grow.

“I am enormously proud to have been able to work with so many passionate people across projects which inform, educate and deliver tangible outcomes for Victorians to act on climate change and improve the way we manage waste and recycling,” Mr Krpan said.

“I am particularly grateful to the many and varied stakeholders, who have been the key ingredient to our success and share our passion to position Victoria for a sustainable future.”

Mr Krpan said the position at Solar Victoria will present an opportunity to transform the way Victorians generate residential power from renewable sources.

“In less than a year since Solar Victoria was established, we have seen the huge demand for household solar energy by Victorians,” Mr Krpan said.

“This program is a cornerstone of the Victorian Government’s target to achieve 50 per cent renewable energy in the state by 2030.”

Sustainability Victoria Board Chair Heather Campbell thanked Mr Krpan for his service.

“On behalf of the board, I would like to acknowledge and thank Stan Krpan for his dedicated leadership of Sustainability Victoria since 2012,” Ms Campbell said.

“Under Stan’s leadership Sustainability Victoria delivered Australia’s first statewide waste infrastructure plan, growing investment in waste and resource recovery infrastructure, market development and education to their highest levels.”

Ms Campbell said the board wished Mr Krpan all the best in his new role as CEO of Solar Victoria, which will deliver the state government’s $1.2 billion Solar Homes package from 1 July.

“In August 2018 Stan led the establishment of Solar Victoria as a dedicated business unit under Sustainability Victoria,” Ms Campbell said.

“This will be a seamless transition for both Stan and Solar Victoria, as that organisation moves to become a standalone entity reporting to the Environment Department and Minister Lily D’Ambrosio.”

Ms D’Ambrosio said Solar Homes would cut Victoria’s carbon emissions by four million tonnes – the equivalent of taking one million cars off the road.

“Household solar is expected to generate 12.5 per cent of Victoria’s 40 per cent target for renewable energy by 2025,” Ms D’Ambrosio said.

“Mr Krpan has a strong record in this sector and the right experience to lead the delivery of our landmark Solar Homes package.”

Sustainability Victoria Director Corporate Services Carl Muller will act as interim CEO while a full recruitment process is underway.

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