April 2018

APCO releases Market Impact Assessment Report: National Sword

The Australian Packaging Covenant Organisation (APCO) has released the Market Impact Assessment Report – which reveals the impact of China’s National Sword policy.

Findings from the report reveal that the volume of Australian export of scrap paper and plastics has remained largely stable over the past 12 months, however their value has dropped significantly due to global oversupply.

According to the report, mixed paper scrap once valued at $124 per tonne (EXW) has dropped approximately 100 per cent and is now close to worthless. Scrap mixed plastic has fallen 76 per cent, from $325 per tonne to $75 per tonne and cardboard is now valued at $125 per tonne, falling 40 per cent from $210 per tonne.

In January 2017, around 71 per cent of Australian exports of scrap paper/paperboard and scrap plastics were exported to China (98,300 tonnes of the 139,400 tonnes total). By January 2018 this had fallen to 34 per cent of Australian exports (43,200 tonnes of the 128,200 tonnes total).

“There is no doubt that the Chinese import restrictions have had a financial impact on the revenue streams of those receiving and sorting recyclables. This has coincided with the increasing costs of electricity, fires at some facilities, stricter compliance requirements and large increases in insurance costs,” the report says.

“The impact on a per tonne basis for all recyclables will vary from one sorting facility to another. Based on the analysis of reported prices for each commodity, the overall impact to end of February compared to long term averages is estimated to be a loss of between $65 and $85/tonne.”

APCO Chief Executive Officer Brooke Donnelly said that what essentially lies at the heart of this issue is China’s decision to revise the contamination threshold for scrap paper and plastics.

“We need to develop the right domestic infrastructure to lower the contamination levels in our waste and start building viable end market solutions here in Australia to ensure a smaller, cleaner packaging waste stream,” she said.

APCO is already developing a range of solutions to improve sustainable packaging design, reduce contamination and improve recycling rates.

Most recently, APCO launched the first nation-wide labelling program to help Australians better understand how to recycle packaging correctly and assist organisations in designing for recycling and working towards lowering contamination levels. Launched in conjunction with Planet Ark and PREP Design, the program has already been adopted by Australia Post, Blackmores, Nestlé, Officeworks, Unilever and Woolworths among others.

APCO has accelerated the delivery of the PREP design tool, an online evaluation portal that determines if a packaging format is recyclable or not in the current kerbside collection service. For the first time in Australia, organisations can develop their packaging to be recyclable where possible, driving waste avoidance outcomes at the design stage.

APCO is also currently reviewing its Sustainable Packaging Guidelines (SPGs) to help businesses reduce the environmental impact of their packaging and develop a standardised approach to key issues such as the use of recycled content in packaging.

“Transitioning to a circular economy is essential if we are to reduce the environmental impacts of packaging and this requires collaboration from brands, governments, the recycling and packaging industry and consumers alike. APCO is in a unique position to facilitate this collaboration and we look forward to working with all stakeholders to help Australia realise a circular economy,” Ms Donnelly said.

You can read the Market Impact Assessment Report here.

WMAA and ACOR call for national recycling action plan

Australian politicians have been called to implement the Australian Circular Economy and Recycling Action plan at the Ministerial Council by the Waste Management Association of Australia (WMAA) and the Australian Council of Recycling (ACOR).

The move comes in response to China’s National Sword policy, with the Action Plan aiming to build upon state government’s short-term actions to maintain community confidence in recycling services.

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WMAA Chief Executive Officer Gayle Sloan said a concerted effort at this critical point in time is required by all.

“It is absolutely the case that the industry’s future direction is at an important crossroads, with an opportunity to grow more Australian-based manufacturing jobs, and actively build on the 20 years’ worth of environmental gains in Australia,” Ms Sloan said.

“WMAA and ACOR have a united industry position on this important topic, and are committed to working with government to ensure the success of the Australian Circular Economy & Recycling Action Plan,” she said.

WMAA and ACOR are advocating to Federal Environment and Energy Minister Josh Frydenberg and state ministers to work with the recycling and resource recovery industry to change strategic directions.

ACOR chief executive officer Peter Shmigel said a $150 million national Action Plan would enable the ‘three I’s’ that are needed to reboot recycling and kickstart the circular economy.

“Investment in infrastructure and new markets, improvement of recyclate material quality and recycling contracts, and innovation in positive purchasing of recycled content products by governments,” Mr Shmigel said.

“It is time to transform the recycling and resource recovery industry so it can help transform our economy to a more competitive, sustainable and circular model that makes the best use of as many resources, including human resources as possible in Australia,” he said.

World first e-waste recycling microfactory launches at UNSW

A world first microfactory capable of transforming components from e-waste which may reduce the amount sent to landfill has been launched at the University of New South Wales (UNSW).

The microfactory uses technology developed after extensive research at UNSW’s Centre for Sustainable Materials Research and Technology (SMaRT Centre) and is able to reduce the issue of e-waste from discarded phones and laptops causing environmental harm when sent to landfill.

NSW Minister for the Environment Gabrielle Upton said it was exciting to see new technological innovations that could transform waste management and recycling.

“I am very pleased to launch the UNSW e-waste microfactory today, a NSW home-grown solution to the waste challenges facing communities all over the world,” Ms Upton said.

“It is exciting to see innovations such as this prototype microfactory and the potential they have to reduce waste and provide a boost to both the waste management and manufacturing industries in NSW,” Ms Upton said.

The micro factory is able to operate on a site as small as 50 square metres and can be located at anywhere waste is stockpiled. It functions as a series of machines and devices that use technology to perform one or more functions in the reforming of waste products.

The UNSW microfactory is able to reform computers, mobile phones and printers, and has a number of modules for the process. The devices are first broken down, then a robot identifies useful parts, which sends them to a small furnace which transforms them into valuable resources using precise temperatures and processes developed by extensive research.

SMaRT Centre Director Professor Veena Sahajwalla said the e-waste microfactory was the first of a series of microfactories under development and in testing at UNSW that can also turn many types of consumer waste streams such as glass, plastic and timber into commercial materials and products.

An example of this is turning computer circuit boards into valuable metal allows such as copper and tine. Glass from devices can also be converted into micrometrical used in industrial grade ceramics and plastic filaments for 3D printing.

“Our e-waste microfactory and another under development for other consumer waste types offer a cost-effective solution to one of the greatest environmental challenges of our age, while delivering new job opportunities to our cities but importantly to our rural and regional areas, too,” Dr Sahajwalla said.

“Using our green manufacturing technologies, these microfactories can transform waste where it is stockpiled and created, enabling local businesses and communities to not only tackle local waste problems but to develop a commercial opportunity from the valuable materials that are created.”

Dr Sahajwalla said microfactories presented a solution to burning and burying waste items that contain materials which can be transformed into value-added substances and products to meet existing and new industry and consumer demands. This was a truly sustainable solution to our growing waste problem which also offers economic benefits available to local communities, she said.

“We have proven you can transform just about anything at the micro-level and transform waste streams into value-added products. For example, instead of looking at plastics as just a nuisance, we’ve shown scientifically that you can generate materials from that waste stream to create smart filaments for 3D printing,” she said.

“These microfactories can transform the manufacturing landscape, especially in remote locations where typically the logistics of having waste transported or processed are prohibitively expensive. This is especially beneficial for the island markets and the remote and regional regions of the country.”

The technology was developed with support from the Australian Research Council and is now in partnership with a number of businesses including e-waste recycler TES, mining manufacturer Moly-cop and spectacle company Dresden.

The SMaRT Centre is expanding its partnerships with industry, investors and local councils. The centre aims to commercialise and create incentives for the industry to use this technology and to encourage sustainable behaviours.

Queensland Government issues TLPI notice to Ipswich City Council

The Queensland Government has exercised its powers to regulate development applications in Ipswich.

The decision comes in the wake of Queensland waste company Austin BMI’s new landfill proposal and follows the Opposition’s motion for the state government to “call in” the application.

The proposal, which was met with some community opposition, would see a former disused coal mine at New Chum converted into a new landfill and waste transfer station. The landfill would initially process 650,000 tonnes of construction and demolition (C&D) waste each year, rising to more than a million tonnes a year over the 18 to 20-year life of the site. Ipswich City Council is the assessment agency for the BMI Group’s application.

Planning Minister Cameron Dick issued a notice to Ipswich City Council advising of the intention to make a Temporary Local Planning Instrument (TLPI) to suspend part of their Planning Scheme, affecting new or expanded waste facilities in the Swanbank and New Chum industrial area.

April 7 update: 

Requirements for new buffer zones and other safeguards are now in place for residents living near new or expanded waste facilities in the Swanbank and New Chum industrial area.

Mr Dick said that following consideration of council’s comments, he has made the TLPI, which will take effect for two years from 6 April 2018.

“The TLPI will apply to applications for new or expanded waste activities, as identified within the Swanbank/New Chum waste activity area map, to ensure this regionally significant economic area appropriately protects existing, approved or planned sensitive land uses from adverse impacts associated with waste activities.

“While the TLPI is in place, my department will continue to work with council to progress any amendments to its planning scheme.”

In making the announcement last week, Mr Dick said that council has the ability under the Planning Act to amend its planning scheme or to make a TLPI.

“The Planning Minister also has the power to introduce a TLPI.

“By making a Ministerial TLPI under the Planning Act, protections for the surrounding residents can be introduced urgently.

“Accordingly, under section 27(2) of the Planning Act, I have provided notice to the council that I intend to make a TLPI.”

Mr Dick said this is the first time that these reserve powers have ever been used by a Queensland Planning Minister.

“Council have been working with my department as they consider potential changes to their planning scheme to address this issue, and I believe that this TLPI is consistent with their intentions,” he said.

“I also expect that council will give consideration to the TLPI when considering current development applications.”

Last week, Ipswich Mayor Andrew Antoniolli said council officers were working vigorously with the Minister’s department to suggest ways to lessen the impact waste facilities have on people in neighbouring areas.

“I personally spoke with the Minister during a recent visit to Ipswich, and I am very pleased that he has listened to what I had to say on behalf of our residents,” Mayor Antoniolli said.

“I stressed upon him the urgency of these matters and the prospect of future applications, and I am thankful for his involvement and swift action.”

Mr Dick said the TLPI will suspend elements of the planning scheme and establishes new assessment criteria for new or expanded waste facilities.

“The TLPI introduces a new buffer of 750 metres from existing, approved or planned residential areas where landfill activities will not be supported,” he said.

“The TLPI does not support new or expansions to existing compost manufacturing that is open to the air, anywhere in the Swanbank/New Chum industrial area.”

 

Mr Dick said during the two-year period, his department will work with council to assist them to progress any amendments to its planning scheme to address the “concerns of the community”.

 

NWRIC calls for recycling taskforce and welcomes Queensland levy

The National Waste and Recycling Industry Council (NWRIC) has called on each state and territory to form a recycling task force to review their current practices and establish sustainable recycling activities for the future.

It comes in response to the Chinese National Sword program, which imposes vastly higher contamination standards on recycled materials exported to China. Materials exported must now have 0.5 per cent contamination or less – compared to five to 10 per cent previously.

The NWRIC said this program has caused an unforeseen and sudden crash in the price of recycled materials. It has also left a significant volume of material ‘stranded’, with no end market available. Preliminary Commonwealth figures suggested that 1.25 million tonnes of material was exported to China in 2016/17 – including 920 thousand tonnes of paper and cardboard, 203 thousand tonnes of metals and 125 thousand tonnes of plastics.

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In this context, the NWRIC is calling on each state and territory to establish a recycling task force to review and improve current practices and develop new processes to protect and advance domestic recycling. Challenges the task forces could address include:

  1. Products to accept in household recycling bins.
  2. Education to reduced contamination.
  3. Recycling labelling.
  4. An approach to glass collection.
  5. Maximising value from container deposit programs.
  6. A review of packaging design and reuse.
  7. A review of how landfill levies effect recycling.
  8. A review of contract conditions for recyclers.

The NWRIC also believes this challenge creates an opportunity to establish a leading approach to container deposit programs that will support and protect material recovery facilities. Further investment and innovation can target a higher quality output for use in Australian remanufacturing, it added.

The organisation noted that an effective response on the Chinese National Sword program will require intergovernmental involvement coupled with wide industry representation. Each task force should include representation from planning departments, EPAs and change management agencies such as Sustainability Victoria or the WA Waste Authority.

Further, NWRIC believes the task forces should include state and national local government associations, state and national industry bodies, the Australian Packaging Covenant and remanufacturing companies.

In other news, the NWRIC also supported the new waste strategy announced by the Palaszczuk Government, but cautioned that a potential landfill levy must create jobs and investment for Queenslanders. If a levy is implemented, the NWRIC supports the recommendation of the Honourable Peter Lyons QC – that a levy must apply to all waste generated in the state – not just commercial waste. This recommendation was also echoed by Queensland Treasury in its Interim Report – Economic Opportunities for Queensland’s waste industry .

In a statement the NWRIC said that if implemented, a waste levy must be applied over the largest area possible in order to prevent unnecessary waste transport, or be applied based on where waste is generated.

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“It must not be set at a rate or structured in a way which makes recycling less viable. For example, where recyclate such as scrap metal is being exported, the cost of disposing of shredder floc must not make Australia’s exports less competitive,” the NWRIC said in a statement.

The NWRIC said that the imposition of a landfill levy could also generate funds which can be reinvested into infrastructure planning, education, enforcement of standards and grants for innovation and research. Where money is given for infrastructure investment, it should be distributed via low interest loans and be equally available to all industry players.

“The NWRIC expects the introduction of a landfill levy in South-East Queensland will stop the unnecessary interstate transport of inert waste, with as much as one million tonnes estimated to be flowing out of NSW in South East Queensland in the last year. NSW must also take responsibility for this problem.”

“One solution to this problem is for NSW to bring into force its new Minimum Standards for Managing Construction and Demolition Waste, as soon as possible. This standard contains important initiatives designed to stem the flow of interstate waste and promote the development of new recycling infrastructure.”

The NWRIC said that if implemented, two important policy programs must also accompany a universal and fair landfill levy. Without these programs, improvements in resource recovery will not be possible. Firstly, Queensland must provide ‘resource recovery precincts’ for waste and recycling infrastructure which are protected from residential and commercial encroachment.

Secondly, states must empower regulators to effectively enforce standards equally across the industry. The private sector will not invest into recycling when they can be commercially undermined by those who do not obey the law or submit to regulatory standards.

“Effective planning for waste management and recycling infrastructure will ensure the public is not adversely affected by these essential services – while landfill levy revenue could be used to fund new and ongoing enforcement initiatives,” said NWRIC Chairman Phil Richards.

 

Don’t let this recycling crisis go to waste

Alex Serpo, Policy Officer at the National Waste and Recycling Industry Council, explains five beneficial recycling programs that should be implemented at scale in response to China’s National Sword program. 
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National Market Development Strategy for Used Tyres released

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