Is Victoria ready for a CDS?

With Victoria the only state yet to commit to a container deposit scheme, Waste Management Review speaks with industry stakeholders about scheme potential.

In the absence of an overarching waste policy, Victoria’s waste management and resource recovery sector lacks market certainty and centralised oversight.

As such, an inconsistent approach to waste management created an environment that may have been more attractive to rogue operators.

Challenges arise when bulk processing and limited end markets exist in the same region, as evident in Victoria’s recent spate of non-compliant stockpiles.

Mark Smith, Victorian Waste Management Association (VWMA)  Executive Officer, says current procurement practices encouraged a concentration of processing capacities, and this inherently concentrated risk.

Mark adds that the recent SKM Recycling shut down highlights the risks inherent in any system that doesn’t seek to secure end markets for materials and appropriate protocols for any shocks to the system.

“A series of events related to how contracts are written, commodity pricing and how businesses establish themselves brought us to where we are now. It’s not something that happened overnight,” Mark says.

“I believe our current resource recovery issues present an opportunity to change the way government and the private sector operate which must see the private sector as a partner with the government in delivering messages and engaging with the public.”

Mark adds that the introduction of a Victorian container deposit scheme (CDS) could serve as a catalyst for tackling our current recycling issues, but can’t be done in isolation or on its own.

When the Tasmanian Government earlier this year announced it would introduce a CDS by 2023, Victoria became the only state or territory without a scheme forthcoming or in place.

At VWMA’s August State Conference, Environment Minister Lily D’Ambrosio told delegates that the state government had no current plans to develop a CDS. That was, despite demonstrated success in other states. Ms D’Ambrosio recently told the 7:30 report that government is closely watching other states’ CDS closely, a statement she reiterates regularly.

Seeking to offer up potential solutions to Victoria’s recycling and waste management issues, the VWMA hosted a CDS discussion and knowledge transfer event in October. At the event, delegates analysed schemes and results from other states. Mark says the information will be compiled and presented to delegates attending, which included a number of vocal local governments and other associations, such as the Municipal Association of Victoria (MAV).

The MAV is similarly active, launching its Rescue Our Recycling action plan earlier this year. The plan identifies five actions each tier of government should take to help achieve a sustainable recycling system, with a CDS nominated as a key action for the Victorian Government.

The MAV’s submission to the Victorian Parliamentary Inquiry into Recycling and Waste Management, lodged May 2019, likewise urged the state government to introduce a scheme.

Coral Ross, MAV President, says she is hopeful the parliamentary committee will recommend a scheme be introduced.   

“Container deposit schemes are celebrated for their strong record of success in increasing recovery of beverage containers, reducing waste to landfill, delivering community, environmental and economic
benefits and decreasing litter,” the submission reads.

“In light of trials and studies underway, consideration should also be given to how a separate kerbside collection for glass may complement or supplant a CDS. Either way, it is imperative that the principles of product stewardship and extended producer responsibility apply.”

CRUSHED GLASS

Contamination from crushed glass in the general recycling stream is a central driver for CDS implementation. Another solution however, introducing a fourth kerbside glass bin, is also gaining traction, albeit only in preliminary trialling stages.

The City of Yarra in Melbourne’s inner east launched a kerbside glass collection trial across 1300 households in April, following a successful FOGO collection trial in 2018.

In September, Chris Leivers, Yarra City Council City Works and Assets Director, told Waste Management Review the trial has been successful so far, with a notable decrease in contamination observed.

He added that Yarra will look to expand the service throughout the city upon the trial’s completion.

While Coral applauds the success of individual council trials, she cautions against assuming state-wide implementation would be straightforward and doable.

“There is significant diversity across councils and regions in terms of the recycling services councils offer. Proximity to materials recovery facilities, community willingness and ability to pay, and budget and resource constraints are all relevant considerations,” she says.

“Also, the Yarra and Macedon trials are small scale, so we can’t yet know how the service would work on a state-wide level.”

Another issue, Coral says, is whether or not councils can find a processor to take the material.

“In the case of Moyne Shire Council and their intention to roll-out separate glass collection municipality-wide, we understand that having a ready local end market for that material was key to the council making that decision.” she says.

“Not all councils may be able to achieve that, plus, there’s a real question about Victoria’s infrastructure and beneficiation capacity if 79 councils all start collecting glass separately.”

For these reasons, Coral says the local government sector strongly supports the introduction of a CDS as an immediate state-wide priority. She also notes that she doesn’t consider CDS to be the silver bullet that will fix everything but rather a key component of a suite of reforms needed to improve recycling outcomes.

“We have to remember that removing glass from the general stream not only reduces the contamination of paper and plastic, but enables better quality glass recovery,” she says.

“Ideally we want to see glass bottles and jars remanufactured into glass bottles and jars. Achieving a clean stream of material is key to that.”

Mark has similar infrastructure capacity concerns and issues with a ready market for materials, highlighting the amenity impacts of glass collection in high density areas. He adds that the rise of multi-unit dwellings also needs to be considered when analysing the efficacy of a fourth kerbside bin.

Mark says that waste operators already face bin collection challenges including traffic congestion, level of street access and bin placement – added to that could be a fourth collection round with noisy material.

“How is that going to impact residents? And what will resident pushback look like once those collections start? It’s a concerning proposition for many VWMA members but may also be a broader traffic challenge as well.”

IMPLEMENTATION

A recent Total Environment Centre report shows that 84 per cent of Victorians support the idea of a CDS. However, the state government refuses to heed introduction calls.

According to Mark, a CDS would require systematic changes to how parts of government operate, which may explain their hesitation.

“There hasn’t been a consistent line from the state government on what Victoria’s future recycling program will look like,” he says.

“I think that’s a problem, because we end up tinkering on a lot of little activities instead of looking towards a big fundamental shift and that shift has to take into consideration the direction the other states are taking and the region.”

Many states, including New South Wales and the Northern Territory, position their CDS as a litter management initiative.

Mark say that results from other jurisdictions and globally has seen CDS work as an effective platform to educate and engage with the public on waste, litter and recycling issues.

“The minister has said multiple times that a CDS won’t adequately address current challenges, and yes it wont fix everything, but there’s never going to be a silver bullet,” he says.

“It’s about identifying key challenges for the state, and then chipping away at problems that has support from all the revevant partners in the sector”

Another issue, Mark says, is minimal investment in public waste education from the state government.

“New South Wales has had ongoing public programs to engage the public on recycling and waste for years, while Victoria hasn’t had a state wide program or investment in this space for over 10 years,” he says.

“The state government could utilise a very small component of the Sustainability Fund to finance similar programs here.”

In addition to education, Mark says the state government would need to incentivise end markets for recycled materials that would see greater business uptake of recycled materials but also educating the public to seek out products made with recycled materials.

“If we look at the wider waste situation, the private sector invests $815 million each year, while the state government invests very little, with the bulk of the funds allocated going to infrastructure projects. The private sector have repeatedly spoken about the appetite to invest if they know there is market certainty. For me, this poses a question over the role state governments should play in market intervention,” he says.

“While introducing a CDS will undoubtably require additional costs at the start, what we’ve seen in other states, especially New South Wales, is that the state government only have to make minimal investment for set up and roll-out.”

Mark says government and industry also need to expand their focus beyond the immediate horizon and be conscious of future challenges and the future direction of the region.

“We don’t want to set up a system that in two or three years becomes obsolete, or actually becomes some sort of barrier for embracing a national push on product stewardship, because Victoria decided to introduce a CDS [for example] that is in complete contrast with the rest of the country and region,” he says.

While Coral says a national scheme would be ideal, she believes Victoria needs to start addressing its current challenges now.

“A federal scheme in line with product stewardship was on the table a few years ago but didn’t go anywhere, and now we’ve seen each state roll-out, or commit to rolling out CDS, so it would be a grave mistake for Victoria to sit back and wait for a national CDS,” she says.

“You can’t let the perfect be the enemy of the good.”

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