Australia launches comprehensive packaging regulations reform

On September 27, 2024, the Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW) released a consultation paper on “Reform of packaging regulation.” The deadline for submitting comments is October 28, 2024. The aim of this paper is to reform the existing regulatory framework on packaging in Australia in order to further reduce its waste. Specifically, the following three regulatory options are presented as future policy, and the content, scope, and merits/demerits of each are mentioned:

• Option 1 – Strengthening administration of the co-regulatory arrangement
• Option 2 – National mandatory requirements for packaging
• Option 3 – An extended producer responsibility scheme for packaging.

The following explains the three regulatory options.

Option 1 – Strengthening administration of the co-regulatory arrangement

This option will strengthen the enforcement system of the current co-regulatory arrangement, the “National Environmental Protection (Used Packaging Materials) Measure 2011 (NEPM).” In order to achieve the goals of the “2030 Strategic Plan” released by the Australian Packaging Covenant Organization (APCO) on August 15, 2024, the plan includes activities such as expanding participation in the APCO and strengthening awareness-raising activities for industry and consumers. However, the regulatory content itself will remain the same.

Option 2 – National mandatory requirements for packaging

The current NEPM will be abolished and a new law will be promulgated that sets out new mandatory requirements for packaging materials. In line with this, relevant laws will also be revised in each state and territory. The following items have been listed as specific requirements.

• Requirements for packaging to be designed to be recycled at scale, implemented through:
  1. Early bans on some problematic packaging formats, chemicals of concern and additives.
  2. Progressive bans of packaging to mandate minimum recyclability performance.
• Minimum recycled content thresholds.
• Mandatory recyclability labelling.

Option 3 – An extended producer responsibility scheme for packaging

The current NEPM will be abolished and a new law will be promulgated that sets out new mandatory requirements for packaging materials. In line with this, relevant laws will also be revised in each state and territory. In addition to the mandatory requirements of Option 2 (excluding the “progressive bans of packaging”), this option requires companies to pay EPR fees. The EPR fees are planned to vary depending on conditions, such as applying additional fees for the use of specific chemical substances or reducing fees when the amount of recycled materials used exceeds a certain standard.

Scope of packaging

In the new system, Options 2 and 3 will cover all packaging materials on the Australian market, so this document refers to both BtoC and BtoB packaging materials being regulated.

Restriction of chemicals for packaging materials

Appendix C of this paper presents a list of chemical substances that should be regulated, divided into three levels: “elimination”, “phase-down” and “minimization”.

Chemicals targeted for elimination from packaging

• Substances listed under international agreements for elimination, such as the Stockholm Convention on POPs and the Minamata Convention on mercury
• Chemicals that are prohibited or restricted through Australian regulatory frameworks
• Heavy metals (Lead, cadmium, arsenic and hexavalent chromium)
• PFAS
• PBT chemicals
• Chemicals that prevent recycling, such as carbon black and oxo-degradable plastic

Chemicals targeted for phase-down and transition to alternatives

• Phthalates
• Flame retardants (not otherwise targeted for elimination)
• Azo dyes
• Bisphenols
• Chemicals that impede recycling

Chemical use that should be minimized or avoided

• Colourants
• Solvents
• Adhesives

Minimum post-consumer recycled content thresholds

The “minimum post-consumer recycled content standard” listed as one of the requirements for Option 2 and Option 3 is proposed as follows (the units for the figures in the table are %).

Targets of packaging regulatory reform

The following are the outcomes that DCCEEW aims to achieve through the reform of packaging regulations across Australia.

1. Waste from packaging is reduced

• The use of virgin materials in packaging is reduced
• The amount of packaging placed on market per capita is reduced
• The amount of packaging sent to landfill per capita is reduced
• Problematic and unnecessary packaging is eliminated

1. Packaging materials are kept in use and circulated at their highest value

• Packaging is designed for recyclability
• The amount of recycled content in packaging is increased through design and strengthened end markets
• Recyclable packaging is collected, recycled and reprocessed
• Chemicals of concern in packaging are eliminated, phased-down or minimized

Background to the implementation of packaging reform

• According to the paper, the reason behind the packaging regulatory reform is that the implementation of the current co-regulatory arrangement is not working properly. At present, packaging waste is regulated under the NEPM, but the following problems have been identified:
• The NEPM is not being consistently implemented or enforced by state and territory governments
• There is confusion among brand owners about their responsibilities and obligations under the co-regulatory regime.
• The NEPM lacks specific targets and key performance indicators to measure the extent to which environmental protection objectives are being achieved, and data collection and reporting against targets is not consistent, making it difficult to assess its effectiveness.
• Limited (or non-existent) monitoring and enforcement arrangements undermine confidence in the co-regulatory regime, allow free-riders and discourage participation in the Australian Packaging Covenant Organization (APCO) (*).
• The lack of coordination in funding the joint regulatory regime undermines its effective implementation and outcomes.

(*)APCO is a non-profit organization (NPO) established under the NEPM formulated by the National Environment Protection Committee (NEPC). As of February 2024, there are 2,300 members, of which more than 2,200 are brand owners. Companies that join APCO must develop and implement a packaging reduction plan based on the requirements set by APCO.