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On August 19, 2024, the Australian Packaging Covenant Organisation (APCO) unveiled the APCO 2030 Strategic Plan, aligning with its responsibilities to manage the Australian Packaging Covenant (the Covenant). This strategy introduces an innovative membership fee model, aiming to support the increased recycling activities and foster a sustainable packaging future.
Background of APCO and the Covenant
APCO, a not-for-profit industry body accredited by the Commonwealth Government, manages and administers the implementation of the Covenant. The Covenant is the industry-led component of the current industry-government co-regulatory arrangement. It complements the work of the states and territories in addressing packaging waste. APCO oversees the registration of signatories and action plans, monitors progress, and draws discipline and dispute resolution when necessary. Membership in APCO represents approximately 75% of Australia’s packaging market share.
Targets and Goals
One of the 2030 Strategic Plan’s purposes is to deliver on the Goals of the Covenant (the Goals) and the National Packaging Targets as shown in the table below:
Key features of the 2030 Strategic Plan
New membership fee model
APCO member fees will be calculated using ecological modulation (eco-modulation), which aims to incentivise the design of packaging for reduction, reuse, and recovery. These fees are typically based on assessing the downstream costs related to the amount and type of packaging placed on the market. This approach is successfully implemented in many countries including Belgium, the Netherlands and France.
APCO believes that eco-modulation member fees will provide a stronger and more equitable basis for future fee increases necessary to achieve the Targets and Goals. The development of the eco-modulation model will begin in early FY25, with plans to implement the model by FY27. The detailed timeline is as follows:
Funds raised through this new fee model will be reinvested to address economic barriers, enhance end markets, develop reprocessing infrastructure, and strengthen collection networks, thereby supporting National Packaging Targets.
New indicators for the Covenant goals
The Goals of the Covenant will be tracked using new indicators in addition to the Targets. The indicators include reduced materials sent to landfill, which can reflect the aggregate impact of packaging elimination and reduction, reuse, and resource recovery. By 2030, the expected total landfill reduction level is 1 million tonnes. Additionally, the Goals will be tracked through indicators reflecting the reduced single-use packaging, and litter.