Home National ACCC Suggests Supermarket Recycling Initiative Following REDcycle Fiasco

ACCC Suggests Supermarket Recycling Initiative Following REDcycle Fiasco

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A new initiative is being proposed to enhance soft plastic recycling in Australia, nearly three years after the collapse of a previous scheme. The Australian Competition and Consumer Commission (ACCC) is advocating for an industry-driven approach that facilitates the recycling of plastic waste. Initial participants in this plan include major retailers such as Woolworths, Coles, Aldi, and food brands like Nestlé and Mars.

ACCC Deputy Chair Mick Keogh noted that there is significant public concern about the environmental impact of soft plastic packaging, with many Australians keen to recycle it. The proposed scheme aims to improve and expand existing in-store collection systems and kerbside recycling pilot programs, which could lead to a reduction of soft plastics ending up in landfills.

This renewed focus on soft plastic recycling comes after REDcycle, the previous recycling firm, suspended operations in late 2022 when it was revealed that they had stockpiled over 12,000 tonnes of plastic in states including New South Wales, Victoria, and South Australia. The situation arose amid operational challenges, such as a surge in returned plastics and limited recycling capabilities in Australia. REDcycle has maintained that the stockpiling was not a cover-up but a response to unprecedented demand.

There are already pilot programs in place in select supermarkets, paving the way for a more structured approach to soft plastic recycling. Despite the increase in recycling efforts—CEO Liz Kasell reported a 350 percent rise in demand—only about six percent of the 540,000 tonnes of soft plastic packaging used between 2022 and 2023 was effectively recovered, according to the Australian Packaging Covenant Organisation (APCO).

The ACCC has been collaborating with supermarkets as part of a Soft Plastics Taskforce to manage the leftover stockpile from the now-defunct REDcycle initiative. This new plan represents a hopeful step forward in addressing the recycling of soft plastics in Australia and fostering a more sustainable environment.

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