March 2019

SOFT PLASTIC PACKAGING WORKING GROUP 2018 Contents

1. Executive Summary 3

2. Definitions 7

3. Scope 9

4. Stakeholder Identification 11

5. Materiality Statement 12

6. Key Priority Areas 13

7. Baseline Data 13

a. Amount consumed 13

b. Main product applications or sectors 13

c. Design initiatives 13

d. Recovery and systems 14 i. Reduction or reuse systems 14 ii. Collection systems 14 iii. Recycling systems 15 iv. Recycling technologies and end markets 16

e Recycling rates 19

8. Lifecycle Approach 19

9. Conclusions 20 a. Conclusions 20 b. Data Gaps 20

Disclaimer APCO and the contributing authors have prepared this report with a high-level of care and thoroughness and recommend that it is read in full. This report is based on generally accepted definitions, data and understanding of industry practices and standards at the time it was prepared. It is prepared in accordance with the scope of work and for the purpose outlined in the introduction. Sources of information used are referenced in this report, except where provided on a confidential basis. This report has been prepared for use only by the APCO, and other third parties who have been authorised by APCO. APCO and the contributing authors are not liable for any loss or damage that may be occasioned directly or indirectly using, or reliance on, the contents of this publication. This report does not purport to give legal or financial advice and does not necessarily reflect the views of individual Working Group members or their organisations. No other warranty, expressed or implied, is made as to the professional advice included in this report.

SOFT PLASTIC PACKAGING WORKING GROUP 2018 2 Executive Summary

APCO has been charged by Environmental Ministers economy principles, avoidance and reduction should in Australia to lead the 2025 National Packaging be prioritised and end markets for recycled plastic Targets. To progress towards these targets, the need to achieve the highest potential environmental following areas will need to be addressed: value (see Figure 1). The primary goal is to recycle as • Packaging design will need to ensure that it is much as possible back into packaging, where this is suitable for recovery through either reuse, not possible (e.g. for multi-layer packaging formats) recycling or composting plastics may be recycled to make other products • Infrastructure will need to be available for the that can also be recycled at end of life. Packaging collection and recovery of all packaging types that cannot be collected for material recycling (e.g. through either reuse, recycling or composting because it is too contaminated with food or another • End markets will need to be strengthened to organic nutrients), could be designed for composting. support the recycling industry Waste to energy is regarded as a useful ‘last resort’ • Consumers will need to be informed and solution once all other technologies and end markets educated about the correct recovery channel have been explored. for all packaging. Achieving this vision will require coordinated In 2018 APCO convened five working groups to national action in the following areas: investigate barriers and opportunities to improve the • End markets: Robust and sustainable markets recovery of five ‘problematic’ packaging materials: for soft plastics, including more research and , coated (PCPB), soft development and reprocessing facilities with plastics, biodegradable and compostable packaging, capacity to absorb the growing quantities of soft and expanded polystyrene (EPS). The groups plastics being collected. worked to establish a shared understanding of the • Procurement: Commitment from government problem and to identify projects to be undertaken by agencies and other large organisations to buy stakeholders in the packaging value chain to support recycled products containing recycled plastics. achievement of the 2025 National Packaging Targets • Consumer education: Understand the benefits of for each material category. soft plastics, e.g. for extended , but avoid The identified projects have been reviewed, unnecessary use; know how to recycle and buy prioritised and combined with other initiatives to recycled products to ‘close the loop’. develop projects for implementation in 2019. Priority • Design: Unnecessary, problematic or inefficient projects for implementation in 2019 are summarised packaging eliminated; all soft plastics designed in Table 1. The individual projects aim to support for recycling; hard-to-recycle soft plastics e.g. the achievement of the 2025 National Packaging PVC and multi-material laminates, replaced with Targets by addressing packaging design, consumer more recyclable alternatives; inclusion of recycled engagement, recovery systems and end markets. content, where possible. 2018 Soft Plastics Working Group’s (the Working • Collection: Users separating soft plastics for Group) vision is for all soft plastics to be designed for recycling at home or at work; at least 80% of reuse or recycling, to incorporate recycled content households have access to a convenient recycling where feasible, and to be recycled or composted option through either kerbside collection, retail at end of life. This aligns with the UN Sustainable drop-off, or council recycling centres; clear and Development Goals (SDG), particularly Goal 12 consistent recycling labelling. (‘Sustainable production and consumption’). • Sorting: Material Recovery Facilities (MRFs) set up In accordance with the waste hierarchy and circular to sort soft plastics as a separate stream.

SOFT PLASTIC PACKAGING WORKING GROUP 2018 3 Executive Summary

Avoid

Reduce

Material recycling back into packaging

Material recycling to other products

iological recovery

rganics recycling

Energy recovery

andfill

Figure 1: Waste hierarchy for soft plastics packaging (guide only)

Key themes that emerged from the Working Group This report has been prepared by APCO in include: collaboration with the APCO Soft Plastics Working • The need for more accurate and detailed data on Group 2018. The purpose of this document is to packaging consumption and recycling analyse the current status of soft plastics packaging • Suggestions for reduction or elimination of materials and propose projects to increase the problematic and unnecessary packaging recovery of these packaging materials. • Additional resources to support design and procurement • Consumer education on packaging reduction and correct recycling • The need for targeted industry education on packaging design, procurement and recycling • Collection and recycling infrastructure gaps and lack of local end markets • Government procurement to support end market development

SOFT PLASTIC PACKAGING WORKING GROUP 2018 4 Executive Summary

Design Consumer engagement 100% eurce t urt S ecyce ctet ae reusable recyclable or ervice uieie mtae acai ae compostable ie cyce aemet uie umer eucati utry eucati

70% of plastics ational 30% average packaging packaging recycled recycled or targets content composted

End markets Problematic Collection and recycling systems and unnecessary vermet rcuremet recye ruct ayi rematic materia singleuse plastics Suy cai rcuremet recyce atic uaiity tria packaging phased out ES recyci it ca ruct mtaiity tria S

Figure 2. APCO projects linked to the National Packaging Targets

Table 1. APCO priority projects for 2019

APCO 2019 PROJECT NAME DESCRIPTION WORKING GROUP 1.1 Packaging consumption and recycling 1.2 Infrastructure mapping 1. Packaging baseline data 1.3 Economic analysis of alternative collection systems and end markets National 2. Public statements on specific Packaging Targets Public statements on outcomes of previous 5 working groups materials Implementation (NPTI) 3. White on problematic and Paper to identify target products/materials and build the unnecessary packaging for phase-out 4. Options to standardise recycling Modelling strategic options to facilitate achievement of the systems 2025 NPT 5.1 Quickstarts: (i) recovery pathways, (ii) glass, (iii) PCPB, (iv) EPS, (vi) PET, (vii) labelling 5. Resources to support the 5.2 Design for soft plastics packaging (build on CEFLEX) Sustainable Packaging Guidelines 5.3 Design for compostable packaging Design 5.4 Wine packaging guidelines 6. Food service packaging Engagement workshops, guidelines & case studies guidelines

SOFT PLASTIC PACKAGING WORKING GROUP 2018 5 Executive Summary

APCO 2019 PROJECT NAME DESCRIPTION WORKING GROUP 7. Compostable packaging New label to align with the Australasian Recycling Label (ARL) 8. Recycled content label New label to align with the ARL Design 9. Life cycle assessment (LCA) Database and guidelines guide 10. Consumer education How to recycle – including the ARL 11. Analysis of problematic Trials to investigate specific issues packaging materials Trials to investigate pulpability of polymer , non-wood 12. Pulpability trials fibres etc. Training in collaboration with AIP on PSF – including SPG, 13. Packaging supply chain training PREP/ARL Systems & 14. Models for phase out of single Working with Boomerang Alliance on council / community Education use plastics case studies to reduce/replace plastics Research to analyse compostability of different certified 15. Composting trials materials 16. Regional model for soft plastics Working with Plastic Police to evaluate and document a recycling regional collection and market development model 17. Remote/regional waste Workshop on potential partnership-based solutions to collection partnerships collection in remote and regional Australia 18. Government procurement of Guide on buying recycled including case studies and technical recycled products information 19. Supply chain procurement of Case studies with APCO Members to identify end market recycled plastic products opportunities for soft plastics 20. EPS collection and end market Working with EPSA to document and share a model to collect Materials pilot and reuse EPS in waffle pods Circularity 21. Sustainable Packaging Resource to help industry and government make sustainable Information and Resource purchasing choices Interactive Terminus (SPIRIT) Driving innovation in Australia to address the future of 22. Innovation Hub sustainable packaging

SOFT PLASTIC PACKAGING WORKING GROUP 2018 6 Definitions

For the purpose of this document, the following terms have been defined:

Table 2. Definitions relevant to soft plastics packaging

TERM DEFINITION Means the packaging has been certified as compostable according to AS 4736, AS 5810 or a Compostable similar standard, and the majority of consumers have access to a composting system to recover Packaging the material. Includes choice of materials, additives, colours, , glues, inks, caps and closures, format, Design dimensions, etc. Means that recovery is occurring at the optimal level of the waste hierarchy, based on available Highest potential recovery systems and sustainability impacts of alternative recovery options (e.g. composting vs. environmental recycling, or recycling vs. energy recovery). Reuse is encouraged prior to recovery when there is value evidence that it extends the life of the packaging and achieves positive sustainability outcomes. Can be in the form of a statement, symbol or graphic on a purchased product at any point in the Labelling supply chain, but most commonly used at the final point of sale (e.g. retail). Reprocessing, by means of a manufacturing process, of a used packaging material into a product, Material recycling a component incorporated into a product, or a secondary (recycled) raw material; excluding energy recovery and the use of the product as a fuel.1 Materials Recycling A specialised plant that receives, separates and prepares recyclable materials for marketing to Facility (MRF) end-user manufacturers. The treatment of separately collected organics waste by anaerobic digestion, composting or Organics recycling vermiculture.2 Packaging Recyclability An online tool that provides clear, consistent and validated information about the recyclability of Evaluation Portal specific packaging formats. (PREP) Of packaging refers to the availability of systems for reuse, recycling, composting or energy Recoverability recovery. ‘Recyclable’ means that there is an existing system to collect and recycle the packaging in Australia (see ISO 140121 for more detail). Means that, in a particular geographical area, at least 80% of the overall population has convenient access to a service that collects the packaging or packaging component, and that this item can Recyclable be recovered and sorted in a stream where at least 70% of its weight can be recycled into another product. This should consider its design, manufacturing process and most likely way of using, disposing and collecting it.3 is the proportion, by mass, of pre-consumer and post-consumer recycled material in packaging (AS/ISO 14021). ‘Pre-consumer’ material is material diverted from the waste stream during manufacturing (excluding rework). ‘Post-consumer’ material is material waste generated by Recycled Content households or by commercial, industrial and institutional facilities. The amount of renewable or recycled material is expressed as a percentage of the quantity of packaging material put onto the market.4

1 APCO (2019) Sustainable Packaging Guidelines 2 European , Bioplastics Glossary, Organic recycling. 3 APCO (2019) Sustainable Packaging Guidelines 4 APCO (2019) Sustainable Packaging Guidelines

SOFT PLASTIC PACKAGING WORKING GROUP 2018 7 Definitions

TERM DEFINITION Includes both material recycling (maintaining material structure) and chemical recycling (e.g. Recycling breaking materials down into more basic building blocks). It explicitly excludes technologies that do not reprocess materials back into materials but into fuels or energy. Material that is composed of biomass from a living source and that can be continually replenished. Renewable Renewable materials include paper and cardboard from sustainably grown wood fibre, or a biopolymer from a sustainable source.5 Means a characteristic of packaging that has been conceived and designed to accomplish within Reusable its life cycle a certain number of trips or uses for the same purpose for which it was conceived.6 Places the highest priority on avoidance (action to reduce the amount of waste generated) followed by resource recovery (reuse) followed by recycling, reprocessing and then energy Waste hierarchy recovery, consistent with the most efficient use of the recovered resources; and finally, disposal in the most environmentally responsible manner.

5 ISF UTS (2017) Packaging Sustainability Framework, definitions https://www.australianpackagingassessment.com.au/definitions/ 6 APCO (2019) Sustainable Packaging Guidelines

SOFT PLASTIC PACKAGING WORKING GROUP 2018 8 Scope

Soft (flexible) plastics are generally defined as plastics • Multi-layer: composed of two or more materials that can be scrunched into a ball, unlike ‘rigid’ plastics joined together through co-extrusion or such as and tubs, which are moulded and hold . Layering different materials together their shape. They are generally made from low density is advantageous for manufacturers to create a (LDPE), linear low-density polyethylene package with unique barrier and mechanical (LLDPE), high density polyethylene (HDPE) or properties. This often results in thinner and lighter (PP).7 packaging (compared to mono-layer), which Other potential materials used in soft plastics include: reduces the resources required to produce and • polyethylene terephthalate (PET) transport packaging. Compositions range from • polyvinyl chloride (PVC) three to nine layers. With so much variation in • polystyrene (PS) materials and structure, these formats add to the • polyethylene (PE) complexity of recovery and recycling. Examples • biaxially-oriented polyethylene terephthalate include primarily product packaging such as (BOPET) pouches, , packets, and lidding • ethylene-vinyl alcohol copolymer (EVOH) materials that require high barrier properties. • polylactic acid (PLA) Defining the scope of soft or flexible plastics is difficult • biaxially-oriented polypropylene (BOPP) due to the wide variety of resins, and formats • other - bioplastics, , and paper. used. The main categories are: Complexity is created when more than one type of • Retail shopping and produce bags polymer and/or other materials such as aluminium • Consumer bags, pouches and film are used to create flexible packaging8. This has arisen • Commercial and industrial film (stretch and shrink in response to increasing requirements for packaging, wrap) and bags e.g. improved food presentation, convenience and • Agricultural film (bale wrap, cotton film, mulch film) product protection9. and grain bags The composition of soft plastic packaging can be • Building films used to protect items such as timber, broken down into two broad groups: plasterboard, bricks, etc. • Mono-layer: using one polymer, often PE. Examples Table 3 provides an overview of the soft plastic include , , retail shopping packaging that this group has focused on, divided into bags, produce bags, self-seal food storage bags. categories that influence recyclability.

7 Sustainable Packaging Coalition (2018) Multi-Material Flexible Packaging Recovery https://sustainablepackaging.org/committees/multi-material-flexible- packaging-recovery/ 8 Sustainable Packaging Coalition (2018) Multi-Material Flexible Packaging Recovery https://sustainablepackaging.org/committees/multi-material-flexible- packaging-recovery/ 9 APCO (2016) National Recycling and Recovery Survey (NRRS) 2015-16 for plastics packaging (IND 299/16) https://www.packagingcovenant.org.au/documents/ item/1070

Stakeholder identification SOFT PLASTIC PACKAGING WORKING GROUP 2018 9 Scope

Table 3. Types of soft plastic packaging separated by stream

EXISTING DESTINATION PRIMARY CONTAMINATION CATEGORY DESCRIPTION SOURCE RECOVERY AND END USE POLYMER LEVEL/ TYPES METHOD (EXAMPLES) - Drop-off at supermarkets - Replas, Mixed film (REDcycle), Newtecpoly etc Moderate packaging, LDPE, Council resource as a raw material contamination including retail HDPE, recovery for benches, (<20%) e.g. glass, shopping and mixed Consumers, centres, other bollards, decking Household hard plastics, produce bags, other - households (e.g. Plastic etc. aluminium cans, and consumer PET, PP, Police) - Road base or residual food, bags pouched PVC - Kerbside asphalt general waste and film. collection, in - Some clean some Vic council plastics exported areas Mixed film Offices, Low (<10%, LLDPE, - shrink wrap, retail stores, excluding Individual HDPE, Various – see Commercial courier packs, restaurants, restaurants) Hard arrangement mixed above , other plastics, paper, with contractors other retail polybags commercial general waste Mixed e.g. packaging LDPE, PP, High (<40%) offcuts, HDPE, Product residue, Collection and Manufacturing e.g. Cable cover Industrial redundant other cardboard, processing, e.g. sites and builders film packaging, mixed- gloves, general Plastic Forests plastic PET, PVC waste bags, bulk bags Retail storeroom/ Low (<10%) back of store, Stretch wrap, Individual Supply LLDPE, distribution bundle shrink, Cardboard, arrangement Various chain LDPE centres, plastic bags , general with contractors warehouse s, waste transport Yards LLDPE, Individual LDPE, Bale wrap, arrangement mixed High soil and Agricultural mulch film, Farms with contractors, Various other – plant residue grain bags etc e.g. Plastic HDPE, Forests woven PP

SOFT PLASTIC PACKAGING WORKING GROUP 2018 10 Stakeholder Identification

Table 4 depicts the key groups across the packaging design or implementation of the identified projects. value chain that will need to be engaged in the

Table 4. Key groups in the packaging value chain for soft plastics

STAKEHOLDER DRIVERS CHALLENGES - Meet customer requirements Polymer suppliers - Innovation to protect or expand markets (e.g. - Often not engaged in recycling at end of life barrier packs) - Meet customer requirements - Ability to meet product specs with recyclable Packaging - Sustainability / recyclability targets. and/or recycled content packaging (e.g. due to manufacturers - Protect or expand markets manufacturers’ processes) - Product protection - Ability to meet product specs with recyclable - Sustainability / recyclability targets Brand owners packaging - Meet consumer expectations for recyclable - Imported packaging packaging - Want to provide a recycling solution for customers - Space in retail stores Retailers - Recycling on-site waste to achieve waste - Cost reduction / recycling targets - Limited awareness of soft options - Most want to recycle as much as possible - No standard labelling system Householders - Looking for convenience / easy solution - Limited options for recycling / not included in kerbside - Not willing or unable to take to drop-off Large - Awareness/interest in recycling organisations - Costs of waste disposal - Resistance / conservatism generating soft - Sustainability / recycling targets - Limited options for collection & recycling plastics waste - Contamination of collected soft plastics - Trialling collection options to provide residents with a convenient recycling solution – drop-off or - Need a contractor willing to trial and Councils kerbside implement kerbside collection - Popular with residents where introduced - Value and reliability of end markets - Landfill costs - Costs of collection / logistics Collectors - Service for clients - Lack of sorting infrastructure - Distance from recyclers - Soft plastics already coming in as contaminant - Ability to manage new stream – has to be / causes problems with equipment removed manually MRF operators - Recycling turns a problem into a revenue - Knowledge/ ability to develop new markets stream - Contracts with councils - Landfill costs - Packaging not designed for recycling - Limited end markets, demand Recyclers - Meet requirements in end markets - Complex multi-material formats - Falling value in export markets Consumers of - Quality - Availability of recyclate that meets quality recycled material - Safety specifications / reliable supply (packaging - Cost - Food contact regulations manufacturers) - Buy recycled / circular economy policies - Awareness / demand for recycled products Consumers (other) - Performance and cost relative to alternatives - Specifications or standards (e.g. roads)

SOFT PLASTIC PACKAGING WORKING GROUP 2018 11 Stakeholder Identification

STAKEHOLDER DRIVERS CHALLENGES Industry - Innovation associations - Cost - Audience representing - Forward planning - Collaboration of members and with other recyclers/waste/ - Collaboration and engagement with members groups plastics Non-government organisations - Strength (push) - Promoting zero waste, recycling and environment - Data reliance groups Schools and - Meeting personal targets, driven by students - Cost, contractors for collection universities and collective groups - Interest or awareness - Funding Local - Meet national and state targets; drive economic - Tyranny of distance, regional variability (one- governments opportunity, etc. cap-fits all approach doesn’t work) - Funding State and territory - Meet national and state targets; drive economic - Tyranny of distance, regional variability (one- governments opportunity, etc. cap-fits all approach doesn’t work) Australian - National Waste Policy - Differing approaches across states/territories Government Research - Understanding interactions between packaging - Understanding interactions between packaging organisations and food waste (e.g. CRC) and food waste (e.g. CRC) International organisations - Lack of collaboration between organisations at e.g. EMF, WRAP, - Similar objectives to APCO an international level CEFLEX, NEMO (US)

Materiality Statement

The national recycling rate for soft plastics is relatively • MRFs not set up to manage soft plastics, which low. Based on consumption of around 336,000 tonnes they already receive as a contaminant (non- and recycling of 48,000 tonnes it was estimated to be targeted material) around 14% in 2015-1610. The recycling rate is likely to • Large quantities of contaminated soft plastics, with have fallen significantly since then as a result of the the contamination making it unviable to recycle Chinese import restrictions. • Current technical difficulties involved in recycling Some of the challenges for soft plastics include: soft plastics back into soft plastics, which mean • A trend towards complex, multi-material packaging that it generally gets recycled into rigid products formats, which are more difficult to recycle such as outdoor furniture or cable cover • Limited local markets and low commodity value for • Soft plastics generally unable to be collected soft plastics. There is a mismatch between remanufactured back into food contact packaging the costs of collection and recycling and the value due to safety standards and regulations of the material, and recycled soft plastic products • The lack of a consistent message on recyclability are often more expensive than virgin alternatives as a result of different approaches to recovery • Limited collection and drop-off services for (recyclable or compostable) and a wide range of businesses and households, and unwillingness or drop-off or collection systems. inability of many people to take plastics to a drop- off point

10 Envisage Works - National Recycling and Recovery Survey (NRRS) 2015-16 for plastics packaging https://www.packagingcovenant.org.au/documents/ item/1070

SOFT PLASTIC PACKAGING WORKING GROUP 2018 12 Key Priority Areas

The key priority areas to be addressed include: 5. End markets: Develop new end markets beyond 1. Knowledge: Build a stronger knowledge base for packaging. system-wide decision-making. 6. Procurement: Encourage procurement policies that 2. Reduction: Identify and phase out problematic and favour products with recycled content. unnecessary single use packaging. 7. Collection systems: Explore efficient collection 3. Design for recycling: Reduce packaging complexity systems, for example co-collection with other to improve recyclability where there is an alternative products, to minimise costs. that delivers the required functionality, 8. Supply chain responsibility: Encourage corporate 4. Recycled content: Promote increased recycled social responsibility by promoting the business case content in packaging. for supply chain involvement in recycling programs.

Baseline Data

a. Amount consumed Soft plastic packaging used in Australia is estimated by industry sources to be around 300,000 tonnes annually.11 This was confirmed by APCO Member Annual Reports for 2017. In the first year of reporting against the Packaging Sustainability Framework, Members reported approximately 336,000 tonnes of soft plastic packaging placed on the market in Australia12. Soft plastics are manufactured locally in Australia as well as imported.

b. Main product applications or sectors The food and beverage sector is the largest single user of soft plastics for consumer products. However, soft plastics are used not only for the retail of products, but also to protect a wide range of products and packaging in distribution. Commercial and industrial packaging applications include stretch films, bundle shrink, garment bags, postal sachets and plastic bags.

c. Design initiatives One of the most difficult packaging formats to recycle is multi-layer (often multi-material) laminates. This problem is being addressed through both innovative design and recovery systems. Dow Chemical, for example, claim to have developed a single-material barrier pouch with improved recyclability compared to existing multi-material alternatives13. Innovia Film14 has also introduced a range of new BOPP biopolymers intended to simplify packaging and improve recyclability15.

11 Metropolitan Waste and Resource Recovery Group (2017) Introduction of Flexible Plastic Packaging in Kerbside Recycling Services https://www.mwrrg.vic.gov. au/assets/resource-files/Flexible-Plastics-in-Kerbside-Recycling-Final-Report-FINAL-20170616.pdf 12 APCO (2018) Annual Reporting Data 13 Dow Global (2018) Dow and Vishakha Polyfab Launch Recyclable Barrier Film for Liquid Packaging in India https://www.dow.com/en-us/news/press-releases/ dow-develops-recyclable-barrier-film-for-liquid-packaging-with-vishakha-polyfab 14 Innovia Films (2018) https://www.innoviafilms.com/ 15 Packaging News (2018) Innovia Films turns to BOPP http://www.packagingnews.com.au/materials/innovia-films-turns-to-bopp

SOFT PLASTIC PACKAGING WORKING GROUP 2018 13 Baseline Data

A European consortium of companies from across the value chain is currently collaborating on a project called CEFLEX to improve recovery rates for flexible packaging. CEFLEX aims to develop ‘Design for a Circular Economy’ guidelines for both flexible packaging and the end of cycle infrastructure to collect, sort and recycle. By 2025, it aims to develop collection, sorting and reprocessing infrastructure for post-consumer flexible packaging across Europe16. Other relevant international initiatives include FIACE (Flexibles in a Circular Economy)17, REFLEX (Recycling of Flexible Packaging)18 and MRFF (Materials Recovery for the Future)19.

d. Recovery and recycling systems

i. Reduction or reuse systems There are some limited examples of reuse systems for soft plastics, such as reusable non- woven PP or heavy-weight LDPE retail bags. There are several NFPs, community groups or local councils that are also encouraging consumers and businesses to reduce single use plastics, for example Boomerang Alliance20, Bye-Bye Plastics21 etc.

ii. Collection systems Current domestic collection systems are summarised below in Table 5, with examples.

Table 5. Domestic collection systems for soft plastics

COLLECTION EXAMPLES SCOPE / ISSUES LOCATION SYSTEM Several Melbourne councils are All soft plastics source separated in a collecting soft plastics following a (‘bag in bag’). Results from Melbourne Melbourne trial with the Metropolitan Waste and showed strong participation, low (Cardinia, Resource Recovery Group (MWRRG) and contamination and efficient sorting at the Kerbside Hobsons Bay, SKM Recycling22. MRF. Product packaging was the largest Nillumbik & volume of material recovered. Boroondara) Some WA, SA and NSW councils also trialling. Metallised film was excluded. All ‘scrunchable’ post-consumer plastics Retail drop- REDcycle: Collection bins located in all Australia (excluding ‘wet’ food/drink applications e.g. off Coles and Woolworths supermarkets23 wide sauces, pet food). All ‘scrunchable’ consumer plastics. Can Council drop- Community Recycling Centres in NSW have high contamination rate with mixed Various off E.g. Randwick and Hunter Region24 approach to materials.

16 CEFLEX (2018) What we do https://ceflex.eu/what-we-do/ 17 FIACE (2018) Mapping flexible packaging in a Circular Economy https://ceflex.eu/public_downloads/FIACE-Final-report-version-24-4-2017-non-confidential- version-Final.pdf 18 REFLEX (2016) A summary report on the results and findings from the REFLEX project https://ceflex.eu/public_downloads/REFLEX-Summary-report-Final- report-November2016.pdf 19 MRRF (2018) https://www.materialsrecoveryforthefuture.com/ 20 Boomerang Alliance (2019) https://www.boomerangalliance.org.au/ 21 Bye Bye Plastic (2019) https://byebyeplastic.org.au/ 22 Metropolitan Waste and Resource Recovery Group (2017) Introduction of Flexible Plastic Packaging in Kerbside Recycling Services https://www.mwrrg.vic.gov. au/assets/resource-files/Flexible-Plastics-in-Kerbside-Recycling-Final-Report-FINAL-20170616.pdf 23 REDcycle (2018) http://www.redcycle.net.au/ 24 Randwick Council (2018) Soft plastics recycling http://www.randwick.nsw.gov.au/services/rubbish-and-recycling/recycling-centre/Soft-plastics-recycling

SOFT PLASTIC PACKAGING WORKING GROUP 2018 14 Baseline Data

COLLECTION EXAMPLES SCOPE / ISSUES LOCATION SYSTEM Numerous companies reprocess locally Various. Generally cleaner stream. Various Commercial or export collections Plastic Police: collect from businesses, Hunter Various schools etc25 region, NSW Plasback stewardship scheme for silage Agricultural film. Under Plasback farmers film (previously managed by Tapex), collected in bags provided and delivered to which has ceased operation in Australia participating transfer stations for collection. but continuing in NZ26. Made into recycled plastic sheeting board Agricultural and floor tiles. Various drop-off Some councils provide drop-off services, either at cost or free of charge, Some commercial collections of silage, grain e.g.Wellington/ East Gippsland Shire27 bags and other agricultural films and Shepparton Resource Recovery e.g. Plastic Forests29 Centre28.

iii. Recycling systems There are many companies that accept clean, single polymer plastics from C&I sources, such as LDPE film and bag (for examples, see Planet Ark’s Business Recycling website30). Some reprocessors can tolerate a limited mix of polymers and higher levels of contamination through the use of a washing system. Clean, single polymer soft plastics are also exported for recycling. The value of LDPE films in export markets has recently fallen around 33%, as a result of restrictions imposed by the Chinese Government, referred to as the National Sword.31 Conventional MRF technology does not allow for the handling of film and flexible plastics. This is due to the fact that the flexible films get caught in machinery and cause failure or damage. There are emerging reports of international MRFs that have new technologies that allow film and flexible plastics to be recovered, via: • Air capture technology – to remove light film materials • Optical sorting – to separate and recover plastic material by polymer • Associated shredding, cleaning and washing systems to reduce contamination and improve recyclate value32. An alternative approach being used in some Australia councils is to ask residents to add soft plastics to their recycling bin in a separate dedicated bag, which is manually removed out at the start of the MRF. The original Melbourne trial found that MRFs were already receiving soft plastics as a contaminant (~9% by volume of recycling bins), which reduced the value of sorted paper and became entangled in equipment. Sorting the material for recycling addressed both of these problems and provided an additional revenue stream.33

25 Plastic Police (2018) https://crossconnections.com.au/plastic-police-partnerships/ 26 Plasback (2018) http://pbnzd.tapexstaging.com/about 27 Wellington Shire Council and East Gippsland Shire Council (2017) Silage Wrap Recycling 2017 http://www.eastgippsland.vic.gov.au/files/assets/public/ documents/operations_directorate/waste/waste_education/silage_wrap_recycling_2017_flyer.pdf 28 Greater Shepparton Council (2018) Resource Recovery Centre http://greatershepparton.com.au/animals-environment-and-waste/waste-and-recycling/ resource-recovery-centres/shepparton-resource-recovery-centre 29 Plastic Forests (2018) Plastic from the Agricultural Industry https://plasticforests.com.au/plastic-from-the-agricultural-industry/ 30 Planet Ark (2018) http://businessrecycling.com.au/ 31 APCO (2018) Market impact assessment report: Chinese import restrictions for packaging https://www.packagingcovenant.org.au/documents/item/1224 32 Zero Waste SA (2012) Stage 1, Final Report: Study on the South Australian Plastics Packaging Resource Recovery Sector. https://www.greenindustries.sa.gov.au/ publications-plastics 33 Metropolitan Waste and Resource Recovery Group (2017) Introduction of Flexible Plastic Packaging in Kerbside Recycling Services https://www.mwrrg.vic.gov. au/assets/resource-files/Flexible-Plastics-in-Kerbside-Recycling-Final-Report-FINAL-20170616.pdf

SOFT PLASTIC PACKAGING WORKING GROUP 2018 15 Baseline Data

iv. Recycling technologies and end markets The below table provides a summary of the current recycling technologies available in Australia and emerging internationally, with examples.

Table 6. Summary of current recycling technologies for soft plastic packaging

RECYCLING EXAMPLES DESCRIPTION OF EXAMPLE END MARKETS LOCATION TECHNOLOGY ONLY Recycles post-consumer soft plastics from the REDcycle scheme, Plastic Police and C&I plastics. Mixed soft REDcycle35 and Replas partnered with large Outdoor furniture, Melbourne, plastics Replas34 supermarkets and brands to fund collection points decking, fencing, VIC recycling and require partners to buy back recycled products signage, etc. to ensure there is always an end market for the recycled material. Polywaste Technology™ utilise low grade plastics (contaminated film, semi-rigid and rigid plastics) Ewood, gardening to produce commercial grade recyclable plastic stakes, posts, Mixed plastics products. bollards, rails, Moama, Newtecpoly36 recycling Technology does not require shredding or flaking planks and NSW of feedstock, with reported energy savings and shipping , operating costs. etc.

Duratrack – Integrated Duratrack37 sleepers are fit for purpose within the Mixed soft Recycling/ Tourist & Heritage railways operating parameters plastics Monash Uni/ (same characteristics as timber sleepers). 50-year Railway sleepers Victoria recycling Sustainability design life and manufactured using Australian Victoria and plastic waste. APCO Resin & products such as garden edging, builders’ , electrical Recycle contaminated plastic film from food, PE/PP Forests/ cable covers, bin industrial and agricultural industries along the east Albury, NSW recycling Green liners. Recent coast of Australia. Mongrel38 work investigating manufacturing back into low- density bags. Proctor and Opened a plant in July 2017 that will convert Gamble/ Virgin-like quality International PP recycling recovered PP to ‘virgin-like’ quality with a new PureCycle PP resin - USA recycling method. Technologies

34 Replas (2018) http://www.replas.com.au/recycling/ 35 REDcycle (2019) https://www.redcycle.net.au/ 36 Newtecpoly (2018) http://newtecpoly.com/polywaste/ 37 Integrated Recycling (2018) http://www.integratedrecycling.com.au/railway-sleepers/ 38 Plastic Forests (2018) https://plasticforests.com.au/

SOFT PLASTIC PACKAGING WORKING GROUP 2018 16 Baseline Data

RECYCLING EXAMPLES DESCRIPTION OF EXAMPLE END MARKETS LOCATION TECHNOLOGY ONLY Shredded plastics can be blended with asphalt Downer / to improve performance. Recently used in road Asphalt and road Victoria and Close the upgrades in Hume (Vic), Sutherland (NSW) and underlays NSW Loop39 Hunter region (NSW). Recycling into roads, Sustainability Recovered plastics (soft and ridged) and glass fines footpaths, etc. Victoria/ able to be incorporated into concrete footpaths Swinburne without compromising the mechanical properties Concrete Victoria Uni/ and meeting the standard requirements. Working footpaths Polytrade with local government toincrease uptake in Recycling construction.40 Aims to chemically degrade the collected plastic waste back into monomers that can then be used Plastic monomers again for making new polymers. Unilever co- Unilever that can be used developed new technology to recover used multi- International CreaSolv®41 again to make layer sachets, called CreaSolv®. This will be trialled new polymers on a commercial scale at Unilever’s Indonesian pilot plant in 2018. Chemical recycling Uses chemical recycling to convert residual mixed Any oil based IQ Renew/ plastics (those plastics that would otherwise be product or Central Licalla’s sent to landfill) into biocrude oil - fuels, waxes and material (Bitumen Coast NSW Cat-HTR42 chemicals. to plastics) Recent agreement with PepsiCo to chemically Loop recycle PET into its component monomers, which Back into plastics International Industries43 are used to make new plastics. In 2015, a UK trial collected and recycled laminated pouches using microwave- induced pyrolysis to recover the aluminium.44 Nestlé / Energy – fuels International, Pyrolysis produces liquid oil, fuels and solvents; Coca Cola and electricity UK syngas, char, metals. Gasification produces electricity, heat, syngas and Waste to recovered materials from ash. energy Converting recycled plastics into ultra-low sulphur International, Plaxx45 Fuel oils or wax (pyrolysis, fuel oils or petroleum waxes. UK gasification etc) Canberra, Other companies have been investigation plants to Diesel or fuel ACT46 and FOY Group convert recycled plastics into diesel or fuel sludge. sludge Berkley Vale, NSW Rutherford, ReOil47 Can process waste PE and PP Waxes NSW

39 Close the Loop (2019) TonerPlas https://www.closetheloop.com.au/products/ 40 Sustainability Victoria (2018) Case study – Recovered plastics and glass fines in concrete footpaths https://www.sustainability.vic.gov.au/About-us/Latest- news/2018/02/18/22/40/Recovered-plastics-and-glass-can-be-used-in-concrete-footpaths 41 Unilever(2018) Rethinking plastic packaging – towards a more circular economy https://www.unilever.com/sustainable-living/reducing-environmental-impact/ waste-and-packaging/rethinking-plastic-packaging/ 42 Cat-HR (2019) https://www.licella.com.au/cat-htr/ 43 Loop Industries (2019) https://www.loopindustries.com/en/ 44 Recycling Today (2015) Enval project targets aluminum in laminate packaging, 23 March 2015 45 Recycling Technologies (2018) Plaxx https://recyclingtechnologies.co.uk/technology/plaxx/ 46 The Canberra Times (2018) Foy Group walks away from plastics-to-fuel plant in Hume https://www.canberratimes.com.au/national/act/foy-group-walks- away-from-plasticstofuel-plant-in-hume-20180114-h0i0qw.html 47 ReOil (2018) https://www.reoil.com.au/

SOFT PLASTIC PACKAGING WORKING GROUP 2018 17 Baseline Data

e. Recycling rates An estimated 48,100 tonnes of flexible plastics were collected for recycling in Australia in 2015- 16 (see Figure 3)48. Based on the earlier estimate of 300,000 tonnes consumed, this represents a recycling rate of around 25%. The majority of this recycling is presumed to be from commercial and industrial sources as very little post-consumer flexible plastics are collected for recycling, in proportion. The recycling rate is likely to have fallen significantly since then as a result of the Chinese import restrictions. Approximately 172,000 tonnes of flexible plastic waste was generated in Victoria in 2014-15. It is estimated that in 2014-15, 16,892 tonnes of flexible plastics were recovered for reprocessing in Victoria. Around 83% as LDPE or LLDPE, 14% was PP and the remainder was mostly HDPE.49 The below table provides a summary of the current recycling technologies available in Australia and emerging internationally, with examples.

Flexible packaging to Flexible packaging to Flexible packaging Polymer local reprocessors overseas reprocessors recovery (tonnes)

PE

PED

PC

PEDD

PP

PS

PSE

ther unknown

Totals 19100 29000 48100

Note: 1. In the table aboe minor discrepancies may occur between the stated totals and the sums of the component items. Totals are calculated using component item alues prior to rounding and therefore a minor discrepancy may occur from those that could be calculated from the rounded figures gien aboe.

Figure 3. Flexible plastic packaging recycling by resin type in 2015-2016

48 APCO (2016) National Recycling and Recovery Survey (NRRS) 2015-16 for plastics packaging (IND 299/16) https://www.packagingcovenant.org.au/documents/ item/1070 49 Sustainability Victoria (2016) Market development strategy for recovered resources http://www.sustainability.vic.gov.au/About-Us/What-we-do/Strategy-and- planning/Victorian-market-development-strategy-for-recovered-resources

SOFT PLASTIC PACKAGING WORKING GROUP 2018 18 Lifecycle Approach

While there are many different sources of soft plastics Group discussed nine potential project opportunities. waste, the priorities over the next few years are: The proposed projects address issues across the • Elimination of unnecessary or problematic soft plastic packaging lifecycle and value chain to packaging ensure system-wide engagement and collaboration • Collection and recycling of post-consumer soft (Figure 4). The identified projects have been reviewed, plastics from households prioritised and combined with other priority initiatives • Collection and recycling of clean, source separated to develop projects for implementation in 2019. distribution packaging from manufacturers, Priority projects for implementation in 2019 are wholesalers and retailers summarised in Table 1. In analysing the lifecycle approach, the Working

Packaging Retail Consumption Sorting / Recycled Product Collection Recycling design sale / use aggregation products procurement

Project 2: Packaging Project 1: Consumption recycling data Project 3: design guidelines Supporting end markets Project 4: Project 6: through Review Consumer government collection education procurement systems for campaign household plastics Project 7: Supporting end markets through supply chain collaboration

Project 8: Regional demonstration proects Project 5: Review Project 9: uilding the case for regulation collection systems for business plastics

Figure 4. Lifecycle approach to soft plastic packaging

SOFT PLASTIC PACKAGING WORKING GROUP 2018 19 Conclusion

a. Conclusions 1. Soft plastics are technically recyclable, although multi-layer formats are the most problematic due to the presence of different polymers and other materials, e.g. . 2. Trials have demonstrated that MRFs can manually sort aggregated soft plastics from kerbside bins, sometimes at a neutral cost. This is because soft plastics are already being received as a contaminant and recycling therefore avoids landfill costs. 3. Design guidelines being developed in Europe (CEFLEX) will help inform domestic design of soft plastic packaging to make it more ‘recyclable’. Plastic film currently plays a key role in reducing food waste, extending shelf life of food and reducing product damage and loss in transportation. 4. Although collection/drop off points for consumer packaging are increasing (e.g. REDcycle), there is a need for more collection points for consumers and/or services for other identified streams such as C&I, accompanied with extensive education and engagement regarding reducing, reusing and recycling. 5. End markets have been significantly affected by the Chinese import restrictions leaving the material with little to no commodity value, as it does not fit into conventional recycling models. This places a greater emphasis on the need for local recycling solutions and end markets. New end markets are emerging, e.g. soft plastics in roads. 6. Soft plastics are generally unable to be remanufactured back into soft plastic packaging due to limitations in technology, as well as food contact standards and regulations. Commercial factors also play a large role in the cost of recycled materials vs virgin. 7. Emerging chemical processing technology has the potential to convert end of life mixed plastics to oil that can close the loop by being used to remanufacture plastics or any oil based product.

b. Knowledge and data gaps • Consumption, collection, recycling and market destination data for soft plastics by source and waste stream, to identify exact volumes we are dealing with in differing streams. • The lifecycle (environmental and economic) benefits of recycling soft plastics compared to other disposal options such as landfill, to support the business case for pursuing new initiatives. • The lifecycle (environmental and economic) benefits of different end-markets for soft plastics, to ensure highest value applications. • Consumer and business behaviours to recycling soft plastics, to support source separation education at home, work or drop off points. • Consumer and business behaviours to support use of recycled content in soft plastic packaging or other applications, and the technical and commercial viability of including recycled content in soft plastic packaging. • International efforts and technologies to address the reduction and recycling of soft plastic packaging, to inform best practice for Australia.

SOFT PLASTIC PACKAGING WORKING GROUP 2018 20 To contact APCO please visit our website www.packagingcovenant.org.au