Northern Territory business case - circular economy for plastics

OVERVIEW

With support from Northern Territory stakeholders, Australian Packaging Covenant Organisation (APCO) and ANZPAC engaged Urban EP to deliver a circular economy business case for plastic packaging generated in the Territory.

The Territory has low recovery rates for plastic packaging and consumables, with limited investment in the infrastructure, services and equipment needed to ensure a scaled circular economy for plastics. The plastics recovery that does occur (from Darwin) is affected by higher contamination rates, high costs for freight to interstate reprocessing facilities, and limited scale economies.

The Territory is of interest to APCO as a testbed for new approaches to achieve better recycling in regions outside the ‘low hanging fruit’ metropolitan centres, and to understand the roles that brand-led product stewardship may play to drive the circular economy for plastics in regional Australia and beyond.

KEY INFO

Location:

Northern Territory

Stakeholders:

NT Government APCO / ANZPAC

Solutions:

Circular Economy

THE BRIEF

Working through APCO as its coordinator, ANZPAC seeks to catayse improved plastics recovery in the NT, through the preparation of a business case and related engagement that:

• Clarifies benefits in recovering plastics to a high level across the NT

• Points to an optimal pathway (technology, product, and end market combinations) for recovering different plastics according to their composition, physical form, distribution pattern, and underlying value

• Sets out the respective roles and accountabilities of parties to unlock plastic recovery in the NT, with a focus on innovative stewardship models and shared responsibility, and steps to shift away from difficult plastics.

Urban EP was requested to:

• Characterise business as usual practices in managing plastic waste according to industry, location, product category and composition

• Describe the operating environment (supply chains, market dispositions, technology maturity, regulatory landscape, and geographic and logistical features relevant to NT)

• Propose practical alternatives to plastics disposal, and test and compare the underlying costs, revenue sources and commercial risks associated with different technologies, products and markets

• Put forward a viable path for recovering different (soft and rigid) plastics from the NT at scale, marking out clear responsibilities for brands, recovery businesses, local councils and Territory authorities.

THE RESULTS

The team delivered:

• A detailed profile of plastics used in the Territory, characterised by location, industry, product type and plastic resin type

• Details of suitable recovery paths for recovering different subsets of plastic according to location, industry of use, and plastic type – with a split between mechanical and alternative recycling supply chains

• Defined areas for packaging brands to take the lead while working with operational partners, to address transport and handling cost challenges in remote locations and to address gaps in the investment in alternative recycling technologies suitable for soft plastics

• Recommendations to address other barriers in the shift away from plastic waste disposal, and to lessen the reliance on intractably challenging plastics through avoidance and substitution

• Proposed governance arrangements and responsibilities to bring plastic stewardship to life in the Northern Territory, to grant confidence in a scaled and efficiently delivered solution.

The team was additionally entrusted to engage with diverse stakeholders on ANZPAC’s behalf (i.e. regulators, the packaging recycling sector, local councils and others) to help drive interest in and generate a common will to realise new circular economy opportunities.

In closing the project, Urban EP delivered findings at a local council and industry symposium, and helped build relationships for APCO to continue to work with Territory partners in follow up activities. Key solution features are echoed in APCO’s 2030 Strategy, which aims to lift the recovery of plastics and adopt more direct lines of responsibility for packaging in remote and rural locations across Australia.