The Australian Competition and Consumer Commission (ACCC) has proposed authorising Soft Plastics Stewardship Australia (SPSA) to establish a voluntary scheme aimed at enhancing the recycling of soft plastic packaging.
This initiative seeks to address the environmental concerns associated with soft plastics such as shopping bags and food wrappers by increasing their collection and recycling rates.
Industry giants, including Woolworths Group, Coles Group, ALDI, Nestlé, Mars, and McCormick Foods are the initial members of the scheme.
Last July, the ACCC granted interim authorisation to Coles Group, Woolworths Group, and ALDI Stores (Australia) to continue their collaborative efforts in recycling stockpiled soft plastics in the country.
ACCC deputy chair Mick Keogh said: "It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it.
“We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill."
In its assessment, the ACCC concluded that the environmental advantages of the scheme would outweigh any potential negative impacts on competition.
The authorisation, if granted, would be in effect for eight years and would include conditions to ensure transparency and prevent exclusive contracts with processors.
Interim authorisation has already been granted to SPSA to facilitate the transfer of operations from the Soft Plastics Taskforce, including the sharing of operational information and data.
According to the Australian Packaging Covenant Organisation, over 540,000 tonnes (t) of soft plastic packaging were utilised by manufacturers between 2022 and 2023, but only 6% was recovered.
The proposed SPSA scheme would be funded through a levy on participants, based on the amount of business-to-consumer soft plastic packaging they introduce to the market.
Separately, the Australian Government is working on reforms to minimise packaging waste and promote a circular economy for packaging, which is distinct from the SPSA scheme.
