ACCC Proposes Industry-Led Soft Plastics Recycling Scheme

The Australian Competition and Consumer Commission (ACCC) has proposed authorising Soft Plastics Stewardship Australia (SPSA) to operate a voluntary, industry-led scheme aimed at increasing the collection and recycling of soft plastic packaging such as shopping bags and food wrappers. Founding members include major companies like Woolworths, Coles, Aldi, Nestlé, Mars, and McCormick Foods. This initiative intends to build on and expand current in-store and kerbside collection pilots, diverting more soft plastics from landfill, and addresses challenges following the collapse of REDcycle, which left stockpiled plastic waste due to insufficient recycling capacity. The ACCC believes the environmental benefits of the scheme outweigh any competition concerns and proposes an eight-year authorisation with conditions to ensure transparency and prevent exclusive contracts with processors. Interim authorisation has been granted to SPSA to begin sharing operational data and transition arrangements from the Soft Plastics Taskforce. According to the Australian Packaging Covenant Organisation, over 540,000 tonnes of soft plastic packaging were used between 2022 and 2023, but only about 6% was recovered, highlighting the need for improved recycling efforts.