8. Circular economy
   1. There is increasing acceptance of the need for Australia to transition from a ‘linear’ to a ‘circular’ economy based on the re-use of materials and products. The Queensland Department of Agriculture and Fisheries and Department of Regional Development, Manufacturing and Water explained the benefits:

Embracing a circular economy approach is essential for achieving sustainable and resilient food and beverage manufacturing practices. This involves minimising waste generation, maximising resource efficiency, and closing material loops through recycling, reuse, and repurposing. Strategies for circular economy and waste reduction encompass various aspects, including packaging optimisation, food waste management, and decarbonisation of production processes.[1]

8.2Manufacturing is a single part of the food and beverage production-consumption system. The Committee heard that approaches to a circular economy in manufacturing must be harmonised with whole-of-system, and whole-of-lifecycle considerations.[2] Systems thinking will simultaneously address food waste, decarbonisation, and other circular economy issues.[3] As noted by Tetra Pak:

A circular economy should embed sustainable practices throughout the project lifecycle to design out waste and pollution. Under this model, the entire lifecycle of products, from raw materials through to end-of-life treatment has a minimal climate impact. This means choosing renewable resources and efficient energy usage from the initial procurement stage through to supporting a market for materials made from recycled goods.[4]

Benefits of a circular economy

8.3Submitters explained the alignment between government’s social and environmental objectives and industry incentives in establishing a circular economy. Businesses, industry groups, universities and government departments recognised the importance of transitioning to more sustainable manufacturing systems, to preserve the environment, and future-proof industries, employment, and food security.[5]

8.4Many businesses are shifting to more circular production methods as part of their ESG (environmental, social and governance) concerns. Many see this as good business practice and necessary for sustainable business growth. It can also be a response to pressure from shareholders,[6] or to a marketplace that is increasingly conscious of environmental impacts. Many submitters noted the growing preference among consumers for sustainability,[7] which allows a producer to differentiate their products or justify premium pricing.[8] As discussed earlier, Australia’s reputation for sustainable food and beverage products is already an advantage in export markets.[9]

8.5ESG considerations are increasingly affecting market access, with sustainability pressures coming from some retailers and distributors,[10] as well as regulators in international markets and under free trade agreements.[11] The Department of Industry, Science and Resources (DISR), for example, projects that ‘a decarbonised food supply chain is expected to be a competitive necessity in the future for both export and domestic suppliers.’[12]

8.6Businesses and governments are also recognising that ‘waste’ can be a valuable resource. It is estimated that Australia loses out on $419 million annually through discarded PET (polyethylene terephthalate) and HDPE (high density polyethylene) plastics, and $115 million annually in discarded paper. Circular economy practices not only reduce costs associated with waste disposal but also add value and turn waste into an asset.[13] These processes are more material-efficient and are associated with greater employment outcomes. There are more than three times as many jobs associated with recycling than landfill, and an increased recycling rate of five per cent would add an estimated $1 billion to gross domestic product (GDP).[14]

Current initiatives

8.7In October 2022, Australia’s environment Ministers committed Australia to achieving a circular economy by 2030 by designing out waste and pollution, keeping materials in use longer and fostering high end markets for recycled material. The Australian Government is developing a new national circular economy policy framework.[15]

8.8In February 2023, the Government also established the Circular Economy Ministerial Advisory Group. The Advisory Group discussed the food system at its April 2024 meeting, noting that manufacturing agri-derived and novel food products presents economic and environmental opportunities for Australia. They also focused on how to maximise circularity in food, aiming to use more for human consumption and less for energy and composting.[16]

8.9State and territory governments also have their own policies. In Queensland for example, relevant policies include the Waste Management and Resource Recovery Strategy, the Resource Recovery Industries 10 Year Roadmap Action Plan, the Organics Strategy and Action Plan, the Low Emissions Agriculture Roadmap 2022-2032, and the Queensland New-Industry Development Strategy.[17]

8.10The Committee notes that the Productivity Commission is currently undertaking an inquiry into opportunities in the circular economy.[18]

Food waste

8.11Food waste is a global problem. An estimated 30–40 per cent of global food production is wasted, costing AUD$1.97 trillion annually.[19]

8.12In Australia, 7.6 million tonnes of food—equivalent to 298 kg per person—is wasted each year.[20] This costs the Australian economy $36.6 billion, accounts for 25 million hectares of farming land, uses over 2,600 billion litres of water, and produces 17.5 million tonnes of carbon dioxide.[21] In addition, if untreated, organic waste breaks down and releases methane into the atmosphere, a form of emissions that are 30–80 times worse than carbon.[22] Food waste represents nutrients that could feed food insecure people, including one in six Australian adults and 1.2 million children.[23]

8.13There are many factors that cause food waste, including ‘cosmetic defects’, planned over-production to ensure contract supply volumes, inadequate food storage, poor road infrastructure and limited food preservation capacity, not enough local population to support secondary markets, and a focus on food safety.[24]

8.14The Committee heard that there is a need for systematic change. Although food waste as a whole is larger than the terms of this inquiry, food and beverage manufacturing plays a key role. Manufacturing is estimated to be responsible for 31per cent of food waste in Australia and is also inextricably linked with both up- and down-stream systems. Waste Management and Resource Recovery Association of Australia argued:

Improving food and organic waste management involves phasing out the linear food system - and it's a key part of our transition to a circular economy, where 'waste' is designed out.[25]

8.15The Committee heard that there are significant societal and commercial benefits to cutting down on food waste, including increased returns, productivity, efficiency and growth, reduction in emissions, and improving national and global food security.[26] End Food Waste Australia estimate that:

…for every dollar invested in preventing food waste [businesses] can expect a return of $7-21. Yet many food businesses are unaware of the full cost of wasted food in their own operations and supply chains. These costs soon add up when you factor in not just the cost of wasted ingredients and packaging but the costs of labour, energy, equipment and infrastructure that goes into the production of food products that are subsequently wasted, as well as the costs of waste collection, treatment or management that arise because of this waste.[27]

National Food Waste Strategy

8.16The National Food Waste Strategy, launched by the Commonwealth Government in November 2017, aims to halve food waste by 2030. The strategy provides a framework to support collective action across the entire food chain, involving all levels of government, businesses, and the community. Key elements of the strategy include:

• developing policies that encourage food waste reduction
• helping businesses adopt practices that minimize food waste
• creating markets for repurposed food waste
• educating and encouraging individuals to reduce food waste at home.[28]
  17. To deliver the goals of the National Food Waste Strategy, End Food Waste Australia was established as an independent, government funded organisation to work across sectors along the entire food supply and consumption chain. As part of their work to date, End Food Waste Australia has led work on:
• the Australian Food Pact, a voluntary agreement that brings together businesses across the food supply chain to prevent waste, promote food reuse and donation, and achieve supply chain transformation and innovation
• Sector Action Plans that identify priority actions to tackle food waste through targeted interventions are developed by industry for industry
• research and development through the End Food Waste Cooperative Research Centre
• working directly with food and beverage businesses to help them quantify, manage, reduce and report their food waste.[29]

Food waste in manufacturing

8.18Approximately one third of food waste occurs during manufacturing.[30] According to the National Food Waste Strategy Feasibility Study, however, the vast majority of food wasted during manufacturing is recovered in some way.[31]

Source: Food Innovation Australia Limited (FIAL) 2021, The National Food Waste Strategy Feasibility Study – Final Report, p. 12.

Food waste recycling

8.19Although classified as ‘recovered’ and ‘waste’ in the feasibility study report, submitters in this inquiry saw value in all uses of food waste that contribute to a circular economy. The Committee heard examples of beer, spirits, and horticulture production diverting by-products and surplus vegetable, grain, and yeast to animal feed[32] or composting them into soil-improving fertiliser.[33]

8.20Considerable interest was also shown in recycling waste into bioenergy sources and making use of technologies already in use overseas. As Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia Australia and New Zealand argued:

There's a massive opportunity for Australia to use existing innovative technology from overseas for industrial bioconversion, biogas and biochar, copying and adapting what exists on the 'right way' streams, side-stepping failed technology and fast-tracking what works.[34]

8.21Anaerobic digestion, for example, uses microorganisms to break down organic waste in oxygen-deprived closed vessels, creating biogas.[35] This technology is already in use in Australia but on a small scale compared to overseas.[36] It was noted for its potential benefits to businesses, the environment, and regional development.[37] Various policy levers were suggested as a means of enabling and incentivising uptake of anaerobic digestion:

• direct financial support through grants[38]
• harmonisation of state and territory regulations[39]
• establishing a national biomethane certification program under the new Guarantee of Origin Scheme[40]
• increasing landfill levies to make anaerobic digestion facilities relatively more competitive[41]
• setting a mandatory Renewable Fuels Target to increase demand.[42]

Food upcycling

8.22Some submitters saw the greatest potential in improving waste value in food ‘upcycling’. Upcycling refers to value-adding processes that convert food surplus and by-products into new products for human consumption.[43] As CSIRO noted, there is over 6 million tonnes of biomaterials that currently goes into animal feed that could be upcycled into human-grade foods.[44] End Food Waste Australia argued that with appropriate investment in upcycling, Australia could save up 2.73 million tonnes of food from being wasted.[45]

8.23Examples of food upcycling already in place or being investigated in Australia include using surplus, odd, and wasted fruits and vegetables to make juices, powders, spirits, and nutraceuticals,[46] using lesser cuts of red meat in protein powders and nutraceuticals,[47] repurposing yeast in beer production to produce Vegemite,[48] turning canola meal into plant-based protein products,[49] and using high-sugar content waste products from sugar, wine, and beer industries for precision fermentation.[50]

8.24The Committee heard that while gaining traction in the United States and European Union, food upcycling is still in its infancy in Australia.[51] There is, however, considerable potential:

Australia has the foundations to enable a thriving upcycled food sector including a national food waste strategy, substantial R&D funding in the order of $120m (through End Food Waste CRC), an industry Voluntary Agreement Program to support businesses to take actions to reduce food waste (the Australian Food Pact), and science and research capability (including food pilot plants) at universities, government research departments and Australia’s national science organisation, CSIRO. Although we have the building blocks to enable a successful upcycled food sector, the opportunity remains largely untapped due to a lack of education for companies and consumers about upcycled food, limited examples of commercial success, and deficiency of a specific upcycled food community to build common-purpose and advocate for opportunities.[52]

8.25Several ideas were put forward to fast-track progress, including calls for:

• direct financial support to businesses, through targeted grants, subsidies, and other supports for prototyping and product development.[53]
• investment in manufacturing capabilities in regional areas, including manufacturing hubs, guided by an Upcycled Food Infrastructure Investment Plan[54]
• the establishment of an Upcycled Food Association and certification scheme—as the USA did in 2019 and 2020 respectively—to promote industry recognition, collaboration, partnerships, research, and certification[55]
• more funding for research in the sector, including through the End Food Waste CRC.[56]

Reducing down-stream waste

8.26There are opportunities in manufacturing to extend shelf life and improve the management of stock to prevent food waste during distribution and consumption.

8.27Processes such as thermal and non-thermal processing, concentration and drying all preserve nutritional content and extend shelf life without the need for cold chains.[57] Using aseptic packaging techniques can also extend shelf life and reduce the need for refrigeration and preservatives. It is currently being used in dairy products, fruit beverages, sauces and condiments, baby food and infant formula, and ready-to-eat meals.[58] Benefits of these processes include not only reduced food waste but also decreasing the logistical, environmental, and cost burdens associated with refrigeration and increasing the resilience of supply chains, including into regional areas.[59] Wider adoption would also enhance regional value-capture potential and overall improvements in northern Australia and Asia-Pacific food security resilience and malnutrition issues.[60]

8.28Packaging of food plays a significant role in reducing food spoilage. The Committee was reminded that efforts to combat packaging waste must take into account any impact on food wastage.[61]

8.29Various technologies present further opportunities to prevent spoilage. Food South Australia reported that:

Integration of smart packaging technologies is gaining traction, offering functionalities like real-time monitoring of product freshness, temperature control, and traceability throughout the supply chain. South Australian researchers are exploring the application of sensors, RFID tags, and IoT- [internet of things-] enabled devices to enhance packaging performance and ensure product integrity.[62]

8.30Digitalisation and artificial intelligence, such as machine vision and real-time monitoring across the food chain, will boost food productivity, improve food quality control, and assure food safety and logistics.[63]

Need for collaboration and coordination

8.31The Committee heard that coordinated efforts are required to build a circular economy of food. As noted by the Waste Management and Resource Recovery Association of Australia:

The transition to sustainable food systems requires a collective approach including all levels of government, businesses across the food value chain, NGOs, academics, and the community to ensure incentives to support government initiatives.[64]

8.32Increased collaboration across value chains will help to establish a food system where agriculture and manufacturing are synchronised to minimise waste and maximise value-added growth opportunities.[65] To support this, investments could be made in:

• improving traceability of food, food waste, and food packaging to minimise spoilage (e.g. to prioritise using stock with certain indicators for sale), ensure recycling can be done efficiently and safely, and certify re/upcycled products’ origins[66]
• data collection across the entire supply chain[67]
• educating consumers and incentivising pro-social behaviours.[68]
  33. Collaboration is necessary locally, within industries and across sectors. On a smaller scale, place-based partnerships can help manage waste in the cycle of production and consumption.[69] Many of the successful examples are placed based, reflecting the low costs of logistics and transportation. The Queensland Distillers' Association identified that there could be a role for government in encouraging and supporting these local collaborations,[70] and CSIRO noted that:

The adoption of transformation technologies using circular principles for avoiding and minimising food waste and using the “whole of biomass” requires the development of cross-sector transition partnerships at council and regional levels.[71]

8.34The Northern Territory Government and Charles Darwin University noted that setting up advanced food manufacturing in northern Australia would open up considerable opportunities to value-add to primary production output and waste streams.[72]

8.35Collaboration can allow for achievement of the scale needed to make processes commercially viable.[73] The Committee heard that without scale, waste re- and upcycling processes can be cost prohibitive.[74]

8.36As an example of large-scale collaboration, the Dairy Sector Waste Action Plan, launched in July 2023, contains whole-of-sector priority actions including research and development, developing technological solutions, efficiency in inventory managements systems, partnerships with food rescue organisations, sustainable packaging, and consumer education.[75]

Packaging

8.37Packaging enables manufacturers to protect and preserve their products throughout the supply chain. Packaging is particularly integral to the food supply chain as it extends the shelf life of food, and enables the transport of goods to market, in a manner that is convenient for consumers. Unfortunately, Australia faces significant problems in dealing with the amount of packaging placed on market, with a significant proportion ending up in landfill.

8.38The amount of packaging continues to increase. In 2017-18, the amount of packaging placed on market per person was 222 kilograms. By 2020-21 this rose to 262 kilograms (equating to a total of 6.74 million tonnes), and it is projected to grow to 268kilograms by 2024-25.[76] Despite national efforts to reduce packaging waste, 2.5million tonnes of plastic is wasted annually, with 18 per cent recovered and the remainder going to landfill.[77] Industry and government investment are increasing recycling rates; however, further action is needed to enable Australia to better manage its packaging waste.[78]

8.39The need for a domestic recycling industry was significantly increased after China—having formerly processed nearly half of the world’s recyclable waste—banned the import of most plastics and other materials in 2018. Following this, the Australian Government passed the Recycling and Waste Reduction Act 2020, which included a phased-in ban on exporting most recyclable materials.[79]

National policy and targets

8.40In 2018, Australia established the 2025 National Packaging Targets based on industry and government consultation, to create a sustainable pathway for managing packaging. The Australian Packaging Covenant Organisation was charged by the Government to deliver the following targets:

• 100 per cent of packaging being reusable, recyclable or compostable
• 70 per cent of plastic packaging being recycled or composted
• 50 per cent average recycled content included in packaging (revised to 30 per cent in 2020)
• the phase out of problematic and unnecessary single-use plastic packaging.[80]
  41. Data suggests these targets are highly unlikely to be achieved. The 70 per cent target for plastic packaging to be recycled or composted is proving to be the biggest challenge, as in 2021-22 this had only reached 20 per cent. However, it is expected that industry will continue to work towards each target.[81]
  42. The National Plastics Plan 2021 outlines Australia’s approach to increasing plastic recycling, finding alternatives to unnecessary plastics and reducing the impact of plastic on the environment.[82] The Plan includes:

• working with industry to fast-track the phase-out of particularly problematic plastic materials
• stopping the export of unprocessed plastic waste and promoting product stewardship through the Recycling and Waste Reduction Act 2020
• unprecedented investments to turbo-charge Australia’s plastic recycling capacity
• research to make Australia a global leader in plastic recycling and reprocessing
• community education to help consumers make informed decisions and recycle correctly.[83]

Design and production

8.43The Australian Packaging Covenant Organisation estimates that there are nearly sevenmillion tonnes of packaging put on market each year.[84] Decisions about how that packaging is designed and produced, including materials used, has significant implications for circularity.

Designing and producing more sustainable packaging

8.44The potential for recycling any packaging must be considered at the earliest design stages. Australia does not have the processing infrastructure to recycle some material such as soft plastics.[85] Composite materials can be difficult to recycle by creating confusing for consumers and more complex processes for recyclers.[86]

8.45The Australian Packaging Covenant Organisation estimated in 2021-22 that 5.85million tonnes (84 per cent) of packaging placed on market had good recycling potential. Approximately 1 million tonnes (14 per cent) of packaging were, however, classified as having either poor recycling potential or no recycling potential. Plastic was identified as a key problematic material, as only 42per cent was classified as having good recycling potential.[87]

Source: Australian Packaging Covenant Organisation, ‘Australian Packaging Consumption & Recovery Data 2021-22’, April2024, p. 35, apco.org.au/news/20YOl000007XWzbMAG, viewed 11 September 2024

8.46Submitters provided several examples of how they are already innovating for more sustainable packaging.

8.47There were examples of businesses producing packaging from recycled material and also ensuring that packaging is recyclable.[88] The Bega Group uses 100 per cent recycled bottles for flavoured milk,[89] and over 95 per cent of Cape Byron Distillery’s bottles and packaging are recyclable.[90]

8.48In addition to recyclability, businesses are also turning to other alternatives to plastic such as reusable cotton bags and biodegradable clingwrap.[91] Opal, for example, discussed its development of fibre alternatives to expanded polystyrene packaging for the packaging of fish.[92] There was also significant interest in light-weighting glass alcohol bottles. Using less glass content in bottles reduces both embedded carbon and emissions associated with transportation.[93] Transporting in larger containers also reduces the amount of packaging required for a volume of alcohol.[94]

Packaging standards

8.49To further reduce problematic waste, the Australian Government is seeking to introduce mandatory packaging design standards and targets.[95] Submitters were highly supportive of this announcement and raised different points that should be considered in such a scheme, including:

• introduction of mandatory thresholds for recycled content in packaging
• elimination of problem materials
• establishment of a minimum level of packaging recyclability
• introduction of variable fees set to incentivise higher levels of recyclability and recycled content use in packaging production
• prioritisation for Australian recovered material
• verification of the provenance of recycled content
• the need for standards to be harmonised nationally to avoid fragmentation and inconsistencies.[96]
  50. Industry standards, even just on glass colour specifications, can make a difference in maximising the ease of recycling downstream.[97]
  51. Pact Group further raised in its submission that any mandated recycling policy should include stringent environmental and health regulations to avoid unintentionally incentivising the import of cheaper recycled material that does not comply to Australian standards. They consider similar rules passed in the EU in March 2024 to be the gold standard.[98]
  52. Submitters also called for action to combat issues of contamination in organic streams arising from packaging. Although some contaminants such as heavy metals, pesticides and herbicides are well studied in organic waste, have risks controlled for and regulatory frameworks in place, there are new concerns:

More recently, concern has been growing over a large number of new chemicals (referred to as emerging contaminants) which are being used in industry and consumer products and have the potential to end up, unregulated, in waste products. Some of these chemicals are known to bioaccumulate and cause harm to humans and the environment.[99]

8.53The Committee heard that without regulatory control to prevent the proliferation of per- and polyfluoroalkyl substances (PFAS) in manufacturing, a circular economy will not be possible. In addition to prohibitions on non-essential uses of PFAS containing products, government can also implement transparency measures such as requiring chemical manufacturers to report data on the environmental impacts (including presence in waste streams) of their products, encourage adoption of best practice alternative technologies in supply chains, provide public education, and invest in further research.[100]

8.54The Committee also heard that clear labelling requirements, a certification scheme, and public education is needed to distinguish between compostable food packaging and service ware and similar looking but non-compliant products. Part of this is prohibiting references to ‘biodegradable’ in marketing, which is not interchangeable with compostable.[101] The Committee further notes the failure of the Packaging Covenant’s December 2023 target of designing out PFAS in compostable packaging.[102]

Post-consumer sorting and collection

8.55Recovery of packaging waste continues to be an issue in Australia. The Australian Packaging Covenant Organisation estimated that in 2021-22 total post-consumer packaging recovery was 3.91 million tonnes, 56 per cent of the nearly 7 million tonnes of packaging placed on market.[103]

Figure 8.3Post-consumer packaging recovery rates in 2021–22, by material group

Source: Australian Packaging Covenant Organisation, ‘Australian Packaging Consumption & Recovery Data 2021-22’, April2024, p.5, apco.org.au/news/20YOl000007XWzbMAG, viewed 11 September 2024.

8.56Recovery rates of packaging materials are falling short of the 2025 National Packaging Targets expectations.

Container Deposit Schemes

8.57Container deposit schemes (CDS) are a recycling scheme in which certain types of bottles, cans and cartons can be dropped off by consumers at recycling depots to receive a refund per item.[104] CDSs, funded by beverage manufacturers, have been implemented or are being implemented in every Australian state and territory and have been a successful measure of reducing litter and increasing material recovery.[105]

8.58In submissions, they were strongly supported by the Australian beverages industry alongside governments. As recognised by Lion:

This scheme keeps valuable resources from landfill, but also gives the bottle or can the best chance at becoming another bottle or can, keeping the resource in circulation with the added benefit of reducing the carbon footprint of the container.[106]

8.59The benefit of CDSs is that they contribute to the retention of recyclable materials, reducing dependency on primary resources.As a reliable source of clean feedstock to recycling plants, it also supports investment in recycling industries.[107] The Australian Council of Recycling note that:

The schemes increase access to quality recovered material, which leads to highest-value material reuse, such as bottle-to-bottle recycling. For example, the hot-wash PET flake generated from [container deposit scheme] products delivers high-quality rPET [recycled PET] for the Australian packaging market. The schemes also deliver uncontaminated glass for high-value recycling.[108]

8.60The greatest pain point for manufacturers are the logistical costs associated with each state and territory’s scheme. As described by Lion:

Across six states and two territories, participants of the scheme are (or will be) required to engage at six different touch points to meet their compliance obligations, which includes:

• Registrations of every single product – (Shop Keeping Unit, or SKU) in each state and territory. There is a heavy administrative burden of undertaking registrations. For example, a 375ml Tooheys New bottle is required to be registered 8 times.
• Contracting with the scheme coordinator in each jurisdiction for all of our selling entities.
• Monthly reporting of volumes of containers supplied in each state and territory.
• Monthly processing and payment of invoices for volumes of containers supplied in each state and territory.
• Annual declarations for volumes supplied in each state and territory.
• Annual audit of declarations of volumes supplied in each state and territory (as a major supplier, Lion is audited in every state, every year).[109]
  61. It was reported that particularly for small producers these costs can prevent operating across jurisdictions.[110] Variability in regulations also complicates national packaging rollouts, adding to costs and stifling innovation and agility.[111]
  62. There was strong support from submitters to rectify this by harmonising this legislation or replacing it with a nationalised scheme.[112] In April 2021 Australia’s environment ministers acknowledged the need for CDS harmonisation and agreed to harmonisation for containers (in terms of size and products), refund amounts, standards for labelling and community education by the end of 2025.[113]
  63. Several other ideas were raised to improve CDSs:

• To reduce compliance burdens, it was suggested that labelling changes be coordinated with the Food Standards Australia and New Zealand (FSANZ), and/or that the labelling information should be accessed via QR codes.[114]
• There were calls for an expanded array of containers to be included,[115] although also pushback on that idea given the associated costs.[116]
• To maximise circularity, the Australian Beverage Council called for regulation that deters ‘downcycling’ into non-food grade packaging. They also argue that by funding the scheme, beverage manufacturers are effectively subsidising others—including international competitors—who are benefiting from the supply of high-quality recycled material and suggest that domestic beverage manufacturers be prioritised during sale.[117]

Labelling

8.64Outside of CDSs, labelling to indicate packaging recyclability can be unclear and difficult for consumers to interpret. As described by Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia Australia and New Zealand:

… we've done the easy bit. We've put the yellow bins out in everyone's homes—you see them around shops and offices as well—into which you can put the easily recyclable pieces, like a plastic bottle, a glass bottle or a newspaper. We're now onto the harder bits, such as the packaging that's multilayer and more complicated for consumers to understand. The labelling is not particularly helpful. Lots of labelling tells you 'this is recyclable' and it isn't, so it ends up in a recycling bin. It's confusing for consumers. It's too complicated. People don't read labelling in their everyday life.[118]

8.65Currently recyclers are expected to deal with the burden of contamination of collected material, which not only impacts material recycling processes but also the recyclability of materials.[119]

8.66Businesses may utilise the Australasian Recycling Label to provide consumers easy to understand recycling information, however it is not mandatory.

Waste levies

8.67Waste levies— fees for sending waste to landfill rather than to recycling—are designed to motivate businesses to ensure that materials are recycled and recovered.They exist in every state and in the Australian Capital Territory, and are being considered as part of the Northern Territory’s Circular Economy Strategy 2022‑2027.[120] Waste levies are important in both increasing quantities of resource recovery and driving investment in the industry.[121]

8.68There were concerns, however, that the inconsistency of levies across jurisdictions is undermining the system.[122] Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ discussed the benefit and need for harmonised landfill levies, stating:

If you plot a graph of how high the landfill levy is and how much is getting recycled and coming out of landfill, it's a straight line. The higher the levy, the more comes out of landfill; that's really clear. But because they're all at different levels—there will be movements of waste across borders and some places will do more than others—it would be helpful to have some federal policy that encouraged states to harmonise the landfill levy or maybe do the top-up for the gap, to make sure that it is consistent across all states. That is because this is national infrastructure; it's not just state infrastructure.[123]

Recycled materials market

8.69Ensuring materials are processed and re-enter the economy requires a reliable market for recycled materials. As noted by the Australian Beverages Council:

A strong secondary raw materials market (SRM) enables recyclables, like plastic and aluminium, to re-enter the production value chain and reduce dependency on primary resources. By ensuring a strong and reliable SRM, this helps suppliers in creating packaging made from recycled materials and compliments the Government’s National Framework for Recycled Content Traceability.[124]

8.70The market for recycled materials requires consistent supply and demand. As noted in submissions, there are potential roles for government in supporting both.

Processing capabilities to recycle materials

8.71Since the introduction of the Recycling and Waste Reduction Act 2020, Australia has restricted the export of unprocessed recyclable materials. Australia therefore has had to ensure that it has the necessary infrastructure to process recovered resources so that it can transform recovered resource into higher-value commodities.[125]

8.72As noted above, the container deposit scheme provides enough reliable feedstock to support investment in processing facilities. The beverage industry, for example, has invested $95 million into PET plastic bottle recycling facilities in Albury, NSW and Altona North, Victoria.[126]

8.73However, submitters argued that Australia does not have the infrastructure to process the amount of packaging that is consumed, as well as the capabilities to process new materials being used.[127] Spirits & Cocktails Australia noted that most recyclers don’t have the technological capabilities for efficiently sorting and cleaning non-beverage glass, limiting supply of necessary clean cullet.[128]

8.74Submitters called for greater investment in the industry, possibly as part of the Future Made in Australia policy.[129] Specific calls for investments included:

• for recycling infrastructure in regional areas where there are currently additional cost barriers in transporting waste to the nearest facility[130]
• in capabilities to recycle soft plastics back to food grade quality.[131]

Demand for recycled content

8.75The recycling sector relies on demand for recycled material. To date, the demand has been limited, in part due to often cheaper prices for virgin materials.[132] Of the 1.2million tonnes of plastic placed on the market in 2021, for example, only 3 per cent incorporated post-consumer recycled content and 2 per cent used pre-consumer recycled content, meaning 95 per cent was manufactured using virgin resins.[133]

8.76Ms Suzanne Toumbourou Chief Executive Officer, Australian Council of Recycling, outlined why this is a problem stating:

Without markets for domestically recycled material, the rest of the recycling pipeline reaches a bottleneck, ultimately disrupting our capacity to collect and process.[134]

8.77Submitters suggested the Government should increase incentives for manufacturers to use recycled materials. Unlike similar economies, Australia currently has no mandatory policy.[135] Veolia ANZ argued that such intervention would bolster the entire sector, noting:

A critical but often overlooked aspect of packaging circularity is the importance of strong, self-sustaining end markets for recycled content. When the use of recycled content in products is prioritised, while maintaining a packaging product’s functionality and appeal, demand for recycling commodities is created, which in turn incentivises other actors in the supply chain to establish collection, sorting and reprocessing recycling infrastructure.[136]

8.78Submitters recommended a Packaging Circularity Scheme be legislated to incentivise businesses using fees. This scheme would charge a fee based on the weight of packaging placed on market, varied by how much of that packaging is practically recyclable and how much of it is recycled content. Fees can increase over time as it becomes easier to comply. This is similar to the United Kingdom’s Plastic Packaging Tax which charges a rate of £210.82 (AUD$401.48) per tonne of manufactured or imported plastic packaging that contains less than 30 per cent recycled plastic content.[137]

Alternative uses for recovered materials

8.79Submitters also raised examples outside food and beverage manufacturing where recovered materials are used productively.

8.80TetraPak, for example discussed saveBOARD, a venture it is backing along with other businesses and government. SaveBOARD upcycles packaging materials into construction materials which can be used to replace gyprock plate.[138]

8.81Similarly, the Australian Council of Recycling discussed in its submission examples of materials being used in construction. Unrecyclable glass fines (crushed glass) can be remanufactured into new materials which can be used for roads, and hard-to-recycle plastics can be remade into other construction materials.[139] Use of recycled materials for the construction of roads reduces the impact on the environment and can improve road durability and provide material cost savings.[140]

Suggested policy changes

8.82Drawing on experiences with current policy settings, as well as taking inspiration from other jurisdictions, submitters put forward several suggested changes. It was argued by many that a ‘whole of nation’ approach is needed for any current and future policy and legislative requirements to avoid the complexity and additional compliance costs of operating across multiple jurisdictions.[141] Ms Suzanne Toumbourou Chief Executive Officer, Australian Council of Recycling made this clear, stating:

Given the Australian government's move to regulate packaging, we must ensure a nationally harmonised approach rather than a fragmented system that undermines circularity, efficiency, and confidence in scaled investment.[142]

8.83Secondly, submitters raised the importance of considering the whole-of-life impacts of packaging rather than policy centred on individual stages of a products lifecycle.[143] This should be supported by life cycle assessments and value chain analysis studies on packaging resources to inform future policies and to support the delivery of positive environmental impacts.[144]

8.84Submitters criticised the current 2025 National Packaging Targets due to their current voluntary nature. The Australian Packaging Covenant Organisation has previously recommended to government that the targets should be made mandatory if the voluntary targets fail.[145]

8.85However, submitters also raised the importance of providing incentives and support to businesses in the transition towards sustainability, including through:

• funding to support investment into machinery and proven technologies which contribute to sustainability
• funding to support the development of more sustainable production processes
• incentives to support the development of new packaging technologies
• investment into and establishment of policies that promote the production of sustainable packaging domestically.[146]
  86. The Australian Council of Recycling identified in its submission the need for an Australian Resource Recovery Board, based on the Australian Building Codes Board model, to deliver a nationally harmonised framework for resource recovery and recycling. Such a body could sit under a portfolio for industry and economic development.[147]

Emissions reduction and green credentials

8.87The global food production system requires decarbonisation to create a more sustainable world. Estimates suggest that the global food system accounts for approximately one quarter to over one third of all greenhouse gas emissions.[148] Of this, eight per cent of the emissions are associated with post-farm food processing.[149]

8.88In Australia, the Climate Change Act 2022 legislated a national target of a 43 per cent reduction in emissions from 2005 levels by 2030 and net zero by 2050.[150] The Australian Government is also developing the Net Zero Plan which will detail how Australia will transition to a net zero economy by 2050. The plan will be supported by six sectoral emissions reduction plans, including an ‘Industry’ specific plan, which includes ‘food and beverages’.[151]

8.89Other government incentives include the Australian Government’s Climate Active program.[152] The program has a certification scheme, which awards organisations that have credibly reached a state of carbon neutrality against the standard set by the Climate Active Carbon Neutral Standard. Submitters noted that there is significant work in attaining the certification – including independently accounting for not only manufacturing but broader business-related emissions – but appreciated the program.[153]

Sector-based planning

8.90Throughout the inquiry the Committee heard about industry-led efforts to decarbonise the food and beverage manufacturing sectors. The Australian Dairy Sustainability Framework, for example, includes a goal to reduce emissions by 30 per cent across both farm and manufacturing by 2030. The Australian dairy industry uses an Australian Dairy Carbon Calculator to support its efforts–enabling farmers to improve efficiencies and lower emissions while increasing profitability.[154]

8.91The Australian dairy industry also has the Australian Dairy Sustainable Packaging Roadmap, launched in 2021. The Roadmap provides an action-orientated and evidence based approach which formalises actions that the dairy industry and its partners can take to contribute to national and industry packaging targets by 2025.[155]

8.92The Australian Beverage Council’s Environmental Sustainability Roadmap to 2030, assists its members in measuring their environmental impacts and learning how to make sustainability changes in five focus areas, including emissions, packaging, water, waste and supply chain.[156]

8.93Australian Grape and Wine Incorporated discussed the wine industry’s recognition of the growing need for sustainability, from land management to end-product. Consequently, Wine Australia has acted to develop an Emissions Reduction Roadmap which identifies the current footprint of the Australian grape and wine sector and provides a blueprint for practical steps to reduce emissions.[157] Wine Australia has also developed an ESG Investment Plan which identifies ESG as a significant priority for the sector, outlines sector opportunities including in packaging and sustainability certification and highlights the need for targeted adoption programs.[158]

8.94Other sectors could benefit from similar planning and support. Spirits & Cocktails Australia, for example, called for assistance to develop a roadmap for the spirits industry and noted that similar pieces of work in Scotland and Ireland have been very productive.[159]

Examples of decarbonisation

8.95The Committee received evidence from various businesses on the work that they are doing to pursue sustainability and work towards emissions reduction. Submitters reported actions to:

• increase energy efficiency, for example by investing in energy efficient equipment, making use of hot waste streams to pre-heat incoming processes streams, and using salt water for large chiller machines[160]
• switch to greener energy sources, including sourcing green energy and installing solar panels and energy from waste facilities[161]
• reduce emissions from transport, for example by using electric vehicles in parts of the logistics chain or using locally sourced ingredients[162]
• research other emissions saving opportunities, such as the potential to grow carbon dioxide-digesting algae in brewing environments.[163]
  96. Suntory Oceania has invested in a new carbon neutral manufacturing facility in Ipswich, Queensland. It will make use of energy efficient and water saving technologies, 7,000 solar panels and a biomass boiler onsite, and a green power purchase agreement for additional power needs.[164]
  97. Another example was Lark Distilling Co.’s becoming Australia’s first certified Carbon Neutral Distillery. Lark received this accreditation under the Australian Government’s climate active scheme, which Lark informed the Committee requires ‘a fair bit of work’ to calculate emissions, which it then offsets through carbon credits.[165]
  98. These and other actions can create real reductions in emissions. Lion, for example, has reduced scope one (direct emissions from operations) and scope two (emissions associated with producing the energy that powers operations) carbon emissions by 70 per cent since 2019,[166] and Diageo is targeting a 50 per cent reduction in scope three (other indirect emissions both upstream and downstream in the value chain) emissions.[167]
  99. Beyond emission reductions, businesses are also using carbon offsets to target or attain net carbon neutrality.[168]
  100. The biggest barrier to further action—for example investment in biogas, hydrogen, or other carbon zero technology—is cost, particularly for smaller businesses without the advantages of acting at scale.[169] Energy costs are already the largest barrier to expansion for some businesses.[170]

Supporting industry in its transition towards decarbonisation

8.101Submitters made it clear to the Committee that support is needed to enable industry to reduce its emissions and transition towards more sustainable practices.

8.102Development of an industry decarbonisation strategy or a roadmap was of interest to submitters. The Australian Academy of Technological Sciences and Engineering (ATSE) noted the importance of the development of a comprehensive sector decarbonisation strategy and discussed the opportunities for partnership between the sector and the government to explore and implement emissions reduction technologies.[171] Such a roadmap would provide a coordinated framework for the delivery of sustainability initiatives while also assisting industry towards achieving defined government targets across the manufacturing spectrum from production processes to packaging sustainability.

8.103Submitters were supportive of the implementation of policies and incentives to facilitate emissions reduction and towards more sustainable practices. Submitters called for financial support in decarbonising operations to switch to more energy-efficient operations and renewable energy sources. Ideas included grants, low-interest loans, and financial incentives for achieving energy savings targets.[172]

8.104Some submitters also saw an opportunity for decarbonising the food production sector by investing in alternative proteins that produce significantly less emissions than animal-based proteins.[173] As argued by Food Frontier:

Building the domestic alternative proteins sector could be one of the greatest actions the Federal Government takes to achieve its net zero 2050 targets.[174]

8.105Submitters saw potential in plant-based proteins, precision fermentation and cellular agriculture for human consumption, as well as microalgae and insect production for animal and aquaculture feed.[175] Food Frontier suggested that the government provide assistance to manufacturers for product development.[176]

Role of the research sector and innovation in supporting a circular economy

8.106Research and innovation are vital to decarbonisation and enabling a circular economy.[177]As noted by the Queensland Department of Agriculture and Fisheries and Department of Regional Development, Manufacturing and Water:

Research plays a pivotal role in developing innovative solutions to support circular economy principles and waste reduction strategies. Through collaborative research efforts, scientists and researchers can explore novel materials and packaging technologies that are recyclable, compostable, or biodegradable, thus reducing the environmental footprint of packaging materials. Additionally, research can inform supply chain efficiencies to reduce waste as well as the development of efficient waste management systems, such as valorisation of food waste through bioconversion processes or the creation of value-added products from by-products.[178]

8.107Australia is well placed for pioneering research with its policy frameworks (for example the National Food Waste Strategy), industry interest, and science and research capabilities in universities, government research departments and at CSIRO.[179] While Australian manufacturing companies may not always match the scale of their overseas counterparts, they possess unique strengths, including agility, innovation, and a focus on quality.[180]

8.108The End Food Waste Cooperative Research Centre, for example, have developed or refined 36 prototypes to date for food waste upcycling, including:

• the development of Australia’s first high-purity nutraceutical grape seed extract from edible wine industry grape waste with Swisse Wellness, Swinburne University and Viridi
• value-added products from graded-out field peas with AG Shilling & Co and the South Australian Research and Development Institute
• a better understanding of consumer perceptions of the role of packaging in reducing food waste through a project undertaken with Sustainability Victoria, Woolworths, the Australian Institute of Packaging and RMIT [Royal Melbourne Institute of Technology]
• identifying opportunities for packaging and processing machinery sector to tackle food waste with the potential for 5-10 per cent improvement in the efficiency of the supply chain.[181]
  109. Food South Australia Inc. emphasised how R&D in South Australia occurs through different institutional settings, including:
• Universities: For example, University of South Australia’s Future Industries Institute conducts cutting-edge research in materials science, including the development of sustainable packaging materials, active and intelligent packaging solutions, and nanotechnology applications in packaging.
• Public institutions: the South Australian Research and Development Institute conducts R&D projects focused on improving food safety, quality, and shelf life through packaging innovation. Their research encompasses areas such as barrier materials, antimicrobial packaging, and novel packaging designs to extend product freshness.
• Industry partnerships: South Australian food and beverage manufacturers often collaborate with research institutions to develop customized packaging solutions tailored to their specific products. These partnerships foster innovation and help address industry challenges such as reducing food waste, optimising supply chain efficiency, and meeting consumer demand for sustainable packaging options.[182]
  110. Submitters called for greater investment in R&D. This included calls for the development of programs to encourage research and innovation in businesses, including through research partnerships, to decarbonise and innovate with packaging.[183] To this end, it was recommended also that the government should establish a 'Sustainable Packaging Innovation Fund' or similar grant program to support development and commercialisation.[184]
  111. Submitters called for specific research areas, including:
• alternative protein processing and manufacturing technology to further unlock opportunities to reduce waste production in the sector itself as well as repurpose other sectors’ waste streams[185]
• treating waste to minimise carbon emissions from fermentation[186]
• developing new technology for packaging, including to overcome the tension between more sustainable and luxury packaging.[187]
  112. Research will have the largest impact where it is directly relevant to industry. CSIRO argued that there is a role for targeted education and support in achieving this:

The knowledge needed to adopt circular solutions is uneven across sectors and across the food chain. First, there is a lack of granular, sector, and regional data to map material flow and environmental metrics to understand the situation. It is important to develop training materials and cross-sector awareness campaigns to foster an understanding of the “true cost” of waste as well as the strategies to derisk the adoption of circular technologies. Decision support tools are needed to enable companies to develop an adoption plan and business model (as a single business or through partnerships or consortia) guided by technoeconomic, environmental, and social indicators.[188]

8.113The Committee recognises the importance of research and innovation in creating solutions, although notes that ultimately it will be large-scale consumer and business behavioural changes that will move industry from unsustainable to circular patterns of production and consumption.

Committee comment

Food waste

8.114The Committee acknowledges that food waste has been covered in other recent parliamentary inquiry reports, including the Standing Committee on Agriculture’s 2023 report on food security, ‘Australian Food Story: Feeding the Nation and Beyond’,[189] and this Committee’s 2020 report ‘From Rubbish to Resources: Building a Circular Economy’.[190]

8.115Echoing these reports, the Committee believes that the amount of food wasted is hugely costly for Australia, particularly while millions are living with food insecurity. The highly linear food production and waste system is also unsustainable for both the environment and economy. Food waste from food and drink manufacturing practices should be addressed as a matter of urgency to meet the target of halving food waste by 2030.

8.116There is also potential to unlock value through circular economy practices, with positive effects for the environment, productivity, profitability, employment, innovation, food security, and affordability.

8.117The Committee commends the research, innovation, and partnerships that already exist in upcycling and recycling food waste to add and retain value, as well as innovations to better preserve food and manage supplies to decrease food waste. Businesses, consumers and other parties are interested in investing further, but face various cost, logistical, and knowledge barriers.

8.118These industries would benefit from increased leadership, coordination, regulation, and investment that governments can provide to achieve economies of scale, incentivise business and consumer behaviours. This is particularly true in coordinating data management, traceability, and certification. There are significant enough public good outcomes to justify government involvement, although working in partnership with industry will be necessary for success.

8.119The Committee recognises and reiterates the recommendation made by the Standing Committee on Agriculture in their recent inquiry into food security, suggesting the Australian Government include in a new National Food Plan, among other things, plans for repurposing food waste, supporting food donation, establishing regional food hubs, improving data sharing across the food supply chain, and creating a circular economy.[191]

8.120The Committee recommends that the Australian Government continue to fund End Food Waste Australia. Further collaboration opportunities should be sought to accelerate progress to meet the National Food Waste Strategy target to halve food waste by 2030.

8.121The Committee recommends that the Australian Government consider how it can incentivise, support, and coordinate food and beverage manufacturers to engage in upcycling, recycling, and other circular economy solutions to food waste.

8.122The Committee recommends that the Australian Government investigate sectoral needs for advanced manufacturing hubs and machinery, along with their location requirements, and use that information to create an Upcycled Food Infrastructure Investment Plan.

Packaging and Container Deposit Schemes

8.123Packaging is essential to safely transport and preserve food and beverages. Fit for purpose packaging improves food security, food safety, and reduces food waste. The Committee notes that packaging in a linear or one-way economy comes at a cost. Reliance on virgin materials is not sustainable, and waste from packaging is costly and damaging to the environment.

8.124The Committee heard that many businesses are already making efforts to make their packaging more sustainable. However, the transition from a linear to more circular economy is stymied by coordination issues. Coordination over the lifecycle of packaging, across industries and across jurisdictional borders, is required to provide the scale necessary for a self-sustaining market for recycled material. Without government action, and even with the current voluntary targets, the necessary investments are unlikely to occur at the pace required.

8.125The CDSs across the country are an example of a government-initiated policy that works with industry. The Committee also sees the merit in introducing packaging standards to ensure that more of the materials used in packaging can be recovered and introducing fee-based incentives as part of a Packaging Circularity Scheme to incentivise the use of recycled material and attract certainty and investment into the market. More stringent requirements for labelling would also help consumers to participate more effectively in recycling.

8.126However, the Committee also notes the burden that packaging regulation has on businesses. National harmonisation, including for container deposit schemes, would go some way to reducing the burden of complying with these costs. Providing financial incentives and support would also make the transition more viable and cause less disruption.

8.127The Committee also notes the concurrent Senate inquiry into waste reduction and recycling policies, conducted by the Senate Standing Committee on Environment and Communications, which is due to report by 5 March 2025.[192]

8.128The Committee recommends that the Australian Government continue to develop policies to support reduced and recyclable food packaging, including the consideration of:

• support for Australian businesses in the transition towards more sustainable practices
• national-level leadership in addressing packaging waste
• incentivisation of material collection
• packaging design standards that encourage circular economy principles.

8.129The Committee recommends that the Australian Government work with state/territory and local governments and industry to harmonise Australia’s container deposit schemes.

Net Zero Plan

8.130The Committee notes the urgent need to decarbonise the broader economy. Food production is a substantial contributor to total emissions. The Committee considers that although offsetting emissions is important, the most significant benefits are in reducing real emissions.

8.131There is strong interest in decarbonisation, as evidenced by the actions taken by businesses to date. Decarbonisation is not only part of ESG responsibilities and in the self-interest of a sector that relies on a stable climate but also offers commercial opportunities in supporting a premium for ‘green’ companies.

8.132The Committee notes the existing financial barriers to further investment. Financial assistance from government must consider the cost to effectiveness ratio to assist food manufacturing compared to other opportunities for decarbonisation across the economy. Other assistance—for example in facilitating industry and sector-wide planning—may also produce results.

8.133The Committee recommends that the Australian Government ensure that its Net Zero Plan provides support and incentives for Australian food and beverage manufacturers to decarbonise.

Mr Rob Mitchell MP

Chair

Footnotes

[1]Queensland Department of Agriculture and Fisheries and Department of Regional Development, Manufacturing and Water, Submission114, p.16.

[2]Australian Food & Grocery Council, Submission76, p.4.

[3]Australian Design Council, Submission33, p.4.

[4]Tetra Pak, Submission57, p.1.

[5]See, for example: La Trobe University, Submission15, p. 3; Irish Whiskey Association, Submission17, p.3; Opal, Submission20, p. 1; Australian Organic Limited, Submission29, p.5; Distillers SA, Submission31, p.8; Scotch Whisky Association, Submission36, p.5; Pernod Ricard Winemakers, Submission48, pages 9–11; Independent Brewers Association, Submission50, p.2; Suntory Oceania, Submission56, p. 15; Tetra Pak, Submission57, p.1; Archie Rose, Submission69, p.2; Stay Loyal Dog Food, Submission73, p.2; Multi-Color Corporation Australia & New Zealand, Submission88, p. 2; Australian Distillers Association, Submission 101, p.28; Lark Distilling Co., Submission106, p. 9; Australian Beverages Council, Submission113, p.2; Australian Dairy Products Federation, Submission116, p.17; The Australian Industry Group, Submission118, p.1; Lion, Submission121, p. 6; Government of South Australia, Submission122, p.7.

[6]Department of Industry, Science and Resources, Submission104, p.3.

[7]See, for example: Australian Plant Proteins, Submission 34, p.5; Women of Australian Distilling, Submission38, p.6; Food South Australia, Submission52, p.9; Diageo Australia Limited, Submission62, p.9; Spirits & Cocktails Australia, Submission71, p. 24; Food and Beverage Accelerator, Submission111, p.11;Queensland Department of Agriculture and Fisheries & Department of Regional Development, Manufacturing and Water, Submission114, p. 2; William Angliss Institute, Submission120, p. 3; Government of South Australia, Submission122, p. 8.

[8]Department of Industry, Science and Resources, Submission104, p.8.

[9]Food South Australia, Submission52, p.9; Queensland Department of Agriculture and Fisheries & Department of Regional Development, Manufacturing and Water, Submission114, p.13.

[10]Spirits & Cocktails Australia, Submission71, p.24.

[11]Women of Australian Distilling, Submission38, p.6; Pernod Ricard Winemakers, Submission48, p.10; Australian Grape and Wine Incorporated, Submission68, p.5.

[12]Department of Industry, Science and Resources, Submission 104, p. 7.

[13]Department of Industry, Science and Resources, Submission 104, p. 7; Queensland Department of Agriculture and Fisheries & Department of Regional Development, Manufacturing and Water, Submission114, p. 17; The Australian Industry Group, Submission118, p. 11.

[14]Veolia ANZ, Submission40, p.5; Pact Group, Submission60, p.3.

[15]Australian Council of Recycling, Submission79, p.3.

[16]Department of Industry, Science and Resources, Submission104, p.7.

[17]Queensland Department of Agriculture and Fisheries & Department of Regional Development, Manufacturing and Water, Submission114, pages 7, 15 and 17.

[18]Productivity Commission, Opportunities in the circular economy, www.pc.gov.au/inquiries/current/circular-economy, viewed 10 September 2024.

[19]End Food Waste Australia, Submission90, p.1.

[20]Department of Industry, Science and Resources, Submission104, p.7.

[21]CSIRO, Submission58, pages10–11.

[22]Veolia ANZ, Submission40, p.2.

[23]CSIRO, Submission58, p.11.

[24]Northern Territory Government & Charles Darwin University, Submission63, p.8; Tasmanian Institute of Agriculture, Submission107, p.2; The Australian Industry Group, Submission118, p.11.

[25]Waste Management and Resource Recovery Association of Australia, Submission99, p.1.

[26]La Trobe University, Submission15, p.4.

[27]End Food Waste Australia, Submission90, p.2.

[28]Australian Government, National Food Waste Strategy: Halving Australia’s food waste by 2030, www.agriculture.gov.au/sites/default/files/documents/national-food-waste-strategy.pdf, viewed 10 September 2024.

[29]End Food Waste Australia, Submission90, pages2–3.

[30]Department of Industry, Science and Resources, Submission104, p.7.

[31]Food Innovation Australia Limited, The National Food Waste Strategy Feasibility Study – Final Report, p. 12, www.fial.com.au/sharing-knowledge/food-waste, viewed 10 September 2024.

[32]See, for example: AUSVEG, Submission30, p.15; Independent Brewers Association, Submission50, p.3; Archie Rose, Submission69, p.13; Food Frontier, Submission96, p.16; Kilderkin Distillery, Submission102, p.5; Lark Distilling Co., Submission104, p.9; Lion, Submission121, p.7.

[33]See, for example: Veolia ANZ, Submission40, p.1; Archie Rose, Submission69, p. 13; Spirits & Cocktails Australia, Submission71, p.26; Cape Byron Distillery, Submission86, p.2; Kilderkin Distillery, Submission102, p.5; Lark Distilling Co., Submission104, p.9.

[34]Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.1.

[35]Veolia ANZ, Submission40, p.2.

[36]The Australian Industry Group, Submission118, p.12.

[37]Department of Industry, Science and Resources, Submission104, p.8; Spirits Platform, Submission4, p.2; Veolia ANZ, Submission40, pages2–3.

[38]Loop Organics, Submission78, p.6.

[39]Veolia ANZ, Submission40, p.2.

[40]Veolia ANZ, Submission40, p.2.

[41]Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.2.

[42]Veolia ANZ, Submission40, p.2.

[43]Centre for Agriculture and the Bioeconomy — Queensland University of Technology, Submission19, p.7; End Food Waste Australia, Submission90, p.3.

[44]CSIRO, Submission58, p.11.

[45]End Food Waste Australia, Submission90, p.3.

[46]See, for example: Fermentation Tasmania, Submission13, p.2; AUSVEG, Submission30, p.15; Distillers SA, Submission31, p. 8; Tasmanian Whisky and Spirits Association, Submission80, p.14; Australian Distillers Association, Submission101, p.28; Department of Industry, Science and Resources, Submission104, p.8.

[47]Department of Industry, Science and Resources, Submission104, p.8.

[48]Lion, Submission121, p.7.

[49]Food Frontier, Submission96, p.17.

[50]Food Frontier, Submission96, p.17.

[51]Centre for Agriculture and the Bioeconomy — Queensland University of Technology, Submission19, p.7.

[52]End Food Waste Australia, Submission90, p.5.

[53]Centre for Agriculture and the Bioeconomy — Queensland University of Technology, Submission19, p.7.

[54]Centre for Agriculture and the Bioeconomy — Queensland University of Technology, Submission19, p.7; CSIRO, Submission58, p.11; End Food Waste Australia, Submission90, p.7; Food Frontier, Submission96, p.17.

[55]End Food Waste Australia, Submission90, pages5 and 7.

[56]End Food Waste Australia, Submission90, p.7.

[57]CSIRO, Submission58, p.11.

[58]Food South Australia, Submission52, pages7–9; Tetra Pak, Submission57, p.3.

[59]Tetra Pak, Submission57, p.3; CSIRO, Submission58, p.11; Northern Territory Government & Charles Darwin University, Submission63, p.4.

[60]Northern Territory Government & Charles Darwin University, Submission63, p.4.

[61]Sanitarium Health Food Company, Submission42, pages1–2.

[62]Food South Australia, Submission52, p.6.

[63]CSIRO, Submission58, p.11.

[64]Waste Management and Resource Recovery Association of Australia, Submission99, pages1–2.

[65]Queensland Department of Agriculture and Fisheries and Department of Regional Development, Manufacturing and Water, Submission114, p.3.

[66]Australian Food and Grocery Council, Submission76, p.4; Department of Industry, Science and Resources, Submission104, p.7; The Australian Industry Group, Submission118, p.11.

[67]Rockwell Automation, Submission98, p.5.

[68]La Trobe University, Submission15, p.5; Australian Academy of Technological Sciences and Engineering, Submission51, p.2.

[69]CSIRO, Submission58, p.11.

[70]Queensland Distillers' Association, Submission100, p.8.

[71]CSIRO, Submission58, p.11.

[72]Northern Territory Government and Charles Darwin University, Submission63, p.4.

[73]Department of Industry, Science and Resources, Submission104, p.7.

[74]Lark Distilling Co., Submission106, p.10.

[75]Australian Dairy Products Federation, Submission116, p.20.

[76]Australian Packaging Covenant Organisation, Review of the 2025 National Packaging Targets: Final Report, p.6, apco.org.au/news/20Y9e00000004WXEAY, viewed 10 September 2024.

[77]Pact Group, Submission60, p.3.

[78]Australian Packaging Covenant Organisation, Flexible Plastic Consumption and Recovery, p.6, apco.org.au/search?site_search_form%5Bquery%5D=factsheet, viewed 10 September 2024.

[79]Pact Group, Submission60, p.5.

[80]Department of Climate Change, Energy, the Environment and Water, 2025 National Packaging Targets, www.dcceew.gov.au/environment/protection/waste/packaging/2025-national-packaging-targets, viewed 10September 2024; Australian Packaging Covenant Organisation, Australia’s 2025 National Packaging Targets, apco.org.au/national-packaging-targets, viewed 10 September 2024.

[81]Australian Packaging Covenant Organisation, Australia’s 2025 National Packaging Targets, apco.org.au/national-packaging-targets, viewed 10 September 2024.

[82]Department of Climate Change, Energy, the Environment and Water, National Plastics Plan 2021, www.dcceew.gov.au/environment/protection/waste/publications/national-plastics-plan, viewed 10 September 2024.

[83]Department of Climate Change, Energy, the Environment and Water, National Plastics Plan 2021, p. 1, www.dcceew.gov.au/environment/protection/waste/publications/national-plastics-plan, viewed 10 September 2024.

[84]Australian Packaging Covenant Organisation, Australian Packaging Consumption & Recovery Data 2021-22, p.34, apco.org.au/news/20YOl000007XWzbMAG, viewed 11 September 2024.

[85]Australian Council of Recycling, Submission79, p.6.

[86]Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.3; Waste Management & Resource Recovery Association Australia, Submission99, p.2.

[87]Australian Packaging Covenant Organisation, Australian Packaging Consumption & Recovery Data 2021-22, p.34, apco.org.au/news/20YOl000007XWzbMAG, viewed 11 September 2024.

[88]Cape Byron Distillery, Submission86, p.1; Department of Industry Science and Resources, Submission104, p.8; Lion, Submission121, p.8.

[89]Department of Industry Science and Resources, Submission104, p.8.

[90]Cape Byron Distillery, Submission86, p.1.

[91]Archie Rose, Submission69,p.14; Spirits & Cocktails Australia, Submission71, p.25.

[92]Opal, Submission20, p.2.

[93]Pernod Ricard Winemakers, Submission48, p.10; Prohibition Liquor Co., Submission64, p.5; Archie Rose, Submission69, p.13; Brown-Forman, Submission89, p.11; Queensland Distillers, Submission100, p.8.

[94]Pernod Ricard Winemakers, Submission48, p.10; Lark Distilling Co., Submission106, p.9.

[95]Hon Tanya Plibersek MP, Minister for the Environment and Water, ‘Environment Ministers step in to cut packaging waste’, Media Release, 9 June 2023.

[96]See, for example: Ms Suzanne Toumbourou, Chief Executive Officer, Australian Council of Recycling, Committee Hansard, Sydney, 23 May 2024, p.15; Ms Siobhan McCrory, Executive General Manager, Sales, Marketing and Innovation, Pact Group, Committee Hansard, Melbourne, 7 August 2024, p.40; Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.4; Veolia ANZ, Submission40, p.3; Pact Group Submission60, p.7; Australian Council of Recycling, Submission79, p.5.

[97]Lion, Submission121, p.8.

[98]Pact Group, Submission60, p.8.

[99]Loop Organics, Submission78, p.3.

[100]Loop Organics, Submission78, pages3–4.

[101]Loop Organics, Submission78, pages4–5.

[102]Waste Management & Resource Recovery Association Australia, Submission99, p.3.

[103]Australian Packaging Covenant Organisation, Australian Packaging Consumption & Recovery Data 2021-22, p.28, apco.org.au/news/20YOl000007XWzbMAG, viewed 11 September 2024.

[104]Recycling Near You, Container Deposit Schemes: What’s a Container Deposit Scheme, recyclingnearyou.com.au/containerdeposit/, viewed 13 September 2024.

[105]Pact Group, Submission60, p.5; Australian Council of Recycling, Submission79, p.13; Australian Beverages Council, Submission113, p.5.

[106]Lion, Submission121, p.7.

[107]Pact Group, Submission60, p.5.

[108]Australian Council of Recycling, Submission79, p.13.

[109]Lion, Submission121, p.7.

[110]Cider Australia, Submission22, p.6.

[111]Sanitarium Health Food Company, Submission42, p.3; Prohibition Liquor Co., Submission64, p.5.

[112]See, for example: Cider Australia, Submission22, p.2; Scotch Whisky Association, Submission36, p.6; Distilled Spirits Council of the U.S., Submission37, p.2; Sanitarium Health Food Company, Submission42, p.3; Pernod Ricard Winemakers, Submission48, p.10; Australian Grape and Wine Incorporated, Submission68, p.15; Spirits & Cocktails Australia, Submission71, p. 29; Australian Council of Recycling, Submission79, p.13; Sprits Victoria Association, Submission83, p.3; Australian Distillers Association, Submission101, pages 29–30; Australian Beverage Council, Submission113, pages 5–6; Lion, Submission121, p.8.

[113]Department of Climate Change, Energy, the Environment and Water, Environment Ministers Meeting, Agreed communique – 15 April 2021, www.dcceew.gov.au/sites/default/files/documents/emm-1-agreed-communique.pdf, viewed 16 September 2024.

[114]Pernod Ricard Winemakers, Submission48, p.11; Spirits & Cocktails Australia, Submission71, p.29.

[115]Pact Group, Submission60, p.6; Australian Beverage Council, Submission113, p.6.

[116]Prohibition Liquor Co., Submission64, p.5.

[117]Australian Beverages Council, Submission113, pages5–7.

[118]Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.3.

[119]Ms Suzanne Toumbourou, Chief Executive Officer, Australian Council of Recycling, Committee Hansard, Sydney, 23 May 2024, pages 12 and 16.

[120]Northern Territory Government, Northern Territory Circular Economy Strategy 2022-2027, pages 12–13, https://depws.nt.gov.au/__data/assets/pdf_file/0020/1100882/northern-territory-circular-economy-strategy-2022-2027.pdf, viewed 16 September 2024.

[121]Ms Suzanne Toumbourou, Chief Executive Officer, Australian Council of Recycling, Committee Hansard, Sydney, 23 May 2024, p.14.

[122]Australian Council of Recycling, Submission79, p.8.

[123]Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.3.

[124]Australian Beverages Council, Submission113, p.5.

[125]Australian Council of Recycling, Submission79, p.4.

[126]Australian Beverages Council, Submission113, p.5.

[127]See, for example: Ms Siobhan McCrory, Executive General Manager, Sales, Marketing and Innovation, Pact Group, Committee Hansard, Melbourne, 7 August 2024, p.41; Dr Richard Kirkman, Chief Executive Officer and Managing Director, Veolia ANZ, Committee Hansard, Sydney, 23 May 2024, p.4; Waste Management & Resource Recovery Association Australia, Submission99, p.2.

[128]Spirits & Cocktails Australia, Submission71, p.30.

[129]Pact Group, Submission60, p.8.

[130]Norco Co-operative, Submission14, p.2.

[131]Australian Food & Grocery Council, Submission76, p.4.

[132]Australian Council of Recycling, Submission79, p.19; Waste Management & Resource Recovery Association Australia, Submission99, p.2.

[133]Pact Group, Submission60, p.4.

[134]Ms Suzanne Toumbourou, Chief Executive Officer, Australian Council of Recycling, Committee Hansard, Sydney, 23 May 2024, p.12.

[135]Australian Council of Recycling, Submission79, p.19.

[136]Veolia ANZ, Submission40, p.3.

[137]Veolia ANZ, Submission40, p.4; Pact Group, Submission60, p.7.

[138]Mr Boris Munster, Managing Director Oceania, Tetra Pak, Committee Hansard, Syndey, 23 May 2024, p.6.

[139]Australian Council of Recycling, Submission79, p.5.

[140]Australian Council of Recycling, Submission79, p.6.

[141]Sanitarium Health Food Company, Submission42, p.1.

[142]Ms Suzanne Toumbourou, Chief Executive Officer, Australian Council of Recycling, Committee Hansard, Sydney, 23 May 2024, p.12.

[143]Sanitarium Health Food Company, Submission42, p.2.

[144]Queensland Department of Agriculture and Fisheries & Department of Regional Development, Manufacturing and Water, Submission114, p.18.

[145]Pact Group, Submission60, p.4.

[146]See, for example: Opal, Submission20, p.2; Scotch Whisky Association, Submission36, p.6; Pernod Ricard Winemakers, Submission48, p.2; NSW ACT Distillers, Submission85, p.7.

[147]Australian Council of Recycling, Submission79, p.8.

[148]Northern Territory Government & Charles Darwin University, Submission63, p.8; Food Frontier, Submission96 Attachment 1, p.46.

[149]Xu et al (2021) ‘Global greenhouse gas emissions from animal-based foods are twice those of plant-based foods’, Nature Food, 2(9):724–732, doi.org/10.1038/s43016-021-00358-x, viewed 20 September 2024.

[150]Department of Climate Change, Energy, the Environment and Water, Net Zero,

www.dcceew.gov.au/climate-change/emissions-reduction/net-zero, viewed 20 September 2024.

[151]Department of Industry, Science and Resources, Net zero sector plans for industry, resources and the built environment, www.industry.gov.au/news/net-zero-sector-plans-industry-resources-and-built-environment, viewed 16 September 2024.

[152]Department of Climate Change, Energy, the Environment and Water, Climate Active, www.dcceew.gov.au/climate-change/climate-active, viewed 17 September 2024.

[153]Mr Greig Ewen, Head of Production, Lark Distilling Co., Committee Hansard, Hobart, 1 August 2024, p.1.

[154]Australian Dairy Products Federation, Submission116, p.18; Australian Dairy Farmers, Legacy: Origins of the Australian Dairy Sustainability Framework, australiandairyfarmers.com.au/legacy/, viewed 17 September 2024.

[155]Australian Dairy Products Federation, Submission116, p.19.

[156]Australian Beverages Council, Submission113, p.6.

[157]Australian Grape and Wine Incorporated, Submission68, p.11; Wine Australia, Emissions Reduction Roadmap,www.wineaustralia.com/sustainability/emissions-reduction-roadmap, viewed 17 September 2024.

[158]Australian Grape and Wine Incorporated, Submission68, pages 5–6 and 11.

[159]Spirits & Cocktails Australia, Submission71, pages 28–29.

[160]See, for example: Tasmanian Whisky and Spirits Association, Submission80, p. 14; Department of Industry, Science and Resources, Submission104, p.9; Lark Distilling Co., Submission106, p.9.

[161]See, for example: Opal, Submission20, p.2; Spirits & Cocktails Australia, Submission71, p.26; Lion, Submission121, pages 6–7.

[162]See, for example: Archie Rose, Submission69, p.13; Brown-Forman, Submission89, p.12.

[163]Independent Brewers Association, Submission50, pages 2–3.

[164]Suntory Oceania, Submission56, p.15.

[165]Mr Greig Ewen, Head of Production, Lark Distilling Co., Committee Hansard, Hobart, 1 August 2024, p.1.

[166]Lion, Submission121, pages 6–7.

[167]Diageo Australia Limited, Submission62, p.9.

[168]See, for example: Tetra Pak, Submission57, p.2; Diageo, Submission62, p.9; Spirits & Cocktails Australia, Submission71, p.28; Lark Distilling Co., Submission106, p.9; Lion, Submission121, pages 6–7.

[169]Norco Co-operative, Submission14, p.5; Lark Distilling Co., Submission106, p.9.

[170]Distillers SA, Submission31, p.8.

[171]Australian Academy of Technology Sciences & Engineering, Submission51, p.2.

[172]See, for example: Norco Co-operative, Submission14, p.5; Australian Food & Grocery Council, Submission76, p.4; Government of South Australia, Submission122, p.8.

[173]See, for example: Australian Plant Proteins, Submission34, p.5; Nourish Ingredients, Submission44, p.1; Food Frontier, Submission96, p.15; v2food, Submission109, p.3.

[174]Food Frontier, Submission96, p.15.

[175]See, for example: Australian Plant Proteins, Submission34, p.5; Nourish Ingredients, Submission44, p.1; Eden Brew, Submission70, p.2; Food Frontier, Submission96, pages 15–16, Rockwell Automation, Submission98, p.4; v2food, Submission109, p.3.

[176]Food Frontier, Submission96, p.27.

[177]Australian Academy of Science, Submission87, p.1.

[178]QLD Departments of A&F & RDMW, Submission114, pages15–16.

[179]End Food Waste Australia, Submission90, p.5.

[180]Food South Australia, Submission52, p.6.

[181]End Food Waste Australia, Submission90, p.4.

[182]Food South Australia, Submission52, pages5–6.

[183]See, for example: Australian Food & Grocery Council, Submission76, p.4; NSW ACT Distillers, Submission85, p.7.

[184]Concept Beverages, Submission9, p.3; Government of South Australia, Submission122, p.8.

[185]Food Frontier, Submission96, p.17.

[186]Lark Distilling Co., Submission106, p.10.

[187]Pernod Ricard Winemakers, Submission48, p.7; Queensland Distillers Association, Submission100, p.9; Kilderkin Distillery, Submission102, p.5; Lark Distilling Co., Submission106, p.9.

[188]CSIRO, Submission58, p.11.

[189]Parliament of Australia, House of Representatives Standing Committee on Agriculture, Australian Food Story: Feeding the Nation and Beyond – Inquiry into food security in Australia, pages 1–227.

[190]Parliament of Australia, House of Representatives Standing Committee on Industry, Innovation, Science and Resources, From Rubbish to Resources: Building a Circular Economy, pages 1–184.

[191]Parliament of Australia, House of Representatives Standing Committee on Agriculture, Australian Food Story: Feeding the Nation and Beyond – Inquiry into food security in Australia, p. 104.

[192]Parliament of Australia, Senate Standing Committee on Environment and Communications, Waste reduction and recycling policies, www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/Wastereduction, viewed 4 November 2024.