APCO releases 2030 Strategic Plan

The Australian Packaging Covenant Organisation (APCO) has published its 2030 Strategic Plan, outlining a pathway for the industry to deliver the improvements needed to meet the 2025 National Packaging Targets.

“We know that our members have made great strides in improving the recyclability of packaging and genuinely want to see our recycling rates improve. But the analysis is clear: we need to take a more hands-on approach to recycling if we’re going to see the results that the community expects,” said APCO CEO Chris Foley.

The new strategy calls for a membership fee model that incentivises brand owners to eliminate and reduce packaging, adopt reuse models, and transition to materials and formats that are easier to recycle. 

The decision will see APCO fees calculated using eco-modulation (ecological modulation), starting FY27. They will be based on the types and volumes of packaging that brands place on the market, with higher fees paid for materials that are more costly to recover, recycle and or dispose of.

Funds raised through the new fee model will be invested in the downstream system to overcome economic barriers that have hindered progress towards national packaging targets, the organisation said in a statement. The funds will be directed to supporting end markets, building reprocessing infrastructure and strengthening collection networks.

While this approach is new to Australia, it has proven successful in countries like the Netherlands, Belgium and France, the statement said.

Foley said the new strategy will add to, rather than replace, Australia’s existing recycling system and activity. “We’re aiming to support and grow the existing system,” he said.

“Local governments and the waste and recycling sectors are key. Together, we need to collect and work out where funds can be most effectively applied to drive up recycling. That could be collection systems for problematic materials such as expanded polystyrene or a national consumer education campaign to increase recycling rates at kerbside.”

APCO is accountable to Australia’s Environment Ministers for delivering the national packaging targets. The goals of the Covenant remain the same under the new strategy: to optimise the recovery of packaging and materials and prevent the impact of litter.

The goals of the Covenant will be tracked using new indicators, including the reduction of materials sent to landfill. By 2030, this reduction target will be set at 1 million tonnes.

The strategy was developed in consultation with APCO members as well as key stakeholders, including the waste and recycling sectors, industry associations and governments. The strategy commenced on 1 July 2024 and will be updated as required in response to the packaging reform process currently underway under the leadership of the Department of Climate Change, Energy, the Environment and Waste (DCCEEW).

Image credit: iStock.com/Puttachat Kumkrong