{"id":9611,"date":"2025-10-06T02:43:53","date_gmt":"2025-10-06T06:43:53","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9611"},"modified":"2025-10-06T02:43:53","modified_gmt":"2025-10-06T06:43:53","slug":"new-soft-plastics-recycling-scheme-to-replace-australia-failed-redcycle","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9611","title":{"rendered":"New soft plastics recycling scheme to replace Australia failed REDcycle"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure class=\"article-image__container\">\n                                    <picture><source media=\"(min-width: 990px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/10\/Recycle-770x433.jpg\"\/><source media=\"(min-width: 430px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/10\/Recycle-940x528.jpg\"\/>\n                                    <\/picture><figcaption class=\"c-featured-image__description\">The scheme targets landfill waste, but critics cite weak infrastructure, voluntary uptake, and possible price rises as risks. \/ Credit: Dr David Sing via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"drop-cap\">A new industry-led soft plastics recycling scheme is gearing up to replace Australia\u2019s failed REDcycle programme, aiming to revive collection, reduce waste to landfill and impose a levy on manufacturers.<\/p>\n<p>If approved, costs may be passed partly to consumers.<\/p>\n<div class=\"in-article-premium-insights mobile-useragent-scalar\">\n<section class=\"gms-b2b-marketing\">\n<figure><img decoding=\"async\" src=\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/GMS-logo.svg\" alt=\"\"\/><\/figure>\n<h4> Discover B2B Marketing That Performs <\/h4>\n<p>\n\t\t\t\t\t\tCombine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.\n\t\t\t\t\t<\/p>\n<p><a href=\"https:\/\/www.globaldatamarketingsolutions.com\/\" class=\"gms-find-out-more\" target=\"_blank\"><br \/>\n\t\t\t\t\t\t\tFind out more <span><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"13\" height=\"9\" viewbox=\"0 0 13 9\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M11.685 4.5548L1.25586 4.5548L11.685 4.5548Z\" fill=\"white\"\/><path d=\"M11.685 4.5548L1.25586 4.5548\" stroke=\"white\" stroke-width=\"1.03145\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/><path d=\"M7.85693 0.918855L11.9827 4.5731L7.85693 8.33789\" stroke=\"white\" stroke-width=\"1.03145\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/><\/svg><\/span><\/a><\/p>\n<\/section>\n<\/div>\n<ul class=\"wp-block-list\">\n<li>The Australian Competition and Consumer Commission (ACCC) has proposed granting authorisation to a voluntary scheme run by Soft Plastics Stewardship Australia (SPSA).<\/li>\n<li>Large supermarket groups (Coles, Woolworths, Aldi) and manufacturers (Nestl\u00e9, Mars, McCormick) are initial founding participants.<\/li>\n<li>The scheme would be funded via a levy on soft plastic packaging (initially AUD 160\/tonne, rising to AUD 200\/tonne) charged to participating producers or retailers.<\/li>\n<li>Collection trials are underway in supermarkets and via kerbside bins in some local councils.<\/li>\n<li>Critics warn the scheme is voluntary, may push costs to consumers, and starts with limited recycling and processing capacity.<\/li>\n<li>REDcycle collapsed in late 2022, leaving an estimated 11,000 tonnes of soft plastic waste stockpiled and unprocessed.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\" id=\"h-why-a-new-scheme-is-needed\">Why a new scheme is needed<\/h2>\n<p>The previous REDcycle system, launched in 2010, allowed consumers to drop off soft or \u201cscrunchable\u201d plastic packaging at supermarkets.<\/p>\n<p>Over time it became clear that much of the collected material was stockpiled rather than recycled. A fire at a recycling facility and breakdowns in the supply chain worsened the situation.<\/p>\n<p>By the time REDcycle declared insolvency in early 2023, tens of thousands of tonnes of soft plastics were sitting in warehouses across Australia.<\/p>\n<p>That collapse left consumers and local councils without a practical nationwide route to recycle soft plastics\u2014such as bread bags, snack wrappers and cling film\u2014leading to much of that waste going to landfill.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-how-the-new-scheme-is-intended-to-work\">How the new scheme is intended to work<\/h2>\n<p>The proposed SPSA scheme aims to broaden collection, sorting and recycling of soft plastic packaging.<\/p>\n<p>Under the plan, participating companies would pay a levy based on the tonnage of soft plastic they place on the market. That revenue would fund collection, processing and associated infrastructure.<\/p>\n<p>Initial levies are proposed at AUD 160 per tonne, increasing to AUD 200 per tonne by mid-2026, with annual reviews thereafter.<\/p>\n<p>The ACCC has suggested an eight-year authorisation for the scheme, under conditions including transparency and no exclusive contracts with processors.<\/p>\n<p>On the collection side, supermarket drop-off points are being expanded\u2014roughly 500 Coles, Aldi and Woolworths stores in New South Wales and Victoria have begun accepting soft plastics from customers.<\/p>\n<p>Kerbside trials in selected councils are also underway, where residents can place scrunched soft plastics into authorised bins. Collected material is processed by local recyclers through mechanical methods (shredding, melting) into lower-grade recycled products (e.g. for asphalt, benches).<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-challenges-risks-and-critiques\">Challenges, risks and critiques<\/h2>\n<p>The biggest risk lies in scale: current recycling capacity is limited, and the scheme will begin modestly to avoid overcollection. At present only a small fraction of Australia\u2019s 538,000 tonnes of annual soft plastic use is recovered\u2014estimates put recycled rates as low as 6 %.<\/p>\n<p>Because the scheme is voluntary, companies might opt out and shift costs to consumers via higher packaging or product prices.<\/p>\n<p>Critics warn of greenwashing\u2014giving the impression of environmental responsibility without achieving significant results. Also, recycled soft plastics initially will not be reused for food-grade packaging, limiting circular outcomes.<\/p>\n<p>Some observers argue mandating participation (rather than voluntary) would be more effective to prevent free-riders and ensure coverage across all regions.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-what-this-means\">What this means<\/h2>\n<p>If authorised, the new soft plastics recycling scheme could revive soft plastic collection infrastructure in Australia and divert waste away from landfill\u2014but success depends on broad participation, expanded processing capacity and strong demand for recycled materials.<\/p>\n<p>At present, many details remain in flux, including final levy levels, regional rollout, compliance monitoring and the pace of scaling up.<\/p>\n<p><!-- Newsletter banner start --><\/p>\n<p><!-- <link rel=\"stylesheet\" href=\"\"> --><\/p>\n<div class=\"grid-container\">\n<section class=\"gdm-newsletter-banner__container\">\n<div class=\"grid-x gdm-newsletter-banner__wrapper-container gdm-newsletter-banner__wrapper-container--article\">\n<div class=\"cell large-9 gdm-newsletter-banner-info__wrapper\">\n<div class=\"gdm-newsletter-banner-logo__container\">\n                    <img decoding=\"async\" src=\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/newsletter-new.svg\" alt=\"Email newsletter icon\"\/>\n                <\/div>\n<p><h3 class=\"gdm-newsletter-banner__heading wp-noreslt\">Sign up for our daily news round-up!<\/h3>\n<h3 class=\"gdm-newsletter-banner__sub-heading\">Give your business an edge with our leading industry insights.<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<\/div>\n<p><!-- Newsletter banner end --><\/p>\n<div class=\"author-bio\">\n<h2>Packaging Gateway Excellence Awards &#8211; The Benefits of Entering<\/h2>\n<p style=\"margin-bottom: 20px;\">Gain the recognition you deserve! The <a href=\"https:\/\/www.packaging-gateway.com\/excellence-awards\/?utm_source=verdict_news&amp;utm_medium=footer_cta&amp;utm_campaign=EA_2025_news&amp;utm_id=exawards2025\" target=\"_blank\"><strong>Packaging Gateway Excellence Awards<\/strong><\/a> celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving packaging industry advancements. Don\u2019t miss your chance to stand out\u2014submit your entry today!<\/p>\n<p><a href=\"https:\/\/www.packaging-gateway.com\/excellence-awards\/?utm_source=verdict_news&amp;utm_medium=footer_cta&amp;utm_campaign=EA_2025_news&amp;utm_id=exawards2025\" class=\"excellence-awards-link\"><strong style=\"font-size: 20px;\">Nominate Now<\/strong><\/a><\/p><\/div>\n<footer class=\"article-footer\">\n                                <!-- article-actions start --><\/p>\n<p><!-- .gdm-article-actions -->                                <!-- article-actions end --><br \/>\n                            <\/footer>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.packaging-gateway.com\/news\/new-soft-plastics-recycling-scheme-to-replace-australia-failed-redcycle\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The scheme targets landfill waste, but critics cite weak infrastructure, voluntary uptake, and possible price rises as risks. \/ Credit: Dr David Sing via Shutterstock A new industry-led soft plastics recycling scheme is gearing up to replace Australia\u2019s failed REDcycle programme, aiming to revive collection, reduce waste to landfill and impose a levy on manufacturers. [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":9612,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[165],"tags":[2646],"class_list":["post-9611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packaging-news","tag-new-soft-plastics-recycling-scheme-to-replace-australia-failed-redcycle"],"_links":{"self":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/9611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9611"}],"version-history":[{"count":0,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/9611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/media\/9612"}],"wp:attachment":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}