Issue No.08 RECYCLING KEY POINTS: The packaging industry is NOT a major contributor to the waste problem, representing only about 10% of total urban solid waste. The industry has a sound environmental record and a long history of involvement in recycling. Recycling is a means of achieving a goal, not a goal in itself and should result in some measurable environmental benefit. It is not always economic and it is not necessarily a hallmark of environmental superiority. Recycling entails more than simply setting up collection systems. There is no virtue in collecting materials for recycling unless those materials are developed into products that can be marketed. Lack of markets is the key limitation on recycling for some sectors of packaging. Existing markets need to be expanded and new ones created. It is the issue of markets, rather than artificially created targets, which governments should have at the top of their priorities. For recycling to work on a long-term basis, the economics must be "right". Costs must be competitive with other countries and also with alternative sources of materials. The packaging industry has a sound record of environmental responsibility. The industry's achievements of source reduction (or lightweighting) and recycling gives it strong credentials as a net waste reducer. The industry has a long record of involvement in recycling. Commercial recycling schemes were in operation long before the environment ever became a popular cause. Moreover, by allowing centralised food processing, packaging permits large scale recycling of food residues. Overall, the packaging industry has strong credentials as a net waste reducer. The packaging industry has also made a major contribution over the last decade to environmental responsibility in the form of source reduction. The reduced weight of packages has meant reduced consumption of resources and is just as significant as recycling. Over the last two decades, reductions of 20-40% have been common in many parts of the packaging industry. Further reductions are planned. The Achievements The current recycling rates, together with ANZECC targets, for specific packaging materials are as follows: • Aluminium: The current national recycling rate is approximately 61% and a rate of 65% is expected to be achieved by 1995. These rates are close to the world's best for a voluntary program. In Victoria, the aluminium can industry has signed the first Industry Waste Reduction Agreement under which it will reduce by 25% the weight of used cans going to landfill by 1995. • Glass: The current national recycling rate of glass containers is 41%. It is anticipated that the ANZECC target recycling rate of 45% for all glass containers by the end of 1995 will be achieved. • Liquidpaperboard Cartons: According to the Association of Liquidpaperboard Carton Manufacturers, the industry is over one third of the way towards the 1995 target of 20% national waste reduction. • Packaging Paper: The target set for 1995 was a level of 71% of raw material input to be recycled fibre. For 1992/93, a national rate of 72.8% was achieved. The major reason for this increase is growth in exported packaging product (to approximately 200,000 tonnes per annum) made with a composition of 95% wastepaper. • Plastics: PET is currently being recycled at a national rate of approximately 22% and it is expected that the ANZECC target of 30% by 1995 will be met, exceeding the general target for plastic containers of 25%. HDPE milk, cream and juice bottles are being collected for recycling at a national rate of approximately 30%. The current industry national recycling rate for vinyl is estimated at 6% and by 1995 an industry rate of approximately 10% is expected, compared to the ANZECC target of 15%. • Steel Cans: The current national recycling rate is approximately 4%, with a rate of 14/15% estimated for the end of 1994. A recycling rate of 25%, which is the ANZECC target, is expected by the end of 1996. The packaging industry is generally on course to achieve its ANZECC targets. In some areas it is ahead of schedule. In addition, secondary packaging (containing a number of individual units) is usually recycled at a higher rate than primary packaging (encompassing individual units) as it is generally cleaner and in a more concentrated form. Where difficulties are being experienced they are, in the main, beyond the sole control of industry or any one company. Problems of market failure, pricing, collection difficulties are import-ant influences on the level of recycling actually achieved. Governments need to be cautious about embracing simplistic slogans that reusable/recyclable packaging is necessarily environmentally superior. With packaging paper, for example, recycled content means greater package weight to achieve the required performance characteristics because the fibres are weaker. So, in this case, recycled content is incompatible with source reduction. Collection systems for recycling generally involves transport which uses non-renewable fossil fuels and produces air pollution and need to be balanced against any benefits arising from recycling. The packaging industry's environmental achievements have been driven by a mix of factors. Self interest is a major driving force. Minimising costs, responding to consumer demands and gaining a competitive advantage have been major driving forces. Packaging companies have long been seeking to minimise packaging because it adds to costs and product price, thereby reducing competitiveness. The industry's record of achievements are an example of the co-operative and constructive approach taken by it. Industry is delivering on a voluntary agreement - and, in some cases, ahead of schedule. The Issues and the Policies Apart from being used again for packaging, recycled material is being made into useful new products such as crates, drainage pipes, water tanks, garden seats and containers. There are, however, a number of limitations on how far the recycling process can be extended. At present, the key constraint on increasing recycling is the lack of markets. For recycling to work there must be a demand for recycled products. Too much emphasis is placed by governments on the supply side or waste recovery without a corresponding focus on achieving market-based outcomes, sustainable in global competition. The level of installed manufacturing capacity is another key factor. Recycling is a business activity which will be influenced by the expected financial return. Anything less than full cost recovery for landfill, for example, will undermine the effectiveness of recycling and reduce the incentive for companies to invest in recycling facilities. Governments can also influence the demand for recycled products through their own policies and practices. Recycling in Australia does not operate in isolation. It operates in a global environment. It is influenced by international developments. A recent example of this involves newsprint and packaging paper. Recycling of this material has been adversely affected by the German packaging legislation which has produced a glut of waste paper in Europe which is now being exported to South East Asia. Australian companies have no control over such events and policies. There are limits to recycling. These limits take various forms. Restrictions are, of course, placed on recycled material coming in direct contact with food. Then there are technological limits. With packaging paper, for example, the industry is up against those technological limits. Two policy related issues deserve special attention: • The amount of plastic and packaging imports is an issue which needs to be addressed. The Australian industry is making a substantial commitment to recycling but the same commitment is not required of imported packaging. • The packaging industry is generally supportive of a much wider role for combustion with energy recovery. For some packaging such as plastics and paper where the packaging material has significant energy value, it makes good sense to recover that energy through combustion. THE PACKAGING COUNCIL OF AUSTRALIA'S POSITION Recycling has acquired something approaching motherhood status in Australia. It is regarded as a good thing and a desirable end in itself. Recycling is not, however, the answer to all society's waste management problems. It is but one option, amongst many, in the management of waste. Even if all packaging was recycled or in some other way removed from the waste stream, there would still be 90% of the waste stream to be dealt with. Decisions about which of the various waste management options to utilise require a balanced, case-by-case approach. There is no rigid hierarchy which will automatically produce the best environmental outcome in all cases. Source reduction, re-use, recycling, waste-to-energy combustion, composting and landfilling all have a role to play - but that role will vary according to the type of packaging. The key to effective, long-term recycling is the availability and development of viable markets. The materials recycled must become tradable commodities at market prices. Rather than concentrating on artificial targets, governments, industry and the community should be focusing their attention on getting "right" the economics of recycling. Read other Issues Papers: No.01 - "Combustion with Energy Recovery" No.02 - "Life Cycle Analysis" No.03 - "Managing Packaging Waste in Europe - Lessons for Australia" No.04 - "Waste Management " No.05 - "Litter" No.06 - "Mandatory Deposits" No.07 - "Excessive Packaging" No.09 - "Australian Packaging - How Competitive?" No.10 - "The Packaging Council of Australia" No.11 - "Mandatory Minimum Recycled Content" No.12 - "Eco-Labelling" No.13 - "Packaging - Ten Trends for The Next Ten Years" No.14 - "Packaging - It's Essential Role" No.15 - "The Internet - What it Means for Australian Packaging" No.16 - "Single, Active, Post-Materialistic, and Grey?" No.17 - "Digitisation in Printing - Implications for Packaging" No.18 - "Australian Packaging: Issues and Trends"