Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship &...

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Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container Recovery: Data Collection & Contamination Issues Conference Call 8 November, 2006 Increasing Beverage Container Recovery in Australia

Transcript of Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship &...

Page 1: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Russ Martin, Director

Martin Stewardship & Management Strategies Pty Ltd

WA State Beverage Container Recovery: Data Collection & Contamination Issues

Conference Call

8 November, 2006

Increasing Beverage Container Recovery in Australia

Page 2: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Overview

Context – Recycling in Australia

National Packaging CovenantOriginal CovenantRevised Covenant

Collection Approaches

Reprocessing/End Use Approaches

Q&A

Page 3: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Context – Overall Recycling in Australia

Broad coverage & support for recycling90-95% access to kerbside recycling

Limited market influencecomparative low population means limited domestic demandstrong overseas influence on policies and industry performance

Difficult recovery logisticsrelatively limited knowledge of product flowsdispersed population centers with high transport distancespicture the lower 48 US states, with 46 being Utah

Driverslocal government collectionsindustry demand through end users & National Packaging Covenant

Page 4: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Drivers for Original Covenant

Packaging visible as an environmental issue

Pushes for CDL (“Bottle Bill”) and EPR

Funding needed to improve kerbside recycling

Industry wanted flexibility and control over process

National approach needed

Photo source: MS2

Page 5: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Original National Packaging Covenant

Five-year framework, commencing 1999

“Co-Regulatory” approach - Voluntary Covenant

Action Plan commitmentsFunding to make kerbside recycling more efficient

Regulatory National Environment Protection Measure (NEPM)

Onerous take-back requirements for not signing or not complyingIntended to encourage companies to sign the Covenant

Page 6: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Benefits of the Covenant Approach

Shared responsibility

Whole of supply and recovery chain approach

Reduced life-cycle environmental impacts

More effective use of industry funding than alternative approaches

Page 7: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Overview of Covenant MkII

Commenced 15 July 2005 for a five-year period

Overarching targets and KPIs

Re-prioritisation of fundinggreater emphasis on Away from Home (AfH)incl. pubs, clubs, hotels, food courts, etc.

Strengthened Environmental Code of Practice for Packaging (ECoPP)

Strengthened NEPM and enforcement provisions

Page 8: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

MkII Targets for 2010

1. Increased recycling rate for packaging of 65% (2003 ests.):

paper & cardboard 70 – 80% (64%)glass 50 – 60% (35%)steel cans 60 – 65% (44%)aluminium bev. 70 – 75% (64%)plastics 30 – 35% (20%)

2. Landfill: no increase above current baseline.3. Increased recycling of ‘non-recyclable’ packaging:

25% (current est. 10% for 2003)

Targets are system-wide, not just for industry

Page 9: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Uses of Covenant Funding

Used differently than under the first Covenantfocus on Away from Home recycling, not just kerbsideprimary focus on glass & paper, based on expected contribution to targets

Limitations:cannot be used to subsidise prices or collection costsmust be economically viablemust represent good practice

LG non-signatories can now apply for co-funded projects

Funding directed primarily through National Projects Group

Page 10: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Implications of Covenant MkII

5-year framework for demonstrating product stewardship

greater certainty for industry investment and actioncould mean EPR, European- and Canadian-style packaging levies, etc. mandated if Covenant fails to achieve objectivesmid-term review end 2008 – Short time to show results

Overarching targets – all sectors must work together

Data collection and reporting costly, but critical

Photo source: MS2

Page 11: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Key Performance Indicators (KPIs)

Significantly more robust data is required:to ensure more accurate baseline measurementto assist in targeting areas of opportunityto help show demonstrable progress against targets and KPIs.

29 main KPIs, Industry directly responsible for 13

Page 12: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Data Collection - Packaging Lifecycle KPIs

Page 13: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Supply Chain Influence!

Photo source: MS2

Page 14: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

End Use Demand Drives Collections

Solid integration of packaging supply chainStrong incentives to minimise contamination

Material specifications by Australian Council of Recyclers (ACOR)

http://www.acor.org.au/materials.html

Kerbside & AfH collections get mixed for reprocessingGenerates economies of scaleComplicates data collection Some residential materials enter commercial collectionsSome commercial materials enter residential collections (esp. SMEs)Trials & audit results show benefits of consistent education, regardless of source, and need to tailor to local needs

Page 15: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Beyond Kerbside to Away from Home

Photo source: MS2 and APC

Page 16: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Consistent Signage & Bins

Graphic source: APC Environmental Management

Page 17: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Streetscapes – Bin Differentiation

Photo sources: Manny Manatakis and MS2

Page 18: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

HDPE – Material Specs. & Optical Sorting

Photo source: MS2

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Martin Stewardship & Management Strategies Pty Ltd

PET - Material Specs. & Physical Sorting

Photo source: MS2

Page 20: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Glass - Specs., Physical & Optical Sorting

Photo source: MS2

Page 21: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Residuals - Physical Sorting Trials

Photo source: MS2

Page 22: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Beverage Container Recycling Summary

Key DriversNational Packaging CovenantThreats of container deposit legislation (“bottle bills”), EPR & prescriptive, most costly approachesPopular demand

Keys to SuccessFocus on material specifications to meet end user needsPrimary and secondary market development‘Good practice’ approach to system improvementEmphasis on cost-effective recovery - kerbside and Away from HomeReducing system lossesProviding infrastructure for collection & reprocessing

Page 23: Martin Stewardship & Management Strategies Pty Ltd Russ Martin, Director Martin Stewardship & Management Strategies Pty Ltd WA State Beverage Container.

Martin Stewardship & Management Strategies Pty Ltd

Russ Martin

Director

Martin Stewardship & Management Strategies Pty Ltd

+61 2 9940 3571

[email protected]

www.MS2.com.au