A chance to realise the full value of recyclable materials 5 min read
The Recycling and Waste Reduction Bill 2020 (the Bill) was introduced into Federal Parliament on 27 August 2020.
The Bill aims to more effectively manage the environmental, human health and safety impacts of products and waste material. If passed, the Bill would do this by regulating the export of waste material and strengthening Australia's product stewardship regime.
The reforms proposed by the Bill reflect the growing recognition of waste as an economic opportunity for Australia's waste management and recycling sector to realise the full value of recyclable materials and thus work toward a more sustainable economy.
Regulating the export of waste material
If made into law, the Bill would prohibit the export of 'regulated waste material' unless prescribed export conditions are met. These conditions, as well as the kinds of waste material to be regulated, are to be set out in rules made by the Minister for the Environment (the Minister).
It is anticipated that these rules will begin by banning the export of:
- waste glass on 1 January 2021;
- mixed plastics on 1 July 2021;
- whole used tyres on 1 December 2021;
- single resin / polymer plastics on 1 July 2022;
- mixed and unsorted paper and cardboard on 1 July 2024; and
- potentially expanding to different waste streams over time.
Indeed, the rationale behind using these rules is to give the Minister the flexibility to regulate different waste streams as appropriate from time to time.
... the rationale behind using these rules is to give the Minister the flexibility to regulate different waste streams as appropriate from time to time.
The rules will also be able to prescribe export conditions that must be met if regulated waste material is to be exported from Australia. In particular, the rules may require that a person hold an export licence and give an export declaration to the Minister within a specified time before the waste material is exported. According to the Bill's Explanatory Memorandum, the purpose of these requirements, which are intended to be prescribed export conditions for most, if not all, regulated waste material, is to allow greater opportunity for compliance action to be taken prior to the waste material being exported from Australia. If passed, the Minister alone will have the power to grant an export licence under the Bill and will also be able to specify the form an export declaration must take in certain circumstances.
In addition, the rules may also impose conditions on the export licence itself and require certain information to be included in an export declaration. For example, an export licence may be granted subject to the condition that the regulated waste material is processed to a certain standard or contamination threshold prior to export, or that it is exported to a particular waste processing facility in an importing country. The rules may also require that an export declaration include, among other things, a written statement that the regulated waste material meets the conditions of the export licence and other requirements in the Bill. The failure to comply with these prescribed export conditions, as well as making false or misleading representations in relation to an export declaration, will carry both civil and criminal penalties, with a maximum penalty of up to $660,000 for companies, and individuals facing up to five years' imprisonment and fines of up to $133,000.
Where appropriate, it is intended that the Government will be able to recover the cost of regulating the export of waste material under the Recycling and Waste Reduction Charges (General) Bill 2020, the Recycling and Waste Reduction Charges (Customs) Bill 2020 and the Recycling and Waste Reduction Charges (Excise) Bill 2020. These bills were also introduced into the Federal Parliament to complement the Bill on 27 August 2020.
Strengthening Australia's product stewardship regime
If passed, the Bill would strengthen Australia's product stewardship regime by replacing the federal Product Stewardship Act 2011.
The Product Stewardship Act 2011 was reviewed by the Department of Agriculture, Water and the Environment earlier this year. The review found that, while the voluntary, co-regulatory and mandatory schemes of the Product Stewardship Act 2011 are appropriate vehicles for enabling product stewardship outcomes in Australia, there is scope to broaden the reach and impact of the Act. In particular, the review recommended expanding the product stewardship regime to a broader range of materials and products. Despite being set up as framework legislation capable of being used as an umbrella for product stewardship schemes across a range of waste streams, there are currently no mandatory schemes under the Act and just one co-regulatory scheme which only applies to televisions and computers.
... unlike the Product Stewardship Act 2011, the definition of 'product' under the Bill will be expanded to include classes of products in order to allow the product stewardship regime to be flexibly applied to a broader range of goods and materials.
Like the Product Stewardship Act 2011, the Bill intends to provide a framework for voluntary, co-regulatory and mandatory product stewardship schemes to encourage those who design, import, manufacture and distribute products to take greater responsibility for their environmental impacts, including by improving product design to reduce waste generation and increase product durability, reparability and reusability. However, unlike the Product Stewardship Act 2011, the definition of 'product' under the Bill will be expanded to include classes of products in order to allow the product stewardship regime to be flexibly applied to a broader range of goods and materials.
The Minister's 'priority list' under the Bill will also play a much more significant role than under the Product Stewardship Act 2011. This list, which under the Act currently allows the Minister to identify products that might be appropriate for further regulation, will be strengthened under the Bill to allow the Government to step in and establish co-regulatory or mandatory schemes if industries fail to establish product stewardship schemes voluntarily. The priority list under the Bill will also allow the Minister to recommend actions that companies should take to regulate their products and the timeframe within which to take them in order to avoid facing stricter regulation. The Minister's priority list for 2020−21 currently includes batteries, child car seats, electrical and electronic products, plastic oil containers, photovoltaic systems and plastic microbeads.
It is intended that existing product stewardship schemes established under the Product Stewardship Act 2011 will continue to operate under, and be governed by, the Bill.
Conclusion
The introduction of the Bill is part of the Government's broader commitment to transform Australia’s waste and recycling sector in the wake of China's National Sword policy.
By regulating the export of waste material and strengthening Australia's product stewardship regime, the Bill aims to not only stop the export of contaminated waste which has negative impacts on the importing country, but to lay the groundwork for more domestic recycling by encouraging Australian businesses to take shared responsibility for products and waste material.
The reforms proposed by the Bill reflect the growing recognition of waste as an economic opportunity for Australia's waste management and recycling sector to realise the full value of recyclable materials and thus work toward a more sustainable economy.