ACCC proposes supermarket recycling scheme after disastrous REDcycle bungle

A new plan to encourage Aussies to recycle soft plastics from packaging is being proposed, almost three years after the collapse of another scheme.

Consumer watchdog the Australian Competition and Consumer Commission (ACCC) has proposed a new industry-led way for customers to get their plastic rubbish recycled.

It says it would be run by a new organisation called Soft Plastics Stewardship Australia.

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Initial members of the scheme are Woolworths, Coles, Aldi, Nestlé, Mars and McCormick Foods, the ACCC said.

"It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it," ACCC Deputy Chair Mick Keogh said.

"We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill," Mr Keogh said.

Some pilots are already running in certain supermarkets.

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In November 2022 it emerged soft plastic recycling firm REDcycle could not recycle the packaging handed over by earth-conscious Aussies.

More than 12,000 tonnes of plastic were found to be hoarded in NSW, Victoria and South Australia.

In April 2023 more sites being used to store the plastic emerged

REDcycle denied the stockpiling was a cover-up, saying it was an attempt to ride out problems including a spike in returned plastics, a fire at its largest receiver of the material and insufficient recycling capabilities in Australia.

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REDcycle CEO Liz Kasell said the company had been struggling to keep up with demand, with a 350 per cent surge in people recycling plastic products.

In July 2023, Victorian charges against the operators of the failed REDcycle recycling scheme were dropped.

The company was later wound up.

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The ACCC has previously worked with supermarkets as part of a Soft Plastics Taskforce to process the stockpile left over from REDcycle.

Shoppers in some areas inundated recyling facilities trying to hand over their plastic.

According to data from the Australian Packaging Covenant Organisation (APCO), between 2022 and 2023, more than 540,000 tonnes of soft plastic packaging was used in packaging however only six per cent was recovered.