NATIONAL PACKAGING COVENANT & LITTER 27 May 2004, Melbourne Edward Cordner Executive Officer National Packaging Cove

1. NATIONAL PACKAGING COVENANT & LITTER 27 May 2004, Melbourne Edward Cordner Executive Officer National Packaging Covenant

2. Voluntary component of a co-regulatory agreement between the packaging supply chain and governments • Signed August 1999 • Based on principles of Shared Responsibility through Product Stewardship • The Covenant covers consumer product packaging, household paper and in-store packaging • > 640 signatories • Industry Coverage represents > 90% of packaging produced in Australia and > 80% of retail brands • Transitional Fund – industry contributions matched

4. NEPM • Regulatory component which is applied at a jurisdictional level • Primarily targets non-signatory Brand-Owners • Enforces packaging “take-back” requirements to meet specified targets • Intended to make the voluntary component more attractive • Provides that no other new policy framework is to be implemented while the NPC is in force • Has been effective encouraging new signatories

5. Objectives • To establish a framework based on Shared Responsibility for the effective life-cycle management of packaging. • To establish a collaborative approach to produce real and sustainable environmental benefits • To establish a forum for regular consultation and discussion of issues and problems • The focus is not just on recycling but also packaging optimisation, waste minimisation and reducing the impact on the environment • Create awareness

6. Essential Elements • A set of Product Stewardship principles to which all signatories subscribe • Defined roles & undertakings, including a commitment for continuous improvement • Signatory Action Plans & Annual Reports • A kerbside recycling strategy and Transitional Funds to support programs that develop economically viable & sustainable recycling collection systems • The Environmental Code of Practice for Packaging

7. Outcomes • Consistent National approach • Provides high level forum for engaging with governments • NPC Council, Kerbside Recycling Group (KRG) & Jurisdictional Recycling Groups (JRG’s) • Entire packaging supply chain is involved – notably retailers • Provides an effective moratorium on new & potentially more costly regulatory approaches • Evidence suggests NPC implementation within companies has placed environmental & packaging issues on the Board agenda

8. KRG • Equal representation from State/Territory and Local Government and industry signatories • Advises the respective jurisdictions on the development of their annual workplans • Is the clearing house for all projects developed at the jurisdictional level • Identifies and develops national projects • Has an overall budget management role to ensure that funds for these projects are available within the Transitional Funding Arrangements

9. JRG’s • Stakeholder groups established in each participating State or Territory • Equal representation from State/Territory and Local Government and industry signatories • Prepare annual workplans • Identify and develop Covenant-consistent projects relevant to the improvement of kerbside collection systems in their respective jurisdiction • Liaise with each other and with the KRG to identify potential co-operative or national projects and to avoid duplication

10. JRG Projects • Approx $6m has been distributed to eligible jurisdictions • Primarily for transition to Best Practice Kerbside Systems • Other types of projects to be funded include : • Public awareness in general community, schools & industry • Public Place & Major Events recycling • Litter Management • Performance Monitoring • Market Development

11. NPC & Litter • NPCC agreed to develop a strategy for litter management : • in the context of developing a link between littering & recycling. • to build on work currently being undertaken (eg. Don’t Waste Australia) and public place recycling. • develop guidelines to address littering including a framework for the allocation of transitional funds. • Plastic Bags should be considered under the strategy

12. Considerations • The Covenant does not refer to litter, nor does it specifically exclude it. • The terms under which the Transitional Funds are raised from industry does not refer to litter. • A majority of Covenant signatories have little or no exposure to the management of litter with their products. • Litter associated with packaging makes up only a proportion of overall litter. • Through other channels the management of plastic bags has fallen under the auspices of the Covenant.

13. Approach • Projects approved under the Covenant litter strategy will address litter management : • directly related to the lifecycle management of packaging • by delivering increased recovery of those packaging materials through public place or kerbside recycling • Examples : • Improved litter management systems for kerbside recycling collections. • Development of public place recycling to divert litter into recycling streams. • Promotion of litter strategies that specifically re-direct litter items into the kerbside stream.

14. Vic JRG Litter Grants • Project managed by EcoRecycle Victoria. • The purpose is to assist projects that address litter prevention & develop public place recycling • All projects must : • be located in either Core Sites or Special Sites • deal with packaging litter • adopt a planned approach to reduce littering behaviour • strongly feature community participation • involve key stakeholders in planning, implementation & follow up of the project

15. Projects • Alpine Resorts – litter prevention & resource recovery • establish benchmark data • identify successes & barriers • review facilities, attitudes & actions • make recommendations • Mildura Litter Prevention – regional best practice model • identify litter hotspots • educate & inform young people to change behaviour • establish community partnerships

16. Projects • City of Melbourne – improving disposal behaviour • identify the factors associated with disposal behaviour • reduce littering • increase use of public place waste & recycling bins • improve cost effectiveness of capital expenditure on bins • South West region - mobile public place recycling kits • City of Casey – fishing litter prevention • raise awareness amongst communities, anglers, suppliers • reduce litter

17. Way Forward • The co-regulatory Covenant / NEPM arrangement is due to expire in July 2004. • EPHC has agreed to an interim extension of the Covenant to 30 April 05 and a minor amendment to the NEPM to extend its expiry date to July 2005. • To allow NPCC time to engage & consult with key stakeholders. • Jurisdictions, LG & Industry to consult as necessary.

18. Covenant Reviews • Generally similar findings : • Substantial strengthening • Appropriate measurable performance indicators • Greater clarity & definition • Broader scope • Data collection • NPCC to take a more active role : • Communications • Enforcement & compliance

19. Industry is considering the introduction of some standard KPI’s to be reported on, for example : • Recycled Content • Companies must report on the amount of post-consumer recycled content in their packaging and their targets for future years • Litter • Reduction in the measured amount of packaging material of your product found in litter • Details of support for campaigns to address & reduce litter issues

20. Minimisation • Companies to list the measures taken to review the amount of packaging placed on the market • Develop a formal assessment system for packaging minimisation • Environmental systems • Companies must demonstrate they have reviewed their existing environmental management arrangements and have adopted a system appropriate to the size & nature of their business • Companies in the packaging supply chain must demonstrate they have adopted the Environmental Code of Practice for Packaging

21. Milestones • NPCC Meeting – May, Melbourne • Mid-June – stakeholder consultation process commences • July – EPHC teleconference. Progress report. • Mid-August – consultation process completed • Late August – NPCC Meeting • October – EPHC Meeting • November – NEPM major variation commences • April 05 – EPHC decision on Covenant