Recycling Modernisation Fund set to generate $600 million in investment

Cleanaway welcomes the announcement of the Recycling Modernisation Fund made at our Eastern Creek facility in NSW

Industry Updates - Resource Recovery

July 7, 2020

Highlights

“This injection gives the waste management industry confidence when investing in infrastructure and innovation. With this fund, governments at all levels, together with industry can invest in building a domestic circular economy.” said Vik Bansal

Highlights

“This injection gives the waste management industry confidence when investing in infrastructure and innovation. With this fund, governments at all levels, together with industry can invest in building a domestic circular economy.” said Vik Bansal

Cleanaway welcomes the Morrison Government’s $190 million commitment to a new Recycling Modernisation Fund (RMF) announced by Minister for the Environment Sussan Ley at Cleanaway’s Container Sorting Facility in Eastern Creek yesterday.

Cleanaway CEO and Managing Director Vik Bansal said the fund will provide a much-needed boost to Australia’s resource recovery infrastructure and is a positive step towards a circular economy, “This injection gives the waste management industry confidence when investing in infrastructure and innovation. With this fund, governments at all levels, together with industry can invest in building a domestic circular economy.”

Mr Bansal urged stakeholders in the waste management ecosystem to take more ownership of resource recovery at every step of the value chain, “A genuine closed loop solution for materials is needed for a domestic recycling economy to thrive. We hope that the fund will encourage waste generators to take more responsibility for the materials they design and use locally sourced raw materials to further drive the domestic economy.”

Cleanaway, together with Pact Group and Asahi Beverages have proposed a new facility in Albury/Wodonga that will process up to 28,000 tonnes or the equivalent of approximately 900 million plastic bottles into flake and food grade pellets which will be used as a raw material for making food and beverage packaging.

Cleanaway will provide available feedstock through its collection and sorting network. Pact will provide technical and packaging expertise and Asahi Beverages and Pact will buy the majority of the recycled pellets from the facility to use in their packaging products.

Pictured: Cleanaway’s Eastern Creek Container Sorting Facility – Minister for the Environment The Hon Sussan Ley MP, speaks to Cleanaway CEO and Managing Director Vik Bansal.

The RMF is expected to generate $600 million of recycling investment, more than 10,000 jobs and divert over 10 million tonnes of waste from landfill through investment in new infrastructure to sort, process and remanufacture materials such as mixed plastic, paper, tyres and glass.

The fund is part of a national strategy to change the way Australia looks at waste, grow the economy, protect the environment and reach a national resource recovery target of 80% by 2030. It follows recent initiatives to boost local recycling through the 2019 National Waste Policy Action Plan, the government ban on exports of waste plastic, paper, glass and tyres, and this year’s first ever National Plastics Summit.

The planned waste and recycling transformation is expected to be further strengthened by the introduction of waste legislation to encourage companies to take greater responsibility for the waste they generate, from product design through to recycling, remanufacture or disposal.

Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans said, “Australian companies are turning plastics and household waste into furniture, decking, fencing and clothing, and we are developing new domestic markets for recycled materials by setting national standards for recycled content in roads and making recycled products a focus of procurement for infrastructure, defence estate management and general government purchasing.”

“Companies are already moving with The Pact Group announcing a $500 million investment in facilities, research and technology, Coca Cola Amatil committing to new recycling targets, and Pact, Cleanaway and Asahi Beverages establishing a $30 million recycling facility in Albury.”

Earlier in the year, Cleanaway Daniels completed the onshoring of our reusable sharps containers manufacturing. The onshoring was made possible in large part due to the acquisition of ASP Healthcare which provided Cleanaway with an in-house capability to pelletise and manufacture sharps collectors while increasing the use of recycled material in our operations.

Learn more about Cleanaway’s investment in Australia’s resource recovery infrastructure through our Footprint 2025 strategy.