WHAT’s NEXT 15 TH OCTOBER DAVID CARTER PRESIDENT PACKAGING COUNCIL OF NEW ZEALAND ACCORD? AFTER THE PACKAGING

2 Packaging Accord 2004 innovation : : coordination : : cooperation : : innovation : : coordination : : cooperation : :innovation : : coordination : : cooperation : :innovation : : coordination : : co: Packaging Accord

3 Packaging Accord year agreement between industry, local and central government and recycling operators signed in 2004 Set targets for recycling innovation : : coordination : : cooperation : : innovation : : coordination : : cooperation : :innovation : : coordination : : cooperation : :innovation : : coordination : : co:

4 Packaging Accord 2004 innovation : : coordination : : cooperation : : innovation : : coordination : : cooperation : :innovation : : coordination : : cooperation : :innovation : : coordination : : co: Achieved or exceeded all targets – despite impact of the global recession on commodity prices Achieved 22% plastic bag reduction Greater recovery of steel, aluminum and plastics through new collection and processing facilities Adapted to difficult trading conditions to maintain markets for recovered materials YEAR 5 Report Card

5 Preparing for life after the Accord

6 Consultation process while Waste Minimisation Act regulations being established. Development of scope and KPI’s for Packaging Product Stewardship Scheme within the Waste Act to meet: Section 14: Measurable waste minimisation Section 15: Reduction in environmental harm Preparing for life after the Accord

7 So what does this mean?

8 Scope limited to what can be directly attributed to and is funded by the scheme. This means: Can report on mass balance data but as a service not as a KPI. Because our membership does not include all the funders of collection (Local Government) the scheme cannot encompass whole life cycle of packaging materials i.e. the scheme cannot directly replace Accord. So what does this mean?

9 In summary

10 Old model Accord does not fit Waste Act There is confusion on the roles of member companies, sector groups and PAC.NZ in a single scheme.

Recommendation

Rather than a single scheme, split the roles of companies, sectors and coordinating function. Packaging Product Stewardship Scheme Front End of Packaging life cycle Design Procurement Reduction Material Specific Product Stewardship Schemes Specific to material types KPI’s Recovery Re-use Umbrella Coordinating industry, sectors and stakeholders activities and opportunities

13 Umbrella Plan Packaging PS scheme  Design and specification Material specific scheme  Glass  Paper  Plastics  Cans SECTORPAC NZ UMBRELLA PLAN

14 Comparative Scope

15 SECTOR SCHEME Limited to direct members of Association Varies in complexity according to material type and resource requirements Members commit to: Measurable waste minimisation e.g. developing markets for recovered materials; post industrial recycling Produce recycling data UMBRELLA SCHEME  Collates and reports annual recycling data  Raises and assigns funds for agreed programmes which have measurable effect on waste minimisation and deliver an ongoing reduction in environmental harm.

16 PACKAGING PRODUCT STEWARDSHIP SCHEME Limited to direct members of PAC NZ Members commit to:  packaging specification and design which meets the scheme’s environmental Code of Practice (being developed)  Measurable waste minimisation via reducing post industrial packaging waste to landfill. SECTOR SCHEME Limited to direct members of Association Varies in complexity according to material type and resource requirements Members commit to: Measurable waste minimisation e.g. developing markets for recovered materials; post industrial recycling Produce recycling data CO-ORDINATION UMBRELLA  Alignment with Best Practice and Trans Tasman Targets and KPI’s  Collates and reports annual recycling data  Raises and assigns funds for agreed programmes which have measurable effect on waste minimisation and deliver an ongoing reduction in environmental harm.

17 Comparative Membership

18 PPSS Direct membership All companies welcome but focus  Top 10 producers  Top 10 brands  Top 10 importers  Top 10 retailers  All direct members Waste Act (14d) = “Classes of People” UMBRELLA SCHEME Schemes from  Cans  Glass  Paper  Plastics  PPSS etc

KPI”S Snapshot

20 Packaging PS Scheme KPI’s

21 Design and Procurement  % Compliance with new Code of Practice  % Compliance with new procurement criteria  % “buy recycled” policies  % compliance with approved recycling labeling Measurable Waste minimisation  Kilogram of packaging consumed per capita  Post industrial recycling % increase year on year Energy and Water Use  % Companies formal Reduction Plan  Other Metrics to be developed Education  Build members knowledge

22 Sector Schemes vary by material

23 Develop markets for specific materials  Tonnes by packaging type recycled due to scheme funds or projects  Post industrial recycling % increase year on year Research into:  alternative disposals e.g. Waste to energy  Alternative (& higher value) uses for recovered materials Material based Eco requirements e.g.  Forestry Stewardship Council / PEFC certification  Degradable Plastics guidelines  Material specific code of practice Service  Material specific mass balance data

24 Umbrella Activities

25 Measurable Waste Minimisation  Kilograms by packaging type collected via public place recycling due to scheme  Markets developed for composite materials Implement educational and consumer awareness programme  $ spend  market research data Reduce environmental harm e.g.  Report recyclability of packaging in NZ market  Report CO2 saving per tonne diverted from waste Service  Report packaging recycled as % of consumption

26 Waste Minimisation Develop markets for materials Research into alternative recycling and disposal options Design & Procurement Guidelines for degradable plastics FSC/PEFC guidelines Mass Balance Post consumer mass balance data Collate material data Sector activities delivering other PS outcomes – Sector scheme Programmes falling outside an individual scheme Public Place recycling Consumer Education & Awareness Develop markets for recovered materials Report collective Mass Balance data - Scope too broad to fit under the single scheme - Targeted funding required - Company’s decision to be involved is influenced Above model is aligned with the eight KPIs of the Mark III Australian Packaging Covenant by where their products are consumed Activities falling inside the PAC.NZ PS scheme Design & Procurement Design CoP & guidelines Energy & water use Procurement policies Recycling ‘Buy recycled’ policies Labelling Mass Balance Post industrial

27 Governance

28 PPSS Direct management of Packaging Council scheme  Scheme manager  Executive Board Umbrella Plan PAC.NZ to “offer” secretariat / admin function Governance to be from elected representatives of schemes Advisory Board Note : similar to Accord model Sector Schemes  Scheme manager  Elected Executive Board

29 Umbrella Plan

30 Current Status

31 More consultation  Packaging Council members  Sector Associations  All of you! Packaging Council is finalizing its scheme for submission Sectors working on their own schemes  Glass already submitted scheme for accreditation  Paper developing scheme which is “accreditable”  Plastics – work in progress Seek agreement on scope, objectives and governance for Umbrella Plan

32 Consultation process with all stakeholders Continue Development of scope and KPI’s for Packaging Product Stewardship Scheme Understand and build on the value propositions Continue working with MFE to align and produce a leading edge coordinated Plan Where to from here