The Australian Packaging Covenant Organisation (APCO) has unveiled its 2030 Strategic Plan which aims to provide economic incentives for material circularity, establish mechanisms to achieve national packaging targets and enhance the social license for brands using packaging. For the first time, a new fee model will create financial incentives for packaging design and direct the targeted expenditure of Covenant funds within the system.
The innovative membership fee model will support increased recycling activities and foster a sustainable packaging future. This will incentivise those brand owners that eliminate and reduce packaging, adopt reuse models and transition to materials and formats that are easier to recycle. Funds raised through the new fee model will be invested in the downstream system to overcome economic barriers hindering progress towards national packaging targets.
Highlights of the plan include:
- Increased recycling: direct support for high-quality collection, recycling and packaging stewardship activities that, in addition to business-as-usual, will enable the achievement of recycling targets and the production of high-quality Australian recycled content.
- New membership fee model: following modelling and targeted consultation, APCO member fees will be calculated using eco-modulation (ecological modulation). This will be based on each member’s packaging profile and incentivises the design of packaging for reduction, reuse, and recovery. The aim is for these to be in place in the financial year 2026-27.
- New indicators: The goals of the Covenant will be tracked using new indicators in addition to the NPTs, including the reduction of materials sent to landfill. By 2030, this reduction target is set at 1 million tonnes.
- Social license: the plan ensures that brand owners have a supportive system that meets community expectations on packaging design and disposal.
Access the full 2030 Strategic Plan here.
