Recently I wrote a post on The Future of Reuse, but I never really addressed what is required, especially from government, in order for us to move at an accelerated pace from niche to ubiquity. I am genuinely convinced that Australia can virtually eliminate single use packaging from all commercial food and beverage outlets within two years from the legislative changes proposed below coming into effect. This would facilitate an industry structure that takes the best features of the highly successful Container Deposit Schemes (CDS) as inspiration, tailored to support the universal adoption of reuse.
According to research from the Minderoo Foundation, Australia is second only to Singapore in terms of global per capita generation of single use plastic waste. At the Circular Economy Summit held in Sydney in November, NSW Environment Minister Penny Sharpe and NSW EPA CEO Tony Chappel revealed that without new solutions for waste and recycling, Greater Sydney's landfill capacity could be exhausted within the next decade. I could go on and on with facts like this, but the bottom line is that change is needed, and the widespread implementation of a reuse based circular economy will be a large part of that change.
The food service sector has enthusiastically embraced the rise of single use items such as coffee cups, post-mix soft drink cups, plastic beer cups in a stadium and a whole range of single use take away food containers destined for landfill. The rise of home delivery services has dramatically increased our reliance on single use, whilst more and more food outlets are now even using single use packaging for dine in customers. Unchecked, this trend will only continue, whilst relying on forward thinking merchants or conscientious consumers to drive meaningful change in this area is fraught with problems. The New South Wales CDS didn't get to billions of single use drink containers returned each year for recycling just by relying on marketing campaigns and community goodwill - it took a combination of legislation to set up an industry structure and financial incentives in the form of deposits. A similar level of success in reuse will require a similar level of commitment from government.
In the text below where I talk about how to optimally structure reuse at scale, I borrow a term from the CDS called Network Operator. In a Victorian context this refers to Visy, Tomra Cleanaway and Return-It. As Network Operators each company is responsible for the network of return points in their designated region, including Reverse Vending Machines, over-the-counter drop offs and automated depots. They are each also responsible for ensuring the resources collected through the CDS are sent to appropriate destinations for recycling. In a reuse model, I'm using the term Network Operator to describe a company or consortia of companies that rents out packaging to F&B outlets, maintains a network of smart bins or other conveniently located collection points, has technology to pay out deposits when items are returned, and has trucks or vans on the road to move dirty containers from collection points, through their wash hub, and then back to F&B outlets that have signed up for their service.
In order to set the scene before detailing the Charopy proposal for how reuse at scale can be implemented, I'll outline some of the more general points that I believe anyone designing such a system should consider. In order to accelerate the elimination of single use packaging in commercial food service outlets, the following considerations will need to be taken into account, even if you disagree with the Charopy proposal that follows each point.
Choice for F&B outlets on whether or not to outsource their reuse obligations
A cafe or restaurant should be able to choose their own reusable packaging and choose to implement a model where their own customers come back to that store to return their packaging. This would cater to a cafe or restaurant that preferred this model over engaging with a larger commercial operator of collection and washing services.
Charopy proposal: Any single site F&B outlet that sells take away picked up by consumers at that outlet (not sold via a home delivery service), can choose to manage everything themselves if they choose, or outsource to a Network Operator. Any F&B outlet selling via a home delivery service would need to contract with a Network Operator given the inconvenience for consumers of having to return packing to the individual store otherwise.
No undue cost burden on small cafes and restaurants
The cost of implementing and running reuse should be broadly in line with the true lifecycle cost of serving in single use packaging destined for landfill today.
Charopy proposal: Competition between Network Operators and the option to bring reuse in-house will keep costs down for F&B outlets.
Defining in scope and out of scope packaging
In most of Australia, CDS containers are only those of between 150ml and 3 litre capacity. I assume this was set by NSW to accommodate Tomra machines as South Australia which pre dates the NSW scheme and has much less reliance on technology does include Yakult containers under 150ml. Choosing the widest range of realistic in scope dimensions of what packaging must be reusable would be required as part of a legislated reuse system.
Charopy proposal: All food and drink containers from 150 cubic centimetres to 2,000 cubic centimetres should be mandated for reuse. Small packaging like single use sauces should be exempt, partly due to the extra cost this would put on cafes and restaurants given the difficulty in making these reusable, plus the difficulty for technology given the need for QR Codes or RFID tags to be placed on each item. Larger items like pizza boxes would also be exempt given they are more likely to go into commingled recycling today and their shape makes them impractical for technology enabled collection points.
No commercial advantage to cafes and restaurants with lower return rates
In theory, a cafe could use very cheap packaging that was technically reusable, but offer it with little of no deposit knowing that much of it would not actually be returned for washing and reuse, thus being able to advertise a lower sticker price on items as opposed to competitors' products showing a higher sticker price with a more reasonable deposit that supported a genuine reuse system. For this reason, just as the CDS currently mandates a 10 cent deposit, a legislated fixed deposit amount on each item of packaging is far preferable to a system where each vendor can set their own deposit.
Charopy proposal: A minimum $2.00 deposit per item of packaging. If a meaningful deposit is not mandated then there is an ability for cafes to game the system and undermine both the confidence and effectiveness of this program. There may be scope to lower this deposit amount in a captive environment like a stadium or festival where price competition between vendors is not a factor, but any decision here would need to weigh up what negative impact this would have on return rates.
Convenience for consumers
A cafe may choose to manage the collection and washing of all of their take away packaging, but in case where they outsource this to a third party, and probably even in cases where they are selling via a third party home delivery service, consumers cannot be expected to travel out of their way just to get back their deposit. This is especially true given we are talking a single coffee cup at times and not a large collection of cans and bottles as is the typical case with the CDS. In Victoria the government mandated minimum coverage of one CDS collection point per 14,500 people, and a true reuse system almost certainly has to have significantly more collection points than a CDS.
Charopy proposal: To qualify as a Network Operator a minimum of one collection point per 5,000 people is recommended. Competition between Network Operators may see a much higher number being implemented, but at a minimum the reuse system should be around 3 times more convenient than the CDS in the state with the highest number of mandated collection points today.
Facilitating competition between players providing outsourced reuse services
Whilst the CDS today tends to work on exclusive geographic zones (North, East and West in Victoria, or all of NSW as a monopoly in that state), there is no reason why companies offering outsourced reuse services can't compete in overlapping geographies in order to drive down cost and increase service levels for F&B outlets and consumers.
Charopy recommendation: Monopolies are counterproductive for reuse, and any company meeting the requirements set by legislation should be able to easily certify as a Network Operator for a defined geography of their choosing. Fast food chains may choose to set themselves up as a Network Operator for their own packaging if they don't want to wash on site, or they may outsource to another Network Operator.
Fostering innovation within elements making up an outsourced reuse ecosystem
No country in the world has quite mastered reuse at scale to truly eliminate single use packaging across all commercial food service outlets, so if Australia is to be the leader here the system needs to allow small and large companies, both local and multi-national, to compete fairly and evenly in building out a model that will likely be followed by international markets in future.
Charopy Recommendation: Whilst a global standard for reuse QR codes exists from GS1 (and Charopy supports this today) the system must be set up in a flexible enough manner that so long as convenience for consumers and high levels of return are maintained (over 95% returns should be benchmark - this is higher than any Australian CDS today), then the technology and formats used should not be mandated and smaller local companies should be given equal standing with multi-nationals. Australia can be a world leader in reuse, and Australian technology could be exported globally once we have shown how a winning model operates.
From a Charopy perspective, our view is that whilst there are a number of well intentioned reuse trials underway in various parts of Australia today, relying on consumer pull alone is insufficient to get the levels of adoption we need to see in order to genuinely solve the problem of so much packaging ending up in landfill. Eventually government will need to play a more active role and this post is designed to help the people crafting such policies to think broadly about how the journey to a successful outcome can be accelerated.
The proposed reuse model presented above offers a clear path toward massively reducing single-use packaging and promoting circularity in the food service industry. By taking inspiration from the success of the CDS, we can create a system that benefits businesses, consumers, and the environment. For the model to work, collaboration between government, F&B outlets, and Network Operators is essential, as is a commitment to supporting circular economy principles through legislation, incentives, and consumer education. As we face the growing challenge of limited landfill capacity and increasing waste production, the importance of creating and implementing a successful reuse system at scale cannot be overstated.
Comments