Australia: How PCR Policies Are Shaping Regional Sustainability
by Verity Anipa at 13:19 in Circular Economy, Content, Emerging, Environmental, Packaging
As the global push for circularity gains momentum, post-consumer recycled (PCR) content policies are emerging as key levers for change, none more so than in Australia. With governments introducing increasingly ambitious targets for recycled content in packaging and other materials, Australia is positioning itself as a leader in driving sustainable production and consumption. These policies not only influence domestic manufacturers and importers but also send ripple effects across the region, setting a precedent for neighboring markets. In part 1 of this blog series, we explore how Australia's approach to PCR regulation is creating real-world impact and paving the way for broader regional alignment.
Australia's National Packaging Targets
Established in 2018, Australia's National Packaging Targets (NPTs) represent a joint initiative between government and industry to transition the country toward a circular packaging economy. Led by the Australian Packaging Covenant Organisation (APCO), one of the core goals is to achieve an average of 50% recycled content in all packaging by 2025.
While steady progress has been made, reaching 44% recycled content in 2022–23, the 2025 target is unlikely to be fully met. Progress varies by material: glass and paper are leading with over 50% recycled content, while plastics lag at just 8%. Nonetheless, industry and government efforts continue, and APCO is working on a revised timeline to sustain momentum and drive further gains.
Looking beyond 2025, APCO has introduced its 2030 Strategic Plan, setting out a new long-term framework to guide the packaging sector toward higher material circularity and stronger environmental outcomes.
APCO 2030 Strategic Plan
Unveiled on 19 August 2024, the APCO 2030 Strategic Plan places an emphasis on increasing the use of post-consumer recycled (PCR) content in packaging as a cornerstone of Australia's circular packaging transition. The plan introduces new economic incentives to boost material circularity, including a redesigned fee structure that rewards the use of PCR content and improved packaging design.
For the first time, a new eco-modulated fee model (consultation is now open) will financially reward packaging that uses more PCR content and contributes to national sustainability goals. This model will also direct target investment within the system to drive higher recovery and recycling outcomes.
Key initiatives under the plan include:
A new eco-modulated fee model to incentivize high-performing, low-impact packaging
Direct support for increasing the use of Australian-sourced PCR content
Tools to help businesses assess the viability of switching to recycled materials
Guidance on overcoming barriers, such as food safety compliance for recycled inputs
Initiatives to improve trust in recycled content claims through robust verification systems
While the plan relies on industry collaboration and voluntary action, it aligns with government efforts to explore regulatory options for accelerating the uptake of PCR content and broader sustainability reforms in packaging.
Reforming Packaging Regulation
In October 2024, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) released potential reform options to overhaul Australia's packaging regulations. The aim is to reduce packaging waste, cut pollution, and accelerate the shift to a circular economy. Across all three proposed options, the use of recycled content, particularly post-consumer recycled (PCR) materials, plays a key role:
Option 1: There are no mandatory PCR content requirements. The approach relies on voluntary industry action and guidance. APCO Covenant Signatories must continue reporting annually on their use of recycled materials, including PCR, under the Packaging Sustainability Framework. Starting in 2027, APCO's eco-modulated fees will offer financial incentives to encourage the uptake of PCR content in packaging.
Option 2: This option introduces mandatory minimum recycled content requirements—focused on PCR—under Commonwealth legislation. Companies would be legally required to meet specific targets.
Option 3: Builds on Option 2 by adding Extended Producer Responsibility (EPR) fee bonuses to reward businesses that exceed the minimum PCR content requirements.
Together, these reform options will bring a shift from voluntary frameworks to legally binding obligations, reflecting a clear move toward stronger national oversight and growing pressure on businesses to prioritise the integration of post-consumer recycled content into their packaging strategies.
Next steps
Australia's evolving PCR policies highlight the growing importance of recycled content in shaping a circular economy. From voluntary targets to potential regulatory reforms, the country is laying the groundwork for more sustainable packaging practices that could influence the broader region. As recycled content requirements become more structured and ambitious, businesses will need to adapt and innovate. The shift not only reduces environmental impact but also creates opportunities for leadership in sustainable packaging. Curious about how these changes may affect your packaging strategy? Get in touch with us today.
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