Circular economy | Global Australia

Go to:

Australia is serious about reducing our waste and putting valuable recycled materials to work.

To do this we are:

working to meet or beat 80% recovery rate of our waste by 2030
regulating the export of glass, plastic, tyres, paper and cardboard
investing more than A$1 billion to turbocharge our waste and recycling industries
supporting industry-led recycling schemes through the A$26 million National Product Stewardship Investment Fund
halving our food waste by 2030.

$70 billion

In grants and incentives

Australia offers nearly A$70 billion in grants, incentives and funding pools to Australian-based companies across priority sectors.

Source: Accenture

Australia is committed to creating enough onshore capacity to reprocess waste plastic, paper, glass and tyres, which were previously exported, keeping these value-added materials in our economy. The Recycling and Clean Energy National Manufacturing Priority road map identifies growth opportunities in:

recyclable products and packaging
cleaner feedstocks for remanufacturing (and enabling tech)
products from recycled feedstocks (such as plastic, organic waste or e-waste)
recycling clean energy components (including PV panels, wind turbines and batteries).

A future circular economy in just three areas – food, transport and the built environment – could create an economic benefit to Australia of A$23 billion in GDP by 2025. (Source: KPMG)

Australia’s waste sector is undergoing a seismic shift. We’re improving resource recovery, increasing the use of recycled material and better managing waste material flows and transitioning to renewable energy sources. There’s strong support for pioneer entrepreneurs who are designing for the future and disrupting the way we extract, manufacture, reuse and recycle resources and products.

Reducing our footprint by making a greater impact

To drive the evolution to a circular economy, Australia is backing schemes to modernise and transform how we manage and treat waste under the National Waste Policy Action Plan.

This is supported by the $A250 million Recycling Modernisation Fund, which is on track to generate over A$1 billion of investment in recycling infrastructure and drive a billion-dollar transformation of Australia’s resource recovery industry. The RMF will modernise Australia’s recycling infrastructure increasing our circular economy capabilities by finding innovative solutions for onshore recycling and supporting remanufacturing of products with recycled content. This will ensure we can achieve commitments under the National Plastics Plan and support Australians to buy locally recycled products.

Innovative technologies

Australia’s transformation into a circular economy demands new technologies and expertise. To grow their businesses, local firms are looking for co-funding and collaborations. That means a wealth of opportunities for companies that can offer innovative waste management solutions, information systems and products.

Australian companies are transforming commercial and household waste into furniture, decking, fencing, road and rail infrastructure and much more.

The Australian Government is increasing its purchase of products with recycled content to generate demand for recycled materials.

View transcript (1.55 KB)

Incentives, grants and support

The A$15 billion National Reconstruction Fund will drive investment in key sectors focusing on value adding and capability development to leverage Australia’s natural and competitive strengths, supporting new and emerging industries including recycling and clean energy. Keep up to date with new funding measures and incentives as they are announced through the Department of Industry website.
The A$250 million Recycling Modernisation Fund is transforming Australia’s waste and recycling industries to help them meet demand to process waste that was previously exported.
The A$26 million National Product Stewardship Investment Fund will increase the number of industry-led product stewardship schemes in Australia and increase the recycling rates of existing schemes.
The A$100 million Australian Recycling Investment Fund is supporting large-scale projects that use clean energy technologies in recycling waste plastics, paper, glass and tyres.
The Australian Tax Office’s New Investment Engagement Service gives tailored guidance on tax issues to businesses planning significant new investments in Australia.

Case studies

A CSIRO spin-out, ASPIRE is a digital tool that empowers businesses to exchange waste as a resource
Bingo Industries has embedded circularity as a core principle of its business, and is leading the charge in recycling construction waste.
The Australian Circular Economy Hub demonstrates the diversity of circular economy activity in its collection of case studies.
The Pact Group is investing A$500 million in new facilities, research and technology
Pact, Cleanaway and Asahi Beverages are building Australia’s largest recycling plant in Albury, NSW, which will recycle around a billion PET plastic bottles each year.

Factsheet

It is a real privilege to live, work and have a family in Australia, and for me, my passion for science and technology continues to grow as we strive to help solve some of our global and local challenges. It is also vitally important to continue to encourage people to join us in solving for these challenges.

It is crucial for science, industry and the community to collaboratively work together on societal solutions, such as the microrecycling science and new technologies I and my team at the Sustainable Materials Research and Technology Centre at the University of New South Wales (SMaRT@UNSW) are pioneering. Science, engineering and many technical skills are going play such a vital role in developing solutions.

Without these skills, we will not be able to enjoy some of the things we now take for granted, especially in these times of COVID-19. Recovering critical and valuable materials from waste must play a role in helping to electrify the world as we move towards renewable energies, reducing our carbon footprint, and being truly more sustainable. Collaborating with industry, researchers and the community to tackle these challenges will deliver better social, environmental and economic outcomes.

Professor Veena Sahajwalla, Director

UNSW SMaRT Centre (Sustainable Materials Research & Technology)

Australia’s circular economy ecosystems

South Australia

Tasmania

Victoria

Success stories

The 204MW Edenvale Solar Park in Queensland

Sojitz directs investment into Australian healthcare, renewables, green hydrogen and recycling

Sojitz is driven by solutions that benefit both the company and society.

In this case study, TATS KATO, Head of Project Origination at Sojitz Australia, details the Japanese company’s new ambitions in healthcare, renewables, green hydrogen and recycling.

Providing solutions to social problems

Sojitz is motivated by a simple motto: new way, new value.

The Japanese corporation comprises 400 subsidiaries and affiliates around the world. It engages in a range of businesses globally, including manufacturing, selling, importing and exporting products and materials.

Sojitz pursues growth by providing solutions to social problems. Solutions-based initiatives in investment and trade, manufacturing, service provision and project management have become areas of strength for the global company.

Strength in the circular economy & ESG investments

In Australia, Sojitz is pivoting its investment strategy from legacy sectors to the circular economy.

Sojitz sees the shift as an exciting growth opportunity that can be applied to future-focused businesses in a wide range of fields.

TATS KATO, Head of Project Origination at Sojitz Australia, outlines 4 areas of interest:

Healthcare
Renewables
Green hydrogen
Recycling

A passion for healthcare

Several factors make Australia a strong contender for healthcare investment, according to TATS. These include:

robust economic and population growth
a well-established healthcare system
public–private partnership (PPP) regulations that are supportive of infrastructure development.

Sojitz is driven by these factors and a passion for healthcare. The company made a major investment in Victoria’s New Footscray Hospital (NFH) PPP Project in March 2021.

NFH will provide high-quality facilities to improve health outcomes. There will be capacity to treat an extra 15,000 people every year. It will also drastically reduce wait times across the emergency department, elective surgery and outpatient clinic services.

The hospital will be built using more than 90% local materials, services and equipment. The project will employ more than 2,000 people at peak construction.

Sojitz has also invested in Qualitas Medical Limited. This company expands primary care services to strengthen preventive medicine. This reduces expensive medical treatment costs in acute care.

The future is renewable

‘Global warming has emerged as an issue of major importance,’ says TATS. ‘This has accelerated the global trend towards carbon neutrality.

‘Under these circumstances, it is necessary to transition from the simple use and supply of energy to new ways of using and supplying green energy.’

Sojitz sees Australia as a high-growth market for renewables. Its vast land area and abundant sunshine are ideal for solar energy projects.

In June 2021, the company reached the financial close of the 204MW Edenvale Solar Park in Queensland. It is one of the largest solar projects by a Japanese company in Australia.

This project will create more than 400 jobs during its construction phase. Once operating, it will provide a stable supply of renewable energy, meaningfully contributing to Australia’s decarbonisation efforts.

Sojitz’s global target is to reduce its stakes in thermal coal projects more than half by 2025 and to zero by 2030. But TATS makes clear that during the transition period, coal will still play an important role.

‘Sojitz will keep our current coal business for stable supply to our end users,’ he says. ‘These will continue to contribute to regional communities through our operating mines in Queensland.’

A leading destination for green hydrogen projects

Australia offers a clear policy framework for green hydrogen initiatives, and relatively low hydrogen production costs compared with other developed nations.

TATS adds that federal and state-level grants and other forms of support for the hydrogen sector makes Australia an even more attractive investment option. In January 2022, the Australian Government announced the A$150 million Australian Clean Hydrogen Trade Program. The program supports Australian-based hydrogen supply chain projects that secure overseas public or private sector investment.

The first round of the Program will focus on the export of clean hydrogen to Japan under the Japan-Australia Partnership on Decarbonisation through Technology. Under the Partnership, announced in June 2021, the two countries will support initiatives that help drive the transition to net zero emissions.

Sojitz will work with Queensland’s CS Energy and Nippon Engineering Consultants on a pioneering green hydrogen project. The 3-year demonstration sees Sojitz transport Queensland-produced renewable hydrogen to the Republic of Palau.

Sojitz intends to roll out the initiative to other Pacific nations. It hopes to popularise hydrogen use in place of carbon-intensive diesel fuel use on islands.

Looking for recycling and waste recovery opportunities

Sojitz is actively looking for investment opportunities in the Australian recycling and energy recovery markets.

‘Recycling is a hot topic in Australia now,’ says TATS. ‘Our investments in this area will contribute to achieving several goals set by the Australian Government. These include enhancing the resource recovery rate and decreasing landfill.’

Sojitz Australia is also looking to contribute to circular economy growth areas.

‘Our new initiatives must add value to both Sojitz and society. We call it a “Value Creation Model”,’ says TATS. ‘Creating new “shared value” is in our company’s DNA.’