Home / Environment / Industry-Led Soft Plastics Recycling Scheme Faces Criticism Amid Concerns of Cost Shifting
Industry-Led Soft Plastics Recycling Scheme Faces Criticism Amid Concerns of Cost Shifting
4 Oct
Summary
- Industry consortium to fund soft plastics recycling, but critics say costs will be passed to consumers
- Scheme will only recycle a small fraction of Australia's soft plastic waste, none initially for food packaging
- Voluntary nature of the program raises concerns about greenwashing and lack of accountability
As of October 2025, a consortium of major manufacturers and supermarkets is preparing to launch a new industry-led soft plastics recycling program to replace the collapsed REDCycle scheme. The Soft Plastics Stewardship Australia (SPSA) aims to fund the collection, sorting, and processing of soft plastics, but critics argue the plan will simply pass the costs on to consumers rather than drive meaningful change.
The SPSA, which includes Woolworths, Coles, Aldi, Nestlé, Mars, and other brands, has applied to the Australian Competition and Consumer Commission (ACCC) for approval of the voluntary scheme. If approved, the SPSA plans to collect levies from participating manufacturers and retailers based on the amount of soft plastics they produce or sell, with the goal of making the costs more equitable.
However, the scheme faces significant skepticism. While the SPSA claims the levies will only result in price increases of up to one cent per grocery item, environmental groups argue the voluntary nature of the program risks "greenwashing" if there are no mandatory reporting requirements. Additionally, the SPSA will only be able to recycle a small fraction of Australia's 538,000 tonnes of annual soft plastic waste, and none of the collected material will be turned back into new packaging, at least initially.
The SPSA acknowledges the need to ensure recyclers have end markets for the processed soft plastics, and plans to start slowly and build up capacity over time. But critics argue the scheme focuses too much on the "second third" of the soft plastics lifecycle, after the material has been created and purchased, rather than addressing the root causes of overproduction and waste.
