Production stewardship Scheme
The circular economy aims to reduce the use of virgin materials by encouraging the use of recycled and repurposed materials that can continue to circulate in the economy. The circular economy maximises the use and value of resources along with major economic, social and environmental benefits for all of those in the supply chain. The circular economy contributes to innovation, growth and job creation, while reducing industry’s impact on the environment and finite resources.
Manufacturers and retailers may be interested to learn about the new product stewardship scheme established under the Plastic Reduction and Circular Economy Act 2021 (Act) which commenced in late 2021. Under the Act, “regulated products” must adhere to certain requirements and targets that will help reduce waste and encourage a more circular economy approach in the NSW economy.
“Regulated products” are certain products which will be prescribed by the regulations. While the regulations are yet to be released, “regulated products” could include such products as PET water bottles or polypropylene garden pots. The regulations are expected to be placed on public exhibition in late 2022 – WATCH THIS SPACE!
The regulations may prescribe product stewardship requirements (PSR) on a broad range of possible matters, including (among other things):
- use of recycled materials and the design and longevity of a product;
- re-use or recovery of a product and its impact on waste management; and
- reduction of litter or unlawful waste disposal.
Under the Act it is a serious offence for a “brand owner” of a regulated product to not comply with a specific PSR or target. The maximum penalty is $440,000.00 for a corporation and $110,000.00 for an individual.
The definition of “brand owner” is relatively wide under the Act, and includes:
- the owner of the product name (including trade mark, brand name or trade name) under which the product is supplied in NSW;
- a person who is a licensee of a product name
- a person who is a franchisee under a business arrangement that allows the person to supply the product in NSW; and
- a person who first supplies the product in Australia.
Requirements for “brand owners” of “regulated products”
The Act introduces requirements such as record keeping and annual reporting to the EPA for “regulated products”. Non-compliances can result in similar fines and penalties.
The regulations will also provide further information on the requirements to prepare an “action plan” for a “regulated product” which should:
- set out how the brand owner intends to comply with the product stewardship requirements and targets, and the related requirements; and/or
- includes indirect actions intended to offset adverse environmental impacts in connection with the regulated product.
If the EPA decides to approve an action plan, financial assurances that the brand owner will comply with the action plan can be imposed (i.e. in the form of a bank guarantee or a bond).
Hunt & Hunt is following the roll out of the product stewardship schemes and are available to provide assistance with understanding and complying with the Act and the eventual regulations.
Further details will be made available once the regulations are exhibited and commence.
Hunt & Hunt is available to assist with navigating the new legislation and any potential compliance concerns.
Article prepared by: Jessica Baldwin, Senior Associate & Adam Kennedy-Hunt, Lawyer
