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Tag Archives: Investment

Australian clothing reuse export accreditation scheme

Equilibrium has been engaged by Charitable Recycling Australia to explore options for a credible, realistic and transparent process for an Australian clothing reuse export accreditation scheme. Such a scheme is intended to outline standards to promote the significant environmental, economic and social benefits of this important market. The scheme will aim to promote a circular economy, reinforcing repair and reuse of garments to maximize their life cycle before recycling or downcycling of materials is considered.

Feedback and engagement sessions are being run by Equilibrium with Charitable Recycling Australia members, local and state governments and key industry stakeholders. The focus of the program and options will primarily cover:

    >Regulatory compliance management and performance
    >Systems and reporting (including environment, safety and quality)
    >Collection and transport of materials
    >Sorting, dismantling and storage of materials
    >Downstream sale and distribution of recyclable materials
    >Management of supply chain relationships
    >Downstream vendor engagement process, documentation and reporting

The initial program is likely to be a foundation platform to support Charitable Recycling Australia in engaging with collections and export supply chains, leading to an integrated solution to promote a circular economy.

Packaging target progress patchy

The Australian Packaging Covenant Organisation (APCO) Collective Impact Report is a presentation and analysis of the current progress towards APCO’s 2025 packaging targets.

Although the report is written using optimistic and positive language, it is reporting significant shortcomings in performance towards APCO’s 2025 targets.

Two of the three key APCO 2025 targets are going in the wrong direction and the “problem” of packaging is, by APCO’s measures, getting worse.

It is notable that the report puts forward actions to address the current gaps.

Thirty new actions have been identified. While inherently good, the 30 new actions beg some questions.

Firstly, there is no explanation in the report on the evidence supporting the actions, so are all 30 actions a priority and how will they be implemented?

Secondly, the 30 new actions are on top of APCO’s business as usual, so is APCO resourced to adequately and effectively fulfill and manage these additional actions?

The report ultimately shows an underperformance so far towards the 2025 targets. In response the report identifies gaps and interventions that can be taken. The issue then comes in the complexity of APCO simultaneously coordinating and completing its current activities, as well as fulfilling the 30 identified actions in the report, in the three years left until the target date.

In terms of the Collection Action Framework, it could do with revamping to ensure that it is still applicable and being utilised effectively.

The report used the Framework as a performance lens to evaluate progress against the targets, but it could really do with an evaluation to ensure that all parties are continuing to fulfill their obligations and requirements under the Australian Packaging Covenant more broadly.

 

Vote #1 Environment, Transport

​Transport emissions are increasing in Australia and produce almost 20% of Australia’s total greenhouse gas (GHG) emissions, 60% of that  is from cars alone. Consequently, rapid growth of alternatives including electric vehicles (EV) is an environmental policy area of interest this election. As fuel prices and momentum on climate change rise, pressure is building for governments to provide incentives and policies to ease the switch from traditional fuel engines to cleaner vehicles.

Current policy proposals from each party offer different strategies and pathways / offer different avenues for such a transition.

The current Coalition Government announced $250 million to be invested in electric vehicles,  mainly to support EV charging infrastructure. Building infrastructure alone delivers no tax or other financial support for Australians to make the switch.In July 2021 the government also invested $260 million to increase its diesel reserves, notably more than the investment in EV.

Labor  has announced plans to introduce an Electric Car Discount to come in effect in July 2022. A major component of the discount is to exempt many electric cars from import tariffs (5% tax on some imported EV cars) and fringe benefits (a 47% tax on EV that are provided through work for private use). These exemptions will only be for cars below the luxury car threshold ($77,565, as of 2021), aiming to encourage car manufacturers to supply more affordable EV models to Australia. These incentives will cost the government around $200 million over three years, it’s unclear what percentage of this will go to infrastructure or to discounts.

The Greens launched a “Spark the EV Revolution” campaign, a plan to institute a range of incentives and subsidies to make electric vehicles affordable to everyone. The Greens plan to remove stamp and registration duty on all new EVs, remove import tariffs and waive registration fees for the first three years of ownership. To pay for these purchase incentives, the party plans to implement a 17% luxury fossil fuel car tax on the value of all fossil fuel light vehicles over $65K for the next four  years. They have also pledged to spend $151 million on fast charging infrastructure.

Leaders in EV technology have started to announce phase out dates for new sales of fossil fuel cars, including Norway (2025), The Netherlands (2030), India (2030) and the UK (2040). The Netherlands has had the most take up to date, with EV currently making up more than one in four vehicles on the road. A stronger commitment like this from Australia would see manufacturers prioritizing the delivery of newer, cheaper models to Australian markets. Accessibility is a key element, otherwise EV technology will remain a luxury commodity and represent inequality rather than the way to our renewable future.

2050 Modelling Shifts Net Zero Leadership to Industry

The Australian Government commitment to net zero emissions by 2050 could well be the embodiment of former Indian Mahatma Ghandi’s famous quote: “There go my people, I must hurry to catch up with them for I am their leader”.

The market has spoken. Business and the community is already moving ahead of Government on greenhouse emissions. Equilibrium has been fortunate to see this first hand as for a number of years it has worked with progressive companies on reducing emissions – and this activity has accelerated over the last 24 months independent of Government.

The Australian Government has now released “Australia’s Long Term Emissions Reduction Plan”. The plan provides a summary of the modelling and analysis which underpins the emissions target of net zero by 2050.

The modelling focuses on industry and businesses taking a voluntary approach to achieve net zero by 2050, without outlining constraints or incentives. This shift to net zero is to be pushed by “investor expectations” and “consumer preferences”. Fortunately, Australian businesses are well advanced in assessing their carbon outputs and are already working towards contributing to the target.

For example, Equilibrium was engaged by a major food manufacture in 2019-2020 to identify their carbon outputs and a carbon reduction plan. The company is now well advanced on a carbon management program that is aligned to its overall business objectives.

The process involved identifying scope 1 emissions (direct emissions eg. production, manufacturing and transport emissions), scope 2 (indirect emissions, emissions that may be generated at another facility) and scope 3 emissions (indirect emissions, employee travel to work/ transport and disposal of waste). The company set a target to achieve net zero emissions in operations and net-zero climate impact across the value chain by 2040, as well as 2025 interim goals to reduce energy, water and waste.

Equilibrium assists businesses with a wide range of services from carbon accounting to Climate Active accreditation. Please get in touch to develop realistic and measurable approaches to reduce your carbon outputs.

Climate Active

Climate Active certification provides businesses and organisations with the opportunity to demonstrate their commitment to managing their environmental impacts and committing to sustainable outcomes. Climate Active is the Australian Government backed program that enables business to measure, manage and offset carbon emissions from their operations or products and services. Organisations can also apply the certification to events, buildings and precincts that demonstrates their commitment to driving voluntary climate action in the growing face of pressures from customers and investors.

The Climate Active certification is awarded to organisations and businesses that have credibly reached state of carbon neutrality/ net zero emissions. The certification and verification process as well as public reporting requirements ensures that like for like businesses can be compared with respect to assessing, reducing and offsetting carbon emissions. 

The emergence of voluntary schemes such as Climate Active are driven by “social license” and responsible business practice. The scheme presents the opportunity to achieve greater staff engagement and demonstrate to customers you have in place a robust climate strategy commitment. The scheme aims to incentivise voluntary action, with the certification assisting the greater community by making it easier to identify brands, businesses and organisations that are committing to making a real difference.

ARENA launch $43 million Industrial Energy Transformation Studies Program

The Australian Renewable Energy Agency announced a $43 million grant program on behalf of the federal government to assist in identifying methods to cut industrial energy costs and emissions. The first round of the Industrial Energy Transformation Studies Program will offer $25 million to assist research and the development of business case projects for organisations in the mining, agriculture, manufacturing sectors, water supply, gas supply, waste services and data centres. Applicants can apply under one of two rounds: 

>Round 1A – Feasibility Studies (Up to $10 million available). Grants can be between $100,000 and $500,00 for up to 75% of eligible project costs
>Round 1B –
Engineering Studies (up to $15 million available). Grants can be between $250,000 and $5 million for up to 50% of eligible project costs.

The program aims to fund studies that deliver transformational improvements in de-carbonisation technology and energy efficiency practices for industry. Eligible projects must also demonstrate high replicability potential across similar industry settings.

Applications for the initial round of funding will be open on the 6th of July.

ARENA will be hosting separate information sessions for Round 1A and Round 1B in the week commencing 12 July, further information regarding these information sessions will be published on the Industrial Energy Transformation Studies Program website in the coming weeks.

Considerations for the impacts on SMEs as major corporates ‘race to zero’

Numerous corporations have joined the “race to net zero” emissions, announcing targets and policies to reduce their carbon outputs. The impacts these declarations will have on small to medium sized enterprises (SME) within major corporates’ supply chains should be considered.

For example, Unilever is a leader in producing fast moving consumer goods (FMCG) and their announced climate policy and targets in their Climate Transition Action Plan. The plan was put to shareholder vote earlier this month with the majority of shareholders voting in support of the climate action strategy. The company’s voluntary targets, signify a movement that responsible businesses cannot and should not wait for regulation. Corporates opting for voluntary annual emission reports and in this case, an advisory shareholder vote, signify an increased level of transparency and accountability between investors, consumers and businesses. 

However, the impacts of these policies on the supply chain and wider network need to be considered.  

>Where does the cost lie? The plan discusses the intent to cost neutrally reduce the emissions from raw material suppliers. The cost of reducing these emissions will be placed onto the suppliers, potentially placing the burden on the supply chains of SME’s to shoulder.
>What support for SMEs will be provided? The introduction of carbon data invoices is an example of an area where smaller companies will need assistance. Although it may sound like a simple tweak to the system, it may be complex to set up and deliver and potentially not cost neutral.
>How will the new supplier reporting frameworks chosen by major multinationals start to shape and influence the uptake of different reporting methodologies? As there are an overwhelming variety of these methodologies in use (TFCD, Science based targets, GRI, CDP, as well as national government systems), there is much debate around how to select one global standard to use. Unilever in this case have chosen Science Based Targets, which may have an influence on the uptake of that particular framework at a global scale. 

Corporates are setting expectations on acceptable reporting methodologies for their suppliers. This has the potential to be a positive environmental step, as data will be influential in setting a global consensus for mass scale climate reporting methods. When large corporations dictate that science based targets are the new reporting frameworks they want from suppliers, it may be hard to envision how this reporting framework won’t become a new norm for SMEs in Australia and elsewhere.

Written by Marita Doak and Donald Fraser

Placing an emphasis on supplier sustainability

Organisations in Australia are demanding more environmental reporting, driving suppliers to update and make mandatory environmental commitments and changes. This is a growing trend in the agricultural industry and supply chain in particular. Large companies such as Coles and Woolworths are seeking additional control and oversight, requiring their suppliers to help them meet their environmental targets. 

Last week the Coles group announced a “together to zero” campaign, outlining a collaborative scheme with consumers and its supply chain to meet their emissions targets. The group announced plans to be powered entirely by renewable energy by 2025 and to cut operational emissions by 75% below FY20 levels by 2030. 

Equilibrium is working with a number of suppliers in the agriculture and food manufacturing sectors to develop and implement sustainability programs, including Environmental Management Systems (EMS)

An EMS aims to implement a plan and system of environmental actions and targets which align with the company’s environmental policy and business objectives and extend all the way to a ground level approach. An EMS is a journey of continuous improvement (plan > do > check > act) and assists organisations to manage their environmental impacts through; 

> Achieving and maintaining compliance with relevant environmental laws, standards and the company’s environmental commitment
>Establishing systematic risk management processes to identify and rectify environmental risks;
>Establish a required level or environmental performance within the groups corporate environment to prevent the occurrence of events that are likely to significantly impact the environment
>Enabling visibility and periodic evaluation of environmental targets and performance metrics for decision making

The movement towards corporate responsibility, the ambition of businesses to meet their environmental objectives and better business outcomes are increasingly seen as mutually inclusive.

Recycling Modernisation Fund Transforming the Waste Industry

The Morrison Government will commit $190 million to a new Recycling Modernisation Fund (RMF) that will generate $600 million of recycling investment and drive a billion-dollar transformation of Australia’s waste and recycling capacity.

Announced today by The Hon Sussan Ley MP, Minister for the Environment, and The Hon Trevor Evans MP, Assistant Minister for Waste Reduction and Environmental Management, the Recycling Modernisation Fund will help create more than 10,000 jobs with over 10 million tonnes of waste diverted from landfill.

The RMF will support innovative investment in new infrastructure to sort, process and remanufacture materials such as mixed plastic, paper, tyres and glass, with Commonwealth funding contingent on co-funding from industry, states and territories.

Australia’s waste and recycling transformation is being further strengthened by an additional:

> $35 million to implement Commonwealth commitments under Australia’s National Waste Policy Action Plan, which sets the direction for waste management and recycling in Australia until 2030.

> $24.6 million on Commonwealth commitments to improve our national waste data so it can measure recycling outcomes and track progress against our national waste targets.

> The introduction of new Commonwealth waste legislation to formally enact the Government’s waste export ban and encourage companies to take greater responsibility for the waste they generate, from product design through to recycling, remanufacture or disposal (Product Stewardship).

The moves are part of a national strategy to change the way Australia looks at waste, grow our economy, protect our environment and reach a national resource recovery target of 80% by 2030.

“As we cease shipping our waste overseas, the waste and recycling transformation will reshape our domestic waste industry, driving job creation and putting valuable materials back into the economy,” Minister for the Environment Sussan Ley said today.

“At the same time, we need to stop throwing away tonnes of electronic waste and batteries each year and develop new ways to recycle valuable resources.

“As we pursue National Waste Policy Action Plan targets, we need manufacturers and industry to take a genuine stewardship role that helps create a sustainable circular economy.

Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans, said that the unparalleled expansion of Australia’s recycling capacity followed close consultation with industry.

“Our targeted investment will grow Australia’s circular economy, create more jobs and build a stronger onshore recycling industry,” Assistant Minister Evans said.

“Our targeted investment will grow Australia’s circular economy, create more jobs and build a stronger onshore recycling industry.

The full media release can be viewed here.

If you are interested in the announcements or need assistance in assessing the opportunhities, please contact the Equilibrium team on BH (03) 9372 5356.

 

Government Support for the Waste Industry 

Australia’s waste industry is undergoing an important transition, requiring significant investment in equipment and infrastructure, including upgrades to existing assets, as well as the installation of new assets.

Josie French provides an overview of Government funding at both federal and state level to support the waste industry transition to a circular economy.

To address a range of issues Australian governments have committed to numerous ambitious targets such as reducing total waste generated by 10% per person by 2030 (National Waste Policy Action Plan, 2019).

Further, the waste export plan aims to ban the exports of plastic, paper and cardboard, glass and tyres by 2024.

Achieving these targets and increasing capability and capacity is a goal of the funding programs, such as the Australian Recycling Investment Fund supported by Clean Energy Finance Corporation (CEFC) which offers $100 million to support manufacturing of lower emissions and energy-efficient recycled content products.

The States have also adopted waste management, resource recovery and circular economy strategies and targets to encourage and incentivise greater ambition and improved infrastructure and performance across all Australian states.

Multiple states have implemented a waste levy that provides the financial support for offering grants. For example, in New South Wales, the waste levy supports the $465.7 million available to waste and recycling improvements. Similarly, Queensland’s $100 million resource recovery industry development program supports the diversion of waste from landfill. Under the Investment Support Grants in Victoria, grants of up to $50,000 are available for activities that reduce packaging and other waste to landfill.

The following summary provides a snapshot of relevant programs administered by Federal and State Governments:

Australian Government: https://www.environment.gov.au/protection/waste-resource-recovery

Victoria: https://www.sustainability.vic.gov.au/Grants-and-funding

New South Wales: https://www.environment.nsw.gov.au/funding-and-support/nsw-environmental-trust/waste-grant-programs

Queensland: https://www.qld.gov.au/environment/pollution/management/waste/recovery/strategy

Western Australia: https://www.wasteauthority.wa.gov.au/

South Australia: https://www.greenindustries.sa.gov.au/funding

Northern Territory: https://nt.gov.au/community/community-grants-and-volunteers/community-grants/grants-directory

If you are interested in any of the above programs and looking for support with applying or navigating the guidelines, please contact the Equilibrium team on BH (03) 9372 5356.

This article was authored by Josie French.