Everything you wanted to know about the China Sword Policy but were - - PowerPoint PPT Presentation

Everything you wanted to know about the China Sword Policy but were too afraid to ask Engineers Australia – Sustainable Engineering Society Monday 26th November 2018

David Rako – DJR Environmental

• What is the China Sword Policy and how has it

impacted the Australian recycling export markets

• Who was asleep at the wheel?
• Response from Australian Recycling Industry
• Federal & Victorian State Government Response
• Short Term & Long Term Impacts
• Where to from here?

Overview of presentation

Kerbside Recycle Bins

• In July 2017 Chinese Government notified the World Tarde

Organisation that it intended to amend the import of 24 kinds

• f solid wastes
• These included plastics and unsorted paper waste
• Rationale was large amounts of dirty & hazardous materials

had been mixed with imported solid waste to be reused as raw materials

• This was having a negative impact on China’s environment &

human health

What is the China Sword Policy and impact

• n Australian recycling export markets

• These import restrictions have resulted in a significant reduction in the value
• f scrap plastic & paper/cardboard
• In addition the sale of scrap plastics & paper/cardboard to China has

dramatically reduced

• In January 2017 around 71% of Australian exports of scrap plastic and scrap

paper/cardboard were exported to China (98,000 tonnes of the 139,400 tonnes total), by January 2018 this had fallen to 34% of Australian exports (43,200 tonnes of the 128,200 tonnes total)of exports ceased

• This has resulted in a saturation of these recyclables onto international

markets and resulted in a significant fall in value of these recyclables

• All other clean recyclables still have a viable end markets; plastics,

cardboard, metals and paper; however there has been a correct to the price being paid from China

What is the China Sword Policy and how has it impacted the Australian recycling export markets

Source: China’s recycling ‘ban’ throws Australia into a very messy waste crisis 27/4/18

Recyclables Price Falls

Who was asleep at the wheel

• In Australia we were all asleep at the wheel as

writing on the wall from early 2011

• In 2011 China introduced the Green Fence

program, that tightened inspection efforts to reduce the amount of contaminated materials entering the country

• In 2013 Chinese Government adopted a policy of

Operation to ban all unwashed plastics

• On 18 July 2017 China announced to the World

Trade Organisation that it will no longer accept certain kinds of solid wastes from 31 December 2017

Response from Australian Recycling Industry

• Visy enforced its force majeure contract conditions
• Informed collection companies that due to the CHINA

CRISIS it would cease collecting all kerbside recyclables

• In the future when the end markets improved it would

have first option to restart the contracts

• Visy then informed collectors they could now take the

recyclables but would be charging a $60.00 (+GST)/tonne gate fee, many companies were delivering clean recyclables for free

• Other recycling companies including SKM Recycling and

Polytrade followed the Visy model

Impact on kerbside collection companies

Federal & State Government Response

• Victoria: $13M funding package to assist local

government to cover the $60/tonne charge till 30th June 2018, after which Council via rates increases need to cover the cost

• New South Wales: $47M funding package to local

government as rates are capped and Councils cannot increase rates for kerbside collection

• South Australia: $300,000 grant rescue package

reviewing a $7M funding package for local government

• Federal Government: launched new target 70% of

plastic bags recycled by 2025 and new recycling label launched

Government Responses Overseas

• Canada starting planning for this China ban from 2013

investing in new industries within Canada recycling recyclables into new end products

• North America has a robust recycling industry with

facilities coming on-line from between 2010-2015

• There has been ongoing debate that we cannot develop

in Australia that we cannot recycle at home as labour and costs too expensive

• Critical to have your end markets developed and locked –

in without this recycling business will fail

Short Term & Long Term Impacts

SHORT TERM:

• Small recycling collection companies will shut down due to

drop in prices being paid

• Increased stockpiles of recyclables causing fire risk
• Potential for some types of recyclables ending up in landfill

due to no end markets for plastics LONG TERM:

• New collection systems to reduce contamination
• Government support for the end products
• Increase in cost for collection of recyclables
• Development of Energy from Waste facilities

Where To Fro Here?

• New opportunity to develop and grow local

recycling industry

• Value add to recyclables here within Australia
• Generate new jobs and investments within Australia
• Need the Federal Government to lead the way with

State Government’s following lead

• This is a significant opportunity

Top 5 Contaminants in Recycling Bin

• 1. Soft plastics; shopping bags, cling wrap and packaging

and wrappers

• 2. Clothing cannot be processed at recycling centres, so

donate to a local charity instead i.e. Salvo’s

• 3. Keep items out of plastic bags. This one is easy: just bin it

– don’t bag it! All recycling items should be loose in the bin.

• 4. Leave green and food waste out of the recycling bin. If

you have a green bin, put all your grass clippings, pruning's and garden waste in there.

• 5. E-waste; electrical items, phones, cables, batteries and
• computers. E-waste recycling might be in place at your local

transfer station

Thank You David Rako DJR Environmental M: 0400 002 600 E: david@djrenvironmental.com