The future of sustainable high performance waste management

in South Australia

Developed by Local Government Association of South Australiaand Waste Management Association of Australia

(SA Branch)

2

On 20 December 2012, the South Australian Treasurer delivered a mid-year review of the 2012/13 South Australian budget. This budget review showed that Zero Waste SA would cease in its current form in June 2015. In lieu of continuing the operations of Zero Waste SA, a grant of $1 million would be made to an unspecified NGO, with no long term certainty. Further correspondence from the Minister for Environment and Conservation indicated that spending authority under the Zero Waste Act for funds from the Waste to Resources Fund would remain in place until June 2017 and that the Zero Waste Act would be reviewed in the lead up to June 2017.In contrast, State Governments in New South Wales and Victoria have recently committed to investing hundreds of millions of dollars collected through waste levies into programs to improve waste management and resource efficiency.South Australia is recognised nationally and internationally for its achievements and leadership in recycling and waste management.South Australians support a positive culture of recycling and resource efficiency through source separation and kerbside recycling, Container Deposit Scheme, e-waste recycling, compost manufacturing from food waste and green organics and recycling of Construction & Demolition (C&D) materials. The waste and recycling industry has potential for growth, improvement and investment to build on current annual activity that includes:• $763 million revenue;• 6,900 direct and indirect jobs;• 4.3 million tonnes of materials diverted from

landfill for recycling (80% of total); and• Environmental savings that equate to:

• 290,000 cars off the road per annum;• 10% of Adelaide’s water usage per annum; and• 5% of South Australia’s energy consumption

per annum.

ZeroWaste SA and its partnerships with Local Government, industry and community organisations such as KESAB have played an important role in the success of the sector. This has been achieved through enabling programs, engagement, education, capacity building and leadership across the sector. There is significant concern that the proposed cessation of Zero Waste SA’s activities, without a suitable transition or alternative, will see the loss of this experience, capacity and leadership.

Common ground and priorities across the waste management sectorIn 2013, the LGA and representatives from the Waste Management Association of Australia (WMAA) SA Branch have met to discuss a number of key issues facing the industry, in particular the future of Zero Waste SA. Local Government and the waste and recycling industry more broadly have significant common ground when it comes to waste management and resource recovery. The areas identified as common ground include:• As the nature of waste collection, disposal,

resource recovery and manufacturing changes:• there must be continual research and

development to understand new and emerging issues

• waste management must be fully integrated with the planning system

• opportunities for growth and value adding need to be identified and implemented

• Community education and influencing behaviour is key to ensuring best possible decision making is taking place in the household and in business to facilitate resource efficiency.

• Improving the resilience of markets for products manufactured from resource recovered materials is important. This includes market development, planning for changing waste streams and improving economic activity & resource efficiency, particularly in regional areas (jobs, manufacturing output, quality, etc.).

• Good quality data and analysis leads to informed decision making and improved outcomes.

• There are opportunities to explore new support/governance arrangements for the waste and resource recovery industry to aim for long term industry strategy, planning and improvements.

Local Government involvement in Recycling and Waste• Estimated940directandindirectrecyclingand

waste jobs created by LG• Annualexpenditure$155.4min2011-12• Councilscollectabout827,000tonnesofwastewith

54% being diverted from landfill (446,000 tonnes)

3

• The EPA must be appropriately resourced to carry out all required regulatory functions.

• Growth and investment in the industry requires favourable settings to invest and operate with confidence. This includes regulatory, policy and risk management settings. Consultation and certainty are important for industry to optimise operations, implement improvements and to invest with confidence.

A New Entity to Promote Leadership and Improvements in Waste Management and Resource RecoveryAn outcome of meetings between the LGA, WMAA and sector representatives was to pursue the development of a potential governance structure for a new waste entity, given the announced cessation of Zero Waste SA. This is being developed with a view to retaining the valued functions of Zero Waste SA. Zero Waste SA’s role has been significant and important, as has the hypothecation of funds raised through the waste levy. The waste industry needs an entity to provide key functions across the sector, and also needs the security of hypothecated funds (in the Waste to Resources Fund) for immediate and future investment in the sector.

Aim of Waste EntityTo support the waste management and resource recovery/efficiency sectors (Local Government and industry) in South Australia with a forum for industry development, innovation, research, advancements and efficiencies in service delivery. Guiding principles of a waste and resource recovery/efficiency entity• Whole waste and resource recovery/efficiency

industry outlook.• Skills-based decision making (board or

alternate) structure that has its members appointed in consultation with representatives of various sectors e.g. Local Government, C&D, C&I, organics, etc.

• Develop strategic objectives and provide forward planning with distinct target setting and business planning.

• Have access to and manage the contributions from the Solid Waste Levy and Waste to Resources fund (or a proportion thereof ).

Role and Functions

To establish a 10 year strategic plan and annual priorities that addresses the following objectives:• Provide leadership for the waste management

sector and enable key initiatives, including ensuring South Australia continues to be recognised for leadership and high performance in waste management and resource recovery/efficiency.

• Foster and grow an industry manufacturing valuable products.

• Consider triple bottom line sustainability (financial, environmental, social) rather than just a ‘zero waste’ or “diversion from landfill” approach to waste management;

• Undertake research and development, including establishing an agreed program of research, for example developing and implementing a waste to energy policy in South Australia and also to support market development for resource recovered materials.

• Coordinate and support education and awareness campaigns to empower schools, households and businesses to increase their recycling initiatives/behaviours.

• Facilitate industry development (market resilience, manufacturing, innovation, production).

Future prospects for the Waste and Recycling Industry in SAWith smart investment and leadership from the State Government, it is estimated that:

• Jobsintheindustrywillgrowat6%perannum• 5,100newjobscreatedby2021/22,12,000in

total• Increasedenvironmentalbenefitsthrough

higher recycling rates• Industryrevenuetoincreaseinexcessof$1

billion per annum

• Undertake policy development and advocacy for regulatory standards at State and Commonwealth level so that appropriate policy and regulatory settings are in balance between sector capacity and stretch targets. Growth and investment in the industry requires favourable settings to invest, implement improvements and operate with confidence. This includes regulatory policy and risk management settings.

• Focus on managing waste in a holistic way from prevention to minimisation, generation, transport, treatment, recovery, manufacturing, product development and disposal.

• Identify opportunities for commercialisation of products, including closing the recovery loop e.g. facilitation of procurement of products that are manufactured from resource recovered materials in South Australia.

• enable KESAB, under a funding arrangement, to continue its public education work.

• Manage funds from the Solid Waste Levy and Waste to Resources Fund given the large contribution of funds from the sector and the need for reinvestment in the sector.

Structure/Governance• Advisory body with a technical and strategic focus. • Representatives from different sectors within

the waste management and resource recovery industry, as well as metropolitan/regional areas.

Funding

Any funding commitment must facilitate short, medium and long term objectives established under the strategic and annual plans. The principles around funding for this entity are:• Ongoing access to funds generated via the Solid

Waste Levy;• Access to funds held in the Waste to Resources Fund;• Long term funding contract/agreement

(minimum 5 years with extension); and• Retaining hypothecation of funds in the Waste

to Resources Fund.

The entity itself will, in addition to funding day to day activities:• Fund specific programs with funding

agreements (e.g. R&D, enabling programs, education and behaviour programs, grant programs);

• Investigate the possibility of providing funding via a model similar to the UK WRAP scheme; and

• Focus on value adding with the intention of all investments returning a net economic benefit to communities and the State more broadly.

This funding will allow the entity to meet its principles, roles and functions as well as allow the waste industry to continue development as a key sector in advanced manufacturing while stimulating further growth in activity, jobs and resource efficiency. This growth balanced with positive environmental outcomes will ensure that the South Australian waste industry maintains its reputation for world recognised leadership and performance in waste management and resource recovery.

T (02) 8746 5000

sa@wmaa.asn.au•www.wmaa.asn.au5 Belmore St Burwood NSW 2134

The Solid Waste Levy & Waste to Resources Fund• Every tonne of waste that goes to landfill is levied by

the Government. This levy has risen from $5.09/tonne in 2004 to $47/tonne in 2014 for metropolitan Adelaide.

• The levy raised around $40m in 2012/13, and the levy rate is projected to increase to $63/tonne. Regional areas are half the rate of metropolitan Adelaide.

• Less than a quarter of the funds raised from the levy are returned to the waste sector. The rest of the levy is used to fund the EPA or is held in the waste to resources fund (WRF).

• There is projected to be $60 million of unspent money in the Waste to Resources Fund by July 2014.

• Despite the increasing levy and accumulation of un-spent funds in the WRF the government has forecast a significant reduction in investment of levy funds back to the sector with the cessation of ZWSA.

T (08) 8224  2000lgasa@lga.sa.gov.au•www.lga.sa.gov.au148 Frome St Adelaide SA 5000