China’s National Sword and The Impact on Australia’s Recycling

The 2018 National Sustainability in Business Conference will be held over Thursday 8 and Friday 9 March at the Hotel Grand Chancellor, Brisbane. 

Mr Mike Ritchie, MRA Director at MRA Consulting Group joins us in March at the Conference to discuss ‘China’s National Sword and The Impact on Australia’s Recycling’.

Traditionally China has been the world’s largest importer of recycled paper and plastics. Chinese buyers have purchased mixed paper and plastic with higher levels of contamination and at higher prices than Australian domestic markets can use or afford. Australia relies heavily on China for recycling, with an estimated two thirds of recovered mixed plastics exported there for processing and recycling.

In mid-July 2017, China notified the World Trade Organization (WTO) that it plans to ban or severely restrict (through an impossible contamination rate requirement of 0.3%) the import of post-consumer plastics plastic, textiles, unsorted paper, artificial fibres, and certain metals along a variety of solid waste and recyclables, that are commonly exported by Australian companies.

Among the reasons cited for the ban are poor quality of materials received; pollution caused by poor recycling practices and small-scale operations; protection of human health and safety; and the need for China to develop its own domestic recovery system for recyclable materials.

The abruptness and uncertainty created by China’s announcement has resulted in major disruptions in both local and global recycling markets. The ban is an international issue with very local negative effects as there is no excess capacity in the recycling markets in Australia to absorb the materials which China intends to ban.

Australian operators that have entered into contracts for the management of waste and recyclables based on the conditions and market outlook preceding the announcement are now facing the possibility of not being able to fulfil their obligations due to the collapse of the demand for recyclables.

This presentation will explore the underlying political factors that have led to the ban, identify key challenges faced by the Australian recycling industry and discuss potential solutions for maintaining the sector’s dynamic.

Visit the 2018 National Sustainability in Business Conference website for further information and to register today!

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