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inadequate demand or where there are stockpiles, then there are a few things the government can do to stimulate markets,” Krpan said.
“ One of them, which is a significant government intervention, is product stewardship. The government has had great success in this area. Another area that has emerged much more strongly now in Victoria and indeed in NSW is sustainable procurement. So governments actually specify that we want recycled content and we want to maximise our environmental credentials on various projects.”
In Victoria, two major infrastructure projects – level crossing removals and the Melbourne Metro Rail – have specified the use of recycled content by manufacturers.
“ These projects will be escrow-rated and that’ s an example of how governments can stimulate markets. What we’ ve found is that developers bidding for these projects are more than willing to promote their environmental credentials because they are trying to lead the industry,” Krpan said.
There are of course, hurdles that need to be overcome when it comes to government procurement, a major one being the perception that recycled
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materials are costlier than virgin products.
But SV believes it is able to demonstrate that value for money goes beyond the price tag.
“ You’ ve got to think about the whole-of-life costs, whether it’ s energy or waste or externalities that are caused by some of these procurement practices. You’ ve got to think about value for money and that includes environmental and social aspects,” Krpan said.
“ We’ re finding that in many of the markets we’ re working in, recycled content is firstly cheaper and secondly, more durable than its natural equivalent.
“ For instance, in recycled asphalt, the recycled product is cheaper, more effective, and more durable than virgin asphalt. Some of these myths are being dispelled and in other areas, the R & D will be important to show the specifications and performance of these products.”
Safety is also a concern, particularly among engineers, which makes the R & D work SV has embarked or is embarking on with its partners all the more important. Then, there’ s the international market to contend with.
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“ With each of the seven priority products, there are challenges and they’ re all unique. We are very conscious and concerned about the international commodity markets and drop in prices because many of our [ recycled ] products, when they become commodities, are internationally traded and that means they are exposed to the dynamics around oil prices, the boom and bust in the global economy, etc. International commodity prices become a challenge, which is now the case for tyre-derived products, e-waste, plastic, and glass, which are all exported and all have volatile prices,” Krpan noted.
Glass is particularly tricky. Despite glass recycling resonating with the community, one of the downsides of commingling is breakage. Investments in glass recycling technology over the last few years have also fallen. Capital expenditure is no doubt high and it does not help that virgin sand, the main component of new glass, is being imported cheaply. But Krpan said SV is keen to work closely with the sector to find workarounds.
“ With all of those products, we’ ve got interventions designed to improve demand,” he added.
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Product stewardship gaining momentum
As Krpan noted, product stewardship is a significant government intervention and he pointed out that the tyre stewardship scheme in particularly, is gaining some“ real traction”( see what he did there?).
That said, there are other schemes that have made some real in-roads in recent years.
“ We’ re proud to have piloted and taken a lead role on paint stewardship. Paintback started on May 1 and we’ ve got four sites in Victoria. We’ re really excited about how that’ s going to play out because we’ ve been collecting paint and household chemicals for 20 years. It’ s fantastic to see industry showing leadership,” Krpan said.
“ Victoria has also announced that it will implement an e-waste landfill ban and that will be important. The policy work is still being done and the circular economy will be an aspect we will be considering – how do we keep some of that material local and use it as a way to incentivise innovation or inspire innovation?
“ And just recently, the Commonwealth announced that solar PV and household
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