The RMF Plastics Technology stream

Mike Burns: Hello everyone and thank you for joining us.

Today will we will provide an industry briefing on the latest stream of funding which is available under the Recycling Modernisation Fund, the Plastics Technology stream. The Minister for the Environment and Water has announced the program is now open.

Before moving into the presentation, I'd first like to take the opportunity to acknowledge the Traditional Owners of the land in which we will make this presentation today. For me, Mike Burns, Director of the Recycling Modernisation Fund team, it's the Ngunnawal and Ngambri people.

Darcy Cross: And for me, Darcy Cross, Assistant Director in the Recycling Modernisation Fund team, it's the Bundjalung people.

Mike Burns: We pay our respects to Elders, past and present, and also acknowledge the Traditional Owners of the lands where you may be viewing the presentation today.

Darcy Cross: Today's presentation is aimed at providing you, as the potential project proponents, with an understanding of what the Plastics Technology stream aims to achieve, how it will operate, and also provide you with information on how to make an application, with support from your participating state or territory government.

We'll be covering many of the key points from the funding guidelines, but this presentation provides an overview and it is not definitive. We encourage you to go to the funding guidelines for the source of information.

Mike Burns: The Plastics Technology stream is the latest stream of funding under the RMF and is targeted at hard-to-recycle plastics.

According to the latest Australian Plastic Flows and Fates Study, 2.65 million tonnes of plastics reached its end of life in 2021. Just 334,000 tonnes or 13% was recycled.

The RMF is already addressing critical gaps in Australia's recycling infrastructure.

To date, 125 projects have been announced and are proceeding across the country.
The new $60 million RMF Plastics Technology stream is intended to deliver national solutions that drive significant increases in Australia's recycling and recovery rates for hard-to-recycle plastics, and increase collaboration across supply chains to promote a safe circular economy.

The guidelines on the DCCEEW website – I'll refer to the Department of Climate Change, Energy, the Environment and Water as 'DQ' throughout the presentation – will apply nationally.

Proponents will work with coordinating state and territory governments to develop applications, which the states and territories will submit to DCCEEW.

You assessment of projects will be coordinated by DCCEEW, and projects selected for funding by the Commonwealth Minister for the Environment and Water.

Darcy Cross: There are five core objectives of the Plastics Technology stream. They include: significantly increase Australia's recycling and recovery rates for hard-to-recycle plastics; support a safe circular economy for plastics in Australia, whereby we can transform waste plastic into valuable new products such as food grade plastic packaging; build domestic and international confidence to invest in recycling infrastructure in Australia; support long term job creation and a more highly skilled workforce in the Australian recycling industry; and protect our environment through reduced plastic pollution.

Mike Burns: The guidelines allow a range of projects to be brought forward for funding. It's vital that applications demonstrate how they will lift Australia's low plastics recycling rates, based on objective data, such as in the Australian Plastic Fates and Flows Study 20-21.

The Plastics Technology stream will support projects such as: advanced recycling projects targeting hard-to-recycle plastics such as mixed, multilayer, flexible or contaminated plastics; commercialisation and scaling up of emerging and trial technology targeting circularity of hard-to-recycle plastics; infrastructure upgrades and innovative technology to help extract and process plastics, contained within products such as e-waste, into higher value products; proposals to equip existing or new material recovery facilities or plastic recovery facilities with advanced sorting, separation and decontamination technology, such as optical or robotic machinery to increase the diversion of plastics from landfill; and proposals brought forward by a consortium proposing end-to-end solutions and circularity in our plastics supply chain.

For example, this may include supply chain collaboration between a collection and sorting facility of plastic waste, an advanced recycling facility, and manufacturers. We recognise industry proponents may like to come together and apply as a consortium, and this approach is encouraged.

If you choose to do this, the guidelines spell out the requirements and include the need to identify a lead project proponent and each of the partners in the application. You'll need to provide a letter of support from each of the proponents who are part of the consortium.

Darcy Cross: Funding applications must relate to eligible activities, and can be for new infrastructure, technology, processes, machinery and/or equipment to recycle hard-to-recycle plastics; an improvement or expansion of existing infrastructure technology, processes, machinery and equipment to recycle hard-to-recycle plastics; and commercialisation or scaling up to build or increase existing capacity for recovering and recycling hard-to-recycle plastics.

States and territories may have slightly different approaches to the projects they intend to support. As part of that, some jurisdictions have called out the types of activities they are prepared to bring forward in their communications material on the program.

Mike Burns: Of course, there are also items that aren't eligible for funding under the Plastics Technology stream.

Some of those items are: the purchase of land; pre-construction activities; business case development or feasibility studies; business-as-usual expenses; routine operational expenses; and accommodation. Please see the Plastics Technology stream funding guidelines for the list of ineligible activities.

Darcy Cross: Projects must be finished by June 2027. Funding is available for projects from the 2023-24 financial year, through until 30 June 2027.

State and territory applicants may apply for a minimum grain of $1 million and a maximum grant of 20 million. Project proponents are responsible for any remaining eligible project expenditure, plus any remaining ineligible expenditure.

Applications for funding must include at least a 50% contribution towards eligible project costs from the project proponent, or, in the case of a consortium proposal, the consortium members.

In-kind contributions are not eligible costs.

State and Territory co-contributions are not required under the Plastics Technology stream. However, applications which leverage higher contributions from project proponents and/or co-contributions from states and territories will be preferred in the assessment process.

Mike Burns: The assessment criteria, which will be used to score and rank projects, is available under Section 5 of the PT stream guidelines.

They are: alignment of the project with program objectives and intended outcomes; benefits to Australia's safe plastics circular economy, or contribution to managing plastics, where circularity is not an option; capacity, capability and resources to to deliver the project; managing environmental impacts and contribution to traceability of waste materials; and access to finance and investment.

We want to draw your attention to a couple of key points under the assessment criteria.

The guidelines define hard-to-recycle plastics as plastics in waste streams where there are low recovery and recycling rates due to difficulties in recycling and currently limited infrastructure and technology solutions to support circularity in the supply chain.

The first assessment criteria asks for a description of the material targeted by the project and why it is a hard-to-recycle plastic.

A key information requirement of the second criteria is the extent to which the project clearly identifies and provides evidence of reliable feedstock and an end-market that retains resources in the economy.

Given the PT stream is looking for national solutions, it also asks for a description of – if applicable – the extent to which feedstock for the project will be sourced from regional and remote locations, including from other states and territories; and, how the project will develop and contribute to ongoing and sustained collaborations to build a safe circular economy for plastics.

For consortium proposals, it asks for a description of the arrangements to ensure each proponent delivers on its commitments throughout the life of the project. For all projects, it asks for a description of how the project will achieve and report on end-to-end traceability, from source aggregation point to final use of the targeted plastic feedstock.

Darcy Cross: Applications for funding are only open to state and territory governments. You, as the project proponents, will work with states and territories to develop an application from the state or territory to the Commonwealth.

Each jurisdiction may have a slightly different way they select which projects from their jurisdiction they are prepared to support.

While each jurisdiction may have a slightly different approach, the essence of the application process is the same. That is, states and territories will have a process in place to select projects from their jurisdiction; then choose to partner with you to gather the necessary documents and information required under the guidelines to make an application to the Commonwealth. Applications to DCCEEW close on the 13th of November this year. Proposals to participating agencies close earlier.

Sustainability Victoria will close on the 4th of September; the Tasmanian Department of Natural Resources and Environment on the 8th of September, the Queensland Department of State Development, Infrastructure, Local Government and Planning on the 11th of September; the NSW Environmental Protection Authority, on the 12th of September; the West Australian Department of Water and Environmental Regulation will be the 14th of August for an EOI, and the 18th of September for the full application. The Northern Territory Department of Industry, Tourism and Trade is the 13th of November, but they ask that you engage earlier.

And the ACT Transport Canberra and City Services Directorate and Green Industries in South Australia are TBC.

The links to each of these agencies can be found on the DCCEEW website. We recommend you engage with your state or territory government early to determine how you can seek support in the application for funding.

Mike Burns: The assessment of projects will be merit based and made with the assistance of an expert panel that has relevant expertise in assessing the applications and an understanding of plastics recycling technology and the supply chain.

DCCEEW may request further information from states or territories and/or the project proponents to support the assessment of projects if required.

The Commonwealth Minister for the Environment and Water will be the decision maker on which projects are approved for funding, informed by the merit based assessment and ranking of projects.

Darcy Cross: DCCEEW will sign a schedule to the Federal Financial Agreement – Environment with successful applying state or territory governments. A funding agreement between you, the project proponent, and the state or territory government will also need to be done.

Under certain conditions, such as if the project includes over $4 million in building work, and the Australian Government's contribution is over $6 million and 50% of the total project costs, the Work Health and Safety Accreditation Scheme, administered by the Office of the Federal Safety Commissioner, may apply. This will be identified as part of DCCEEW's assessment and, if relevant, form part of the contractual arrangements.

Mike Burns: On this screen is the list of state and territory contacts for the Plastics Technology stream, which is available on our website.

As mentioned, each jurisdiction might have a slightly different approach to the way they will source and assess the project proposals from within their jurisdictions, and bring forward the ones they may want to support. We recommend early engagement now with state and territory agencies to understand any requirements they have in place, and ensure there is adequate time to consider and complete your application.

Darcy Cross: So that wraps up the presentation today. You can keep up to date by following the DCCEEW website on the PT stream, which is displayed on the page there.

The $60 million Plastics Technology stream is intended to deliver national solutions that drive significant increases in Australia's recycling and recovery rates for hard-to-recycle plastics and increased collaboration across supply chains to promote a safe circular economy.

That concludes the presentation today and thank you.