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Packaging prices are not telling the truth
• P- price• Q – quantity• D- demand• MPC – marginal
production cost• CT – marginal
social & environmental cost
P
QD
MPC
MPC +CT
Dimensions of Resource Scarcity
Physical
Not accessible
Decline of ore grade
Depletion of reserve
Economic
Price volatility
Market developments
Skill shortage
Geopolitical
Resource nationalism
Political stability
Regional conflicts
Technological
Supply bottlenecks
Lack of innovations
Environmental
Social license to operate
Climate change
Environmental standards
A Time Bomb by 2025.. (a door, a fridge, packaging)
+47%
Old Style Contemporary packaging
Sustainability of current system?
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
0
50
100
150
200
250
300
Exports
PaperGlassPlastics
In $
mill
ion
In 2011-12 Australia exported 4.4 million tonnes of waste in developing countries like China, Indonesia, Vietnam atd. Developing countries have lower environmental standards resulting in higher external cost not only for local communities but the global environmental system.
The APC exists to “internalise” the true cost of packaging, the true cost of recovery and recycling unsustainable designs- socially, economically and environmentally.
Allegedly recycling is supported by large multinational companies
Sustainability principals:• Inspire others through example – encouraging
recycling, supporting collection schemes and making informative choices
• Recycle more packaging then we use• Recycling locally – supports recycling on local or
national level• Material recovery• Elimination of material send to landfill
To make a step change in sustainability, we have to look beyond our own operations
and take responsibility for the whole life-cycle
of our productsCoca Cola Enterprises
Transitioning towards a circular and genuinely sustainable packaging system ∞ means…• To provide ‘correct’ incentives for behavioural
change, the tax rates/(signatory fees?) being applied to the producers of the “negative externalities” reflect the magnitude of the ‘externalities’ involved- (social, environmental and economic).• In packaging the behavioural change needed is
design for recovery/ made to be made again
• It’s a great business model too because of ↑ resource prices/input costs!