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“Peak Resources” is past us! Volatility

Recycling thinking

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“Peak Resources” is past us! Volatility

Volatility

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

[email protected]

Sustainability of current system?

[email protected]

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!