New Environmentally Sustainable Procurement Policy Launched by the Australian Government

Last week, the Australian Government introduced a groundbreaking Environmentally Sustainable Procurement Policy designed to mitigate the environmental impact of government procurements. This initiative follows the Circular Economy Ministerial Advisory Group’s (CEMAG) Interim Report, also released last week. The policy aims to leverage government purchasing power to stimulate new circular markets, reduce waste, and ensure materials remain in the economy for longer.

Policy Implementation Timeline:

• Starting 1 July 2024: Businesses bidding for government construction services projects valued above $7.5 million must meet specified sustainability outcomes, such as cutting or repurposing waste and substituting single-use materials with recycled alternatives.
• Starting 1 July 2025: The policy will be extended to include tenders for textiles, ICT goods, and furniture, fittings, and equipment valued above $1 million. This includes initiatives like recovering and recycling worn-out uniforms into new materials.

Alignment with CEMAG Recommendations:

The new policy aligns with the CEMAG Interim Report, which highlights the critical role of circular economy solutions in reducing waste, pollution, and carbon emissions. The report also outlines strategies for enhancing domestic manufacturing capabilities through practices such as reuse, repair, and recycling.

Future Actions:

Further actions are anticipated throughout the year, as CEMAG engages with additional sectors and consolidates its advice into a final report, expected by the end of 2024.