Last week the Australian Government launched a new Environmentally Sustainable Procurement Policy to reduce the environmental impact of government procurements. Following recommendations from the Circular Economy Ministerial Advisory Group’s Interim Report – also released last week – the policy will leverage government purchasing power to activate new circular markets, reduce waste and ensure materials stay in the economy longer.
- From 1 July 2024, businesses bidding for government construction services projects above $7.5 million must meet agreed sustainability outcomes (e.g. cutting or repurposing waste, replacing single-use materials with recycled materials).
- From 1 July 2025, the policy will extend to tenders for textiles, ICT goods and furniture, fittings and equipment above $1 million (e.g. recover and recycle worn out uniforms that can be processed into new materials).
The policy aligns with recommendations from the CEMAG Interim Report. The advisory group’s latest report emphasises how important circular economy solutions are for reducing waste, pollution and carbon emissions. It also outlines ways the government can boost the country’s domestic manufacturing capabilities through reuse, repair and recycling.
More action to come this year, as CEMAG engages with other sectors and consolidates their advice to the government into a final report by the end of 2024.
ESP Policy + Interim Report Media Release
Environmentally Sustainable Procurement Policy
Circular Economy Ministerial Advisory Group Interim Report
