Australia established ambitious plastic packaging targets in 2018. By 2025, the deadline passed without the targets being fully achieved. Spain, operating under a binding legislative framework, is now targeting a 50% reduction in single use plastic by 2026 and 70% by 2030. The contrast between the two approaches offers important lessons for policymakers, manufacturers, importers and packaging suppliers across Australia.
The difference is not simply about environmental ambition. Both countries have committed publicly to reducing plastic waste and improving circular economy outcomes. The distinction lies in structure, enforcement and financial accountability.
Spain implemented legally binding obligations backed by taxes, collection targets and extended producer responsibility systems. Australia relied primarily on voluntary and co regulatory mechanisms through industry participation. The results reveal how regulatory design influences market behaviour and recovery outcomes.
What Spain implemented under Law 7/2022
Spain’s Law 7/2022, known as the Law on Waste and Contaminated Soil for a Circular Economy, came into force on 10 April 2022. The legislation introduced national waste reduction targets alongside specific measures focused on single use plastics.
The law established a national goal of reducing overall waste generation by 13% by 2025 and 15% by 2030, compared with 2010 levels. For single use plastics, the targets are significantly more aggressive. Spain is targeting a 50% reduction by 2026 and a 70% reduction by 2030, both measured against a 2022 baseline.
Unlike many voluntary frameworks, the legislation introduced direct financial mechanisms. Spain implemented a tax of €0.45 per kilogram of non recycled plastic contained within non reusable plastic packaging. The measure applies to manufacturers, importers and businesses involved in intra community acquisition of packaging products within the European Union.
This distinction is important because the taxable amount is reduced when recycled content is incorporated into packaging. The policy therefore creates a direct financial incentive to increase recycled material use and reduce dependence on virgin plastic.
The legislation also introduced restrictions on bisphenol A and phthalates in food packaging, strengthened reusable packaging systems and established mandatory collection targets for beverage containers.
By 2029, Spain requires 90% of plastic bottles placed on the market to be separately collected for recycling.
Extended producer responsibility became mandatory
A major component of Spain’s framework is extended producer responsibility. Under the legislation, producers of commercial and industrial packaging are required to finance and organise the management of packaging waste generated from their products.
This shifts responsibility away from municipalities and consumers alone. Businesses placing packaging onto the market become directly accountable for its recovery and environmental impact.
The framework also encourages producers to redesign packaging for better environmental performance. This includes reducing unnecessary material use, improving recyclability and increasing reuse systems.
Importantly, Spain’s model captures both consumer facing packaging and broader commercial packaging streams that are often excluded from voluntary schemes.
Spain moved ahead of broader European reform
Spain’s legislation aligns with European Union directives including the Waste Framework Directive and the Single Use Plastics Directive. However Spain advanced aggressively before final European packaging reforms were fully implemented.
This proactive approach positioned Spain as an early mover within Europe’s packaging transition. Rather than waiting for broader harmonisation, Spain created domestic systems designed to accelerate industry adaptation.
This approach provided businesses with earlier regulatory certainty and created pressure for supply chains to transition sooner.
Australia’s packaging targets were not achieved
Australia’s 2025 National Packaging Targets were launched in 2018 through the Australian Packaging Covenant Organisation, known as APCO. The framework aimed to achieve:
• 100% reusable, recyclable or compostable packaging
• 70% recycling or composting of plastic packaging
• 50% average recycled content in packaging
• phase out of problematic single use plastics
The most recent APCO reporting demonstrated that the targets were not fully met.
Plastic recycling rates increased only marginally, from 19% to 20%, against a target of 70%. Average recycled content remained at 44%, below the 50% target. Packaging classified as reusable, recyclable or compostable remained at 86%, below the 100% objective.
Separate analysis of Australia’s plastic waste generation showed that 3.2 million tonnes of plastic waste were generated in 2024. Of this amount, only 423000 tonnes were recycled, while 23000 tonnes were directed to energy recovery.
Recovery rates varied significantly between polymer types. PET achieved approximately 37%, HDPE 20% and LDPE 16%.
These results highlighted a major gap between policy ambition and actual recovery outcomes.
Why the structural difference matters
The key difference between Spain and Australia is structural rather than ideological.
Spain introduced legally enforceable obligations supported by financial penalties and mandatory collection systems. Australia relied largely on voluntary participation and industry commitments.
Voluntary systems can improve collaboration and data transparency, but they often lack the enforcement mechanisms needed to drive rapid behavioural change across markets.
Spain’s framework places a direct cost on non compliant packaging behaviour. Businesses therefore face immediate financial consequences when relying on virgin plastic or difficult to recover materials.
Australia’s system historically relied more heavily on goodwill, reporting participation and long term industry alignment.
The differing outcomes suggest that regulatory architecture plays a decisive role in determining recovery performance.
Australia is now moving toward mandatory packaging regulation
Australia’s regulatory direction is changing.
The Department of Climate Change, Energy, the Environment and Water is currently developing national packaging reform measures. While the final framework is still under consultation, the policy direction is increasingly focused on stronger national requirements.
Australia is moving toward mandatory national packaging requirements, with the final framework still under development.
This represents a significant transition from advisory and voluntary systems toward more enforceable obligations.
APCO’s 2030 Strategic Plan also reflects this shift. The organisation is increasingly positioning itself as a performance and compliance mechanism rather than purely an advisory body.
The introduction of eco modulation fees means businesses will increasingly be financially assessed according to the environmental profile of their packaging.
This aligns more closely with European approaches where packaging design directly influences financial obligations.
Lessons Australian businesses should recognise
Spain’s model offers several practical lessons for Australian businesses and policymakers.
First, financial incentives create stronger behavioural change than reporting obligations alone. Taxes and eco modulation systems influence procurement and design decisions immediately.
Second, mandatory collection targets create infrastructure certainty. Recovery systems perform more effectively when operators can rely on predictable material volumes.
Third, extended producer responsibility should apply across commercial and industrial packaging streams, not only consumer facing packaging.
Finally, staged implementation targets create planning certainty. Spain’s beverage collection targets increase progressively over time, allowing manufacturers and suppliers to adapt investment and sourcing decisions gradually.
Implications for Australian operators
For packaging manufacturers, importers, food service businesses and retailers, the direction of travel is becoming increasingly clear.
Businesses already investing in verified biodegradable materials, recycled content integration and improved recovery systems are likely to be better positioned as Australia’s framework evolves.
Those continuing to rely heavily on conventional materials without clear recovery or verification pathways may face increased compliance costs and reputational exposure as regulation tightens.
The transition also creates commercial opportunity. Businesses that adapt early may gain advantages in procurement, partnerships and market access as sustainability standards become more influential across supply chains.
Conclusion
Spain’s packaging reforms demonstrate how binding legislation, financial incentives and mandatory collection systems can accelerate plastic reduction outcomes.
Australia’s experience with voluntary targets highlights the limitations of relying primarily on co regulatory participation without enforceable mechanisms.
As Australia develops mandatory national packaging requirements, the Spanish model provides a useful reference point for policymakers and industry leaders alike.
The future of packaging regulation is increasingly moving toward accountability, verification and measurable recovery performance. Businesses that recognise this transition early will be better positioned for the next phase of Australia’s packaging economy.
Key Summary
• Spain targets a 50% reduction in single use plastics by 2026
• Spain taxes non recycled plastic content in non reusable packaging
• Restrictions apply to bisphenol A and phthalates in food packaging
• Spain requires 90% beverage bottle collection by 2029
• Australia’s 2025 packaging targets were not fully achieved
• Plastic recycling rates in Australia remained near 20%
• Australia is developing mandatory national packaging requirements
• Extended producer responsibility is becoming more important
• Businesses adopting verified sustainable packaging are better positioned
References
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Plastics and packaging laws in Spain. Madrid: CMS Law, 2026. Available at: https://cms.law. Accessed on: 20 May 2026.
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Spain plastic packaging tax now in effect. Washington: ITA, 2026. Available at: https://trade.gov. Accessed on: 20 May 2026.
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Spain fast tracks packaging reform ahead of EU regulations. Barcelona: Packnode, 2025. Available at: https://packnode.org. Accessed on: 20 May 2026.
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Australian plastic recycling rate stalls at 13 percent. Amsterdam: Recycling International, 2025. Available at: https://recyclinginternational.com. Accessed on: 20 May 2026.
AUSTRALIAN PACKAGING COVENANT ORGANISATION.
2030 Strategic Plan. Sydney: APCO, 2026. Available at: https://apco.org.au. Accessed on: 20 May 2026.
AUSTRALIAN GOVERNMENT. Department of Climate Change, Energy, the Environment and Water.
Reforming packaging regulation. Canberra: DCCEEW, 2026. Available at: https://www.dcceew.gov.au. Accessed on: 20 May 2026.