Australia unveils 1st Environmentally Sustainable Procurement Policy

The policy rollout aligns closely with recommendations put forth by the Circular Economy Ministerial Advisory Group’s interim report.

The government will buy products that minimise greenhouse gas emissions, are safe for the environment and retain their value for longer, the government said in a release.

The policy’s phased implementation will begin on July 1 this year, initially targeting government construction services projects exceeding $7.5 million. Bidders need to demonstrate adherence to specified sustainability benchmarks.

These criteria may involve waste reduction strategies, repurposing initiatives and the integration of recycled materials instead of single-use alternatives.

In its inaugural year, the policy is expected to cover 2 per cent of government construction services procurement contracts, while capturing half of the total contract value.

The policy will expand to encompass tenders for textiles, Information and communication technology goods, furniture, fittings and equipment valued over $1 million from July 1 next year.

“This will deliver a future remade in Australia, creating opportunities and demand for goods to be recycled and remanufactured right here. It’s a win for business, and a win for the environment,” said environment and water minister Tanya Plibersek in a statement.

Procurement requirements may extend directives for the recovery and recycling of worn-out uniforms, fostering the development of a circular economy ecosystem.

The policy introduces a robust measurement and reporting framework to monitor environmental outcomes.

The Circular Economy Ministerial Advisory Group’s interim report proposes strategies to bolster local manufacturing capabilities through reuse, repair and recycling initiatives.

Important recommendations include the initiation of a Productivity Commission Inquiry into resource efficiency’s role in fostering economic growth, the establishment of a National Circular Economy Framework and the implementation of a national ‘recycled content first’ policy to drive recycled markets.

Fibre2Fashion News Desk (DS)