Carbon recycling and abatement
The EPA is taking steps to reduce carbon emissions and mitigate climate change by improving the way we manage waste and materials.
Globally, the way materials and products are produced, used and disposed of contributes to about 45% of carbon emissions. Transitioning to a circular economy presents an opportunity to reduce our reliance on carbon-intensive materials, by improving the durability of materials through design, reusing or repairing them, recycling and remanufacturing them or extracting their embodied energy.
The EPA Climate Change Policy and Action Plan outlines the steps we are taking to reduce carbon emissions to mitigate climate change in line with the NSW Government’s Net Zero Plan. A key component of this approach is to improve the way we manage waste and materials to abate and recycle carbon.
Carbon Abatement Opportunities for a Circular Economy study
We commissioned a study to identify opportunities to reduce carbon emissions in NSW through the use of low carbon recycled materials in construction and manufacturing.
The Carbon Abatement Opportunities for Circular Economy (PDF 2MB) study focuses on priority waste streams best placed to meet future resource and decarbonisation needs across the waste, construction and manufacturing sectors.
The study signals how the EPA will prioritise support for industry to decarbonise its supply chains and promote a circular economy in line with the objectives of the NSW Waste and Sustainable Materials Strategy 2041.
The study identifies recycling and remanufacturing opportunities that together have the potential to abate approximately 1.85 million tonnes of carbon dioxide equivalent per year. This cumulative emissions abatement potential is about the same as removing around 398,000 petrol cars off the road annually.
The study will be reviewed and updated every 2 years to reflect changes in technology, data and resource recovery markets.
Carbon Recycling and Abatement Fund
The Carbon Abatement Opportunities for Circular Economy study can help to inform industry decision-making and investment in circular economy technology, infrastructure and innovation to increase the uptake of lower-emission substitute materials. It will guide NSW Government investment to support industry take-up of low-emissions materials, including through the $37 million Carbon Recycling and Abatement Fund, committed to under the NSW Waste and Sustainable Materials Strategy 2041.
Drawing on the study’s findings and targeted consultation with industry and NSW Government stakeholders, we will prioritise 3 remanufacturing and recycling opportunities based on their carbon abatement potential in the first phase of the fund:
- the use of coal combustion products in cement production
- crumb rubber from waste tyres in roadmaking
- increased use of reclaimed asphalt pavement.
The Carbon Recycling and Abatement Fund initiatives targeting these opportunities are outlined below.
| Initiative | Description | Funding |
|---|---|---|
|
Coal Ash Pathways Research Partnership |
The EPA will partner with industry to map and characterise ash repositories in NSW, gaining a better understanding of resource supply and applications to inform industry investment |
$950,000 over two years |
|
Coal ash harvesting infrastructure fund |
The EPA will provide funding to support feasibility trials targeting infrastructure and technology that improve access to stored coal ash repositories, informed by the findings of the Coal Ash Pathways Research Partnership |
$2 million over two years |
|
New and updated government material specifications for geopolymer and Portland cement |
The EPA will partner with NSW Government agencies to fast-track new and updated material specifications to build demand for geopolymer cement applications and coal combustion products in Portland cement |
$200,000 |
|
Publishing coal ash supply chain information |
The EPA will partner with NSW Government agencies to publish coal ash supply chain information and anticipated future demand |
$100,000 |
The EPA is working with industry to deliver impactful and innovative carbon recycling and abatement solutions.
In October 2023 a Memorandum of Understanding (MoU) was established between the EPA and the Ash Development Association of Australia (ADAA).
The MoU creates a 5 year partnership between the EPA and ADAA to leverage knowledge, skills, networks and expertise to deliver impactful and innovative carbon abatement solutions for coal combustion products. It works to deliver Government commitments, build markets and innovative solutions in carbon recycling and remanufacturing across a key resource stream.
The MoU will allow the partnership to deliver on a number of objectives, including to:
- support innovative circular economy approaches that manage waste and materials more efficiently and effectively and assist in reducing carbon emissions
- gain a better understanding of coal combustion product repository supply, applications and technologies to explore the potential for future use as coal-fired power stations are decommissioned
- leverage industry experience and knowledge to ensure project outputs are fit-for-purpose and will unlock genuine supply chain barriers, considering health and environmental risks.
| Initiative | Description | Funding |
|---|---|---|
|
Off-the-road (OTR) tyre research partnership |
The EPA will partner with industry to research the economics and logistics of reprocessing and remanufacturing OTR mining and heavy vehicle tyres, informing options to address stockpiling and burial of tyres and overcome barriers to their remanufacture |
$150,000 |
|
Test and scale approaches for OTR tyre processing |
The EPA will provide support to Tyre Stewardship Australia-led initiatives to test and scale proposals for OTR processing |
In-kind 2023, future funding TBC |
|
New and updated government material specifications for increasing waste tyre content in road making |
The EPA will partner with NSW Government agencies to fast-track new and updated material specifications to build demand for tyre-derived crumb rubber content in asphalt for state and local level road construction |
$100,000 |
| Initiative | Description | Funding |
|---|---|---|
|
Publishing supply chain information on recycled asphalt |
The EPA will partner with NSW Government agencies to publish supply chain information for RAP |
$100,000 |
|
New and updated government material specifications for RAP |
The EPA will partner with NSW Government agencies to fast-track new and updated material specifications to build demand for RAP in road construction |
$100,000 |
A new service to support carbon recycling, resource remanufacturing and innovation
To help build markets and drive innovation in carbon recycling and remanufacturing across all waste and resource streams, we will also establish a circular economy ‘concierge’ service in 2023.
The service will provide industry with guidance and advice on recycling low-carbon materials and help build demand by connecting suppliers with end markets. It will support the delivery of the Carbon Recycling and Abatement Fund priorities outlined above, while also building the research and evidence base to inform future carbon recycling and resource remanufacturing priorities. It will do this through the initiatives outlined below.
| Initiative | Description | Funding |
|---|---|---|
|
Annual data research prospectus |
The EPA will prepare an annual research prospectus targeting information gaps and research needs for circular economy carbon abatement approaches, and partner with research institutions and industry to address them |
$500,000 over five years |
|
Circular remanufacturing resource library |
The EPA will build an online resource library, collating or creating and publishing up-to-date market information, research findings, case studies, and model specifications |
N/A |
|
Options for innovation incubation and regulatory co-design |
The EPA will investigate options for developing innovation incubation and regulatory co-design functions, to ensure regulatory change keeps pace with circular economy innovations |
$200,000 for business case |
Protection of the Environment Policy for sustainable construction
The EPA is partnering with Infrastructure NSW to release a landmark Protection of the Environment Policy (PEP) for sustainable construction, promoting low-carbon design and construction, and increased use of remanufactured waste in NSW public infrastructure projects.
The draft PEP will require public authorities, from July 2024, to consider its provisions for all new public infrastructure proposals, including State Significant Infrastructure. They will also need to consider how the proposal has:
- reported embodied carbon emissions and analysed options to reduce embodied carbon in the design and construction stages
- prioritised the use of low carbon recycled or remanufactured substitute materials derived from waste streams generated in NSW.
The draft PEP will align with the new State Environmental Planning Policy (Sustainable Buildings) 2022.
In 2023, the PEP will be piloted on 3 Transport for NSW projects, including the Edmonson Park North multi-storey commuter carpark, St Mary’s Footbridge and the M12 West.
We will consult with industry, government and the community on the draft PEP later in 2023 to ensure the settings are right for NSW to lead Australia forward in carbon recycling and innovation.
