These grants help businesses to overcome market barriers, reduce the use of virgin and hard-to-recycle plastics and enable greater plastics circularity in NSW.
Key information
- Status: Closed
- Grant amount: From $100,000 to $750,000
- Application opened: 23 September 2022
- Application closed: 17 November 2022, 11:59 pm
Program objective
The Circular Plastics Program provides new grant funding opportunities under the $10 million Circular Materials Fund (CMF). The CMF was created to support businesses in the transition to better plastic products and increase the recycling rate of plastics in NSW. This transition is a key action of the Waste and Sustainable Materials Strategy 2041 and NSW Plastics Action Plan. The objectives of the CMF are to:
- reduce the amount of virgin plastic used
- reduce the amount of hard-to-recycle plastics used
- increase the amount of recycled plastic in products
- catalyse partnerships between producers, end users and the resource recovery sector.
Examples of hard-to-recycle plastics include:
- plastics that are not easy to recycle for technical reasons e.g. colour, melting point, addition of chemical additives to give the plastic specific characteristics, contamination levels, other physical/chemical properties of the plastic
- multi-layered plastics i.e. plastics that have more than one plastic layer with different polymer types, such as plastic bottles consisting of PET/PP lined with ethylene-vinyl alcohol copolymer (EVOH)
- multi-material plastic packaging e.g. liquid paperboard, which include a plastic layer mixed with a layer of aluminium foil or paper, or plastic with an aluminium lining which is common in food packaging
- composite products, such as plastic-based materials strengthened with glass or carbon fibres, used in various interior and exterior car parts (e.g. bumper bars). Other examples are particleboard (chipboard) and fibreglass (e.g. boats, surfboards)
- plastics which don’t have readily available markets i.e. they may not be hard to recycle (from technical point of view) but there are currently not the end-markets to justify investing in recycling infrastructure.
This program is administered by Environment Protection Authority.
Eligibility
Who can apply
The CPP is intended to support businesses at the ‘make’ phase, such as manufacturers, to overcome market barriers and improve plastics circularity. Barriers could include, but are not limited to:
- lack of initial capital to pay for production refit
- industry uncertainty on the use of recycled plastic content or sustainable alternative materials
- lack of consistency with collection and processing e.g. inconsistency across the State, and nationally, on how collection and processing is done, leading to a lack of consistent, high quality feedstock
- challenges with transitioning from specific plastics, including hard-to-recycle plastics.
- challenges with reducing plastic use.
A total of $5 million is available in CPP Round 1 to eligible applicants. Applications from both stream 1 and 2 will be competitively assessed for a share of the same $5 million funding pool. The total funding amount for both streams is combined.
Proposals should be submitted under one of the two streams outlined in the table below.
| Program element | Stream 1 | Stream 2 |
|---|---|---|
Priority polymers | All plastic polymers, including, but not limited to PET, HDPE, LDPE, LLDPE, PP, PVC, PS, ABS/SAN/ASA, PUR | |
| Application type | Sole applicants | Collaborative partnerships |
| Funding limits | $100,000–$500,000 | $250,000–$750,000 |
| Target organisations | Small to medium businesses (SMBs) with fewer than 200 full-time equivalent staff (FTE) that are involved in the ‘make’ phase of a plastic product. | Partnerships of three or more organisations that interact across the The lead applicant must be at the make phase and be a small to medium business (SMB) with fewer Supporting partners may include large businesses (>200 FTE). |
| Project focus | New product design and/or new processes in the manufacturing of plastic products | Partnerships of three or more organisations that interact across the life cycle of plastic products that will Collection, recycling, processing and other activities may be eligible for funding if they contribute towards the lead applicant meeting the objectives of the program. |
| Minimum co-contribution | 1:1 matched funding, where applicants must contribute the same amount of 50% of the applicant’s contribution must be cash, the rest can be in-kind Matched funding can be contributed by any project partner. | |
Types of projects funded under this grant
Funding under both Stream 1 and Stream 2 of the CPP could be used for project items including, but not limited to:
- purchasing of new or modified equipment (e.g. processing lines, moulds, blending machines etc.) to increase the use of recycled plastic in the manufacture of products or sustainable alternatives
- redesign of products, services or systems to use less plastic or eliminate waste
- redesign of plastic products to be more recyclable
- creating products that are durable, and can be more easily repaired or re-used
- adopting a re-use model to replace single-use packaging
- commercialisation of new technologies
- replacing hard-to-recycle plastics, such as soft plastics or multi-layer products, with sustainable alternatives
- implementing innovative circular-economy business models and practices to develop or expand end-markets for recycled plastics.
Under Stream 2, funding could also be used to fund eligible partnership projects including (but not limited to) any of the options above, and:
- product design, recycling, reprocessing, collection and other activities directly related to the manufacturing activities (up to 50% of funding)
- coordinating the delivery of the project across project partners (up to 15% of grant funding).
If your proposed project is not included in the list above, please contact the EPA to discuss your project and eligible items for funding.
What can’t you apply for
Projects or items that will not be funded under the CPP include:
- any activities not directly contributing to the ‘make’ phase (except when included in a partnership project)
- products covered by the NSW single-use plastics bans
- projects that only produce documents (e.g. feasibility studies, scoping or product design documentation)
- research and development. If a project involves a small R&D component this will need to be clearly articulated and justified by the applicant
- projects targeting materials other than plastic
- projects not sufficiently benefitting NSW
- projects and budget items that do not align with the objectives of the grant program
- transporting components offshore for processing
- facilities that produce fuels from waste (e.g. PEF/RDF) or use waste material as an energy source
- projects that would proceed without grant funding
- requests for retrospective funding
- costs of obtaining any required planning approvals or environment protection licences
- purchase of plant or equipment that has been previously owned by the applicant, any project partner or any associated entity
- land acquisition
- venture capital
- project proposals submitted by applicants who are unable to show the financial capability to complete the project
- installation activities completed using internal staff resources (as this is considered as an inkind contribution)
- ongoing operational costs such as, but not limited to, rent, insurance, salaries, electricity, water and other utilities
- project activities or equipment that applicants have received via funding or support from other funding sources (e.g. other grant programs)
- costs associated with the application or gaining of funding
- costs associated with internal administration, travel, office support and communications (considered in-kind contribution)
- process or logistic vehicles e.g. forklifts, prime movers, front-end loaders
- project contingency funds
- costs relating to site preparations and clean-up e.g. fencing, painting of facilities, signage, WHS activities, training and skip bins.
The EPA may, at its absolute discretion, update or add to the items and projects that will not be funded at any time.
What your application needs to include
You can also download the complete guidelines for applicants:
File
Circular Materials Fund: Circular Plastics Program Round 1 (PDF 610.65KB)An information session was held on 11 October 2022. A recording of the session is available on the NSW EPA website.
Prepare your application with this checklist
The following conditions will be considered by the TRC during the assessment of EOI responses.
In responding to this EOI, you as an applicant must:
- Complete the EOI form.
- Show that the project is primarily focused on meeting at least one of the three key program objectives
- reduce the amount of virgin plastic used
- reduce the amount of hard-to-recycle plastics used/produced
- increase the amount of recycled plastic in products.
- Have your application signed and endorsed by a senior office bearer from the lead organisation.
- Ensure your application is received by the closing date and time. Late applications will not be accepted.
- Show that the time required for all necessary activities, including planning, regulatory or other approvals has been considered.
- Submit projects that will start by May 2023 and finish – including submitting the final report – by 30 June 2026.
- Show you have the means or support to complete the project and related administrative work by the required date. This should include support from project partners.
- Show that you, your related entities and your project partners have a satisfactory compliance history under NSW environment protection laws.
Application process
Applications will go through a two-stage process:
- Stage 1: Expressions of Interest (EOI)
- Stage 2: Detailed application
The purpose of each stage is described in the table below.
| Stage | Aims |
|---|---|
| 1. Expression of Interest (EOI) |
|
| 2. Detailed application |
|
Stage 1 – Expressions of Interest
Applicants will have eight weeks to develop and submit their responses to the EOI. Responses should include:
- specifying which funding category their project proposal falls under (Stream 1 ‘Sole applicant’ or Stream 2 ‘Collaborative partnership’)
- giving an overview of their project and activities
- identifying project partners and their specific roles
- outlining the commercial viability of the project
- providing information on end-markets for recovered materials
- providing information about how the project addresses the program priorities.
- EOI responses must meet the eligibility criteria described in the Conditions of eligibility section below.
EOI responses will be assessed by an independent technical review committee (TRC) against the Assessment criteria. The TRC will then recommend projects to progress to Stage 2.
Stage 2 – Detailed Application
Applications shortlisted in Stage 1 will be invited to participate in Stage 2 – making a detailed application. Organisations that have not gone through the EOI process are not eligible to apply to stage 2.
Proponents will receive an invitation from the EPA to submit a final detailed application. Stage 2 participants will have eight weeks to:
- develop their final application
- formalise partnerships
- complete a detailed budget using the EPA template that will be provided
- conduct a financial and economic analysis.
A free Application advisory service (AAS), provided by an independent contractor, is available to all Stage 2 applicants and is accessed via a separate, short application form through the EPA. The advisory service can assist with a range of application requirements, including the economic analysis.
Address the eligibility criteria
The lead applicant must hold an Australian Business Number (ABN) and be either:
- an Australian entity or partnership incorporated under the Corporations Act 2001 (Cth), or
- a non-government/not-for-profit organisation (complying with the ATO’s definition) with an established legal status, or without a legal status but able to have grant funds administered by another organisation with legal status.
The applicant must also:
- have fewer than 200 full-time equivalent (FTE) employees at time of submitting the EOI
- operate at the ‘make’ phase of a product life cycle (e.g. product manufacturing and design)
- hold the required insurance and public liability coverage, including:
- public liability insurance to the value of at least $20 million
- workers compensation insurance as required by all relevant laws.
Stream 1: Sole applicant projects
Stream 1 provides funding for sole applicants to target the ‘make’ phase of the product life cycle.
This may include projects which:
- alter or adopt innovative product design (e.g. new designs, moulds, forms, products)
- improve manufacturing processes (e.g. through new equipment, material inputs)
- increase recycled content manufacturing capacity
- generate additional demand for recycled content
- reduce the use/manufacture of virgin or hard-to-recycle plastics
- reduce the generation of plastic waste.
Projects must, as far as practicable, demonstrate viable end-markets for project outputs and benefits to NSW, including employment, infrastructure investment, environmental and social benefits.
Stream 2: Collaborative partnership projects
The objective of Stream 2 is to catalyse partnerships between producers, end users and the resource recovery sector that will lead to improved plastics circularity in NSW.
In addition to the conditions for Stream 1, the EPA expects all Stream 2 project proposals to involve strong and collaborative partnerships. Applicants are encouraged to develop partnership projects with an emphasis on end-to-end supply chain collaboration. Proposals should aim to show enduring partnerships across the supply chain.
Partnerships must include a lead applicant at the ‘make’ phase that has fewer than 200 FTEs and a minimum of two other organisations.
Project partners may be of businesses of any size, including large businesses (>200 FTE).
Partners may include, but are not limited to, product designers, recyclers/re-use facilities, waste collectors, end users, and tertiary/research organisations. For example, entities currently manufacturing plastic products may partner with those that design, collect, reprocess and/or re-use the material.
Partnership agreements may be demonstrated through a letter of support from the partnership organisation specifying the nature of support and their role in the project. Project management roles, responsibilities, funding contributions (in-kind and cash) and reporting requirements must be clearly defined in the letter.
The lead applicant will be responsible for the overall delivery of the project, including performance of the partner organisations participating in the project. The lead applicant will receive the grant funding from the EPA and it will be the responsibility of the lead applicant to use or distribute the grant funding as detailed in the Deed of Agreement.
Address the assessment criteria
Criterion 1 (25%): The project will improve plastics circularity in NSW by overcoming market and other barriers
- The project must contribute to at least one of the following objectives:
- reduce the amount of virgin plastic used
- increase the amount of recycled plastic in products
- reduce the amount of hard-to-recycle plastics used.
- The project clearly demonstrates how it will lead to improved plastics circularity in NSW.
- The application clearly describes how project activities will help overcome identified market barriers and/or gaps.
- Project outputs (e.g. products) have clearly identified pathways for recyclability or re-use, where feasible.
Criterion 2 (20%): The lead organisation and any project partners have shown an ability to deliver the project to a high standard
- Project team has the capacity and capability to deliver the project (for instance, relevant experience delivering a similar project).
- The required financial co-contribution has been committed by each party and the role and responsibilities of each partner in the project are clearly articulated.
- Risks, barriers and proposed mitigation strategies are clearly identified.
- The project includes a robust process for monitoring, evaluating and reporting on the success or failure of the project and has appropriate evaluation measures in place.
- The application shows sound project planning and methodology.
Criterion 3 (20%): The project proposes suitable suppliers, technologies and end-markets
- The technology and processes used are suitable to achieve the identified program objective.
- Supply and demand of the project materials and products are well understood.
- The project demonstrates access to end-markets including that outputs meet relevant and required product/industry standards.
- A viable supply of project materials has been demonstrated and logistics have been considered.
- Proposed activities show compliance with environmental laws.
- Project pricing and service offering are viable and credible.
- For projects under Stream 2, the following additional measures apply:
- the project catalyses partnerships across different stages of the product life cycle
- enduring partnerships will lead to improved plastics circularity in NSW.
Criterion 4 (20%): The project has potential to become business as usual for the applicant/participating organisations
- The project has a credible business case with clear potential to deliver ongoing, commercially viable outcomes.
- The project demonstrates how it will overcome cost barriers associated with transitioning to better plastic products.
- The project will have long-term viability beyond the grant funding.
Note: Applicants that progress to a Stage 2 detailed application will be required to submit a financial analysis to demonstrate the long-term financial viability of the project activities.
Criterion 5 (15%): The project provides economic, environmental and/or social benefits for the community of NSW, including job creation and economic value
The project has other benefits to the community of NSW, including one or more of the following:
- economic value
- environmental benefits, including non-market benefits
- social benefits, including job creation and/or job creation and vocational training for disadvantaged or marginalised communities in NSW
- alignment with relevant sustainability policies and strategies, including the NSW Waste and Sustainable Materials Strategy, NSW Plastics Action Plan, National Waste Policy Action Plan, and NSW Net Zero Plan.
After the application is submitted
The applications will be assessed and both successful and unsuccessful applicants will be notified.
| EOI application process | Estimated Date |
|---|---|
| EOI stage opens | Friday 23 September |
| EOI stage closing date and time | 11:59pm on 17 November |
| Stage 1 applications assessed by TRC | Late November |
| EOI applicants shortlisted to participate in Stage 2 notified | 1 December |
| Stage 2 detailed application opens | 8 December |
| Stage 2 detailed application closes | 16 February 2023 |
| Stage 2 TRC assessment | 28 March 2023 |
| Announcement of successful projects | To be determined |
Support and contact
Information session
An information session was held on 11 October 2022. A recording of the session is available on the NSW EPA website.
Contact Waste and Recycling Infrastructure Unit
Phone: (02) 9995 6920 or (02) 8837 6315.