Packaging industry won't meet its own targets on waste

But it now admits none of the four national targets will be met as planned by the end of 2025.

The targets include shifting to 100 per cent reusable, recyclable or compostable packaging, and ensuring 70 per cent of plastic packaging is being recycled or composted.

The other two concern 50 per cent average recycled content in packaging, and the phase-out of "problematic and unnecessary" single-use plastic packaging.

A review of the targets, released on Thursday by the Australian Packaging Covenant Organisation (APCO), said there would be "shortfalls".

A graph charting progress on three of the four targets is essentially a series of flat lines.

The lack of progress is particularly evident for target two, which aims to ensure 70 per cent of plastic packaging is recycled or composted.

In 2020/21 it was 18 per cent, on par with three years earlier.

APCO chief executive Chris Foley, whose organisation represents packaging manufacturers, major retailers and international brands, says the results are disappointing.

"It is time for many businesses to do more to reduce the impact of their packaging and improve its recoverability," he said.

He called for a stronger co-regulatory framework that strikes a balance between industry-led action and effective government regulation.

Kate Noble leads WWF-Australia's campaign against plastic and says it's good news that the industry itself is talking about the need for regulatory action.

"I think they are up for it because they can't do this themselves. And this report demonstrates that."

Environment Minister Tanya Plibersek responded to the review by repeating her previous warnings.

"If business don't voluntarily step up on plastics, I will regulate."

But she also said the former government didn't deliver on its recycling promises and Labor is investing heavily in the sector to fix that.

Greens Senator Peter Whish-Wilson has suggested the targets were always doomed to fail.

"The idea that Australia could reach its 2025 National Packaging Targets under a system that hinges on weak, consumer-obligated, voluntary targets has always been a complete farce," he said.

"Big producers of plastic have been operating with impunity, free from any serious penalties or regulation.

"Voluntary approaches to waste reduction do not work - it's that simple."

Mr Foley said that if the industry fails to do better, "governments will pursue harder regulation".