Circular Economy Risk, Consequence and Contingency Plan

The Introduction section outlines:

• the legislative context of the CERCC Plan, including the obligations of government and industry under the CE Act
• the importance of system resilience, defined as strategic coordination, sector-wide risk planning, increased government visibility and improved management practices
• the concept of a circular economy, focusing on reducing environmental impact and promoting economic growth through efficient resource use
• Victoria’s circular economy goals that work together to reduce waste, increase reuse and recycling, and strengthen the resilience and sustainability of the system.

The Context section covers:

• the economic, environmental, geopolitical, societal and technological risks highlighted in the World Economic Forum Global Risk Report 2025 relevant to the sector in Victoria
• national trends and emerging issues in Australia's circular economy, highlighting Australian government action that reinforces the need for jurisdictions to anticipate and manage system-wide risks, improve material stewardship and enhance contingency preparedness across supply chains
• examples of sector challenges that have affected the sector in recent years. This includes battery sourced fires, the impact of online shopping and biosecurity emergencies
• case studies that highlight how:
  • battery contamination risks are being managed through progress towards mandatory battery product stewardship
  • Agriculture Victoria can reduce waste during emergency animal disease responses by prioritising waste minimisation, decontamination and sustainable disposal methods such as composting
  • the University of Melbourne’s PixaLens project is using AI‑powered vision systems and robotics to improve the accuracy and efficiency of sorting recyclable plastics, strengthening the commercial viability of Australia’s recycling industry.
• issues relating to performance or supply within the Victorian circular economy market of waste management services. This includes:
  • responses to emergency animal disease outbreaks
  • battery fires
  • social acceptance of local waste, recycling and resource recovery facilities
  • inflationary pressures
  • land use competition and site availability
  • impacts of revisions to EPA’s buffer and separation guidelines
  • challenges obtaining approvals for new of expanding facilities
  • soft plastics, both as a contaminant within services and a missed opportunity to support the transition to a circular economy
  • contamination
  • challenges obtaining materials to manufacture kerbside bins
  • securing supply of feedstock and the risk of future contamination of services from hazardous materials
  • an increase in administrative costs and missed opportunities due to differences between jurisdictions
  • providers of essential services entering voluntary administration or ceasing operations.
• government action towards risk mitigation, including programs and policies that will strengthen the sector
• responsible entity progress towards sector risk mitigation, including the engineering, administrative, technological and people related controls in place to manage the serious sector risks identified in CERCC Plan 2025.

The section outlines the risk assessment process that was used to develop the CERCC Plan. It notes that:

• risks have been considered through the lens of disruption to waste, recycling and resource recovery services and impacting the effective transition to a circular economy
• CERCC Plan 2026 - 2028 provides an updated sector risk profile in response to the changing circumstances impacting the sector over the previous 12 months and the insights and opportunities detailed in RERCC Plans.
• the 7 serious risks identified in 2025 were assessed and updated and remain serious sector risks.
• Two new serious sector risks have been identified – land use competition and encroachment, and data.

Tables 2 to 10 in this section provide detailed descriptions of the 9 serious risks identified through the CERCC Plan risk assessment process. These are:

1. contamination
2. external threats
3. planning
4. internal threats
5. social acceptance
6. economic shocks and stressors
7. commercial viability in the market
8. land use competition and encroachment
9. data.

This section also includes a summary of the actions that responsible entities have proposed to take in response to risks identified in CERCC Plan 2025.

Finally, this section lists measures that responsible entities must consider, implement and record in their RERCC Plans for 2026.

This section provides details of the consultation completed to inform the development of CERCC Plan 2026 - 2028. It summarises key areas of feedback and how this was addressed.

The appendices contain key information such as:

• waste service types prescribed as essential under the regulations (Appendix 1)
• definition of a responsible entity (Appendix 2)
• total amount of waste managed in Victoria, enabling entities to self-assess and determine their responsible entity status in relation to their share of the Victorian market (Appendix 3)
• the risk management, assessment and treatment processes used to inform CERCC Plan 2026 - 2028 (Appendix 4).