Closing the Loop - Circular Economy Case Study

Action: Advancing Australia’s Recycled Materials Traceability and Circular Economy Outcomes through Global Data Standards

Close the Loop Govt Case Study Header Image
Overview

GS1 Australia, in partnership with Close the Loop, is strengthening Australia’s recycling and resource recovery sector through the adoption of global data standards that enable trusted traceability of recycled materials.

This collaborative project directly supports the Department of Climate Change, Energy, the Environment and Water (DCCEEW) and its National Framework for Recycled Content Traceability (NFRCT) - providing a practical pathway for implementation through standardised labelling and data exchange methods.

By developing a globally aligned standard label for bales of recycled material, the project has established the foundation for interoperability, operational efficiency, and credible verification of recycled content claims. This supports the Australian Government’s vision for a transparent and circular economy built on reliable, linked data.

Close the Loop Govt Case Study Background
Background / Context

Australia’s waste and recycling sector is a cornerstone of national sustainability and resource recovery policy. DCCEEW recently released the National Framework for Recycled Content Traceability, outlining how businesses should collect and share information on recycled materials to ensure transparency, verification, and market confidence.

Historically, traceability in the recycling sector has relied heavily on manual, paper-based systems with little standardisation. This created barriers to verifying recycled content claims and hindered circular economy outcomes. Recognising this, GS1 Australia and Close the Loop partnered to demonstrate how global identification and traceability standards - already used across manufacturing, logistics, and retail - can be applied effectively to the recycling value chain.

Through this project, Australia is leading the way in operationalising the NFRCT principles of interoperability, verification, and global alignment, bridging the gap between government policy and practical implementation.

🔗 DCCEEW: National Framework for Recycled Content Traceability (March 2025)
🔗 GS1 Global Traceability Standard

Objectives
  • Develop a standardised GS1-compliant label for bales of recycled materials to ensure unique identification and data capture at each stage of handling and transport.

  • Demonstrate alignment with the National Framework for Recycled Content Traceability (NFRCT) to facilitate trusted recycled content claims.

  • Support the recycling sector in adopting machine-readable, interoperable data systems that connect recovery, reprocessing, and manufacturing.

  • Provide an industry-tested model for scaling circular economy traceability across materials, industries, and jurisdictions.

Approach / Implementation
  • Co-design with industry: GS1 Australia and Close the Loop collaborated with recyclers and material handlers to prototype and test a draft standard label for bales of recycled material, following the GS1 Global Logistics Label Guideline.

  • Data standardisation: The label captures the minimum data required under the NFRCT - including batch identification, material type, and origin - using GS1 Application Identifiers to ensure consistency and interoperability.

  • Automation and verification: Each bale is uniquely identified using three machine-readable barcodes, supporting automated scanning, auditability, and alignment with ISO/IEC verification standards (17029 and 17065).

  • Integration with global frameworks: The approach ensures compatibility with international markets (EU, USA, Canada), aligning with global traceability and recycled content verification requirements.

  • Stakeholder capacity building: GS1 Australia provided technical support and guidance for recyclers and government stakeholders on how to operationalise traceability within existing systems.

📄 DCCEEW: National Framework for Recycled Content Traceability
📄 GS1 Global Logistics Label Guideline

Close the Loop Case study - Govt Approach image
Outcomes / Impact

Accountability and transparency: The standardised labelling system allows recyclers and manufacturers to make verifiable claims about recycled content and material origin, supporting ACCC guidance on green claims and reducing the risk of misinformation.

Operational efficiency: Machine-readable labels automate identification and reduce manual handling errors, improving logistics, sorting, and process visibility across the recycling value chain.

Market facilitation and trust: By providing consistent, interoperable data, the system builds confidence between buyers and sellers of recycled materials — enabling fair transactions, supporting trade, and strengthening Australia’s international competitiveness.

Policy alignment: The project demonstrates practical implementation of NFRCT principles, supporting DCCEEW’s objectives for traceability, verification, and circular economy acceleration.

"Traceability is an important part of our future plans and important for telling the full story of a circular economy. Using global standards is important to ensure alignment with global customer needs. All of this helps drive confidence in recycled materials and circularity claims."
-Steve Morriss, Head of Circular Economy at Close the Loop

Lessons Learned / Insights
  • There is currently no standard label for bales of recycled material in Australia; sector maturity varies widely. Establishing a national standard is critical to scaling digital traceability.

  • Applying existing global standards to recycled materials is cost-effective and promotes interoperability with downstream industries already using GS1 systems.

  • Verification of recycled content claims requires collaboration between recyclers, manufacturers, and accredited conformity assessment bodies (e.g. JAS-ANZ).

  • Traceability is not just a compliance requirement — it underpins circular economy credibility and market access for recycled materials.

Next Steps / Future Plans
  • Continue industry engagement with recyclers, reprocessors, and material handlers through the Australian Council of Recyclers (ACOR) and peak industry groups.

  • Support DCCEEW in promoting national adoption of the standardised label as a key mechanism under the NFRCT.

  • Extend the labelling model to cover additional waste streams (e.g., glass, paper, metals, organics) and integrate with product passport and digital labelling initiatives.

  • Develop guidance and training resources for recyclers to implement the labelling standard cost-effectively and consistently.

🔗 GS1 Circular Economy Resources
🔗 National Framework for Recycled Content Traceability

Partners / Stakeholders

Australian Government – DCCEEW (National Framework for Recycled Content Traceability)
Industry – Close the Loop (project lead), Australian Council of Recyclers (ACOR), material recovery facilities, and recyclers
Standards & Accreditation Bodies – JAS-ANZ, ISO/IEC, International Accreditation Forum
Technology & Solution Providers – GS1 Australia, label and data solution partners
International Alignment – GS1 Global, UNECE, ISO, WTO

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GS1 Australia Standards and Public Policy Teams
📧 publicpolicyteam@gs1au.org
📞 1300 227 263 or +61 3 9558 9559