A Chinese ban on importing waste has created an opportunity for Australia to take the lead with its own waste recycling industry, Josh Frydenberg says.
The federal environment minister is meeting with his state and territory counterparts in Melbourne on Friday to examine what's being described as a recycling "crisis".
Low-quality recyclables are piling up around Australia and some local councils are considering sending all recyclable waste to landfill following China's import ban.
"This has created enormous opportunity for Australia and working together at the three levels of government ... closely with the industry, we have an opportunity to show real leadership here," Mr Frydenberg said opening the talks.
A major focus of the talks will include a plan to address Australia's domestic waste recycling capacity, and waste minimisation strategies, including ensuring all packaging is recyclable, reused or composted by 2025..
The federal government wanted a stocktake of recycling facilities to determine where upgrades or new builds are needed, and continue work on waste-to-energy projects, he said earlier.
Prime Minister Malcolm Turnbull discussed waste-to-energy projects while in Germany this week and has pledged to do more in the sector.
"Australians are very good recyclers ... but we are going to have to do more," he told reporters in Perth on Friday.
But Victoria's minister Lily D'Ambrosio says the federal government had been "absent" from the discussion.
"They need to articulate what they can do as a government, as a procurer of products and as an investor in major projects to help to drive new markets and grow existing markets for the use of recycled products," she said.
"But it's also about reducing waste created in the first place."
The Australian Greens want the federal and state governments to fund a five-year program including a national container deposit scheme and waste streams for tyres, mattresses and e-waste.
As well, community groups would be offered grants to run reuse, repurpose and recycle ventures, education and awareness programs, and research would be funded into plastic waste reduction.
Queensland's environment minister Leeanne Enoch says the states and the federal government need to work with industry to ensure a dollar value is put on the use, reuse, repurposing and redirecting of all products.
The peak bodies for the waste and recycling industries have called for a "national circular economy and recycling plan", including a $150 million one-off investment to reboot the industry.
Australian Associated Press