The government is backing a new initiative it's hoped will lead to thousands of tonnes of plastics being recycled.

Drop-off bins for things like shopping bags, bread bags, frozen food bags and food wrap are to be installed at a number of stores.

At the moment they can't be recycled in New Zealand, but now they will be turned into park benches and playgrounds.

Environment Minister Nick Smith says the government is chipping in with a $1.2 million grant.

He is confident it's the right approach, saying the initiative has been trialled in Australia and saved thousands of tonnes of plastic going into landfills.

Nick Smith said it's more sensible than a ban or levy on just plastic bags, as it covers the full spectrum of soft plastics.

The project will initially trial at New World, PAK'nSAVE and The Warehouse stores in Auckland in September, before being rolled out to Countdown stores and other centres.

Manager of the Public Place Recycling Scheme Lyn Mayes says the soft plastics will be recycled into things like park benches and recycling bins.

Mayes said research shows people are keen on the idea, with 61 per cent of those surveyed saying they would recycle their bags this way.

That went up to 79 per cent when people heard what their rubbish would be turned into.

"We know there is a real appetite here for people to start recycling these products."

But Green Party waste spokeswoman Denise Roche believes ultimately, single-use plastic bags need to be completely phased out.

"They're the ones that cause real damage to marine animals and when they're in the environment they're incredibly dangerous to everyone really."

"The government needs to show some real leadership about this. We're really falling behind international practice."

Roche insists most other western countries are curtailing the use of plastic bags.