Brexit would not break up the UK’s recycling industry

This month we will find out the date when the UK decides whether to stay in or leave the EU.

A number of recent polls point to the UK ‘remaining in’, with one showing an 18 point lead to continue the status quo, only 10% undecided. Another suggests 65% will vote to stay.

There is no doubt however that momentum for the ‘out campaign’ is building, with the risk of leaving jumping from 30 to 35%. This could be due to increased media coverage of the debate, and also the conflation of the migration crisis with the Brexit camp, according to a report by the private bank Berenberg.

Debate

Media pundits and commentators also have a tendency to talk up opposing sides, and this is as true in the waste and recycling press as the mainstream media.

ecosurety has been watching the debate very carefully. Our role is to consider the impact of either option on our members, who are understandably concerned about what steps to take in the short to medium term in the event of a shock exit.

In the world of waste and recycling, there will be no noticeable difference on the ground whether the UK stays in or decides to get out of the EU this summer, we believe.

There are three reasons for this. Firstly, leaving will put us in the same position of other non-EU member countries such as Norway and Switzerland, which have simply elected to adopt EU Producer Responsibility legislation.

Red tape

Given the government’s desire to keep red tape to a minimum, it’s unlikely to want to create a new raft of waste laws. We believe the government will maintain the principles of the EU Directives even if we are not in Europe and that producers will still be required to disclose obligations.

Secondly, producers that already trade significantly within Europe, or are based inside Europe, will have adopted the requirements to meet European legislation. Our waste industry is already on the same page as Europe’s, whether we are in, or out.

Finally, other countries are now increasingly looking to adopt producer responsibility legislation created by the European model. Producers trading inside Europe will have already made the necessary changes, those looking outside will find more countries will working within familiar frameworks.

The key drivers to recycle in the UK comes from increasingly scarce room for landfill, and associated costs and management of such sites. Despite our ties to Europe, we are first and foremost an island and we will always need to take responsibility for the waste created within our boundaries.

The UK has also taken to reclaiming products or materials that would otherwise clog up landfill sites, so called ‘urban mining’, due to the growing use of secondary raw materials (recyclate).

Commodity prices

While low commodity (and therefore recyclate) prices are causing headaches for recyclers, and additional compliance costs for producers, they have, combined with low oil prices and the strength of the pound and raw material prices, actually benefited UK manufacturers. Balanced against this is the fact there could be additional costs and complexity for smaller manufacturers when sending finished goods to the EU in the event of a Brexit.  A strong Pound may also hinder our ability to export – either inside or outside the EU.

But these are all details. Overall, the UK’s recycling industry will not be as affected by the results of the referendum as by the long-term pressures on the UK to deal with its own waste.

ecosurety

For the record, ecosurety, regardless of its role with Producer Responsibility, supports a UK remaining inside Europe. On the whole, the system is working well. But an in-out vote is nothing more than a red herring, if nothing actually changes on the ground. Our main concern after a ‘no’ vote will be helping our members thrive.

The bigger issue is the gathering momentum of the circular economy across the globe, because the UK is nowhere near ready for it, and no vote is going to fix that.