End of waste tag for metals to impact on PRNs

Europe's metal recycling sector is set to win a major regulatory victory with the European Union expected to confirm criteria for scrap metal which mean that when these are met, the material is no longer waste when transferred from the producer to another holder.

Until now the steelworks or aluminium smelter has generally been seen to be the reprocessor of the material and, until the metal arrives, it has been deemed waste in line with European Court of Justice case law.

But, while the metal recycling sector and European sector body the Bureau of International Recycling are set to celebrate the EU's ruling, the case will create problems for the UK's Department for Environment, Food and Rural Affairs.

This is because the UK's packaging waste system is based on the principle that the evidence for recycling – the Packaging Waste Recycling Note (PRN) – can only be issued by reprocessors, such as steelworks. The change in European regulations could mean that the UK's packaging waste system is undermined – when first brought in there was fierce debate about which stage of the chain could issue PRNs.

Defra has recently taken the view that the EU change “may have implications for the UK's producer responsibility scheme for waste packaging and businesses accredited to issue evidence notes”.

In favour

The fact that the EU move will impact on the packaging waste system is not thought likely to prevent UK ministers voting in favour of the new end of waste critieria for metals which will be voted on under qualified majority voting at a meeting of the revised Waste Framework Directive technical adaptation committee on September 16 2010. If approved, the new criteria would come into force six months later, in March 2011.

The metals sector sees the EU move as a welcome acceptance that its products are valuable resources. One industry member said: “We have been making this case for many years and this is a welcome shift of focus. Everyone needs to be encouraged to think of these materials as resources. Our industry has invested heavily in separation equipment and shredded scrap is almost 100% metal.”

The acceptance of criteria means that the export of metals will no longer be covered by the transfrontier shipment regulations, which will reduce costs and paperwork in the sector as well as giving the UK and other European states a more level playing field. Other nations including the US and Japan do not have comparable controls on metal exports and so have advantages in competing on the world stage.

Packaging

Defra is now expected to start looking at the PRN system, although any changes would be unlikely for 2011. However, it could be that the decision in the metals sector will lead to requests by collectors and handlers of material to be eligible to issue PRNs.

In terms of overall costs, at £84 million last year, the packaging recycling sector is small in comparison to the overall metals sector.