Aluminium packaging recycling targets were met in 2004

However, the data does show a shortfall in the amount of evidence that available for packaging producers to buy in 2004 to demonstrate their recycling responsibilities under the Packaging Regulations.

”It is now clear that forward contracts, and the export of co-mingled collection tonnage, had an impact on the number of PRNs and PERNs issued last year.“
– Paul Martin, Alupro
This was because some reprocessors issued PRNs relating to recycling that was carried out in 2004 as 2005 PRNs.

Alupro also believes the increasing export of commingled household recyclables may have reduced the potential amount of aluminium PRNs that could be issued in 2004.

Shortage
The very end of last year saw the prices of aluminium packaging waste recovery notes – PRNs, the evidence bought by packaging producers from recyclers to demonstrate producer responsibility – jumping from 30 to around 70 for each note representing a tonne of aluminium packaging recycling. This was because there was seen to be a shortage of aluminium PRNs on the market.

Some organisations obligated to buy aluminium PRNs under the Packaging Regulations ultimately found it difficult to purchase their full obligation. Some of these are still waiting to see if the regulatory agencies will accept that they took “reasonable steps” in attempting to meet their full statutory obligation (see letsrecycle.com story).

But Alupro says that data it has obtained from the Environment Agency suggests that 2004 business targets were met for aluminium recovery. It says that final figures report 34,905 tonnes worth of aluminium PRNs as having been available to meet the 2004 obligation of 34,371 tonnes.

Carry over
The shortage seen in 2004 came, it said, because 1,121 tonnes of the aluminium PRNs issued in 2004 were “carried over” – they were issued as 2005 PRNs to go towards producer obligations for 2005.

Carrying forward PRNs is allowed under the Packaging Regulations, in a system that was supposed to provide a more flexible transition between compliance years. But, Alupro said this was done as part of contracted arrangements between reprocessors and obligated parties and resulted in the shortfall of aluminium PRNs for 2004.

This means that sufficient aluminium packaging waste was recycled in 2004 to theoretically meet the government targets under the producer responsibility requirements of the Packaging Regulations. But, there was a shortfall in the amount of evidence producers were able to buy to demonstrate their responsibility for recycling aluminium packaging in 2004, amounting to 587 tonnes.

Alupro also suggested that the growth in mixed-material household recyclables being exported abroad may have had an impact in the amount of aluminium PRNs that could be issued in 2004.

Alupro chief executive Paul Martin said: “It has taken a while to establish with our reprocessor members and the Agency the reasons for the lower-than-expected 2004 figures, but it is now clear that forward contracts, and the export of co-mingled collection tonnage, had an impact on the number of PRNs and PERNs issued last year.”

Questions
Questions are being asked about which organisations may have been responsible for carrying forward aluminium PRNs – and other limited-supply PRNs – into 2005, knowing that obligated producers would need them for 2004 (see letsrecycle.com story).

Alupro has added to calls for Defra to publish packaging waste recovery data sufficient to see a transparent market for PRNs. Mr Martin said: “We have asked Defra to take steps to tighten the regulatory framework in which the UK’s market-driven system operates, and to ensure that data is published in a way which does not require further interpretation.”

The effect of high PRN prices at the end of last year has carried through to 2005, with Alupro warning there has been some indication that both buyers and sellers are “holding back from commitment”.

But Mr Martin said: “Having discussed the situation with both UK reprocessor and exporter members, there is every reason to think that there will be sufficient PRNs to meet 2005 targets.”