But, Biffpack has expressed concerns that the targets are based on an assumption that obligated packaging tonnages will grow significantly next year.
The move to reveal clear business targets for the next five years (see letsrecycle.com story) has been seen as vital for providing industry with certainty in the run up to European recovery and recycling targets for 2008.
Packaging waste business recovery targets, 2003-08  |
The new material specific recycling targets will see quite a leap in some packaging materials from this year's 19% target as they increase in a straight line from the levels of recycling being carried out at present to the European requirement for 2008. But, compliance schemes are saying the new targets will be “challenging but achievable”.
Good demand for PRNs is expected next year, particularly in glass and aluminium, which have tough targets to reach compared to the current recycling performance, and in paper, which is likely to be an important component of reaching the UK's overall recycling and recovery targets. The government's decision to increase the amount of recovery through recycling should push demand for material PRNs as it reduces demand for Energy-from-Waste PRNs.
Commenting on the new targets, Valpak chief executive Jonson Cox said: “Valpak believe that the targets set by DEFRA are challenging but realistic if the UK is to meet its obligations within Europe. We believe the five-year profile of targets will enable reprocessors to invest with confidence. This will increase the supply of PRNs and minimise the cost of compliance for Valpak members.”
Mr Cox told letsrecycle.com that the linear nature of the target increases was the most “sensible” way to proceed, and would provide members with the “lowest sustainable cost” of compliance. The scheme sees the high glass target as vindication for its investment in commercial glass packaging collections over the last few years.
Mr Cox said: “It will be a tremendous comfort to our members to know that we have made these investments in glass, and have seen volumes collected continuing to grow.”
Assumptions
Biffpack has also expressed confidence that the targets will be achievable, but revealed concerns that the Department for Environment, Food and Rural Affairs has calculated targets using assumptions about how much obligated packaging waste will be reported in years to come.
DEFRA has based targets on the assumption that the amount of obligated packaging reported will continue to increase next year, from this year's 8.2 million tonnes to 8.6 million tonnes.
The scheme warned: “Biffpack has concerns over the assumptions made of the level of reported data on which these targets have been based, and hopes that these levels are achieved, otherwise it will see yet another year of lower demand on PRNs than expected.”
If next year doesn't see the predicted increase in obligation tonnage, the amount of reprocessing required to meet the 2004 targets would be lower, and a dampening of PRN prices could be the result.
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