Defra is to launch a four-week consultation on amending targets for glass recycling, following findings in a report prepared for the Advisory Committee on Packaging (ACP).
The long-awaited GlassFlow report, which was published today (October 17), is understood to find that amount of glass on the UK market has been overestimated by around 350,000 tonnes per year.
It says that the amount of glass on the market is in fact closer to 2.4 million tonnes significantly lower than the circa 2.75 million tonnes estimated in the previous PackFlow report on which government glass recycling targets are based.
As a result of the latest reports findings, the ACP is recommending that the government revise the business targets for glass packaging recycling to around 77% of the obligated tonnage under the packaging waste database scheme. The current obligated target is 81%.
The ACP is calling on Defra to develop a timetable to enable making the amendments to business targets ‘as early as possible in 2014’. And, Defra has confirmed it will consult on whether to amend the targets as a result of the report.
First announced in April 2013, the GlassFlow study looks at the UKs glass packaging supply chain and seeks to better understand the causes of volatility in the market at the end of 2012 that lead to rocketing Packaging Waste Recovery Note (PRN) prices (see letsrecycle.com story).
The study was carried out by Valpak with the support of the Waste & Resources Action Programme (WRAP), the Advisory Committee on Packaging (ACP), Defra, the Environment Agency and British Glass.
It followed concerns that the overall glass market figure currently used by Defra had been exaggerated, leading to a higher than necessary business glass recycling target being set. Defra figures derive from the PackFlow study published by Valpak in 2009 and updated in March 2012.
Targets
Under the current regulations (see letsrecycle.com story), the business target for glass packaging recycling is 81% of the obligated tonnage until 2017.
This 81% figure is essential in the calculations on the National Packaging Waste Database (NPWD) in order for the UK to comply with the EUs overall glass recycling target of 60%. The EU target includes both business and local collection glass recycling rates.
Estimates for 2012 based on Defras current figures for glass on the market suggest the UK was just below the EU target glass recycling rate of 60%.
But, using the GlassFlow reports revised estimate of material placed on the market of 2.4 million tonnes rather than 2.75 million which also excludes around 100,000 tonnes of illegal imports the ACP estimates that the UK glass recycling rate in 2012 would have been around 68%, thereby comfortably meeting the EU target.
This higher rate of 68% emerges, the report shows, because in reality there was less glass on the market (around 2.4 million tonnes) than current estimated figures (2.75 million tonnes) suggested. Therefore, businesses recycled a greater percentage of the obligated glass tonnage than previously thought.
The findings of the GlassFlow report are potentially good news for obligated businesses, as if Defra decides to lower the 81% target for glass, it will be easier for the sector to meet its obligated tonnage and for the UK to meet EU targets.
But, the change in targets could also impact on glass PRN prices, which have remained relatively stable after the spike last year but are likely to decrease if the obligation is lower.
However, it is not yet known what impact End of Waste legislation, which came into force earlier this year, may have on PRN prices. The legislation will potentially see the issuance of PRNs move further down the recycling chain (see letsrecycle.com story).
Well received
Chairman of the ACP, Bob Lisney, told letsrecycle.com that the GlassFlow report had been well received by the glass industry as well as Defra.
‘We were set up to make policy proposals and recommendations and the suggestions so far are that they have been well received by Defra’
Bob Lisney, ACP chairman
He said: I am pleased with the reception in the industry. We were set up to make policy proposals and recommendations and the suggestions so far are that they have been well received by Defra.
Mr Lisney confirmed that the GlassFlow report called for Defras glass packaging recycling targets be changed, adding: I expect these recommendations to be taken on. WRAP and Valpak have worked hard on this.
He said: I do not think we can do any better than what we have come up with and it seems to me that it is really the sort of outcome which should enable us to get more information so we can manage targets and ensure the industry complies with these targets.
ACP
The ACP is also recommending that the figures for illegal imports of glass material should not be used to calculate the obligated tonnage. Illegal imports accounted for around 4% (104,660 tonnes) of total glass packaging on the UK market in 2012.
This means that up to 4% more recycling is needed to meet the target than by the directly obligated figures.
According to the ACP, the figures for illegal imports should not be used to calculate obligated tonnage as these are volumes over which producers have no control or responsibility under the EU directive.
Furthermore, the ACP recommends calls for monthly rather than quarterly market monitoring to pick up quicker on any market shortfalls and for producers to be briefed earlier by compliance schemes on the workings of the system and the way the market works.
British Glass
The GlassFlow report was also welcomed by Rebecca Cocking, head of container affairs at British Glass, who told letsrecycle.com that it would open up debate on the legislation.
She said: We have had discussions with Defra asking for a review, because obviously as we have seen this year, PRN prices are still quite high and lowering the targets will bring it down to something a lot more realistic.
She added: I am all for a review of the data to bring it in line with the reality to reduce the PRN burden on the supply chain. We are losing a lot to export, so hopefully reducing the targets will help with that.
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