Long-term investment in glass reprocessing could go abroad

This January sees the start of the scheme which sees industry set strict limits on the amount of carbon dioxide they can emit into the atmosphere.

• Click here to read the full interview with Andy Hartley.

But although voluntary measures that have seen the glass industry slashing their emissions by half in the last 25 years, the government has allowed glass makers insufficient emissions allowances for required production levels.

The industry also faces an increase of up to 40% in their 125 million energy bill because power generators and fuel providers will pass on their emissions trading costs to customers. For an industry employing over 11,000 and supporting over 20,000 jobs in its supply chain, this could have huge implications in the long term according to trade confederation British Glass.

In an exclusive interview with letsrecycle.com published today, British Glass director of strategy and communications Andy Hartley said global packaging producers were already considering switching long-term investment to other countries, which may have more favourable environmental legislation.

He said: “The managing directors of glass companies who do business across the world are deciding where to invest, and it does not look good here.”

Demand
Mr Hartley said the emissions trading scheme will mean glass makers will want to use more recycled glass in their manufacturing process. But he warned that reprocessors would not necessarily be in a position to offer higher prices for recycled glass because the cost benefits towards the sector's own emissions trading would be outweighed by the additional costs from the energy companies.

Mr Hartley said: “The impact of the emissions scheme on business is much greater cost, so it puts pressure on the business not to pay out more for its raw materials.”

Prices for recycled glass have been very stable in recent months, although with many local authorities opting to switch to collections of mixed glass rather than providing colour-separated bottles and jars, reprocessors have been paying slightly less for mixed this month.

For the full interview with Andy Hartley, see the letsrecycle.com features section.