Confidence in the PRN system could be improved with a couple of “minor modifications”, according to Angus Macpherson, the managing director of The Environment Exchange PRN marketplace.
PRNs are the “currency” used in the UK's producer responsibility system for packaging waste. The notes are issued by reprocessors against material that has been recycled and these are then purchased by obligated packaging waste producers as evidence they have paid for their obligation under the regulations.
Once we have got that balance in there will be a tighter market and there will be greater confidence for all
Angus MacPherson, The Environment Exchange
Mr Macpherson said that the system provided millions of pounds in support for the recycling sector each year – which was additional income which could be used to grow businesses. Half of this went to the glass sector, he explained.
However, he said that if the market was “put more in balance” then it would operate more effectively. This is particularly important at the moment because PRN supply is far outweighing demand.
While this has traditionally been done by raising targets each year, this alone has not always been effective and Mr MacPherson said that better auditing of obligation and PRN supply was needed.
He said that PRN obligation seemed to fluctuate according to the price of PRNs as opposed to how much material was placed on the market – suggesting that some obligated companies were wriggling out of their obligations if the price of packaging recycling evidence became too high.
On the subject of PRN supply, he added that there was some tension between the Environment Agency and industry over who was responsible for policing it – and ensuring that reprocessors who were issuing PRNs were actually carrying out genuine recycling.
Speaking at the RWM exhibition in Birmingham last week, he said: “Once we have got that balance in there will be a tighter market and there will be greater confidence for all – the recycling industry and those paying for it.”
Review
Mr Macpherson said that it was difficult to talk about the PRN system at the current time because it was currently under review. The previous government launched a consultation on targets and transparency in the system earlier this year, but the new government has yet to put out its response or set targets for 2011.
On this subject, he said: “In my view it is extremely unlikely that the baby will be thrown out with the bathwater and PRNs will be there tomorrow as well as today.”
More about government policy on packaging waste and future targets will be discussed at letsrecycle.com's one-day conference in London on September 30, entitled Fresh Horizons for Packaging Waste.
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