OPINION: In the final weeks of 2024, the resources and waste sector is grappling with a multitude of legislation passing through Parliament. This includes the Extended Producer Responsibility (EPR) and Deposit Return Scheme (DRS) statutory instruments, alongside recent progress on Simpler Recycling.
What does all this mean? Well, it sets the stage for next year to mark a landmark milestone in the UK’s drive towards circularity, as an ambitious Labour government embarks on its first full year in office. While the past few years have been categorised by stalemate and frustration on the path to progress for recycling reforms, now is a crucial window to get proposals match fit in the drive towards a zero-waste economy.
Ahead of the new year, there is a small window for the government to set itself up for success in 2025. But time is running out – and we need to see fast action from Defra to ensure the UK maximises recycling rates and reduces environmental impact.
Simpler Recycling is moving in the right direction
The decision to make separate collections of paper and card the default is a significant step forward. For our industry, this is essential to producing high-quality recyclate, which is critical for materials to be recycled into new fibre-based products.
Industry can breathe a sigh of relief to see a revision of proposals, which, previously, supported exemptions which would have led to poor quality, low-value recyclate and less industry investment in innovation. Undoubtedly this positive news is a springboard to ensure all upcoming reforms work together in the true interests of circularity. We look forward to collaborating with Defra and WRAP in the months ahead to support their work on the additional guidance and application of TEEP. A consistent and evidenced-based application of TEEP is vital to achieving genuine improvements in quality.
Ensuring EPR embeds continuous improvement in recycling
We must not forget it isn’t just Simpler Recycling progressing at speed – multiple reforms are being implemented at similar timescales and must be considered in tandem. Cue Extended Producer Responsibility. CPI welcomes the ambition of EPR in embracing the ‘producer pays’ principle, and taking the burden of collection costs away from local authorities during a time when public finances are already squeezed. Yet, current plans for the scheme will result in unintended consequences, including increased prices on supermarket shelves, and material switching to less sustainable packaging. Unless EPR funds are ringfenced and specifically channelled towards sorting and reprocessing of recycling, rather than other public services, there is not only a risk, but a high likelihood of undermining efforts to transition to a more circular society.
The theory of EPR is there – but the detail still needs ironing out. At present, EPR fees resemble a packaging tax and contrary to the ambition of EPR in driving costs away from consumers, the proposed fees could have an inflationary effect on paper and card products, due to higher per-unit costs. This could reduce the UK’s competitiveness with other markets and potentially lead to less domestic production, as producers seek to import cheaper materials from abroad where suppliers incur lower EPR fees.
Meanwhile, central to EPR’s success is the Recyclability Assessment Methodology (RAM). We urge Defra to ensure the RAM identifies the complexities of paper and card packaging products and ensures that they are going to mills that can reprocess them efficiently. As it stands, the proposed thresholds in the RAM’s second iteration fail to meet industry standards, resulting in high levels of contamination. Not only will this complicate the recycling processes and lead to high levels of rejects, but it will create an environment where designers of packaging products have little incentive to minimise the level of contaminants in their products, such as plastic, and reduce other harmful components.
The policy change we need from Defra in 2025 is for all the reforms to work collectively towards a robust, quality-based recycling regulatory framework for the UK’s Paper-based Industries.
Collaboration is key
With so many plates spinning at Defra, we want to work hand-in-glove to deliver expert policy change – to boost growth, reduce waste, and keep prices affordable for consumers. This can only be delivered by policymakers in partnership with industry experts, so we call on Defra ministers to meet with the paper and card industry without delay, so we can build a truly effective recycling system with the right outcomes.
It is no secret that next year marks a critical juncture as the government progresses generational changes to waste and resource policy – and it is absolutely paramount we get this right, starting today.
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