letsrecycle.com

Packaging targets met for 2022 but carry-over ‘decimated’

Packaging waste recovery note (PRN) data published by the Environment Agency has shown that recycling targets were only just met in 2022, with evidence from 2021 needing to be added in.

Targets are to remain similar to 2024, except for wood and general recycling

Producers buy PRNs to show they have contributed towards the recycling of the packaging waste from products placed on the market. Producers (from raw material producers through to retailers) are set targets each year and generally use a compliance scheme to manage this.

A national target is set for each material, which compliance schemes and producers must meet.

If there is excess evidence against the target for one year, this can be carried over into the following year.

The quarterly data published on Friday, 31 March  for Q4 2022 showed that plastic, steel and glass all had to make use of carry-over PRNs from 2021 in order to hit their 2022 targets, which means there is less to use for this year. It has been estimated that carry over figures are around 75% down year-on-year.

The data for Q4 shows that targets for the year were hit, but were very tight (click to enlarge)

Prices

While a lack of carry-over PRNs could lead to even higher PRN prices as there is less evidence to contribute to targets, this has not been the case so far, according to Martin Trigg-Knight, director of compliance services at the Clarity Environmental compliance scheme.

Martin Trigg-Knight is director of compliance services at Clarity Environmental

He said: “The data showed very low carry-over figures across all grades. In most Q1’s we might see this cause problems, and a potential hike in price for PRNs, but Q1 recycling data so far, as released in the voluntary monthly data for Jan and Feb shows stronger progress than last year so far – an increase that is likely to be due to the high PRN prices at the end of last year and the start of this year driving the industry.

“We eagerly await both the monthly data for March, and the full Q1 data in later April to see whether this pattern continues. We also eagerly await updated obligation figures to see whether the recession has had any impact on the demand volume for 2023.”

Carry over

Tom Rickerby, head of trading at the Environment Exchange (t2e) PRN trading platform, told letsrecycle.com that despite record PRN generation in the final quarter, up 12.5% on the average of the previous three quarters, “overall 2022 supply struggled to meet strong demand growth”

He added: “Only wood generated enough PRNs in-year to hit it’s target. Carry-in volumes have been decimated (down 72%) as a result and the market is already pricing in another challenging year.”

Non-compliance

Further fears have also been raised about the potential for non-compliance in the data.

360 Environmental, the consultancy firm run by former ACP chair Phil Conran, said on Twitter: “Final 2022 packaging data published showing relatively strong Q4 but lowest carry forward tonnage since 2008.

“Shortfalls in plastic, aluminium, glass and net recycling indicate significant non-compliance. Revenue report shows £490m total PRN spend.”

It would though appear that the UK obligation for 2022 exceeded the number of PRNs issued

  • David Daw, Valpak

Demand

David Daw, projects analyst at Valpak, explained that while the lower carry over of PRNs is a cause for concern, demand for PRNs is likely to be “somewhat lower” in 2023 as the amount of packaging placed on the market last year has fallen.

He added that product sales volumes “decreased especially” during the second half of 2022, a trend which has continued into 2023.

Mr Daw added: “Producers have also been making continuing moves to both reduce packaging use and increase recyclability.  There are 26 more reprocessor and exporter accreditations already this year than at the end of 2022 and it is expected that several more will become accredited before the end of the year.

“It was particularly pleasing to see that UK plastic reprocessing has increased again from just under 593Kt in 2021 to nearly 619Kt in 2022, a trend we hope to continue in 2023 with additional recycling capacity coming online. Valpak has supported this over the years by purchasing UK reprocessed evidence where possible.

“As it has every year since the start of the regulations, Valpak complied on behalf of its members for 2022. It would though appear that the UK obligation for 2022 exceeded the number of PRNs issued.  We assume the UK’s Environment Agencies will investigate this and act where necessary.”

Share this article with others

Subscribe for free

Subscribe to receive our newsletters and to leave comments.

Back to top

Subscribe to our newsletter

Get the latest waste and recycling news straight to your inbox.

Subscribe