The ‘Circularety’ online platform – which is currently in an early ‘Beta’ phase – aims to enable producers obligated under the Packaging Waste Regulations to seek out approved reprocessors and invest their PRN money in ‘concrete’ projects, ecosurety claims.
Under the Regulations, producers are required to pay towards packaging recycling by buying evidence in the form of packaging recovery notes (PRNs) from reprocessors and exporters.
The money raised through this system has been fed back into areas including recycling infrastructure and capacity, helping councils to fund communication strategies and collections, and new reprocessing capacity.
Under ecosurety’s Circularety platform, reprocessors will be able to use the website to showcase the projects that producers can invest in, ‘attracting larger sums for investment’. This has been designed to tackle claims that the existing system offers little transparency over where the money is channeled.
How it works
On choosing a project, producers registered with ecosurety would commit to purchasing a specific number of PRNs from a chosen reprocessor at a set price with the proceeds guaranteed to be invested into a chosen area.
The website would then automatically generate an invoice and a record which counts towards the producer’s PRN obligation.
Each listed project has a description, a photo and options for a video, and is searchable according to material and PRN type as well as location and the deadline it needs to be completed by.
Producers will receive a report detailing where and how their money has been spent – which they can use for their own marketing purposes – while reprocessors will be spot-checked to ensure they are delivering the project.
ecosurety adds that there will also be ‘penalties’ at a contractual level should the reprocessor renege on the agreement.
Reprocessors will be able to register with the Circularety system from today, with the system planned to be launched for producers in January 2017.
Revenue
The Circularety launch comes at a time of increased scrutiny into the PRN system, with both producers and reprocessors calling for increased transparency into how the revenue from PRNs is spent.
James Piper, managing director of ecosurety, said: “The PRN system is a good one in itself, because it has helped the UK to significantly increase its recycling rates over the years. However, producers and industry bodies have expressed concern about the system, which does not encourage transparency, particularly in relation to what happens to PRN money once obligations have been purchased.
“Circularety means for the first time producers will be able to choose exactly where their PRN money is spent, and reprocessors will be able to put forward concrete investment projects that will benefit the recycling industry. We anticipate Circularety will remove price volatility from the PRN system caused by uncertainty over PRN supply and demand.”
Register for free to comment