A group of UK plastics recyclers is calling on the government to split the packaging recycling target for plastics in order to prevent a step change towards export and away from UK reprocessing.
The British Plastics Federations Recycling Group whose members include Eco Plastics, CK Polymers and Jayplas claims the current system makes it more attractive to export material than to recycle it in the UK.
“Our proposal purposely does not undermine the competitive principles of the existing system”
Roger Baynham, BPF Recycling Group
It is proposing the current material-specific target for plastics be split so that a certain percentage has to be met by UK reprocessing and a certain percentage met by export, with the export fraction gradually decreasing over time.
The Recycling Group explained that when the Packaging Regulations were introduced in 1997, packaging producers could only meet their obligations to pay towards the costs of recycling packaging by purchasing Packaging Waste Recovery Notes (PRNs), issued by UK reprocessors. The idea was that the money be used by reprocessors to increase the volume of material recycled.
However, SEPA and the Agency began to accept shipping documents as evidence of overseas recycling, which came to be known as Packaging Waste Export Recovery Notes (PERNs).
‘Stagnated’
Since this time, the BPF said that the export market has effectively been the means by which all subsequent increases in the recycling targets have been met and has grown significantly, while UK reprocessing has stagnated.
The Group claims the PRN/PERN system delivers a massive boost in favour or export because because contamination within exported waste earns PERN income, whereas PRNs can only be issued against material which is recycled by UK reprocessors. What is more, the cost of disposing of contamination is higher in the UK than overseas.
The BPF Group also claims that it is more attractive for waste management companies who are accredited to issue PERNs to export waste plastics packaging because this way they receive the PERN income, whereas if they pass it to a reprocessor it is the reprocessor who receives the PRN income.
The Recycling Group argues that the system has led to a distortion in the market, because it means that reprocessors have to pay more for feedstock to prevent it going for export and cannot use it to develop end markets.
So long as these deficiencies in the current PRN/PERN system remain, the desired outcomes originally conceived for the UK when the PRN system was first introduced are unachievable, it said.
The Recycling Group is proposing a modest change in the Packaging Regulations which it says would follow the same precedent that has already been enacted within the glass sector. From 2013 glass packaging recycling targets are to be split according to end use to incentivise more material to be sent to remelt instead of aggregates (see letsrecycle.com story).
Proposals
The Recycling Group proposes that obligated businesses be required to obtain a steadily increasing percentage of their evidence from UK reprocessed tonnage. It has suggested a road map with an equal 50:50 split between the two routes in 2013, progressing to a 70% target for UK reprocessed tonnage and 30% unprocessed export tonnage by the year 2017 (see table).
BPF Recycling Group chairman Roger Baynham said: Our aim is to help create a quality driven waste infrastructure which would place the plastics recycling sector in the vanguard of the UKs emerging low carbon manufacturing revolution and in so doing future proof markets for plastic waste.
“Our proposal purposely does not undermine the competitive principles of the existing system and we are delighted that BPF and in particular its Packaging Group have endorsed this proposal to improve the efficiency of the plastics recycling chain. Critically such a strategy would drive investment and help the UK plastic recycling sector to develop knowledge and technologies which can be exported round the world.”
Earlier this year, the BPF attacked the government for plans confirmed in Budget 2012 to introduce higher plastics packaging recycling targets from 2013-17. Targets for businesses are set to rise to 57% by 2017 which the BPF warns could cost industry 70 million and is unachievable (see letsrecycle.com story) .
Today, recycling minister Lord Taylor is laying out plans for a plastic bottle recycling push to help meet the plastic packaging recycling targets (see letsrecycle.com story).
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