PRNs were traded for more than 1.5 million tonnes of material through the t2e platform during the year, an increase of 23% on the previous compliance year and surpassing the previous in-year record set in 2016 (1,301,518) by 16%, according to figures released by the Edinburgh-based organisation this week.
Set up in 1998, the Environment Exchange is designed to provide a ‘secure and transparent’ method of trading PRNs. The service includes transaction, clearing, settlement, delivery and information provision.
PRNs are issued by packaging reprocessors and exporters and are used by schemes as evidence of recycling and recovery for their clients, typically retailers, packer/fillers and raw material producers. This is under the 1994 Packaging and Packaging Waste Directive, implemented in the UK through the PRN system.
According to t2e’s 2018 figures, PRNs were traded on around 863,397 tonnes of material through the spot market, while 644,870 tonnes were traded across forward markets. A total of 2,608 contracts were traded on the t2e platform in 2018, up 39% on the previous year.
‘Challenging’
Commenting on the figures, Angus Macpherson, managing director of t2e, said that 2018 had been a ‘challenging year’ for packaging compliance, despite the increase in trading across the platform.
“Next year looks as though it will be equally challenging. t2e looks forward to being of service to all in 2019 and beyond.”
Angus Macpherson
The Environment Exchange
He said: “To all appearances, once again, the market-based PRN System has shown the flexibility to enable the UK to meet its packaging targets, despite concerns to the contrary.
“Next year looks as though it will be equally challenging. t2e looks forward to being of service to all in 2019 and beyond.”
According to t2e, the 2018 results show that it has been a year of “unprecedented high” PRN prices, with some of the average prices on the platform, such as wood and paper PRNs, rising by more than 500%.
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