UK will fail to meet 2013 EU target, experts warn

However, there was optimism among respondents to the 'Future of Waste PFI' survey that the UK would meet its targets for 2010 and 2020, with merchant facilities expected to play an important role in achieving the diversion from landfill required by the European Union.

And, legal firm Norton Rose, who conducted the survey, concluded that the market was “more optimistic” than when it carried out a similar survey three year's ago, with over half the respondents expecting the 2010 and 2020 targets, reducing waste to landfill by 25% and 65% of their 1995 levels respectively, to be met.

Speaking at a launch event for the survey yesterday (September 23), Amar Qureshi, the head of contracts for the government's waste PFI support body, the Waste Infrastructure Delivery Programme, acknowledged that the 2013 target was “challenging” and that “we need infrastructure on the ground”.

But, he claimed that there was “cause for optimism”, pointing towards the signing of the Greater Manchester and Cumbria treatment deals and the imminent opening of treatment facilities under the Northumberland PFI proof of progress.

And, he added that “when you look at whether we'll meet the target there's a number of factors need to be taken into account” – highlighting increasing recycling rates and falling waste arisings as being particularly important.

Barriers

The survey discovered that planning was seen as the main barrier to the delivery of the PFI waste programme, with 73.2% of respondents identifying it as such, with technology identified as the next most significant barrier.

As a result, the survey's authors state that: “Clearly more needs to be done to address this problem. Although complicated in all industries, the difficulties of planning are exacerbated by the very nature of waste and arguably this should be higher on the government's agenda.”

And, in terms of technology, Norton Rose noted that: “We expect this issue to resolve itself as certain technologies become tried, tested and then adopted by the market.”

The concerns over meeting the 2013 target echo points raised in a National Audit Office report published in January 2013, which claimed there was a “very real danger” of the goal being missed (see letsrecycle.com story).

Merchant facilities

The Norton Rose survey's results revealed that 96.6% of respondents believed the private sector had a “vital” role to play in helping the UK to meet its diversion targets, and the report's authors claimed that, with PFI credits “expected to dry up in the next few years”, merchant facilities would have more of a role to play.

The report said: “The emphasis will be on private companies to find ways to take forward waste projects on a merchant basis.”

“A number of sponsors highlighted their desire to develop merchant facilities as they allow them to focus on making more commercial decisions rather than going through a tender process and also being limited by provisions in PFI contracts. As such, PFI could be well utilised alongside alternative solutions,” it added.

Future issues

The survey identified three issues as being key to the future of waste PFI: the standardisation of waste PFI contracts; concerns over the lack of markets for waste by-products, which 54% of respondents saw as a problem; and, the opportunity to derive more energy from waste.

Mark Berry, a partner at Norton Rose, claimed that, in terms of energy from waste, “there are some real opportunities being missed”, and added that “I think waste and energy policy should be better organised”.

Commenting on the issues in relation to standardisation, Mr Qureshi said: “We recognise that waste is difficult; we recognise that further flexibility needs to be added to waste PFI procurement.”

He pointed towards WIDP's work on the standard contract it is developing to be used in procuring waste PFI, which was issued for consultation in July 2009 (see letsrecycle.com story) noting that “I think there's a general recognition around central government around the issues regarding waste contracts and that flexibility”.

And, he revealed that “we hope to be in a position to get the final contract out in the next couple of months or so.

Defra

In response to the survey's results, a Defra spokeswoman said: “We are on track to meeting the 2010 target, however, we recognise that the 2013 and 2020 targets remain challenging and local authorities need to continue their good work to date.

“The Government is providing £3.2 billion in PFI funding to support the building of waste management infrastructure to enable the country as a whole to meet these targets,” she added.