The UK's largest packaging waste compliance scheme was given the final go-ahead by Patricia Hewitt, the Secretary of State for Trade and Industry, based on the recommendations of the OFT.
The Environment Exchange provides an online marketplace for compliance schemes, obligated companies, reprocessors, exporters and their representatives to buy and sell packaging waste recovery notes (PRNs).
The purchase has made some PRN traders nervous, but Valpak has a “blind” agreement in place which ensures it cannot gain information on dealing that is not available to other traders. Valpak sees the OFT's green light as confirmation of this safeguard.
A Valpak spokeswoman told letsrecycle.com: “We're delighted to have the clearance from the OFT, it sends a clear signal out to industry. We very carefully structured this venture to ensure it would not compromise the interests of other market traders and were always confident it would be cleared.”
The spokeswoman confirmed that the majority of Valpak's PRNs would continue to be obtained through long-term contracts. She said: “It's always been Valpak's philosophy that we commit to long-term contracts, but the environment exchange is a useful adjunct to that.”
Subscribe for free