UK firms fail to meet packaging recycling targets
failed to comply with the UK Packaging Waste Regulations in 2004,
according to compliance expert Valpak.
The company's comments come in response to the recent release of Defra's recovery and recycling figures for the fourth quarter of 2004. According to Valpak, these figures show that in 2004 the UK failed to meet intermediate recycling targets in aluminium, steel, plastic, and the overall general recycling target.
One reason for this is that the run rate increased significantly during the fourth quarter. This impacted on the carry-out figures which are higher than expected, especially as the UK failed to meet some of the 2004 targets.
The European Packaging and Packaging Waste Directive of 1994, recently revised in 2004, sets new, even more challenging and differentiating, recycling targets for all packaging materials. In this new legal frame, metals have to achieve a 50 per cent recycling rate in 12 European countries by 2008.
PRNs and Packaging Waste Export Recovery Notes (PERNs) provide the evidence that businesses need to prove they have met the requirements of the Packaging and Packaging Waste Regulations. They are sold by accredited reprocessors and exporters in exchange for waste. Alternatively, obligated businesses can join compliance schemes who buy PRNs on their behalf.
Valpak notes that the total number of PRNs purchased in 2004 failed to meet the overall general recycling target by just 80,000 tonnes. Plastic PRNs fell short of the material specific target by over 40,000 tonnes, taking account of carry-out exceeding carry-in in 2004.
This is partly due to the impact of last year's investigation into fraud which saw a reduction of 80,000 tonnes of PRNs recorded in 2003 as they had been inappropriately issued. The 2004 figures demonstrate that the PRN market struggles to react to such large volumes of material being removed from the system over such short periods of time.
"We welcome the timeliness of Defra's release of the figures," said Valpak chief executive Steve Gough. "These figures are broadly in line with our expectations and indicate the challenges we face in meeting the targets as we move towards 2008."
Gough says that the figures illustrate that significant tonnages of PRNs which were available at the beginning of the year were actually only purchased towards the end of the year. This suggests that either reprocessors held onto PRNs in the hope of getting higher prices, or that compliance schemes and obligated companies held back purchasing in the hope of lower prices at the end of the year.
"Valpak believes that it is irresponsible of compliance schemes, and contravenes agency guidelines, to leave purchasing the bulk of their obligations until the final quarter of the year," he said. "The numbers confirm recent discussions with our reprocessors that the market will remain tight in the foreseeable future. "Sustained procurement throughout the year allows reprocessors to plan more effectively, as we all work together to increase UK recycling infrastructure to meet the ever-increasing targets."
Gough says that it may be time to consider implementing a penalty PRN system for non-compliance. A mechanism could be put in place to charge a variable penalty sum for each material shortage, based on a multiple of the most expensive price paid for that material during the compliance year.
This, says Gough, would ensure that these funds are recycled and invested back into the UK recycling infrastructure.
"These figures demonstrate the need for continued investment and strengthening of the PRN system in order to drive recycling rates up. However, it is encouraging to note that the material accepted for reprocessing increased significantly in paper, glass, wood and plastic towards the end of the year. This bodes well for the achievement of the general recycling and plastics targets in 2005."
Valpak Packaging Compliance is the core business of Valpak. The company is a leader in packaging waste compliance and has over a 50 per cent share of the UK packaging compliance market, assisting more than 5,000 UK businesses each year to meet their obligations under the Packaging Waste Regulations.
