The latest provisional monthly packaging data published by the Environment Agency has suggested that all materials have met the 2019 packaging targets.
The monthly data was published on 10 January and gives an insight into supply figures for December, showing the overall figures from 01 January 2019 – 10 January 2020.
However, unlike the official quarterly figures, submitting monthly data is optional and therefore subject to change.
However, initial reaction from the figures has been positive, with all material data so far pointing to a successful compliance period, with all targets being comfortable met.
Earlier in the year, there had been concerns that plastic and aluminium could both miss their respective targets following a shortfall in the first quarter of the year (see letsrecycle.com story).
However, as outlined in the table below, it now appears likely that they will be comfortably met, and will also have some carry over from the year before, although plastic will have less than the previous year.
The data suggests that the targets for all materials will be met
System
The news was greeted with optimism from some in the industry, who have said that the figures highlight that the current PRN system is working.
“Stakeholders should be encouraged to see that money spent on PRNs enabled enough capacity to ensure that targets were met”
In a statement given to letsrecycle.com, Paul Van Danzig, policy director at the Wastepack Group, said the figures show that despite the “turbulent markets” last year, it is pleasing to see the targets are likely to be met.
“It is great news to see that the 2019 target is likely to have been met. Last year was very turbulent with PRN prices in some materials reaching levels never experienced before. All stakeholders should be encouraged to see that money spent on PRNs enabled enough capacity to ensure that targets were met and that all obligated producers were able to meet with their statutory recycling obligations, which is exactly what the PRN system was designed to do when it was introduced all those years ago,” he explained.
Mr Van Danzig added: “Hopefully now, producers, schemes and reproccessors can work together to ensure that the recycling capacity remains sufficient enough to meet this years and future targets and in doing so hopefully, this will bring some stability to the PRN market, which will undoubtedly be welcome by all stakeholders”.
‘Eagerly awaited’
Martin Trigg-Knight, head of packaging at Clarity Environmental, was also positive about the figures.
He said that despite “nervousness” around some markets earlier in the year, the figures are positive, and also pointed to the carry over statistics.
“The December packaging data was eagerly awaited this year, with a nervousness amongst many that the key volatile grades – plastic and aluminium – were in danger of failing to meet UK targets.
There had been market concerns earlier this year that Aluminium would miss its target (Picture: Shutterstock)
“Production volumes were a cause for concern, and prices increased due the shortage of recycling evidence. By its very design, the PRN system is able to respond to low production volumes, with higher prices stimulating recycling. The December figures show the system doing what it was intended to and production now looks positive according to these latest figures, with a likelihood of healthy carryover for both aluminium and plastic. With targets increasing, this carry over will put us in a positive position for the coming year.”
Despite the likely success of meeting the 2019 targets, some in the sector see this as only being achieved because of particularly high prices for aluminium and plastic PRNs. Concerns remain that prices for PRNs, such as for plastics, could rise above the £500 mark this year and so discussions are expected to take place behind the scenes between obligated businesses and Defra over the possibility of some sort of compliance fee. The fee might provide an alternative way of complying if a business or scheme couldn’t obtain sufficient PRNs and so might take some of the price pressure out of the market.
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Source: letsrecycle.com Packaging
