The Environment Exchange has revealed more than 1.7 million packaging recovery notes (PRNs) were exchanged on its t2e trading platform in the 2019 compliance year.
The figure marks a 17% increase from 2018 and comprises 1,093,011 tonnes traded on the spot market and 666,174 tonnes traded across forward markets.
PRNs are traded on packaging items recovered for recycling
Angus Macpherson, managing director of t2e, said: “This has been another challenging and costly year, with the average PRN price per tonne on t2e rising from £24.60 to £73.43, marking a 198% year on year increase.
“Despite concerns to the contrary, once again, the market-based PRN system has shown the flexibility to enable the UK to meet its packaging targets.
“Next year looks as though it will be equally challenging. t2e looks forward to being of service to all in 2020 and beyond.”
In total, the Environment Exchange says 3,757 contracts were traded on the t2e platform in 2019, up 44% on last year. High PRN prices saw a 248% increase in total contract value during the year.
The figures show that both aluminium and plastic saw prices around the £500 mark, which led to many in the sector calling for a form of ‘compliance fee’ instead of being made to pay such high fees.
Table shows the breakdown of PRNs traded on the t2e platform during 2019
Trading platform
Set up in 1998, the Edinburgh-based Environment Exchange aims to provide a transparent trading platform where members can trade PRNs.
The service includes transaction, clearing, settlement, delivery and information provision. The best available prices are displayed live on the platform’s trading boards.
Last year, the Environment Exchange says PRNs were traded for more than 1.5 million tonnes of material, which was said to have surpassed the previous in-year record set in 2016 (1,301,518) by 16% (see letsrecycle.com story). This has since been surpassed in 2019.
A comparison of 2018 versus 2019 traded volumes by PRN material
PRNs
Under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007, UK companies that produce packaging – typically retailers, packers, fillers and raw material producers – have a legal obligation to contribute to the cost of its recycling.
They do this by purchasing PRNs, which are issued by packaging reprocessors and exporters.
The legislation applies to companies who handle more than 50 tonnes of packaging per year and have an annual turnover of more than £2 million.
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Source: letsrecycle.com Packaging
