What is being seen as a shortage of plastic and aluminium PRNs has driven the UK’s packaging waste compliance sector to call on government to implement an urgent change to the system.
At present, the UK has a purely market-based system where obligated businesses, mainly via compliance schemes, have to purchase PRN evidence. If they fail to acquire sufficient PRNs, they can be prosecuted by the Environment Agency (and counterparts in Scotland, Wales and Northern Ireland), or agree a civil sanction.
Dr Therese Coffey has been written to about Plastics PRNs
Now, the Packaging Scheme Forum wants to see the introduction of a Compliance Fee in 2019 so that if there is a shortfall of PRNs, in particular as evidence of plastics or aluminium recycling, businesses could pay a fee instead. A compliance fee has been introduced in recent years to the UK’s system for Waste Electrical and Electronic Equipment (WEEE).
The call by the Forum comes against a background of rising PRN prices – some plastic PRNs were trading last week at £370 or more. Concerns about higher PRN prices and a potential shortage has prompted a mood of concern among obligated businesses, such as retailers. The high prices are also causing cashflow pressures within compliance schemes.
Recycling projects
Supporters of the PRN system as it stands say that it is doing “absolutely the right thing” and that the high value of PRNs will push more money into recycling projects. However, others feel that it can be unclear as to where some of the money goes and that investment decisions would not be based on the high level of PRN prices which are being seen now in plastics.
Compliance fee
Robbi Staniforth, chair of the Packaging Scheme Forum, in a letter to recycling minister Therese Coffey, says: “I am writing today on behalf of the Packaging Scheme Forum (PSF) to express our support for the introduction of a packaging compliance fee for the current compliance year 2019. A compliance fee would not be sought as a lower cost means of compliance but rather to provide some reassurance should the UK fail to meet its recycling targets.”
Mr Staniforth warns that “the PRN system has a proven track record in meeting the packaging recycling targets, but this year it may not be possible due to the huge challenges facing plastic recycling”. And, he adds that “aluminium also has specific challenges that need to be addressed”.
Robbie Staniforth, chair of the Packaging Schemes Forum, has written to Dr Coffey calling for a compliance fee to be introduced
It is pointed out in the letter to Dr Coffey, that in the past changes such as in the case of glass, paper and wood packaging have resulted in more PRNs being issued. But, the minister is told this is not the case this time with plastics.
Mr Staniforth states that: “In the case of plastic, exports accounted for 63% of PRNs last year. Prior to 2018, China was the main export destination for plastic packaging waste with the National Audit office reporting 40% of all plastic exports went to China in Q1 2017. The Chinese ban on the import of plastic packaging waste (unless pelletised) has led to exporters seeking alternative markets such as Malaysia, Indonesia and Turkey. Moving plastic packaging waste to Malaysia and Indonesia now appears to be difficult too and there are also doubts as to whether Turkey will continue to take volumes at the current level.
In the last half of 2018, plastic packaging recycling declined by 7.6% when compared to the first half of the year. Packaging recycling statistics show a further decline in Q1 2019.”
‘Fewer plastics recyclers’
He continues: “As it stands, there are fewer plastic recyclers/exporters this year than last. We understand the regulators are considering a number of new PRN plastic accreditations. In our view, it is unlikely that any new plastic accreditation applicants would be handling large volumes of plastic packaging waste given that current accredited recyclers/exporters have a competitive advantage with the support of high PRN prices.
“In 2019, it is very probable that there will be insufficient plastic PRNs for compliance schemes and producers to meet their obligations. Aluminium may face the same situation where there is insufficient evidence.”
A compliance fee mechanism, suggests Mr Staniforth, would provide the government and enforcement agencies with a constructive alternative to enforcement action, which also ensures that any compliance schemes or producers that are unable to meet their targets still contribute financially in a fair manner.
On Wednesday this week the Department for Environment, Food and Rural Affairs’ Advisory Committee on Packaging will meet in London to discuss the situation. It is expected that Defra and Environment Agency officials will be in attendance.
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Source: letsrecycle.com Plastic
