The UK’s Leading Plastics Trade Federation Stronger Together | Packaging Recycling Philip Law Public & Industrial Affairs Director British Plastics Federation 6 th November, 2012, Rochdale

The UK’s Leading Plastics Trade Federation Stronger Together | Legislative Background EU Directive on Packaging and Packaging Waste (94/62/EC – 20 th December 1994) –Aimed to limit packaging waste and promote recycling and recovery –All packaging: household, industrial, commercial –Recovery and recycling targets –Recovery targets by material by 2008 (weight) 60% glass, paper, board 50% metals 22.5% plastics 15% wood

The UK’s Leading Plastics Trade Federation Stronger Together | The UK Had to be transposed into UK law Different countries different approaches –True harmonisation? The Producer Responsibility Obligations (packaging waste) 1997 Collective Producer Responsibility principle Whole chain responsibility If over £2 million turnover Handling >50 tonnes packaging/annum

The UK’s Leading Plastics Trade Federation Stronger Together | The UK System Continental approach – ‘Greendot’ –Visible logo on packaged goods –Packaging companies buy right to use a logo UK approach –Unique - each firm has a precise responsibility to organise recycling of a specific tonnage of material –Unique: each firm has a precise responsibility to organise recycling of a specific tonnage of material

The UK’s Leading Plastics Trade Federation Stronger Together | The UK System Calculation of responsibility Raw material manufacturer = 6% Converter = 9% Packer/Filler = 37% Seller = 48% Importer = Rolled up obligation

The UK’s Leading Plastics Trade Federation Stronger Together | The UK System Example –Converter produces or uses 500 tonnes of packaging –Say target is 25% recycling rate –125 tonnes of packaging needs attention –He is responsible for 9% = tonnes Demonstrate fulfilment of obligations by holding Producer Responsibility Notes to value of your ‘obligated’ volume

The UK’s Leading Plastics Trade Federation Stronger Together | Producer Responsibility Notes (PRN’s) PRN’s issued by ‘accredited reprocessors’ (Environment Agency) Obligated company buys PRN’s –Do it yourself –Get a third party to do it Directly from a recycler Open market platforms –‘The Environment Exchange’ –‘PRN Runner’

The UK’s Leading Plastics Trade Federation Stronger Together | Compliance Organisations OR…. –Can join a ‘Compliance Organisation’ to do it for you e.g. Valpak –Will buy the PRN’s for you Membership fee: Membership FeeBandings £400SME £5000 – 400 tonnes £ ,000 tonnes £1,0001, ,000 tonnes £1, ,000 tonnes £2,500> 4,000 tonnes

The UK’s Leading Plastics Trade Federation Stronger Together | Compliance Organisations PRN cost per tonne

The UK’s Leading Plastics Trade Federation Stronger Together | Issues Definition of what you are covering – ‘packaging’, ‘flooring’ etc. How realistic are targets ? Handling ‘free-riders’ – ‘de minimis’ In companies: –Set up: need a ‘champion’ –Data collection –Can lead to minimisation –Additional and possibly unpredictable costs