The Resource Association (RA) has called on the Chancellor George Osborne to deliver a budget that encourages investment in recycling and the circular economy. The recently formed trade body, representing interests of the reprocessing and recycling industries, has identified immediate measures that will contribute to this.
RA advocates changes the Landfill Communities Fund (LCF), to again permit investment in recycling and recovery initiatives. This would reverse government reforms of the eligibility criteria for LCF in 2003, which removed waste-related activity (categories C and CC) on the grounds that investment on the part of Environmental Distributive Bodies was not effectively targeted. The RA’s proposal advances that for a time-limited period the industry will benefit from LCF backing for research and innovation to increase the ability of UK manufacturers to use recycled content in products.
The association is also calling for changes to packaging regulations, both in the form of higher packaging targets and reform of the PRN/PERN system. Currently, the system for allocating PERNS distorts the market against UK plastics reprocessors in favour of export with reprocessing.
Commenting on the proposals Chief Executive Ray Georgeson said: “Despite many concerns aired about the attitude of the Chancellor to environmental matters, we acknowledge some positive signals in recent times on boosting the green economy such as the Green Investment Bank, carbon floor pricing (and dispensation support for some in our sector), and the Green Deal.
“That said, we look to the Chancellor for some fresh signals of commitment to the green economy, and in particular to boost the efforts being made by UK reprocessors and recycling companies to invest in recycling infrastructure and the capacity needed to develop our circular economy – using quality recycled materials in quality manufactured products in the European economy where possible.”
The Resource Association is also calling for the Budget to provide support for a Resources and Circular Economy Commission to be convened under independent chairmanship. This would explore policy and fiscal instruments to drive forward resource recovery in the UK economy, reporting on recommendations within a year.
Georgeson added: “The potential is there to take a fresh look at green fiscal measures in the waste and resources sector which is now in need of some attention again, having been left behind somewhat while policy attention was more focused on energy use.
“We therefore call on the Chancellor and the Business Secretary to co-convene a Resources and Circular Economy Commission and give it a broad remit to examine fiscal, regulatory and other policy measures that could give the resources and reprocessing industry the vital boost needed to trigger further investment in the UK’s green economy infrastructure.”
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.