Environmental services company, Veolia is calling on British policymakers to take decisive action in bolstering the recycled plastics market.
In a recent position paper titled “Resource the Future; Plastic Packaging Tax,” Veolia’s UK subsidiary proposes substantial increases in the country’s plastic packaging tax (PPT) to incentivise greater use of recycled plastics and address industry uncertainties.
The Current Landscape
The UK’s plastic packaging tax, which came into effect in April 2022, currently stands at £217.85 per tonne. It targets plastic packaging with a recycled content of less than 30 per cent. However, Veolia contends that the tax, in its current form, falls short of achieving its intended goals.
According to data collected by WRAP (Waste Action and Resources Programme), the average recycled content of plastic packaging entering the market is only 22 per cent. This discrepancy highlights the need for more robust measures to drive sustainable practices.
Veolia’s Recommendations
Veolia proposes a phased approach to enhance the plastic packaging tax and promote recycled content:
- Short-Term Measures (by the end of 2024):
- Raise the recycled content required for exemption from the tax to 35 per cent.
- Increase the tax rate to £275 per tonne.
- Medium-Term Goals (over the next five years):
- Gradually escalate the recycled content threshold to 50 per cent.
- Raise the tax to £500 per tonne.
The Environmental Impact
Veolia estimates that implementing these changes would result in significant environmental benefits, including a reduction of approximately 1.8 million tonnes of carbon dioxide emissions annually. However, achieving these goals requires substantial investment.
Investment Requirements
To produce the necessary recycled content domestically, Veolia suggests an investment of around £1.1 billion. Key components include:
- New Facilities:
- Establish 30 new facilities capable of reprocessing an additional 621,000 tonnes of plastic waste per year.
- Estimated cost: Approximately £900 million.
- Plastic Waste Sorting Plants:
- Double the number of specialised plastic waste sorting plants from 10 to 20.
- Investment cost: Around £200 million.
Balancing Costs and Benefits
While the investment is substantial, Veolia emphasises that the costs of inaction are equally significant. With binding net zero targets for 2050, the UK must prioritise sustainable practices. Moreover, commercial players in other markets are already moving ahead, making it imperative for the UK to stay competitive.
By escalating the plastic packaging tax and encouraging higher recycled content, British policymakers can pave the way for a greener future. Veolia’s call to action resonates with the urgency of addressing plastic waste and advancing recycling practices. As the industry grapples with uncertainty, decisive steps are needed to ensure a more sustainable path forward.
