The Government has acted swiftly after the previous six years of inertia and continuous consultations into the 2018 Waste & Recycling Strategy. Under the leadership of Steve Reed and Mary Creagh we have two committed politicians whose early statements and actions show a real intent to back up policy development with action.
The creation of the Circular economy Taskforce is a further indication of progress and the recognition that environmental policy can drive sustainable economic growth. The members of the Taskforce come in the majority from the policy and academic sectors which bring undoubted benefits in the research aspects of this study however its success will be measured by the demonstrable results in terms of the investments made, infrastructure built and operating and the materials captured.
For me there are several areas that need to be addressed to make this virtuous circular concept live and prosper.
Everything starts with Data. Understanding the flows of materials at both macro and micro level will assist in calculating the potential of greater circularity and the levers needed to assist in reducing waste, the key statistic in the efficiency of the system. However, the paucity of good information limits this assessment. The fact that the electronic waste tracking initiative seems to have disappeared from the regulatory implementation Calander for spring means that 65% of the UK waste flows in the form of Commercial & Industrial will continue to lack the detail necessary for accurate policy creation and implementation. Also waste tracking would assist in the reduction in waste crime which still blights the sector and fails to bring much needed tax resources to the Government.
Developing sustainable supply chains. The shocks to our supply chains post Brexit, covid and the Ukrainian war can still be felt in the economy. To create sustainable economic growth industry needs its materials to be consistent both in flow and price and here is where the circular economy can assist. I have long been an advocate of greater industrial symbiosis where valuable materials lost into the waste system could become the raw materials of industry. Matching UK industrial material demands with better data from potential sources presently lost in the waste system could help to reduce our current exposure to importation of our material needs.
Achieving greater circularity of our economy will require the development of more infrastructure and therefore the right investible conditions need to be in place to unlock the necessary capital. The shift from landfill over the past fifteen years has taken huge investment and government support in the form of the PFI system and landfill tax increases. Consistency of policy and fiscal measures are essential to give the confidence to investors to facilitate the shift to greater circularity. The implementation of Extended Producer Responsibility (EPR) and Deposit Return System (DRS) will require significant investment and therefore requires careful thought of how the system can create the right conditions. Presently the EPR system as proposed will create a per ton value for Local Authorities from which to fund the collection and treatment of recyclables any value from sale of materials extracted will net off the overall cost to producers of the system. History has shown us that volatility in recyclable prices has prevented the right investible conditions and recently in the case of plastics with several large-scale business failures is testament to this point. Whilst a functioning full cost EPR system will eventually create the funds in the system to improve stability and overall material values this may take too long to reverse the present malaise preventing progress towards greater circularity.
The UK has seen the benefit of targeted green taxation to change behaviour the best example being landfill tax. This had the dual benefit of increasing the low cost of landfilling to underpin the investment into Recycling and Energy from Waste (EfW) facilities. With the proposed European Trading Scheme (ETS) coming into force in 2028 targeting and taxing fossil-based carbon emissions adding cost to EfW treatment this will incentivise a faster move to more recycling. The common feature of these taxes is that they are local and collected at the point of treatment. Where a tax relies on scrutiny especially of imported materials, as does the plastic tax, the ability to bypass the system becomes a risk. The collection of the plastic tax presently fails to capture whether imported goods have the requisite recycled polymer percentage relying on the solely on the honesty of importers. This lack of scrutiny has unfortunately rendered the tax ineffectual and fails to support the value of recycled polymer which it was designed to do.
The challenges to help create a more circular economy are significant and rely on the whole value chain therefore to be truly successful the Taskforce will need to engage with those who will deliver the solutions, invest the capital and work daily to make it a reality.
Our sector has endured six years of endless consultations and debate to arrive at this point of inflection. The present Government has recognised what we have being telling politicians for ever, that the development of a more circular economy will stimulate sustainable growth and so that’s why this Taskforce mustn’t become “just a talking shop” but a catalyst for change outlining the tangible steps for real delivery. The Resource sector stands ready to engage with the Government and Taskforce as the importance of creating a functioning circular economy in the UK economy is too big to miss.
