Dan Rogerson Credit: CIWM Journal
Dan Rogerson brought together representatives across the recycling sector for the summit to discuss concerns about industry pressures.
Letsrecycle.com reported on the pressures, which include the effect of falling oil prices. It is believed that the core topic was how to create more plastics recycling without distorting the free market, with the concern being raised that retailers and bottling firms may prefer virgin polymers over recycled materials, owing to the low oil prices.
Another concern is that the low prices may lead to industry players relenting on their producer pledges so they can slash costs. Retailers and other businesses have made signed up to corporate social responsibility (CSR) promises, while the Packaging Recovery Note (PRN) system has binding obligations on the retail chain. The concern is that the weaker recycling market could undermine these schemes.
It is thought that Defra is hampered from enforcing the CSR pledges because of the May 2015 General Elections, although it is anticipated that they will issue suggested measures. Retailers told letsrecycle.com after the meeting that they were “aware of difficulties in the recycling industry and are supportive of the principles of recycled content in packaging and products”.
Barry Turner, CEO of the UK Packaging and Films Association (PAFA) said that strong progress has been made by the UK plastic recycling industry over recent years. He commented that it was impossible to foretell the plummet in raw material prices and its effect of these on re-processors.
He also said: “Business efficiency levels may need to move up a gear, for one thing is certain: no one can assume that these sort of market shocks won’t happen again in the future.”
A spokesperson for the Environmental Services Association said: “The whole recycling sector is clearly facing severe challenges at the moment, caused by a combination of factors that are steadily decreasing prices for recyclates. Particularly damaging for plastics recycling is the dramatic drop in oil prices, which makes virgin plastics less expensive at a time when local authorities have less and less money to spend on things like communications to households.”
The association also said: “We welcome that Defra now seems to take the problems for plastics recycling seriously, but the risk is that purdah, and the upcoming elections, postpones any actions from the government, which would mean that we lose precious time. Immediate interventions from the government to help the industry get through the short-term pain would of course be welcomed by the industry. But we also need a long term strategy to ensure more certainty and stability for recycling in the UK.”