Useful resource administration firm Veolia is asking for the Authorities to escalate the Plastic Packaging Tax to incentivise the top markets for recycled content material, give traders confidence to construct home infrastructure and stimulate inexperienced financial development.
The group commissioned analysis by local weather motion NGO WRAP to know the financial and environmental impacts of escalating the Plastic Packaging Tax. At the moment set at £217.85 per tonne tax from 1 April 2024 on plastic packaging that accommodates lower than 30% recycled content material, the tax shouldn’t be reaching its goals as solely 22% of fabric utilized in plastic packaging is from recycled sources.
By signalling a transparent route of journey and growing the Plastic Packaging Tax, Veolia says it believes this can stimulate demand for recycled content material from manufacturers and producers who’re already underneath stress from customers to display their sustainability credentials. 82% of UK adults, surveyed by YouGov in February 2024, want to see extra recycled content material within the packaging they purchase.
The advice set out in Veolia’s Useful resource the Future report is to extend the Plastic Packaging Tax to 35% recycled content material and £275 per tonne this yr, escalating to 50% and £500 per tonne by 2030. To realize this the UK might want to make investments £1.1 billion in constructing ten new plastic sorting and 30 new plastic reprocessing amenities, creating 2,500 new jobs and decreasing annual carbon emissions by 1.8 million tonnes of CO₂ equal.
Escalating the Plastic Packaging Tax will even enable UK manufacturers, producers and recyclers to proceed to commerce throughout each UK and European markets with out falling behind European Union (EU) laws. The EU is focusing on obligatory recycled content material, reasonably than incentives, reaching as much as 65% by 2040.
Gavin Graveson, Veolia Senior Government Vice President, Northern Europe Zone stated : “The recycled plastic business can’t be ignored if we’re critical about constructing a inexperienced economic system. The Plastic Packaging Tax is an important lever to stimulate development within the sector, but it surely wants recalibrating so we create a market the place it’s cheaper to be sustainable and costlier to pollute through the use of virgin polymers.
“We have to carry hundreds of tonnes price of recycling capability on-line – and quick. However this could be a nice alternative for the Authorities to unlock non-public funding, new jobs and carbon financial savings. Backing inexperienced coverage isn’t a zero sum sport.”
Key info
A survey of two,000 UK adults by YouGov in February 2024 discovered that:
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58% stated the Authorities is doing too little to deal with environmental points
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69% would help a rise in tax for firms who don’t use recycled supplies of their packaging
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82% want to see a rise in recycled content material utilized in normal packaging
Analysis by WRAP on behalf of Veolia investigating the efficacy of the Plastic Packaging Tax:
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2,219 kilotonnes of plastic packaging enters the market every year
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Solely 22% of fabric utilized in plastic packaging is from recycled sources
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The UK would wish to carry on-line over 600,000 tonnes of plastic sorting and reprocessing capability to fulfill a 50% recycled content material goal
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This could require ten new plastic sorting crops and 30 plastic reprocessing crops, bringing funding of circa £1.1 billion.
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Escalating the Plastic Packaging Tax to 50% recycled content material might doubtlessly save an estimated 1.8 million tonnes of carbon dioxide equal emissions.
