Following the BPF Recycling Group Briefing Document on the UK Plastic Recycling Market Conditions released in December 2024, the UK has continued to see recycling facilities and companies close.
Over the past two years the BPF estimates that more than 17 UK plastic recycling sites or companies, with a combined processing capacity of roughly 400,000 tonnes, are no longer operational. This decline not only undermines the UK's ability to manage its own plastic waste but affects 100's of jobs.
The reasons for the closures are set out in the 2024 document and are now well understood. The focus now needs to be on what immediate action can be taken to stabilise the market. Longer term measures also need to start to be developed which can enable the market to turn from a shrinking sector to a growing and thriving sector.
Key Issues
- Delay in legislation
- Address the impact of low cost imported competing products to ensure fair competition export market
- PRN/PERN system
- Plastic Packaging tax fraud
- Fraud within the PRN/PERN
Stabilise and Grow:
An Action Plan for the UK Plastics Recycling Sector
STABILISE – Immediate Actions to Secure the Sector
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Energy Relief
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- Provide targeted energy rebates/support for UK plastic recyclers
- Provide access for recyclers to the Climate Change Agreement (CCA)
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Deliver PRN/PERN Reform
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- Increase transparency of the system to deter fraud by disclosing the PRN and PERN tonnages of individual reprocessors and exporters
- Strengthen enforcement to address fraud and organised waste crime
- Reform the system to create an even playing field between domestic recyclers and exporters
- Revocation of fraudulently issued PRN/PERNs
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Reinvesting in the Sector
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- Allocate funds collected through the Plastic Packaging Tax (PPT) to support the UK plastic recycling sector or the government departments who support the industry. For example, the relevant authorities to tackle organised waste crime.
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Certification for PPT
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- Require certification for any recycled content used towards the PPT
- Ensure UK companies and importers need to meet the same standards
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Alignment with the EU
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- Ensure future alignment to support trade and competitiveness where it is relevant
- Acceptance of UK material within the Packaging and Packaging Waste Regulations (PPWR) under Mirror Clause 7
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Safeguards for End Markets
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- Enable anti-dumping duty where appropriate
- Use legislation to promote the use of recycled material
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SMEs Permit Support
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- Continuation and increased flexibility of the current exemptions for Plastics Reprocessors
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GROW – Strategic Measures for Long-Term Confidence
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Drive Recycling Demand
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- Integrate into public procurement policy the use of products containing recycled material
- Use relevant legislation to encourage the plastic supply chain to support UK recyclers by purchasing recycled content.
- Expand legislation to other sectors such as Extended Producer Responsibility (EPR) to encourage collection and demand
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Retain Material within the UK
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- Use relevant legislation such as the PRN/PERN system or Deposit Return Scheme (DRS) to prioritise the use of UK based plastic reprocessing companies and create a pathway to reduce the export of plastic recycling
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Fast Track Permits
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- Establish a fast-track environmental permitting process for new or expanded circular economy infrastructure, such as recycling facilities
- Review and update relevant frameworks, like the National Planning Policy Framework, to assist local authorities in accelerating investments
- Create a mechanism to allow central government to accelerate local decision making when they are delayed due to local decision-making processes
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Design for Recyclability
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- The Government must legislate for Design for Recyclability (DfR) across all sectors
- Require producers to manufacture products that are easily recycled
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