Packaging Scheme Forum (PSF) urges government to act ahead of looming PRN crisis

The Packaging Scheme Forum (PSF) has sent a letter to DEFRA in which it warns of a looming PRN supply crisis for plastic and aluminium.

The PSF is the industry body that represents packaging compliance schemes in the UK, who in turn represent 93% of all registered producers. The letter, addressed to Thérèse Coffey, Defra’s Parliamentary Under-Secretary, explains the increasing likelihood that the UK will fail to meet its 2019 recycling targets.

It explains how China’s ban on plastic recyclate at the start of 2018 forced the UK to seek alternative markets for plastic recyclate exports. While a short-term, partial solution has been provided by other countries in Asia, serious doubts over their viability have been cast as a market for the UK in the long-term due to queries over capacity and environmental accreditation.

Fewer plastic recyclers and exporters in operation

Whilst many UK reprocessors are doing their best to process additional tonnage, it will take some time for any additional investments in increased capacity to come on stream, further compounding the problem.

The PSF goes on to highlight that there are fewer plastic recyclers and exporters in operation this year than in 2018, emphasising this will impact the number of plastic PRNs available to UK producers obliged to purchase them under UK law. The 2019 Q1 packaging recycling figures released in May highlighted the under-performance of plastic and aluminium at the start of this year.

Currently, if producers or schemes fail to meet their legal plastic recycling obligations they are investigated by the Environment Agency, a lengthy and costly process. A worrying concern is that this process is untested for large-scale non-compliance across industry, should that situation occur.

Implementing a fall-back position

The PSF wholeheartedly recognise the efforts that Government has made to engage with the recycling and waste sector, but it is urging DEFRA to consider urgently implementing a fall-back position such as a ‘compliance fee’ into the current regulations for schemes and producers who face the prospect of being prosecuted as non-compliant at the end of the year.

A measure such as a compliance fee will not immediately solve UK recycling capacity issues, however it would ensure funds are ring-fenced and allocated to initiatives that actively improve UK recycling infrastructure and therefore ultimately increase the number of UK-generated PRNs.