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INCPEN Newsletter
 

A message from Paul Vanston, INCPEN CEO


Dear Colleagues,

Extended Producer Responsibility (EPR), Deposit Return Systems (DRS), consistency of recycling collections and the Plastics Packaging Tax continue to dominate the legislative agenda in the UK relating to packaging.

By July 2020 we expect the four UK governments to align their views on relevant consultations that could land on our desktops in the Autumn.  

So, as of right now we are entering a critical stage where the ‘hard yards’ of seeking consensus solutions between sectors begins in earnest. That’s especially the case on EPR and consistency issues.  

To ensure ‘producers’ (manufacturers, packer-fillers, retailers and brands) present a united front to make the most of opportunities, and avoid the worst threats, the Industry Council membership has been working hard on a set of EPR Positions. More will be available to members, Trade Association Group colleagues, and other partners in due course. But for today’s Newsletter, I can outline that we have three outcomes and 24 positions underneath those covering the following headings: -

Outcome 1:  UK-wide EPR system that stands the tests of time
  • Financial obligations are sustainable.
  • Clarity on the date to start the new EPR system – when in 2023?
  • Far fewer free-riders.
  • Single point(s) of compliance: reporting and financial.
  • Consistency of WHAT recyclable packaging is collected.
  • Inclusion of flexible plastics in UK-wide recycling collections.
  • Ability and potential to deliver – council bandings.
  • Full net costs – what is not included.
  • Modulated Rewards Mechanism.
  • Measuring ‘citizens’ responsibility’.
  • Consistency of HOW recyclable packaging is collected.
  • A DRS system is agreed in law UK-wide as a form of EPR.
  • Climate change.

Outcome 2:  Everyone’s behaviours change for the better
  • National recycling targets supported by organisational targets (e.g. councils).
  • Scientific assessments & measures are fundamental.
  • Modulated Fees Mechanism (for producers) and Modulated Rewards Mechanism (for councils).
  • Modulated fees for producers based on officially approved Design for Recyclability Guidelines.
  • Consistent and unambiguous packaging labelling.
     
Outcome 3:  Strategic co-ordination of outcomes
  • Coherent EPR and DRS governance.
  • Delivering the benefits of healthy competition.
  • Consultation options on governance.
  • EPR governing body role in managing system dynamics on costs and effectiveness.
  • Transparency of funding.
  • Transparency of data.

As I say, more will be available in due course.

In the meantime, I can also outline the Industry Council (and partner organisations) are involved in upcoming events as follows: -
  • 28 Feb:  1st EPR Sounding Board (Targets and Definitions).
  • 02 March:  The Government’s Resources & Waste Strategy ‘One Year On Event’ is hosted by the Environment Minister, Rebecca Pow MP.
  • 03 March:  The Government’s Packaging & Collections Working Group.
  • 05 March:  The All Party Parliamentary Sustainable Resources Group (APSRG) meets to discuss plastics clauses in the Environment Bill.
  • 06 March:  2nd EPR Sounding Board (Household and Business Payment Mechanisms).
  • 11 March:  Welsh Government:  Beyond Recycling Workshop.
  • 11 March:  British Retail Consortium – Resources & Waste Strategy meeting.
  • 13 March:  3rd EPR Sounding Board (Governance and Scheme Administration).
  • 16 March:  Clean Oceans Conference.
  • 18 March:  Packaging Federation Council Meeting.
  • 19 March:  UK Plastics Pact Films and Flexibles Group.
  • 23 March:  APSRG Ministerial Event on the Resources & Waste Strategy.
  • 25 March:  HM Treasury:  Plastics Packaging Tax – What Next?
  • 26 March:  Defra Data Working Group.
Suffice to say, it continues to be a little bit busy for everyone. My grateful thanks to a fantastic collective of members and colleagues.

Paul

INCPEN Member News


27 February 2020

Sainsbury’s announces trial of Ecover refill stations


27 February 2020

Essity acquires 75% of the medical solutions company ABIGO Medical AB


26 February 2020

Boots UK partners with The Hygiene Bank to help tackle hygiene poverty


26 February 2020

Boots to turn 86,000* plastic bottles per year into its own brand, eco-friendly tights


25 February 2020

Coca-Cola GB unveils 100% rPET GLACÉAU Smartwater bottles


25 February 2020

Berry Training Centre offers PCR materials testing platform

25 February 2020

Proudly presenting ‘The Toasted Crumpet’ - the UK’s first ever crumpet beer, made using our very own wonky crumpets


24 February 2020

Productivity meets Sustainability: Coca‑Cola HBC invests in second canning line in Northern Ireland


24 February 2020

Tea brand T2 becomes Unilever’s eighth certified B Corp! 


21 February 2020

Ball claims positive feedback for Super Bowl aluminium cups


20 February 2020

Plaswood supports wildflower cultivation with hive planters


20 February 2020

Nestlé & Project STOP create sustainable waste management system & help reduce ocean plastic pollution in coastal areas of Indonesia



20 February 2020

Shifting the vending cup business into paper


19 February 2020

Dow named among Derwent Top 100 Global Innovators in 2020


18 February 2020

Could hydrogen fuel replace natural gas on an industrial scale?


17 February 2020

P&G secures contract with Viridor for HDPE


17 February 2020

App lets waste-conscious consumers snap up our surplus food stock

17 February 2020

Leading Consumer Brands Ariel, Pantene and Fairy Accelerate Journey to Deliver P&G’s Ambition 2030



13 February 2020

Danone launches data-driven service for consumers and retailers


12 February 2020

CDP gives Unilever triple ‘A’ for sustainability leadership



11 February 2020

Carbon Disclosure Project awards Ardagh


07 February 2020

Dow announces 5M tonnes CO2e greenhouse gas emission reductions verified from its carbon programs


06 February 2020

Coca-Cola unveils new labels in Sweden to support a circular economy for plastic packaging 


04 February 2020

We now use 100% renewable grid electricity globally


03 February 2020

Danone recognized as a global environmental leader, becoming one of the 6 companies with ‘AAA’ score by CDP worldwide


03 February 2020

CCEP awarded ‘double A’ by Climate Disclosure Project for climate change and water security

Legislation Updates

INCPEN Members (not including Trade Association Group colleagues) can see all legislation updates in full by clicking here.  If you experience issues logging in, please contact Alison Skuse.

Austria: Study finds DRS to be the most cost-effective option to collect 90% of plastic beverage bottles - 18 Feb 2020


Following the release of the study, the MoE is convening a round table to develop measures to meet EU plastic packaging targets.

The study 'Options to implement EU requirements regarding beverage containers, deposit systems and reusables containers' takes into account the targets related to plastics packaging stipulated by the SUP Directive - 90% of plastic beverage bottles to be collected, PET beverage bottles to contain 30% recycled plastics - and the CEP package - 55% of plastic packaging and 60% of MSW to be recycled.

The study’s authors developed and assessed with stakeholders four options to meet the targets, whereby the 90% beverage bottle collection target is the key parameter:
  • The first two options increase the current separate collection of plastic bottles from the current 70% collection rate to 75% (Option 1), respectively 82% (Option 2). To arrive at the required 90% collection rate, 7,350 tonnes of plastic bottles (3,920 tonnes in Option 2) would have to be sorted out from mixed municipal solid waste. To extract these volumes, 78% of all residual municipal waste in Austria (60% in Option 2) would have to undergo sorting operations. This is estimated to cost EUR 37 million (EUR 27 million in Option 2).
  • Option 3 assumes the introduction of a mandatory DRS on beverage containers of 1 litre or less. As the most common plastic beverage bottle size in Austria is 1.5 litres, this option would still require the extraction of 2,750 tonnes of plastic bottles from residual MSW, costing EUR 22 million.
  • Option 4 applies a mandatory DRS to all beverage containers. The option is expected to result in a 95% plastic bottle collection rate without requiring bottles from residual MSW. It would also be the most effective option against littering and ensure the highest quality of the collected materials.
The overall net costs of Option 4 are estimated at EUR 117 million per annum (EUR 13.2 per capita), compared to around EUR 145 million for Options 1 to 3. The current costs of managing plastic packaging waste are EUR 105 million  (EUR 12 per capita).

The study also emphasises the important role of reusable packaging in terms of reducing the consumption of primary resources:  The authors point out that a reusable bottle that manages at least 3 trips is superior to single-use packaging that uses 50% recycled content. They propose various incentive systems to promote re-usables, including clearer labelling, improving the convenience of return, making primary raw materials and energy more expensive and standardizing containers.

Following the presentation of the study, the Austrian MoE announced that it is convening a 'round table on plastic packaging waste' with industry representatives and other stakeholders to explore options for meet EU requirements for plastics packaging.  The MoE says that the 'expansion of reusables will play a role as the most ecologically advantageous option for beverage packaging.​​​​​'​​

Germany: draft transposing of WFD and SUPD submitted for Member States' comments - 12 Feb 2020
 

The draft amending the Circular Economy Act adds a general duty of care to EPR obligations, improves legal certainty for voluntary take-back activities and reduces Germany’s national MSW recycling target. The draft was submitted to TRIS on 31-Jan-20. Member states should comment before 1-May-20.

The draft proposes to transpose the CEP amended EU Waste Framework Directive and to provide the legal basis for transposing the SUP Directive (2019/904/EU) - notably the prohibitions and EPR measures – by empowering the Ministry of Environment to issue subsidiary ordinances.

Here a summary of the major changes proposed by the Jan-20 draft. Changes to the initial draft of Aug-19 are shown in italics.

Producer Responsibility (§23 to 25) - extended provisions, duty of care added
The draft:-
  • extends the Environment Ministry's powers to issue ordinances transposing measures of the CEP package and SUP Directive, i.e. minimum recycled content requirements, obligation to cover litter clean-up costs and bans on certain single-use-plastic SUP products.
    Compared to the Aug-19 draft, the Jan-20 draft adds that products may be banned if they do not facilitate multiple uses or recycling (§24.3) but removes a provision that would have allowed products to be banned if the critical raw materials they contain are not recoverable.
     
  • adds ‘duty of care’ as a basic concept underlying EPR: Those selling products must ensure that the usability of the products is preserved and that they do not become waste. The ‘duty-of -care’ obligation should serve as the basis for measures preventing the destruction of unsold stock.
    Compared to the Aug-19 draft, the Jan-20 draft adds that the Government may require companies to report on the measures they plan or have taken to implement the duty-of-care obligation, in particular the whereabouts and disposal of products (§25 (1) 9).
Voluntary take-back activities (§26, 26a) - improved legal certainty
The draft maintains the current legal requirements which make voluntary (individual) take-back initiatives by manufacturers and distributors subject to the ‘determination’ by the competent Laender authorities. In this context, ‘determination’ (‘Feststellung’) designates an official announcement by the competent authority which implies that the take back activity complies with certain requirements. With the aim to improve legal certainty, the draft proposes to add significant details to these requirements. For example, the draft proposes to:-
  • allow voluntary take-back activities only if they promote the circular economy. This would be considered to be the case ‘if the planned take-back and recycling is of at least the same quality as the recycling offered by the public waste authorities … or charitable or commercial collection (§ 26(3)4). The Aug-19 draft required that voluntary take-back exceed the quality of public or charitable collection.
  • enable voluntary take-back activities of non-hazardous waste products that are not manufactured or distributed by the entity undertaking the program*. However, this should remain an exception and the volume of waste products managed should be proportionate to the volume of products made or distributed by the entities which undertake the program.
  • exempt the voluntary take back of hazardous waste from licencing requirements on request (§26a).
MSW recycling targets - national target reduced
The draft transposes the Waste Framework Directive’s targets as regards MSW recycling (WFD Art. 11). This means that Germany’s current 65% recycling target for MSW in 2020 is replaced by the WFD’s 50% target.  The Government justifies the reduction with the tightened EU requirements for measuring the mass of recycled waste: The WFD’s Art 11a 2 and the related Implementing Decision (EU) 2019/1004 require that ‘recycled waste’ be calculated as the mass of waste entering a recycling operation (‘recycling input’) or - by way of a derogation - the mass output of a preceding sorting operation, provided that any later mass losses are deducted (‘sorting output’).  The current German requirements are not as detailed and apparently the mass entering sorting operations is sometimes counted as recycled.

Other provisions
The draft also proposes to add significant details to the requirements concerning Waste Prevention Programs (§33) and expands the environmental requirements for public procurement (§45).

*A basic requirement for such programs is that the waste taken back originates from the manufacturer’s or distributor’s own products

EU Institutions: Commission work program 2020 and leaked 'new Circular Economy Action Plan' - 5 Feb 2020


The leaked Plan reveals further measures on plastics and electronics.

The new European Commission 2020 annual Work Programme, released on 29-Jan-20, announces key initiatives scheduled be launched Q1-20 under the European Green Deal - one of the six focus areas of the new Commission:
  • The European Climate Law aimed at making the European goal of reaching climate neutrality by 2050 legally binding for all Member States;
  • The European Green Deal Investment Plan whose objective is to mobilise EUR 1 trillion in sustainable investments over the next decade;
  • A new Circular Economy Action Plan to further sustainable production and consumption, notably with regards to plastics, textiles, constructions and buildings as well as mobility.
The draft of the new Circular Economy Action Plan was already leaked: The plan says that economic growth should be decoupled from resource use and that ‘circularity is a major driver for climate-neutrality’ as 66% of direct C02 emissions are connected to materials management. The Commission wants to half ‘the amount of residual municipal waste … in the coming decade’.

As regards plastics (chapter 4.2), the leaked draft notably says that:-
  • sustainability claims of bio-based and bio-degradable plastics need to be verified. The Commission will propose a framework to ensure that bio based plastics deliver genuine environmental benefits.
  • the ‘essential requirements’ of the Packaging Directive will be reinforced to ensure that all plastic packaging is reusable-or recyclable in an economically viable manner by 2030.
  • chemical recycling shows promise for the future where it can complement high quality mechanical recycling;
  • the Commission will consider legal requirements for secondary raw materials to boost demand for recycled plastics following an assessment of regulatory or economic incentives by the Circular Plastics Alliance that is due in Jun-21. The EU’s Plastics Strategy aims for 10 million tons of recycled plastics to be used in products by 2025 (news item).
  • public authorities will be required to make drinkable tap water accessible in public places to reduce dependence on bottled water.
As regards consumer electronics  (chapter 4.5), the Commission says it will explore Ecodesign requirements, including on material efficiency, for ICT products that the Ecodesign directive does not already cover, including mobile phones, and will propose to implement a common charger solution.  ‘With an average lifespan of 3 years, annual sales of 210 million units and a total EU stock of 630 million units, the environmental and climate impact of extending the lifetimes of smartphones and improving their recycling is immense’.  The Commission will also step up efforts to further improve and harmonize e-waste treatment across the EU.

Netherlands: visible fee and deposit on fridges in 2020, 45% share of bio and recycled plastics by 2025 - 30 Jan 2020


A landmark ruling by the supreme court holding the government responsible for climate change goals leaves the Government with little room for alternatives besides implementing proposals by foundation Urgenda.

Supreme court confirms 'Urgenda ruling'
In 2015, Urgenda - an independent foundation established in 2007 to promote sustainability and innovation - won a law suit against the Dutch government which forces the government to reduce greenhouse gas emissions by 25% in 2020 compared to 1990. A 20% reduction arises as an obligation from the Dutch ratification of the UN Conventions on Climate Change, the additional 5% reduction is demanded by Urgenda ​​​​due to the serious risks of climate change.

The Government said that the climate targets would be difficult to reach and appealed the ruling, arguing that it restricts the freedom to exercise its tasks.  On 20-Dec-19, however, the Supreme Court confirmed the Urgenda ruling. This is likely to have major short-term consequences for Dutch climate and energy policy:  

By end 2018, Dutch CO2 emissions had been reduced by only 15%, meaning that up to 9 megatonnes of CO2 emissions must be reduced this year.

To assist the Government with this task, Urgenda presented a '40-point plan for a 25% CO2 reduction by end 2020' in Jun-19. 

Further measures were added later. Two relating to EPR:-

Urgenda and white goods producers call for a visible fee + deposit on fridges and freezers
In early Dec-19 measure 43 was added to the Urgenda '40-point plan’. The measure is endorsed by white goods manufacturers responsible for 70% of POM of fridges and freezer, and requests the Government to:-
  • make available EUR 35 million in 2020 for a one-off campaign to induce consumers to return 1 million energy-inefficient fridges. A ‘return premium’ of EUR 35 would be paid for each fridge at least 10 years old. The measure is expected to avoid 0.5 Mton of CO2 emissions.
  • enter into a binding agreement with the white goods sector that will require that a very high visible fee is charged to buyers of new fridges and freezers from Jul-20:  50% of the fee income is to be used to pay consumers that return expired equipment, the other 50% should finance collection and treatment as well as circular economy projects for WEEE. The measure is expected to avoid 0.28 Mton of CO2 emissions per annum and it is suggested that it be applied to other EEE categories later.
On 20-Dec-19, the day of the supreme court ruling, compliance organisation WEEE NL announced that it will be submitting - on behalf of white goods manufacturers - a proposal to the government for a binding declaration* along the lines of the Urgenda measure.  WEEE NL argues that the measure is necessary to achieve the 65% WEEE collection target. Currently an estimated 1/3 of expired white goods are still treated outside of the official WEEE treatment channels.

* A voluntary agreement between manufacturers and the government that a Government decree makes binding for all manufacturers of a sector.

Urgenda calls for target for bio-and recycled plastics to be brought forward to 2025
Measure 47 of Urgenda '40-point plan' calls on the Government to accelerate its plan - included in the Government’s 2018 Transition Agenda Plastics - for the use of bioplastic and recycled plastics. The plan foresees the gradual introduction of mandatory shares for biobased and recycled plastics to increase their use from currently 15% to 45% by 2030.

Urgenda wants the 45% to be reached earlier, by 2025, and an intermediate target of 30% to apply from 2022. The measure is expected to avoid 0.2 Mton of CO2 emissions per annum.

News from Industry

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