Britain to tax nonrecycled plastic packaging

Britain plans to levy a new tax on those that make or import plastic packaging with less than 30 percent recycled material, according to a Reuters news release. Philip Hammond, chancellor of the exchequer in Britain, made this announcement on Oct. 29.

According to the Reuters report, the measure will be introduced in April 2022 subject to consultation. It is an attempt to reduce waste in the country. 

Rupert Haworth, marketing director at Recycling Technologies, Swindon, England, says both the tax on plastic material with less than 30 percent recycled product and recent revisions to Britain’s PRN (packaging recovery notes) system will be beneficial to the recycling industry. Recycling Technologies takes residual plastic to convert it back to hydrocarbons. 

“It is driving greater interest in our company and promoting the growth thereof,” Haworth says.

Haworth adds that the PRN system serves as the extended producer responsibility system where money provided by the industry is to be used for those who are recycling product. 

“In the past, most of that money has gone to people who are exporting plastics. That now has been curtailed with the closure of China and other Asian countries,” he says. “There are two things driving the market in the U.K. Clearly the tax will drive demand for recycled plastics, whether it’s in the form of recycled plastic pellet from mechanical recycling or oil from chemical recycling.”

Although the tax won’t be implemented until 2022, Haworth adds that he expects increased interest in recycling will occur leading up to that year. 

“Everyone is getting ready now in trying to adjust to the packaging, making sure it’s more recyclable or locking up contracts for feed,” he says. “The initiative and the momentum [are] already building. We see that with the interest. The major packaging manufacturers and the whole value chain are now preparing to be able to meet the requirements being set.”

Richard Kirkman, chief technology and innovation officer at Veolia, West Sussex, England, says this new tax will help to bolster the circular economy, as well.

“The tax announced has the potential to ensure recycled content becomes the currency of production,” he says. 

Kirkman adds that industry, government and consumers have acted this year to tackle the plastics challenge. In response to this, he says Veolia opened two recycling facilities in the past year and committed to invest £1 billion in infrastructure in the next five years. 

“To make the U.K. a waste-to-resources heavyweight, we must also remove confusion for consumers and encourage investment in domestic infrastructure to secure a circular approach for the next generation,” Kirkman says.