Tag Archives: Recycle

How is a circular economy different from a linear economy?

A circular economy is fundamentally different from a linear economy. To put it simply, in a linear economy we mine raw materials that we process into a product that is thrown away after use. In a circular economy, we close the cycles of all these raw materials. Closing these cycles requires much more than just recycling. It changes the way in which value is created and preserved, how production is made more sustainable and which business models are used. These aspects are explained in more detail below.

How is a circular economy different from a linear economy?

From new raw materials to value preservation.

The circular system and the linear system differ from each other in the way in which value is created or maintained. A linear economy traditionally follows the “take-make-dispose” step-by-step plan. This means that raw materials are collected, then transformed into products that are used until they are finally discarded as waste. Value is created in this economic system by producing and selling as many products as possible.

What else is there in a circular economy? A circular economy follows the 3R approach: reduce, reuse and recycle. Resource use is minimized (reduce). Reuse of products and parts is maximized (reuse). And last but not least, raw materials are reused (recycled) to a high standard. This can be done by using goods with more people, such as shared cars. Products can also be converted into services, such as Spotify sells listening licences instead of CDs. In this system, value is created by focusing on value preservation.

From eco-efficiency to eco-effectiveness.

The perspective on sustainability is different in a circular economy than in a linear economy. When working on sustainability within a linear economy, the focus is on eco-efficiency, which means we try to minimise the ecological impact to get the same output. This will extend the period in which the system becomes overloaded (Di Maio, Rem, Baldï, and Polder, 2017). Within a circular economy, sustainability is sought in increasing the eco-effectiveness of the system. This means that not only the ecological impact is minimized, but that the ecological, economic and social impact is even positive (Kjaer, Pigosso et al., 2019). When we focus on eco-effectivity to create a positive impact, we strengthen the ecological, economical and societal systems by using them.

We can illustrate the difference between eco-efficiency and eco-effectivity with an example about the production of beef. Raising cows for beef results in emissions of methane gas, a strong greenhouse gas. In a linear economy, the production of beef is made more sustainable by changing the way cows are fed, so that they emit less methane gas for the same amount of meat. This makes production more eco-efficient.

In a circular economy, production is made more sustainable by not making beef from cows, but for example by creating a meat substitute. For the beef substitute, plants are then grown that contribute to biodiversity, employment and landscape management. In this way, the ecological, economic and social impact of the same production of ‘beef’ is increased.

In order to achieve eco-effectiveness, residual flows must be reused for a function that is the same (functional recycling) or even higher (upcycling) than the original function of the material. As a result, the value is fully retained or even increased.

Other business models.

A linear model deals with raw materials in an inefficient way, because the emphasis is not on their conservation. In a circular economy, this is the focus. This means that other business models are also used in a circular economy, with more emphasis on services rather than products. An example of a model that facilitates the transition to the circular economy is a product-service combination (Product-As-A-Service System), which is seen as a model to integrate products and services (Michelini, Moraes & Cunha et al., 2017). A widespread example of a product-service combination is the Xerox printer system, in which companies receive a printer free of charge and pay per copy. This system fits well within the circular economy, because as a manufacturer, Xerox has an interest in ensuring that the printer will last a long time, by being able to repair and update it. In the linear sales system, the manufacturer often benefits if the product breaks down quickly so that it can sell a new product.

 

The difference’s between a linear and a circular economy:

  Linear Circular
Step plan Take-make-dispose Reduce-reuse-recycle
Focus Eco-Efficiency Eco-Effectivity
System boundaries Short term, from purchase to sales Long term, multiple life cycles
Reuse Downcycling, Upcycling, cascading and high grade recycling.
Business model Focuses on products Focuses on services

 

What is the UK’s incoming Plastic Packaging Tax

From April 2022, a new tax on plastic packaging will be in place in the UK. Which products will be affected, how much is it, what penalties and sanctions are in place if manufacturers don’t comply, and what steps should the industry be taking now?

What is the UK’s incoming Plastic Packaging Tax

Disclaimer: The below notes reflect opinion and views as of 02/11/2021 and is a general summary of the legal position in England and Wales. It does not constitute legal advice.

Many of us make efforts to reduce our plastic usage in one way or another, but the UK government has now taken steps to target manufacturers and importers of plastic packaging by introducing a new plastic packaging tax (PPT); a tax, which, apparently, isn’t about revenue creation but has more exalted aims in mind – reducing the use of new plastics and increasing plastic recycling.

Which products will be affected by PPT?

PPT will be levied on plastic packaging that contains less than 30% recycled plastic. Imports of products in plastic packaging, such as drinks in plastic bottles, will also be caught. “Plastic packaging” will be classified as such if plastic is the heaviest component.

Rather surprisingly, given the environmental aims of PPT, “greener” plastics, such as biodegradable and compostable plastics, will still incur PPT (although this is currently being reviewed by the government) and the definition of “recycled plastic” does not include organic recycling.

Certain exemptions will apply, and PPT will not be incurred where the plastic packaging is for use:

  • With licensed human medicines
  • As transport packaging to import goods into the UK, e.g., packaging to secure the safe transit of goods
  • In aircraft, ship or railway stores for international journeys, i.e. not released into the UK.

Exported goods will also be exempt from PPT, provided that they are exported within 12 months.

How much is PPT?

The rate of PPT will be £200 per metric tonne of plastic packaging (that contains less than 30% of recycled plastic).

Who will pay PPT?

PPT will be charged from 1 April 2022 and potentially, everybody, from the largest plastic packaging manufacturer to the corner shop customer buying a packet of pasta, will see its effects. Although PPT will be levied on manufacturers and importers (both UK resident and non-UK resident) that manufacture (or import) ten metric tonnes of plastic packaging or more annually, the cost may well be passed along the supply chain to the end-consumers.

The draft legislation specifically provides that payment terms under existing contracts may be amended in order that the manufacturer or importer can pass on the PPT charge, although how this will affect business relations may well determine how often this option is used.

Any businesses that purchase plastic packaging (filled or not) should also bear in mind that liability for non-payment of PPT can be placed on other entities within the supply chain, i.e. not just the manufacturer or importer, if such entity “knew or had reasonable grounds to suspect that” PPT “had not been accounted for”. Government expects business customers to take “reasonable steps” to verify that payment has been made and intends to publish guidance on what constitutes adequate due diligence.

It would be no great surprise if this risk results in business customers requiring evidence of payment or some contractual assurance that payment has been made by the manufacturer or importer; requirements which will, no doubt, increase commercial complexity and the administrative burden on both parties. We must hope that the promised guidance will consider the commercial practicalities of such a provision.

What is clear is that contracts will need to specify whether costs are ex. PPT or inc. PPT, and invoices will need to state the applicable PPT amount.

Registration, filings and evidence

All manufacturers and importers of plastic packaging will need to register with HMRC unless they produce or import less than 10 metric tonnes in any 12-month period (regardless of the amount of recycled plastic that they use). The test to determine this is both forwards- and backwards-looking.

A business must register if:

  1. At any time after 1 April 2022, it expects to manufacture or import at least ten metric tonnes of plastic packaging in the following 30 days (registration must occur within 30 days of the first day that this condition is met); or
  2. It has manufactured or imported at least ten metric tonnes of plastic packaging in a 12-month period ending on the last day of a calendar month. If this applies, the business becomes liable for PPT from the first day of the next month and must register by the first day of the subsequent month. This second condition will initially be modified and will only look at the amount of plastic packaging which has been manufactured or imported from and including 1 April 2022.

(Imports that have not cleared customs or are not in free circulation in the UK are not included within these calculations.)

A group PPT registration is likely to be available and further details will be provided by government in due course, although it is expected that the ten metric tonnes test will be applied on a group basis, i.e. it will not be possible to disaggregate a business to avoid PPT. Where a group registration is made, all members of the group will be held jointly and severally liable for all the PPT debts of all group members.

Affected businesses will also be subject to increased record-keeping as they will need to maintain records to show:

  • The total amount in weight and a breakdown by weight of the materials used to manufacture the plastic packaging (excluding packaging which is used to transport imported goods)
  • The data and calculations used to determine if a packaging component is, for the most part, plastic and how much recycled plastic it contains
  • The weight of exempted plastic packaging and the reason for the exemption
  • The amount in weight of plastic packaging exported, and therefore the allowed relief from the tax.

Even where the recycled content test is met, businesses will need to register, file, and retain evidence to show that the relevant plastic packaging meets the threshold (plastic packaging will be assumed not to meet the recycled content test unless it is shown to do so).

Penalties and sanctions

Various civil and criminal sanctions and penalties apply under the draft legislation depending on the nature and severity of the offence. For example, failure to register with HMRC, failure to complete the requisite filings, or failure to pay the PPT due will incur a penalty.

Practicalities

Manufacturers and importers of plastic packaging should start to consider how the PPT regime will affect them and bear in mind that some effects may not be purely financial. For example:

  • How much plastic packaging manufactured/imported will be taxed, i.e. how much currently falls foul of the 30% recycled plastic requirement?
  • Consequently, what is the likely PPT liability?
  • Who will bear this liability – the manufacturer/importer or their customers? And what conversations need to be had with customers in this regard?
  • Can this liability be mitigated in any way, for example, an increase in the use of recycled plastic?
  • How will the information required to determine the amount of PPT payable be documented, evidenced, and recorded?
  • Who in the business will be responsible for complying with PPT requirements, collating the evidence, maintaining the records, and dealing with HMRC?
  • Who will liaise with customers regarding increased costs and evidential requirements?
  • What staff training will be required in relation to the new PPT legislation?

Disclaimer:

This note reflects opinion and views as of 02/11/2021 and is a general summary of the legal position in England and Wales. It does not constitute legal advice.

Plastic Packaging Challenge for Industry

The British Plastics Federation has outlined an ambitious plan to make 100% of plastic packaging reused, recycled or recovered.

Plastic Packaging Challenge for Industry

Its intention forms part of a document – Plastics: A Vision for a Circular Economy – which sets out proposals to drive innovation in the sector.

Philip Law, director general of the BPF, said: “Our ambition is to agree upon industry-standard traffic light systems and best practice design tools that can be used by manufacturers to advise brands and retailers on the recyclability and sustainability of their products.

“As an industry, we will also continue to invest in innovation so that we can realise our vision to see 100% of plastic packaging reused, recycled or recovered.”

The BPF said that it wants all plastic packaging and single-use items re-used, recycled and/or recovered by 2030. Some leading brands and retailers have already committed to using only reusable, recyclable or compostable packaging by 2025, and the BPF is a signatory to WRAP’s UK Plastics Pact.

It added that it is consulting with members, brands and retailers and has already proposed extending and revising the current Packaging Recovery Note (PRN) system. The BPF said that the current PRN system should be extended to include plastic items that are not packaging products but are products used in conjunction with food and drink consumed on-the-go, such as cutlery or straws.

UK fails to recycle almost 50% of its plastic bottles

UK fails to recycle almost 50% of its plastic bottles.

UK fails to recycle almost 50% of its plastic bottlesUK fails to recycle almost 50% of its plastic bottles each year the average UK household uses 480 plastic bottles , but only recycles 270 of them – meaning nearly half (44%) are not put in the recycling.

This means that nationally, of the over 35 million plastic bottles being used every day in the UK, nearly 16 million plastic bottles aren’t being put out for recycling. New data from Recycle Now reveals the number of plastic bottles evading recycling could reach 29 billion over the four years up to the end of 2020.

If a year’s worth of the UK’s unrecycled plastic bottles were placed end to end, they’d reach around the world 31 times, covering  just over 780,000 miles.

Alice Harlock, from Recycle Now said: “The number of plastic bottles not being recycled is staggering and will increase further if we don’t take action.  Householders are often unsure if items are recyclable especially from the bathroom, bedroom and living room. An easy way to tell is, if an item is plastic and bottle shaped its recyclable.”

Commonly used items people might not know are recyclable include: empty bleach; shampoo; conditioner; bathroom cleaners and hand soap dispenser bottles.

In a bid to encourage people into taking action to recycle more plastic bottles, Recycle Now is calling on the UK public to open their eyes to all potential recycling opportunities in the home.

Harlock added: “We need to challenge ourselves when it comes to what we could be recycling. Every plastic bottle counts. We’re asking people to think more about what they can recycle every time they go to put something in the waste bin. If you’re having a shower and using up the last of the shampoo – don’t just think replace, think Recycle. When you run out of your favourite moisturiser in the morning – don’t just think replace, think Recycle.  If you’re not sure whether you can recycle plastic bottles at home check out our Recycling Locator.”

How to recycle plastic:

Nearly all local authorities in the UK collect recycling from the home, and recycling plastic bottles has never been easier.  To ensure consumers recycle at home, Recycle Now recommends:

  • Making sure plastic bottles are empty
  • Rinsing the bottles
  • Squashing the bottles to save space in the recycling bin (then put the lids back on)
  • If you’re on the go; pop your plastic bottle in a bag and recycle it when you get home rather than throwing it in a waste bin

TOP THREE PLASTIC RECYCLING MYTHS DEBUNKED

Keep your plastic lids 

Plastic bottles with plastic lids – water bottles, milk bottles, shampoo and bleach bottles can be squashed to save space in your recycling bin, and the lids can be put back on for recycling too.

What about bleach?

Some people assume bleach and kitchen cleaner bottles can’t be recycled because of their contents – but it’s easier than you think to safely recycle them. Ensure the bottle is empty and leave the lid on.

What’s the point of recycling plastics?

Using recycled materials in the manufacturing process uses considerably less energy than required for producing new products from scratch – 75% less in fact, meaning the impact on the environment is lowered.

Coffee Chains pressured to recycle better

Coffee Chains have come under the spotlight with chef and anti-waste campaigner Hugh Fearnley-Whttingstall claiming coffee chains aren’t doing enough to recycle.Coffee Chains

He claimed that the cups are “barely recyclable at all” and “can’t be recycled through any of the normal public waste collection services, who are consistently diverting them to be incinerated or sent to landfill”. He also claimed that Coffee Chains such as Starbucks and Costa were misleading consumers over the green credentials of their cups.

Fearnley-Whttingstall’s campaign, which will feature in the next episode of his series Hugh’s War on Waste, follows on from news that McDonald’s, James Cropper and Simply Cups have linked up to recycle paper cups.

It’s estimated that around 2.5 billion paper cups are used in the UK each year but most are not recycled among household waste and cup collection has proved to be problematic. In addition, the cups are polyethylene-coated; Simply Cups is currently the only company that recycles plastic-lined cups.

FPA executive director Martin Kersh said: “I think it highlights that paper cups are recyclable but not enough are being recycled. If something positive can come out of this campaign then it would be to give the process a push.

“Simply Cups have done a fantastic job and it needs more publicity. When cups are recycled you get a phenomenally good material. James Cropper have made a big investment – the numbers must make sense.

“However, on this issue there has been a lack of facilities and funding. Why can’t PRN money be used? Also, there is a lack of consistency from local authorities.”