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Government launches consultations on plastics

Producers of plastics look set to see a hike in their waste expenditure
February 19, 2019

The government has opened consultations that will aim to overhaul the UK’s waste system and reduce plastic pollution, which may mean packaging producers will be required to pay the full cost of processing their waste. Producers currently pay around 10 per cent of processing costs, according to the government.

A separate consultation is being run on recycled content in packaging. Last year’s Budget announced a tax on the production and import of plastic packaging with less than 30 per cent recycled content from April 2022, subject to consultation. The Department for Environment, Food & Rural Affairs, and the Treasury, are now seeking views on how this would work in practice. The types of packaging and businesses that would be liable for the tax, along with methods for assessing recycled content in packaging, are under question. A deposit return scheme for consumers is also being mooted.

Paper and packaging group Mondi (MNDI) welcomed the government’s consultations, suggesting that a reassessment could “encourage the design of packaging with end of life in mind”. Globally, only 14 per cent of plastic packaging is collected for recycling, according to a 2017 sustainability report by Mondi. A spokesperson added: “A deposit return scheme would add clear tangible value for the consumer, raising further awareness of the need to control the method of disposal, which is an essential aspect of mitigating waste pollution.”

Rival RPC (RPC), which is currently under offer from private equity group Apollo Global Management, declined to comment. RPC does not, however, manufacture any of the items “that are expected to be banned” by open consultations looking to eliminate the likes of plastic straws and cotton buds, according to a statement published with its 2018 half-year results. Smurfit Kappa (SKG) also declined to comment. The consultation closes in May 2019.