Following the official launch of PackUK, Zoe Brimelow, a Director at packaging manufacturer and consultancy Duo, looks at whether a national packaging plan is now needed to support packaging circularity.
The recent Packaging Innovations and Empack trade show saw the public launch of the UK Government’s packaging Extended Producer Responsibility (pEPR) scheme administrator, PackUK.
A panel of representatives from the administrator’s steering group came together to outline the aims of the pEPR and highlight the importance of the scheme for driving change and investment in packaging and packaging waste.
Part of the pEPR and PackUK’s remit involves stimulating an estimated £10 billion investment in recycling services and infrastructure over the next decade, as well as promoting more sustainable packaging alternatives.
This will be delivered alongside other initiatives, including Simpler Recycling and the Deposit Return Scheme (DRS) for drinks containers.
With so much happening and big investment promises, there seems to be a strong case for a circular packaging plan to build business confidence and industry collaboration.
Industry deserves transparency
Investment in the UK’s recycling infrastructure is desperately needed to increase waste collection services, enhance material segregation and significantly improve the quality of recycled plastic pellets.
Sustained investment averaging £1 billion per year over the next decade could also help to balance supply and demand for recycled plastic in the UK and provide this part of the market with much-needed stability in terms of recycled plastics prices.
Although the promise of investment is welcome, there’s a sense of déjà vu around investment being derived from an economic stimulus that’s intended to support packaging recycling.
In April 2022, the Plastic Packaging Tax (PPT) was introduced to provide an economic incentive to encourage the use of recycled plastic.
According to HMRC data, from August 2024, the PPT generated £553million in revenues during its first and second years.
There’s been no clarity about how this new stream of tax revenue has been used. The optimist in me wants to believe it has been spent on funding initiatives, such as Simpler Recycling and government-backed projects that support innovation in sustainable plastic packaging.
However, this is nothing more than guesswork and a key reason why we should have a plan for pEPR revenues.
If businesses are going to fund £10 billion of investment via pEPR payments, they deserve clarity about how and when this money will be spent.
A circular packaging strategy could outline key areas of investment in recycling and show how pEPR payments will reduce the reliance on virgin resources by increasing the volumes of recycled content in packaging.
A plan could also provide transparency about the value of industry collaboration to encourage greater support among businesses.
Inspiring confidence, fostering collaboration
The official launch of PackUK announced intentions for three working groups, including the Recyclability Assessment Methodology Group, Efficiency and Effectiveness Group, and Communication and Behaviour Change Group.
These groups create opportunities for businesses to pitch ideas and share knowledge and experience. This is crucial for helping to shape reforms and suggest practice measures that will positively impact packaging sustainability and recycling.
Producing a national, publicly available circular packaging plan could help show how these working groups and collaborations are benefitting industry and those professionals taking the time to participate.
There’s a genuine risk that businesses feel that economic stimuli, such as the pEPR and PPT, are a bit like speed and traffic cameras.
The roadside devices are intended to improve road safety but are often viewed as nothing more than revenue generators, which ultimately detracts from their core purpose. The same sentiment can be levied at recycling-related fees and taxes.
If businesses aren’t clear about how revenue from the schemes is benefitting the transition to a circular economy, it can cause scepticism about the value of collaboration and deter businesses from genuinely backing schemes.
The British Plastics Federation and RECOUP produced a Recycling Roadmap that pinpoints three key changes required to improve UK recycling.
These changes, in part, look at the importance of improving communications and investing PPT funds in recycling infrastructure.
A government-led circular packaging plan could be a positive step towards achieving these changes and creating confidence among businesses about how pEPR funds will be reinvested in improving packaging recycling.
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