The British Plastics Federation (BPF), together with another 13 associations, has sent a letter to the newly appointed Exchequer Secretary to the Treasury, James Murray, calling for urgent action on mass balance.
The letter calls for a prompt response to the previous government’s mass balance consultation. The consultation sought views on allowing the use of mass balance as a method for calculating recycled content within the scope of the UK Plastic Packaging Tax (PPT). It also asked about what controls and standards should be adopted to ensure the integrity of the tax if mass balance is adopted.
The PPT was introduced on April 1, 2022, with the aim of providing an economic incentive to use recycled plastic in packaging, thereby stimulating an uptake in recycling and collection of plastic waste. The tax requires producers of plastic packaging manufactured in, or imported into, the UK to pay GBP 200 per tonne of plastic packaging if it contains less than 30% recycled plastic. The tax does not apply to manufacturers and importers of less than 10 tonnes of plastic packaging per year, packaging exported from the UK, or packaging that is used for licenced human medicines.
The consultation on mass balance ran between July 18, 2023, and Oct. 10, 2023. The current status update on the consultation’s website reads ‘We are analysing your feedback. Visit this page again soon to download the outcome of this public feedback’. The BPF said in a statement that the government has not so far given any indication of whether it is likely to accept mass balance as a method for calculating recycled content within the PPT.
The association’s letter to the economic and finance ministry argues that its indecision is costing the country valuable investments.
“Key investment decisions are happening now and companies are choosing to invest outside of the UK, as there is no certainty mass balance will be permitted within the scope of the PPT,” the BPF said in a statement. “This uncertainty inhibits green growth opportunities and prevents the innovations that have been developed within the UK from being commercialised here. The UK has an opportunity to be a leader in chemical recycling, the letter claims, but only if companies have the confidence to invest.”
Chemical recycling investments are on the rise in Europe. Most are still in the planning phase, as investors await regulatory certainty at EU level as well as in the United Kingdom. Mura Technology’s building of a chemical recycling facility in Teesside, Northeast England, is a noteworthy example of an investment that has gone ahead. The plant is expected to start production later this year.
“This letter shows representatives of the whole plastic supply chain, recyclers and waste management companies support mass balance and recognise its vital role in achieving a circular economy,” said BPF director general Philip Law states. “We eagerly anticipate a response from the Exchequer Secretary and hope the frustrating uncertainty hovering over this hotbed of innovation ends soon, so the UK can unleash its potential as a leading nation in cutting-edge recycling technology.
The letter has been signed by the BPF; Chemical Industries Association; Charted Institute of Waste Management; Cosmetic, Toiletry and Perfumery Association; Environmental Services Association; Food and Drink Federation; Foodservices Packaging Association; Institute of Materials, Minerals and Mining; Industry Council for Packaging and the Environment; National Association of Waste Disposal Officers; On-Pack Recycling Label; Plastics Europe; Packaging Federation; and RECOUP.