April fools? UK Plastic Packaging Tax starts today but businesses aren’t aware, warns Veolia

01 Apr 2022 --- The UK Plastic Packaging Tax came into effect today, but 77% of British retail and manufacturing businesses are not aware of it, according to research conducted by YouGov on behalf of Veolia.

The tax places a £200 (US$262) per metric ton levy on producers or importers of plastic packaging if they do not include 30% recycled content. The legislation is expected to impact around 20,000 businesses.

YouGov’s research explored the views of UK-based senior decision-makers on the tax. The survey found that only a fifth (22%) of the manufacturing and retail businesses asked had already opted for recycled content in their packaging. Far more businesses must reduce their reliance on virgin materials to reach the UK’s Net Zero goals, warns Veolia.

Tax escalator support
The majority of British retail and manufacturing businesses also support an escalator in the percentage of recycled content threshold (63%) and cost charge (50%) as an incentive to use recycled content.

“The UK’s Plastic Packaging Tax is the right way to start getting businesses to push [environmental] sustainability up the agenda, but it needs to go further,” argues Gavin Graveson, Veolia’s Northern Europe Zone senior executive vice president.

Veolia aims to recycle 610,000 metric tons of plastic waste a year worldwide.“A tax escalator would make choosing to incorporate recycled content in packaging both economically and environmentally preferable to using virgin materials.”

“Not only could the UK save up to 2.89 million metric tons of carbon emissions every year if all plastic packaging included 30% recycled content, but it would also incentivize investment in domestic infrastructure, which could make the UK a world leader in plastics recycling,” he adds.

Ahead of the curve
The British retail and manufacturing businesses who had made changes to their plastic packaging reported:

• Two thirds (66%) have reduced the amount of unnecessary or avoidable plastic packaging
• Over half (58%) now use recycled content
• 54% have changed the packaging design to make it more recyclable
• 39% have chosen alternative materials to plastic for their packaging

Veolia’s UK operations
Veolia operates a full process to recycle plastic materials from homes and businesses and turn them back into plastic pellets to manufacture new plastic items, working from three dedicated sites in London, Essex and the Midlands.

These facilities can process over 100 different grades of plastic from consumer, commercial and industrial sources and pass these materials back into the supply chain for reuse.

The waste management specialist’s support team can ensure compliance with the complex legislation involved in reprocessing these materials through its Sustainable Packaging Academy.The tax imposes a £200 (US$262) per metric ton levy on plastic packaging without 30% recycled content.

Globally, Veolia aims to recycle 610,000 metric tons of plastic waste a year by 2023, equivalent to 16,944 million 4-pint milk bottles. The company is part of the international cross value chain Alliance to End Plastic Waste, currently made up of nearly thirty member companies, which has committed over US$1 billion to develop large-scale solutions that will minimize and manage plastic waste and promote solutions for used plastics.

Taxing times
In August 2021, Veolia research found that 83% of businesses asked were unaware of the impending UK Plastic Packaging Tax. As the tax comes into effect today, this number has dropped to 77%.

The British Plastics Federation has introduced a free online tool to help companies ascertain whether their products qualify for the tax. The tool is designed to be “quick and easy” and built on knowledge provided by consultancy firm Ernst & Young.

Meanwhile, packaging manufacturer HLP Klearfold has also created a simple guide for understanding the tax amid reports of growing confusion around how the law will be enforced.

PackagingInsights recently reported that some packaging manufacturers and industry bodies fear that the legislation lacks the necessary detail to reduce fossil fuel-based material usage effectively and will instead punish businesses actively attempting to lower their carbon footprint.

By Joshua Poole

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