So the results of the 2016 budget are now clear, here are the key things to watch out for...
BY RICHARD HODGES
1. Plastic Targets
Plastic targets will rise by 2% rather than the proposed 5% increase in 2016 as a result of the consultation in which ecosurety lobbied for this amendment. This is good news for producers and recyclers. The lower than expected increase should help depressurise the plastics recycling industry, whilst the 2% increase each year until 2020 should provide adequate incentive to continue recycling harder to process plastics in the long run.
We hope to see this reduce the volatility in plastic Packaging Waste Recovery Notes (PRNs) throughout the course of the year. The Q1 recycling figures, released at the end of April, will be the next test for the Plastic PRN market.
2. Glass Targets
Glass targets will be held at current levels (77%) for 2016 and 2017 and then increased by 1% up until 2020. This should help see the relative stability in the glass market continue into 2017.
However, extended periods of low PRN prices do cause a reduction in the levels of glass recycling. If recycling figures are released that show we’re falling behind we could see prices increase to stimulate supply.
3. Goodbye Carbon Reduction Commitment
The Carbon Reduction Commitment (CRC) will be abolished from the end of the 2018-2019 compliance year. The final submissions will be in October 2019.
To ensure we maintain an incentive to optimise energy use, the Climate Change Levy (CCL) will have its rates increased from 2019 onwards. This will financially compensate for the loss of revenue caused by the abolition of CRC.
A consultation will be released at the end of 2016 to look at a simpler energy and carbon reporting framework. We’ll be consulting our members on what they would like to see when this is released.
If you would like to discuss how these changes will affect you, please get in touch with the ecosurety team on 0845 094 2228 email firstname.lastname@example.org
Key account manager
As key account manager Richard helps our largest clients manage their legal obligations under Packaging, WEEE and Batteries legislation. His background in economics helps our members manage their budgets and strategically procure evidence.