BPF Policy Paper 2023 for Parliamentary Reception 21 November

Completing the circle

Completing the circle Innovation Innovation and plastics and plastics for the 21st Century for the 21st Century Parliamentary Reception at the House of Commons Tuesday 21st November 2023

KEY POLICY REQUESTS

Packaging Reforms Accelerate the reform of the waste collection and packaging legislation (Extended Producer Responsibility, Deposit Return Scheme and Simpler Recycling) and maximise its effectiveness.

Chemical Recycling Accept mass balance as a calculation method for the Plastic Packaging Tax (with a fuel exempt allocation method), to permit the scaling up of chemical recycling in the UK.

Recycling Infrastructure Enable the expansion and improvement of plastic recycling infrastructure by investing funds raised by the Plastic Packaging Tax.

Skills Additional support for businesses to replace lost expertise and a further review of the effectiveness of the apprenticeship levy for manufacturers.

Trade Work to minimise trade barriers and encourage regulatory alignment with the EU (where it makes sense); redevelop the overseas trade show support programme.

Energy More grants for the deployment of energy efficient machines to assist industry’s decarbonisation, productivity and competitiveness.

Completing the circle Innovation and plastics for the 21st Century

Packaging Reforms: Accelerate the reform of the waste collection and packaging legislation and maximise its effectiveness Extended Producer Responsibility, Deposit Return Scheme and Simpler Recycling

Extended Producer Responsibility

Deposit Return Scheme

Ensuring that businesses understand their responsibilities and develop packaging formats that are recyclable.

A consistent UK wide DRS scheme, including the material type, size of containers and fee structure, is needed to increase recycling rates.

Simpler Recycling Ensure there is the sorting infrastructure to prevent the mixing of paper and card, plastic, glass and metal.

Chemical recycling: Accept mass balance as a calculation method for the Plastic Packaging Tax, to permit the scaling up of chemical recycling in the UK With a fuel exempt allocation method

Lack of acceptance of mass balance in the UK is preventing companies from investing in facilities.

Waste

Industry needs a quick and definitive response to the recent consultation.

Cleaning sorting

Recycling operation

Virgin feedstock

Recycled feedstock

A Process Plant Multi-site

B

Recycled attributed product

C D

Mass balance

Mass balance allows the attribution of the ‘recycled characteristic,’ to one or several output products.

Mass balance allows the attribution of the ‘recycled characteristic,’ to one or several output products.

Recycling infrastructure: Enable the expansion and improvement of plastic recycling infrastructure by investing funds raised b y the Plastic Packaging Tax

The aim of the tax is to increase recycling but there is a shortfall of recycling capacity in the UK and concerns about uncontrolled imports of waste.

Tax funding should be ring-fenced and reinvested into the plastics recycling infrastructure and associated research.

Completing the circle Innovation and plastics for the 21st Century

Skills: Additional support for businesses to replace lost expertise and a further review of the effectiveness of the apprenticeship levy for manufacturers

Plastics is the third largest manufacturing employer in the UK.

Skilled workforces are the lifeblood of UK manufacturing and long-term vacancies are damaging the sector.

The BPF backs the calls from many industry bodies for a further review of the apprenticeship levy as it is failing to deliver the required investment in skills and training.

Trade: Work to minimise trade barriers and encourage regulatory alignment with the EU (where it makes sense); redevelop the overseas trade show support programme The lack of clarity on regulatory alignment is damaging UK businesses manufacturing products for both the UK and EU markets.

UKCA marking is one example where divergence has added costs, delays and barriers to industry.

The EU remains the UK’s largest trading partner (for the plastics industry) with over 64% of our entire trade value.

Industry is calling for a strategic and operational approach to growing export trade. It is vital that the trade show support programme is redeveloped and reintroduced.

Energy: More grants for the deployment of energy efficient machines to assist industry’s decarbonisation, productivity and competitiveness The threat of rising energy costs remains a major concern for BPF members.

Ensuring there are grants in place to help the transition to a low carbon economy is essential to business.

CO2

Completing the circle Innovation and plastics for the 21st Century

The UK plastics industry at a glance

3.4 3.4

1.7 1.7

MILLION TONNES MILLION TONNES PLASTICS MATERIALS PLASTICS MATERIALS PROCESSED PROCESSED

£25bn £25bn

MILLION TONNES MILLIONMATERIALS TONNES PLASTICS PLASTICS MATERIALS PRODUCED

PLASTICS INDUSTRY PLASTICS INDUSTRY TURNOVER

PEOPLE PEOPLE DIRECTLY EMPLOYED DIRECTLY EMPLOYED

500k 500k

5,800 5,800

PLASTICS AMONG THEARE UK'S TOP 10 EXPORTS THE UK'S TOP 10 EXPORTS

TURNOVER

PRODUCED

155,000 155,000

Top 10 Top 10 PLASTICS ARE AMONG

TOTAL EMPLOYMENT EMPLOYMENT TOTAL INCLUDING INCLUDING INDIRECT JOBS INDIRECT JOBS

Top 3 Largest Top 3 Largest MANUFACTURING SECTORS SECTORS MANUFACTURING IN THEIN UKTHE (BY EMPLOYMENT) UK (BY EMPLOYMENT)

COMPANIES COMPANIES IN IN THETHE PLASTICS PLASTICS INDUSTRY INDUSTRY

Location of plastics and rubber firms in the UK

Scotland, 6%

Scotland, 6% North East, 4% Northern Ireland, 3%

North East, 4% Yorkshire and

Humberside, 12%

Northern Ireland, 3% North West, 15%

Yorkshire and East Midlands, 13%

Humberside, 12%

North West, 15%

EastMidlands, England, 9% East 13%

West Midlands, 15%

London, 2% Wales, 5%

West Midlands, 15% South East, 9%

Wales, 5%

South West, 7%

South East, 9% South West, 7%

East England, 9% London, 2%