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Plastic packaging tax: expanded recycling capacity required

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Since the introduction of plastic packaging tax in April 2022, the amount of packaging produced or imported into the UK containing recycled plastic increased from 31% to 44% in the first six months, reports Pinsent Masons, suggesting that the new tax is starting to achieve its policy aim.

The report shows an increase in the total amount of packaging that contains some recycled plastic, although it is not clear how much of that packaging is recycled.

Abigail McGregor, legal director at the firm said: ‘The new plastic packaging tax has provided extra income for the taxman, and prompted behavioural change, encouraging UK businesses to rapidly shift to using recycled plastics.’

McGregor sounds a note of caution, however, with figures for the next six-month period suggesting the use of recycled plastic may be levelling off: ‘There is a risk that demand from businesses on plastic packaging producers to include increasingly more recyclables will soon outstrip the supply of these materials. Building greater capacity for recycling is imperative.’

The firm reports a shortfall in the UK’s current forecast domestic capacity for recycling plastic packaging, which currently stands at just 700,000 tonnes a year, representing approximately just 20% of the UK’s estimated annual 3.5 million tonnes of plastic packaging waste.

Issue: 1632
Categories: News
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