Reconomy puts forward 10-point framework to reform UK circular economy
resource.co | 15 July 2024

Aerial view of a landfill operation
Aerial view of a landfill operation

A framework to enable the circular economy, developed in collaboration with consultants Sancroft, proposes a series of ‘business-friendly’ principles aimed at ‘restructuring the waste industry’.

Highlighting that currently ‘industry is struggling to revitalise stagnant recycling rates, keep pace with new materials entering the market and develop better systems to tackle growing waste in a complex system’, the framework identifies key areas for policy intervention. This initiative comes as Steve Reed, the new DEFRA Secretary, last week announced "a roadmap to move Britain to a zero waste economy" as one of his key priorities.

Highlighting the environmental impact of the waste sector, which currently accounts for an estimated six per cent of UK greenhouse gas emissions, the proposals seek to help the waste industry decarbonise as part of contributing to longer-term net zero goals.

Guy Wakeley, Group Chief Executive of Reconomy, commented: "To meet our climate objectives, protect finite resources and grow the economy, it is crucial this new government takes steps to help businesses and communities improve resource management."

The ten guiding principles proposed by Reconomy are:

  1. National minimum standards: All waste providers must adhere to a new higher sustainability standard. This creates a level playing field, ensuring maximum value is extracted from previously wasted materials. Councils should have the power to renegotiate contracts if providers fall below this standard, avoiding long-term subpar contracts.
  2. Strategic infrastructure planning: A national infrastructure strategy is needed to address the sporadic and reactive nature of waste management development. This strategy should consider current needs while planning for future waste reduction. Tactical planning should specifically consider utilising brownfield sites.
  3. Consistent separate collection: To address the variability in collections, which is the biggest barrier to consumer engagement, consistent collections should be implemented across the country. This could involve a three-tiered approach considering urban, suburban, and rural locations, ensuring the system is recognisable wherever the consumer is.
  4. Increased frequency of recycling collections: Local authorities, within updated contractual standards, should be encouraged to increase the frequency of food waste and dry recycling collections, while reducing residual waste collection.
  5. Track waste to inform reduction targets: Baseline waste data needs to be established, with effective systems for continuous collection. This accurate data can then be used to set national, evidence-based reduction targets that are widely communicated and easily monitored.
  6. Extended Producer Responsibility (EPR): Implementation of planned EPR regulation to shift the burden of waste management onto producers.
  7. Ecodesign standards: Given that around 80 per cent of a product's environmental impact is determined in the design phase, standards minimising these impacts are key. These should include mandatory standards for returnable packaging, less complex material compositions, and designing for reuse, repair, and recyclability as a third priority.
  8. Financial incentives & disincentives: EPR funding must be ringfenced to support improved circularity within the resource stream from which it is collected. While tax hypothecation is complex, subsidies will be needed to stimulate demand and create an effective market for recycled materials.
  9. Digitisation of information: Digital tracking of resources and their end-of-life management in real-time will ensure materials are managed compliantly and allow for informed decisions on improving England's waste strategy. This could be supported by introducing material passports across various resources.
  10. A governing body to track enforcement: Following the implementation of principles 1-9, independent governing bodies should be created to enact change and ensure effective enforcement. This final stage is only viable once the correct and simple system has been created for businesses to adhere to.

Wakeley added: "There is no better way for the new government to come good on its commitment to moving towards a zero waste economy than by championing our guiding principles to unlock growth, benefit businesses and materially reduce emissions."

Reconomy believes that implementation could yield significant economic benefits, pointing to WRAP’s assessment that the full benefits of a circular economy could increase the value of the UK GDP by £82 billion (GVA) and create up to 284,000 jobs in London alone by 2030.

The proposed framework aims to create a consistent regulatory market within which businesses can operate while mitigating the negative environmental impacts of waste. In putting this forward, Reconomy and consultants Sancroft aim to simplify the waste system and encourage a more favourable investment environment.

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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?

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There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.