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Resource Association calls for ‘feebate’ scheme to tax plastic packaging

From: Packaging News

A new report commissioned by the Resource Association calls for a ‘feebate’ scheme for packaging waste which would refund good-performing companies.

Commissioned in conjunction with WWF-UK, the scheme would comprise a levy on all packaging which is refunded to organisations demonstrating their use of post-consumer recycled materials (PCR) through the number of certified credits they hold.

The report rejects materials taxation based on the complexity of delivery, and suggests that a single compliance scheme and single organisation for producer responsibility would be complementary to any policy option used to increase demand for PCR.

Dominic Hogg, chairman of Eunomia Research and Consulting, the primary author of the report, said: “As the Treasury considers its proposal for a tax on plastics, with consideration of exemptions for materials with high recycled content, we believe this type of mechanism should be a strong candidate for consideration as it combines a few with an incentive to use PCR.”

Ray Georgeson, chief executive of the Resource Association said: “All parts of the resources supply chain for too long have talked in general terms about the need to boost demand for recycled material and use demand-pull measures to develop the markets to assist in reaching higher recycling targets. This report now adds a real level of detail to this discussion with some much-needed fresh thinking.”

Lyndsey Dodd, head of marine Policy at WWF-UK, said a new system is needed where a levy on all packaging is used “to reward those using the most recycled material – to incentivise the use of recycled material and support the target announced in the budget for a minimum of 30% recycled plastic in products.”

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