New WRAP and Defra Report: UK Recycling Sector Sees Major Investment Opportunities
A new report from WRAP and Defra has shed light on investment prospects within the UK’s recycling sector, specifically focusing on areas highlighted in the 2018 Resources and Waste Strategy. The report examines potential growth in recycling infrastructure, with particular emphasis on food waste, plastics, and paper and cardboard, which are all expected to experience significant increases in demand. Growth rates for these materials are forecast to range from 39% to 100% by 2035.
Key Investment Areas
- Food Waste: Food waste is projected to see the most substantial growth, with an expected increase of 100% by 2035, reaching 4.8Mt. As a result, there will be a substantial need for additional infrastructure, particularly in Anaerobic Digestion (AD) facilities. If Closed Composting cannot handle the demand, AD facilities may see a required capacity of up to 1.375Mt annually by 2035.
- Plastic Waste: The introduction of new schemes such as Deposit Return Scheme (DRS), Simpler Recycling, and extended producer responsibility for packaging (pEPR) is expected to increase plastic packaging waste by 52% between 2020 and 2035, reaching 1.6Mt. This could result in a need for an additional 324kt per year of plastic reprocessing capacity. The potential ban on plastic waste exports outside of the EU may also impact the demand for local processing infrastructure.
- Paper and Card: Paper and cardboard packaging is set to grow by 39% by 2035, driven by Simpler Recycling and pEPR schemes. This could lead to the need for up to 1.7Mt of new reprocessing infrastructure. The report also highlighted the ongoing challenge of paper contamination, which could affect the efficiency of recycling processes.
Moderate Investment Areas:
Glass and metal (steel and aluminium) are expected to see moderate growth, with forecasted increases of 22% for glass and 24% for metals. These materials will likely require moderate investment to accommodate the growth in waste generation.
Barriers to Investment
The report acknowledges that there are barriers to investment in the recycling sector, with industry stakeholders pointing out challenges related to infrastructure development. The government is committed to addressing these obstacles through continued work to support investors, recyclers, and businesses in this vital transition.
Circular Economy: A Long-term Priority
The transition to a circular economy remains a key priority for the government, supported by the Circular Economy Taskforce. This initiative brings together experts from government, academia, and industry to ensure the co-design of a long-term strategy for recycling and waste management in the UK.
This report serves as a critical step in identifying recycling infrastructure investment opportunities and directing resources where they are needed most. As the UK aims to reach its circular economy goals, there are ample opportunities for businesses and investors to help drive positive change in waste management practices.
At Affordable Waste Management, we are dedicated to helping businesses manage their commercial waste efficiently and sustainably, ensuring full compliance with the latest regulations. If you need assistance with navigating the changing waste management landscape, feel free to get in touch for a tailored quote today!