bbk waste management report uk
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OFFICIAL PROGRAM COOPERATION PARTNER
On the way to a circular economy
UK WASTE SECTOR REPORT
DISCLAIMER
The information in this report were gathered and researched from sources
believed to be reliable and are written in good faith. Switzerland Global
Enterprise (S-GE) and its network partners cannot be held reliable for data,
which might not be complete, accurate or up-to-date, nor for data which are
from internet pages/sources on which S-GE or its network partners do not have
any influence. The information in this report does not have a legal or judicial
character, unless specified noted.
ON THE WAY TO A CIRCULAR ECONOMY
The UK has made considerable progress in setting out waste
management infrastructure in the form of collection, recycling
and recovery of waste to move wastes up the waste
hierarchy and avoid landfill disposal. But it is still behind most
European countries in reaching its 2020 targets and
achieving a low carbon circular economy; thus presenting
significant business opportunity for international companies
with proven concepts and operational performance.
This report provides detailed insights and intelligence on UK
specific issues, challenges and opportunities; all of which are
vital considerations for businesses aiming to enter this
market.
Language: English
Number of pages: 110
Author: LRS Consultancy
Other Reports: Are you interested in other Waste Reports
for other sectors and countries? Please find more Reports
here: www.s-ge.com/reports
Foreword
Dear reader,
In a world of growing populations, urban concentration and a persistent ‘throw away culture’, waste management has become
one of the most important areas for private and public sector development. It is the key to solving the conundrum of less space
and more waste and a key market area where business and government must work together to implement innovative and
sustainable solutions. Many countries are looking for role models and solutions that can be implemented quickly and
efficiently and Switzerland is a clear leader in this sector, enjoying a reputation of advanced and pioneering solutions to the
‘waste problems’.
The following Report on the UK's Waste Management Market was commissioned by the Swiss Business Hub United Kingdom
and Switzerland Global Enterprise, as part of ongoing trend spotting efforts. Trend spotting is an integral part of the services
provided by the Swiss Business Hub and Switzerland Global Enterprise and we endeavour to identify and assess industry
sectors in the UK that would be of interest to Swiss SME’s due to strong growth or a need for expertise and skills.
The report has been prepared by Claudia Amos, Principal Consultant at LRS Consultancy, a specialist consultancy firm
focussing on sustainable resource recovery with a number of years of experience and significant expertise in the area of waste
infrastructure throughout the waste hierarchy, including traditional and novel waste recovery and recycling technologies. The
Swiss Business Hub UK and Switzerland Global Enterprise would like to thank Claudia and her team for the excellent work and
collaboration throughout the conceptualisation and delivery of this report.
It is thus with great pleasure that we present this report to you and we hope that you will enjoy reading the report and benefit
from its content. We remain, wishing you every success in the global markets.
Thorsten Terweiden
Head of Swiss Business Hub
Foreword
Dear reader,
Waste management and recycling is one of the key subjects when we talk about clean technologies.
The demand for Cleantech products and services is rising constantly. The underlying reasons can be found in the accelerating
pace of climate change, increased environmental awareness in all parts of the world and major investments in sustainable
solutions by the public sector.
The Swiss are world-class when it comes to recycling a range of goods. Significant levels of glass, aluminum cans, PET bottles,
paper, organic waste, and even electrical and electronic appliances are separated for waste disposal, collected and recycled.
Recycling rates for glass bottles, PET bottles and aluminum cans are particularly high with over 90%.
Cleantech Switzerland is the official export platform for the Swiss Cleantech businesses and was developed as one part of
economic stabilization measures (2009) by Switzerland Global Enterprise, the national export promotion agency on behalf of
the Federal Government. The export platform is a powerful interface between Swiss companies and foreign project and
business partners. Cleantech Switzerland’s work is supported by a central database (Cleantech Cube) containing detailed
profiles of around 400 Swiss companies, a key resource in ensuring easy access to Swiss technologies. Cleantech Switzerland
offers different services, e.g. information about projects, tenders and events; marketing support as well as market development
and consulting services in cooperation with selected service partners. Additionally, Cleantech Switzerland utilizes its network
of 16 Cleantech associations as well as the official Swiss network abroad, comprising around 100 Embassies, 50 General
Consulates and 20 Swiss Business Hubs.
As the official body for the Swiss Cleantech sector, we help you to grow your export sales and to increase your visibility in the
global marketplace.
Cleantech Switzerland is convinced that you will find a lot of meaningful insights in the UK waste report at hand!
Carina Steiner
Managing Director
Cleantech Switzerland
Contents
1. OVERVIEW OF THE UK’S WASTE
MANAGEMENT SECTOR ________________ 13
1.1. Introduction to Waste Management in the uK __ 13
1.1.1. Regional differences ___________________ 14
1.2. Waste Arisings _______________________ 15
1.2.1. Construction, Demolition & Excavation Waste __ 18
1.2.2. Commercial & Industrial Waste ____________ 20
1.2.3. Local Authority Collected Waste ___________ 22
1.2.4. Other waste streams ___________________ 24
1.3. Waste Management ____________________ 26
1.3.1. UK Overview ________________________ 26
1.3.2. Collection ___________________________ 28
1.3.3. Re-use _____________________________ 32
1.3.4. Recycling, Composting & Anaerobic Digestion __ 34
1.3.5. Residual Waste Treatment – Mechanical Biological
Treatment (MBT) and Energy from Waste (EfW) 39
1.3.6. Landfill ____________________________ 40
1.4. Summary and Future trends ______________ 41
2. REGULATORY DRIVERS FOR WASTE &
RENEWABLE ENERGY__________________ 43
2.1. Regulatory framework and legislative requirements43
2.1.1. European & UK Waste Policy & Legislation ____ 43
2.2. Main regulatory stakeholders _____________ 54
2.2.1. UK Government Departments _____________ 54
2.3. Product labels and UK end of waste standards __ 60
2.3.1. Product Labels, Specifications and End of Waste
Criteria for dry recyclables _______________ 61
2.3.2. Product Labels, Specifications and End of Waste
Criteria for biodegradable materials _________ 63
3. THE UK WASTE MANAGEMENT SECTOR __ 65
3.1. Introduction _________________________ 65
3.2. Profile of leading waste Management companies and
main private stakeholders ________________ 65
3.2.1. Veolia Environmental Services (VES) ________ 68
3.2.2. Biffa Group _________________________ 68
3.2.3. SITA UK (Suez) _______________________ 68
3.2.4. Viridor (Pennon Group) _________________ 68
3.2.5. FCC Environment (FCC) ________________ 69
3.3. Current Market structure & Segmentation _____ 69
3.3.1. Reprocessing ________________________ 69
3.3.2. Material Sorting & Separation of Dry Recyclables 70
3.3.3. Organic Waste Treatment ________________ 78
3.3.4. Residual Waste Processing _______________ 82
3.4. UK market share and future trends _________ 85
4. MARKET ENTRY INTO THE UK ___________ 87
4.1. Introduction _________________________ 87
4.2. Opportunities & Challenges within the UK market 88
4.2.1. Challenges & Threats ___________________ 88
4.2.2. Opportunities and potential market niches ____ 89
4.3. Project structures, investment and Available grants90
4.4. Key Issue for a Market Entry & routes to market 94
4.4.1. Key issues and requirements for a market entry in
the UK _____________________________ 94
4.4.2. Routes to Market & Market Entry Strategies ___ 96
Contents
4.4.3. Engaging with UK Market Opportunities _____ 97
4.4.4. Events and other marketing opportunities _____ 98
5. CONCLUSIONS AND RECOMMENDATIONS100
6. APPENDIX ___________________________ 102
6.1. Regulatory requirements; A detailed timeline _ 102
6.2. Examples of Swiss Companies working in the UK 106
List of figures
Figure 1: Map of the United Kingdom – England, Wales, Scotland and Northern Ireland ............................................................. 14 Figure 2: Map of the geographical regions in England ...................................................................................................................... 15 Figure 3: Total UK Waste Generation by Sector (2010) .................................................................................................................... 16 Figure 4: Distribution of Waste Streams in the UK Regions ............................................................................................................. 17 Figure 5: CD&E Arisings in the UK (tonnes) .................................................................................................................................. 18 Figure 6: Composition of Construction & Demolition Waste ........................................................................................................... 19 Figure 7: Recycled Aggregate End User Markets ............................................................................................................................... 19 Figure 8 : Commercial Industrial Waste Sectors .............................................................................................................................. 20 Figure 9: Total C&I Waste in England by Sector, Waste type, and Management Method ............................................................. 20 Figure 10: C&I Waste Arisings in Regions of the UK ...................................................................................................................... 21 Figure 11: Composition of overall Household Waste arisings .......................................................................................................... 22 Figure 12: LACW in Geographic Regions of the UK ......................................................................................................................... 23 Figure 13: Yearly UK ELV Recovery Rates ........................................................................................................................................ 24 Figure 14: Waste Management of LACW in the UK 2005 - 2011 ..................................................................................................... 26 Figure 15: LACW Management in the UK 2006/07-2010/11 ........................................................................................................... 27 Figure 16: Waste streams in the UK by management type (LRS, 2013) .......................................................................................... 27 Figure 17: The waste hierarchy .......................................................................................................................................................... 28 Figure 18 : Collection & Waste Management .................................................................................................................................... 29 Figure 19: Waste Authorities in the UK ............................................................................................................................................. 30 Figure 20: Re-use Policies and Strategies in the UK ........................................................................................................................ 32 Figure 21 : Overview of UK Waste Policies in the UK ....................................................................................................................... 35 Figure 22: UK Packaging Waste 2010 ............................................................................................................................................... 36 Figure 23: Household Waste Recycling Performance of English Regions 2001/2002 – 2011/2012 ............................................. 36 Figure 24: Material Recycling in England 2011/2012 .......................................................................................................................37 Figure 25: Organic Recycling - total UK input volumes from 2000 to 2010 (excluding MBT) ...................................................... 38 Figure 26: UK Organic Recycling 2010 (input in tonnes) ................................................................................................................. 38 Figure 27: Maximum Biodegradable municipal waste to landfill targets for the UK (EA, 2012) ................................................... 40 Figure 28 outlines the transposition of Directives by country in the UK ........................................................................................ 44 Figure 29 : Regulatoary Timeline 2005 - present ............................................................................................................................. 46 Figure 30: UK Implementation of EU Waste Framework Directive ................................................................................................ 47 Figure 31: UK regional government legislation affecting waste management. ............................................................................... 49 Figure 32: UK national government legislation affecting waste management. ............................................................................... 49 Figure 33: UK national government legislation regarding low-carbon energy. ............................................................................... 51 Figure 34: Legislation for England regarding low carbon energy ..................................................................................................... 51 Figure 35: UK national government policies affecting the waste sector. ......................................................................................... 52 Figure 36 UK regional government policies affecting the waste sector. .......................................................................................... 53 Figure 37: UK Government Departments, ministerial and non-ministerial. .................................................................................. 54 Figure 38: Executive agencies and other public bodies. ................................................................................................................... 56 Figure 39: Other Interested Stakehoders . ........................................................................................................................................ 58 Figure 40: Types of product labels and UK End of Waste standards. ............................................................................................. 60 Figure 41: Common types of plastic and their application. .............................................................................................................. 63 Figure 42: Waste Management Facilities in the UK (2012) ............................................................................................................. 65 Figure 43: Leading waste management companies operating on the UK market. ......................................................................... 66 Figure 44: Regional and medium sized waste management companies operating on the UK market. ......................................... 66
List of figures
Figure 45: Waste Industry Capital Expenditure 2007-2011 ............................................................................................................. 67 Figure 46 : Reprocessing / Recyclate Supply Chain ......................................................................................................................... 69 Figure 47: Recycling Collection vs Reprocessing Capacity in the UK (2013) - (ESA Practical Guide to the Circular Economy) .. 70 Figure 48: Classification of sites in England and Wales by size and number .................................................................................. 71 Figure 49: Leading MRF Operators ................................................................................................................................................... 71 Figure 50: Common Types of Plastic Polymer, Their Applications and Ease of Recycling ............................................................ 72 Figure 51: U.K. Market Size and Dynamics (2009) .......................................................................................................................... 74 Figure 52: U.K. Market Size (2010) and Dynamics (2011) .............................................................................................................. 75 Figure 53: U.K. Market Size (2009) and Dynamics ........................................................................................................................... 75 Figure 54: U.K. Market Size and Dynamics ....................................................................................................................................... 77 Figure 55: U.K. Market Size and Dynamics ...................................................................................................................................... 77 Figure 56: UK Composting Supply Chain Flow ................................................................................................................................ 79 Figure 57: Composting Gate Fees ...................................................................................................................................................... 80 Figure 58 : Pipeline of AD Facilities in the UK .................................................................................................................................. 81 Figure 59: Overview of AD Technology Suppliers ............................................................................................................................. 81 Figure 60: Anaerobic Digestion Gate Fees ........................................................................................................................................ 82 Figure 61: MBT Gate Fees .................................................................................................................................................................. 83 Figure 62: Leading EfW Operators .................................................................................................................................................... 84 Figure 63: EfW Gate Fees .................................................................................................................................................................. 85 Figure 64: UK Investment Need ........................................................................................................................................................ 86 Figure 6566: Swiss Recycling Rates for Dry Recyclables ................................................................................................................. 87 Figure 67 : Overview of Key Issues and Risks by Company Type .................................................................................................... 96 Figure 68 : Overview of Market Entry Strategies for Turnkey Suppliers and Equipment/Machinery firms entering the UK
Market ................................................................................................................................................................................................. 96 Figure 69 : List of Industry Sector Events ......................................................................................................................................... 98
Executive Summary
Waste is defined as “…any substance or object which the holder discards or intends or is required to discard…”. In the UK the
majority of wastes arise from the three main ‘controlled’ waste sectors i.e. municipal/household waste, industrial and
commercial waste, and construction and demolition waste (including hazardous wastes). In 2010 (the last recorded year of
data), a total of 203 million tonnes2 of waste were generated in the UK by households, commercial and industrial businesses,
and the construction sector. This is a decrease from 320 million tonnes in 2004, 305 million tonnes in 2006, and 289 million
tonnes in 2010; and this decrease is thought to be primarily as a result of the downturn in the UK economy coupled with the
impact of waste prevention activities. While municipal waste is expected to continue declining or levelling out in coming years
as the amount of waste produced per person is reducing, it is expected that the UK will see an increase in C&I and C&D waste
arisings with the recovery of the economy.
The UK operates as a single country internationally, but domestically, it is split into four distinct devolved regions England,
Wales, Scotland and Northern Ireland; each with their own environmental policies, strategies and regulations. All four
devolved governments have adopted waste management policies that are built around, and driven by, the application of the
waste hierarchy which prioritises waste management practices that recover value and minimise environmental impacts.
As a result of the adoption of the waste hierarchy principles, the UK waste sector has been undergoing significant change in
recent years, shifting from a landfill disposal industry, to one of resource recovery through re-use, recycling and reprocessing.
While this was initially driven by regulatory targets set out in the European Landfill Directive and the relevant UK regulations,
the waste management sector has been steadily evolving; new players from the retail, packaging, manufacturing and facilities
management sectors are entering the market, driven by concerns not only about waste management budgets of their own
operations, but also to the wider supply chain risks to their future business models, such as volatility in secondary commodity
material prices linked to availability of quality materials, and energy security to sustain their core business. Demand for closed
loop resource efficiency concepts, waste management services and associated technologies, notably for the recovery of value
from materials for reprocessing and energy, is forecast to continue to grow over coming decades. This will create new business
opportunities for companies able to supply viable and effective solutions particularly in more advanced technologies because,
while increasing amounts of material are being collected, the lack of suitable reprocessing infrastructure in the UK is currently
leading to large amounts of exports of materials to Europe and the Far East, where dry recyclates in particular can be recycled
and recovered economically.
The UK has made considerable progress in setting out waste management infrastructure in the form of collection and
treatment of waste, but it is still behind most European countries in reaching its envisaged target rates for recycling, recovery
and landfill diversion by 2020. The UK market, therefore, offers significant potential at this point in time; international
companies, with proven concepts and operational track records are moving into the UK to realise this potential. A third of
trade deals in the last 12 months involved an overseas firm.
The waste management sector in the UK currently consists of over 1,200 licensed facilities operating across the waste
hierarchy, with many more small scale local plants operating under an exemption which are processing very small quantities or
very specific non-hazardous waste streams. However, there are approximately 5 key players that dominate the market place,
including several that are global companies.
Businesses looking to invest and develop within the UK will find opportunities in sorting (Materials Recovery Facilities),
bulking of steel, waste management of glass, reprocessing of rigid mixed plastics, and aluminium packaging, and treatment of
organic waste as well as within the EfW sector.
Executive Summary
Development of new business in the waste management sector in the UK is impacted by a number of factors including: regional
differences, regulation complexities and uncertainties; land use issues and planning and permitting delays; carbon reduction
and renewable energy policies related to waste derived electricity, heat and gas; availability of investment; and a diversity of
stakeholders.
This report starts with a short introduction and provides an overview of the UK waste sector on it‘ way to meeting the
ambitions for closed loop recycling and a low carbon, circular economy providing an insight in
UK waste definitions and arisings in Chapter 1.2 providing information on the UK as a whole as well as the four
devolved regions of England, Wales, Scotland and Northern Ireland,
followed by a review of the level of waste collection, recycling, composting, anaerobic digestin and thernal recovery
activities to show the current status of the waste sector as well as future developments
Before detailing the relevant regulatory framework with policies, legislation and requirements in Chapter 2 detailing
UK regulatory stakeholders, product standards and labels as well as the developing End of Waste criteria relevant for
businesses recovering value from waste.
Chapter 3 provides an overview of the UK waste sector, describing major players, the relevant competition in the
reprocessing, composting, digestion, pre-treatment and energy recovery sector with information on existing and
future facilities in the UK, leading technology options and players as well as gate fee information.
All this information has been analysed in Chapter 4 to provide a view on how Swiss companies can access the UK
market, where opportunities can be found, how challenges could be mitigated and how routes into the UK market can
be developed, including a list of major events and information sources
The major opportunities in the UK market for Swiss companies are aligned to the private waste management sector as the
majority of waste infrastructure is built, owned and operated by private companies on service contracts to Local Authorities.
Similarly the increasing number of merchant facilities for short to medium term commercial industrial waste contracts are also
operated by private companies with differing levels of involvement by waste majors, as the top five are currently controlling the
market.
Success depends on understanding the UK market and potential risks, assessing and realising unique selling points (USPs),
identify market barriers and market potential, recognising the right opportunity, finding the right partner or agent, accessing
the private sector supply chain and delivering a marketing and business plan which will secure investment and demonstrate a
strong business model.
Glossary
Acronym Description
AD Anaerobic Digestion
ATT Advanced Thermal Treatment
BS British Standard
C&D Construction and Demolition
C&I Commercial and Industrial Waste
CCC Committee on Climate Change
CCN Community Composting Network
CCS Carbon Capture and Storage
CD&E Construction, Demolition & Excavation Waste
CfD Contracts-for-Difference
CO2 Carbon Dioxide
CRNS Community Resource Network Scotland
CRN UK Community Resource Network UK
Cylch Wales Community Recycling Network
DSO Direct Service Operator
DECC Department for Energy & Climate Change
DEFRA Department for Environment, Food & Rural Affairs
EA Environment Agency
EfW Energy from Waste
EMR Electricity Market Reform
EWC Environmental Waste Catalogue Code
FCC FCC Environment
FIT Feed-In Tariffs
FIT CfD Feed-in Tariff based on Contracts for Difference
FRN Furniture Re-use Network
FY Financial Year
GQCHP Good quality combined heat and power
IED Industrial Emissions Directive
ktpa Kilo tonnes per annum (000 tonnes)
LACW Local Authority Collected Waste
Glossary
Acronym Description
LACMW Local Authority Collected Municipal Waste
LCRN London Community Resource Network
MBT Mechanical Biological Treatment
Mtpa Million tonnes per annum (000,000 tonnes)
MSW Municipal Solid Waste
MW Megawatts
MWh Megawatt Hour
Ofgem Office of Gas and Electricity Markets
PAS Publicly Available Specifications
PCB/ PCT Polychlorinated biphenyls
PFI Private Finance Initiative
PVC Polyvinyl Chloride
RDF Refuse Derived Fuel
RHI Renewable Heat Incentive
RO Renewables Obligation
ROC Renewables Obligation Certificate
rWFD Revised waste framework directive
SEPA Scottish Environment Protection Agency
SI Statutory Instruments
SMEs Small to Medium Sized Enterprises
SOC Substance Oriented Classification
SRF Solid Recovered Fuel
tpa Tonnes per annum
TWh Tera Watt Hour
TWhe Tera Watt Hour of Electricity
TWhh Tera Watt Hour of Heat
WDF Waste Data Flow
WEEE Waste Electrical and Electronic Equipment
WRAP Waste & Resources Action Programme
UK WASTE SECTOR REPORT
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1. Overview of the UK’s waste management sector
1.1. INTRODUCTION TO WASTE MANAGEMENT IN THE UK
The UK waste sector has undergone significant change in recent years - shifting from a landfill disposal
industry, to one of resource recovery through re-use, recycling and reprocessing. While this was initially driven
by regulatory targets set out in the European Landfill Directive and the relevant UK regulations, the waste
management sector has been steadily evolving; new players from the retail, packaging and manufacturing
sectors are entering the market, driven by concerns not only about waste management budgets of their own
operations, but also to the wider supply chain risks to their future business models, such as volatility in
availability of quality supply materials and energy security. Many have come to the understanding that their
business ambitions, and carbon and sustainability targets are unlikely to be met without collaboration
throughout the supply chain including the waste handling and resource recovery industry. Demand for closed
loop resource efficiency concepts, waste management services and associated technologies, notably for the
recovery of value from materials for reprocessing and energy, is forecast to continue to grow over coming
decades. This will create new business opportunities for companies able to supply viable and effective solutions
particularly in more advanced technologies. Simultaneously the market is consolidating with international
companies, with proven concepts and operational track records, increasingly moving into the UK market.
The UK has in general been slower at implementing regulations and renewable energy incentive systems than
other EU countries such as Denmark, Germany, France and Austria. In addition, when implementing EU
legislation the UK has developed a more tailored, market based approach than following continental European
countries in implementing landfill bans, mandatory targets etc. As this report will show, the UK waste
management market is improving but remains behind other comparable EU countries in its level of landfill
diversion. As a consequence, industries in countries with already more advanced waste management and
treatment requirements, such as Switzerland, have the advantage of proven experience and success operating
and evolving such technology concepts and designs which would benefit the UK
Investment in waste infrastructure in UK, as measured by capital expenditure levels, has exceeded £3.8 billion
over the last five years and has included recycling facilities, residual treatment capacity and collection fleets,
largely in the MSW market backed by government support. As recycling and waste treatment technologies
achieve greater economic viability and the cost of landfill disposal continues to rise, the market is becoming
more technologically and efficiency oriented; and in many areas it is also becoming more consolidated as
leading technologies and suppliers start dominating their market segments. Investment into waste and
recycling projects can be a complex process, impacted by regulatory uncertainties, land use issues, planning
and permitting delays as well as climate change, carbon reduction and renewable energy policies related to
waste derived electricity, heat and gas. When developing business plans investors like the Green Investment
Bank will expect some Future proofing of the expected capital returns and ensuring that the required viability
and sustainability criteria are met.1
While the UK lags behind leading European countries which have extensive collection and treatment
infrastructure with over capacity attracting waste imports in the form of waste derived fuels etc. Investment in
EfW infrastructure has been limited compared to European counterparts as it mainly relies on private
investments, which has resulted in increasing waste exports from the UK to fuel European EfW facilities.
1 Waste and Resource Management M&A Update - http://www.lrsconsultancy.com/documents/LRSCatalyst_Waste_Resource_Management_MandA_Report_Jan_2013.pdf
UK WASTE SECTOR REPORT
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The challenge is in understanding the UK market, identifying relevant opportunities and defining viable
market entry strategy for the future. This report is intended to provide useful information and intelligence to
enable Swiss companies to take the first steps to enter, continue to expand and fully exploit opportunities in
the UK market to the best of their abilities.
1.1.1. Regional differences
While the UK operates as a single country internationally, domestically, it is split into four distinct devolved
regions England, Wales, Scotland and Northern Ireland; each with their own environmental policies, strategies
and regulations. The UK as a whole has targets for waste management and minimisation, and each of the
constituent countries also has their own targets, set by their individual administrations. In addition to varying
legislation, each country is responsible for its own surveys and data-keeping with regards to waste, which leads
to some difficulty in interpreting the situation for the UK as a whole.
Figure 1: Map of the United Kingdom – England, Wales, Scotland and Northern Ireland
In the report, details on the regional differences have been provided where available with a focus on England
as the largest market in the UK. Where possible more detailed regional breakdowns for England as a whole as
outlined in Figure 2 have been provided following the regional breakdown used by the Environment Agency
when reporting on the waste arisings and management activities.
UK WASTE SECTOR REPORT
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Figure 2: Map of the geographical regions in England
In the following, chapter 1.2 provides a brief overview of the waste arisings including UK waste definitions and
data availability; a more detailed review of individual waste categories. The management of these arisings is
then presented and assessed in Chapter 1.3 with a short summary of the status of waste management in the UK
and an outlook on future trends.
1.2. WASTE ARISINGS
Waste is defined as “…any substance or object which the holder discards or intends or is required to discard…”
and waste categories in the UK are defined and recorded by in number of ways following European guidelines
including:
source of origin
the composition and hazardous nature
level of regulatory controls
collecting methods
product categories
The majority of wastes arise from the three main ‘controlled’ waste sectors i.e. municipal/household waste,
industrial and commercial waste, and construction and demolition waste (including hazardous wastes) as
defined under the Environmental Protection Act 1990 and the Controlled Waste Regulations (England &
Wales) 2012, describing
Construction and Demolition Waste as waste arising from the construction, repair,
maintenance and demolition of buildings and structures. Mainly includes brick, concrete, hardcore
subsoil, and topsoil, as well as some timber, metal and plastics.
London
South East South West
East Midlands
West Midlands
North East
North West
East of England
Yorkshire & the Humber
UK WASTE SECTOR REPORT
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Commercial & Industrial Waste as waste arising from any premises which are used wholly or
mainly for trade, business activities, any factory and from any premises occupied by an industry
excluding any municipal waste.
Local Authority Collected Waste (LACW) or Municipal Solid Waste (MSW) as wastes
covering household waste as defined in the Controlled Waste Regulations 2012 as waste from
domestic residences but also waste from a range of non-domestic premises, such as schools, nursing
homes and hospitals as well as waste from other sources which is similar in nature and composition,
which will include a significant proportion of waste generated by businesses and not collected by or
on behalf of Local Authorities.
Non-natural agricultural wastes are also covered by the above legislation, which are wastes from farming,
forestry, horticulture and similar activities and must have been produced on a 'farm' in the course of 'farming'.
In terms of overall tonnage the three main controlled waste sectors represent nearly 100% of the total waste
arisings in the UK, with the construction, demolition, sector being the largest, followed by commercial
industrial and Local Authority Collected Waste (household wastes) as shown in Figure 3 below.
Figure 3: Total UK Waste Generation by Sector (2010)
2
Note: Other waste streams like secondary, and other wastes (including healthcare wastes, batteries &
accumulators, and wastes containing PCB) represent less than 1% of the total waste arisings in the UK.
All of these sectors produce a variety of waste types including non-hazardous and hazardous waste, which are
wastes that contains material which exhibit hazardous properties that may render them harmful to human
health or the environment as defined in the EWC (European Waste Catalogue).
The EWC was established in 2000 by the European Commission and consists of a hierarchical list of waste
descriptions, which are divided into 20 main chapters with detailed sub chapters with individual wastes in
each chapter having an assigned six digit code. Most of the chapters are related to industry, but some are based
on materials and processes.
2 Defra Energy from waste a guide to the debate
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221042/pb13892-energy-from-waste.pdf
UK WASTE SECTOR REPORT
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The List of Wastes (LOW) Regulations 2005 transpose the EWC into domestic legislation, and provide codes
for all hazardous and non-hazardous wastes. In the UK, waste is also classified by SOC (Substance Oriented
Classification) codes. SOC c0des refer to waste material type, and were derived from classifications used in the
2002/03 Environment Agency survey for each of the EWC codes.
SOC is essentially a simplified form of EWC used for internal reporting and several hundred codes for the EWC
were distilled to the SOC groups and sub groups for internal reporting within the UK.
In 2010, a total of 203 million tonnes2 of waste were generated in the UK by households, commercial and
industrial businesses, and the construction sector. While previously waste declined gently there was a dramatic
reduction form 289 million tonnes in 2008, which is mainly due to the economic crises and reduced business
and consumer activity. Agriculture and forestry wastes are estimated to be less than 0.16%3of the total waste
arisings in the UK, with 97% being natural waste and the remainder non-natural waste estimated at 500,000
tpa in 2008 - an increase from 250,000 – 300,000 tonnes in 2003. Hazardous waste makes up a relatively
small portion of the overall waste arisings in the UK – about 2.7% in 2010, this, however, is not an
insignificant amount, and equates to roughly 5.5 million tonnes of hazardous waste arising in the UK.
In the following, the three main waste sectors will be investigated further to provide a more detailed overview
of individual waste arisings in the UK for construction and demolition waste, commercial and industrial waste,
and municipal waste, as well as other, smaller waste streams.
Within the UK, England produces by far the largest fraction of total waste – more than triple the total waste
from the Scotland, Wales, and Northern Ireland combined. While the most recent figures, suggest that Wales
produces disproportionately more waste than Scotland or Northern Ireland, the most recent data available
regarding the waste arisings in Wales was published before the 2008 economic crisis, so particularly C&I, and
CD&E arisings have likely seen a decrease in recent years.
Total waste arisings from municipal, commercial and industrial, as well as construction and demolition sectors
reached nearly 180 million tonnes at the most recent survey years. The greatest tonnage of arisings occurs in
the construction and demolition sector, followed by the commercial, industrial and municipal waste streams. Figure 4: Distribution of Waste Streams in the UK Regions
UK WASTE SECTOR REPORT
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1.2.1. Construction, Demolition & Excavation Waste
Construction, demolition & excavation wastes (CD&E) are waste materials arising from the construction or
demolition of buildings and/or civil engineering infrastructure, including hard construction, demolition and
excavation waste, whether segregated or mixed.
Figure 5: CD&E Arisings in the UK (tonnes)
4 5 6 7
Keeping track of C&D arisings has proved challenging, and so the estimates for total arisings are highly
variable. The most recent estimates for CD&E waste in the UK place total arisings at just over 100 million tpa.
England produces more than ¾ of the total construction and demolition related wastes in the UK, followed by
Scotland, Wales, and Northern Ireland.
CD&E waste arisings have fallen in recent years due to both improved waste management practices and the
downturn in the economy. It is expected that CD&E arisings will see an increase in the coming years in line
with the growth expectations of the UK economy showing an uplift in construction and infrastructure
development.
The bulk of CD&E wastes are inert mineral wastes (aggregates, etc.) with only a small percentage of CD&E
waste arisings expected to be non-inert as shown in Figure 6.8 The inert materials are reused or recycled
directly on site in order to reduce haulage cost and the amount of virgin materials being used.
According to the Mineral Products Association (MPA)9 an estimated 206 million tonnes of aggregate was
produced in the UK in 2010, with 50 million tonnes being from recycled sources (24% of total market), as
displayed in Figure 6
4 Defra Waste Management Plan for England July 2013 - https://consult.defra.gov.uk/waste/https-consult-defra-gov-uk-
waste/supporting_documents/20130711%20%20Consultation%20Plan.pdf 5 SEPA Waste Data Digest 12 - http://www.sepa.org.uk/waste/waste_data/idoc.ashx?docid=a9309ef9-0240-4338-a2a2-
f446b325cade&version=-1 6 Wales C&D Arisings http://www.environment-agency.gov.uk/research/library/publications/33979.aspx
7 Construction, demolition and excavation waste arisings, use and disposal in Northern Ireland 2009/10
http://www.doeni.gov.uk/niea/cdew_arisings_use_and_disposal_in_ni_2009-10.pdf 8 the 2008 WRAP survey of CD&E – proper reference to be provided
9 Mineral Product Association (2010) - Data on sustainable consumption and construction. Online (accessed June 2012)
http://www.mineralproducts.org/sustainability/sustainable-products-data.html
UK WASTE SECTOR REPORT
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Figure 6: Composition of Construction & Demolition Waste
10
According to WRAP11 the 50 million tonnes of recycled aggregates being produced each year in the UK are sold
into the following sectors as presented in Figure 751, which shows the current market potential for the
individual sectors to date. In terms of volume, the most important end markets are capping, sub-base and
general fills representing over 84% of the market with over 46 million tonnes of material being sold into the
market according to WRAP.
Figure 7: Recycled Aggregate End User Markets
Source: WRAP
While C&D waste is an important waste stream is terms of tonnage it has not been further investigated in the
course of this report as the majority of waste is produced, reprocessed and re-used within the construction and
aggregate industry looking for local solutions for on-site waste management.
10
Data from Deconstruction and reuse of construction materials, BRE, 2001
11 Presentation by John Barritt at WRAP (October 2010)
Timber 7%
Packaging 6%
Plastic 3%
Inert 3%
Concrete 31%
Plaster and cement
1%
Ceramic 1%
Metal 1%
Insulation 1%
Misc / other 4%
Masonry 18%
Paper, cardboard,
plastic, other 13%
Asphalt 11%
Composition of C&D waste (BRE 2001)
10'725
13'915
22'440
1'540 1'430 2'255 2'035
605
0
5'000
10'000
15'000
20'000
25'000
Generalfills
Sub-base Capping Pipebedding
Asphalt Concrete Sand Othergraded
materials
To
nn
es (
000s)
UK WASTE SECTOR REPORT
20
1.2.2. Commercial & Industrial Waste
Commercial and Industrial (C&I) wastes are produced by the business sector, with commercial waste including
arising from the activities of retailers, wholesalers, hotels, caterers, public administration, social work,
education, transportation etc. Industrial waste is waste generated by factories and industrial plants.
Figure 8 : Commercial Industrial Waste Sectors
Industrial Sector Commercial Waste Sector
Food, drink & tobacco Retail & wholesale
Textiles / wood / paper / publishing Hotels & catering
Power & utilities Public administration & social work
Chemicals / non-metallic minerals manufacture Education
Metal manufacturing Transport & storage
Machinery & equipment (other manufacture) Other services
C&I waste can be split into 7 major categories (SOC1 codes) according to its composition (see Figure 8) and
arises from the following twelve industrial and commercial sectors shown in Figure 8.
Figure 9: Total C&I Waste in England by Sector, Waste type, and Management Method12
There are an estimated 59.4 million tonnes of CI waste in the UK. The waste arisings in Scotland, Wales, and
Northern Ireland are significantly lower than those in England as shown in Figure 10 with their combined
arisings totalling less than 1/3 the arisings in England alone. While C&I waste arisings in England and Wales
are split more or less evenly between the commercial and industrial sectors, arisings in Scotland are
significantly biased toward the commercial sector, and in Northern Ireland, the industrial sector. The most
recent report on CI waste arisings and composition was carried out by Defra in 2011, which found that the
recorded C&I waste arisings in England fell from 64.3 million tonnes in 2002/03 to 47.9 million tonnes in
2009. Within England the greatest C&I waste arisings occur in the North West, and Yorkshire & the Humber
regions, despite their relatively small populations, as these are major industrial centres in England.
12
Defra Survey of Commercial and Industrial Waste Arisings 2010 Final Results http://archive.defra.gov.uk/evidence/statistics/environment/waste/documents/stats-release101216.pdf
UK WASTE SECTOR REPORT
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Commercial and industrial waste arisings are not been monitored to the same extent as municipal waste
arisings. There is a great deal of uncertainty regarding data on C&I waste arisings in terms of tonnage and
composition, which is caused by lack of an up-to-date publicly available reporting system.
All commercial businesses have to provide waste transfer notes as part of their duty of care obligation, however
commercial confidentiality, the historic nature of detailed surveys as well as the regular change in waste
treatment and disposal arrangements due to short to medium contracts in the industry, are the main issues for
a lack of reliable and up-to-date information on C&I waste. For example, the most recent dataset available for
C&I waste in England is from 2009 – previous surveys were published in 2005/06, 2002/03, and 1998/99, for
Wales, the most recent available is from 2007, for Scotland 2009, and for Northern Ireland 2010. The age of
these data sources in conjunction with how rapidly the landscape of the waste sector in the UK has changed
over the past five years means that while the existing information provides a good overview, more detailed
assessments need to be undertaken when considering using the data for business development purposes.
Figure 10: C&I Waste Arisings in Regions of the UK
13 14
15
16
In conclusion, C&I waste arisings have fallen significantly since 2002/2003. This decrease stems from
increased awareness of waste generation, increasing gate fees for waste disposal/treatment, nationwide waste
reduction targets, and the downturn in the economy caused by the 2008 Global Economic Crisis. As the
economy recovers, it is expected that C&I waste arisings will increase gradually in the future – the Forecasting
2020 waste arisings and capacity report published by Defra estimates that C&I waste arisings in England
have fallen from 47.9 million tonnes in 2009, and will decrease until the economy has recovered, before
increasing once more. The central estimate shows C&I waste arisings decreasing until 2015, and then
increasing thereafter – reaching a total of 43.9 million tonnes in 2020 – still lower than the total for 2009.
13
Defra Survey of Commercial and Industrial Waste Arisings 2010 Final Results http://archive.defra.gov.uk/evidence/statistics/environment/waste/documents/stats-release101216.pdf 14
WRAP Northern Ireland Commercial and Industrial Waste Estimates 2009 - http://www.doeni.gov.uk/niea/northern_ireland_ci_waste_estimates_2009_v4_2.pdf 15
SEPA Statistical Analysis of Scotland Business Waste Survey Data for 2010 - http://www.sepa.org.uk/waste/waste_data/commercial__industrial_waste/idoc.ashx?docid=aad5d032-56e4-45e2-916a-580212f9d4fe&version=-1 16
Environment Agency Wales Survey of Industrial and Commercial waste arisings in Wales 2009 - http://www.environment-agency.gov.uk/static/documents/Research/Survey_of_Industrial_and_Commercial_Waste_Arisings_in_Wales_2007.pdf
UK WASTE SECTOR REPORT
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1.2.3. Local Authority Collected Waste
‘Local Authority Collected Waste’ is a term used to describe materials that are collected from households (or
properties such as schools, prisons and charities, which are deemed to produce waste of similar composition as
households) by the local authority or contractor(s) acting on their behalf.
Figure 11: Composition of overall Household Waste arisings17
The overall waste arisings 18from households includes organics (waste food and garden waste) with significant
portions of paper/cardboard, plastic, and glass; the remainder includes a number of different waste types as
shown in Figure 11.
Municipal solid waste (MSW) is another term used in this sector, which has a broader definition, including
household waste and additional materials that are collected by the local authority or their contractor(s) such as
waste and recycling from businesses (that pay for the local authority collection service), fly-tipped materials
and materials from parks. While the term MSW is still widely used it has been replaced due to regulatory
changes by two new terms; Local Authority Collected Waste (LACW), which refers to all wastes that are
collected by a local authority or contractor on its behalf, regardless of the source or type of waste and Local
Authority Collected Municipal Waste (LACMW) which is a slightly narrower definition which excludes wastes
such as construction and demolition waste collected by the local authority or its contractor(s) which are not
considered to be of a typically ‘municipal’ nature. In general national reporting in the UK relies upon data
regarding LACW being provided by local authorities (rather than LACMW), therefore this will be used from
here on.
Local authorities within the UK may either collect materials from municipal sources themselves or appoint a
private sector contractor to undertake the collections on their behalf. Regardless of whether a private
contractor is used or not all local authorities are required to report on the type and sources of the waste they
collect every quarter. Waste is reported based on a number of set questions, which identify the amount sent for
disposal or different treatment types. This information is aggregated by the Department of Environment, Food
& Rural Affairs (Defra) in an online database called Waste Data Flow (WDF) that can be accessed by the
public. (www.wastedataflow.org).
17
Defra Waste management Plan for England, July 2013. https://consult.defra.gov.uk/waste/https-consult-defra-gov-uk-waste/supporting_documents/20130711%20%20Consultation%20Plan.pdf 18
Overall arisings include all materials collected from households including the residual waste stream and recycling stream
UK WASTE SECTOR REPORT
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WDF was introduced in 2004 in England, Wales, Northern Ireland, and Scotland to fully record and assess the
waste collection, recycling and recovery performance of Local Authorities and in particular the amount of
landfill diversion achieved to enable the UK to meet the targets of the European Landfill Directive.
Historically, LACW increased year on year up to 2006 and after this date started to slow down and then
decline with the reduction in economic activity due to the economic crisis as outlined in Figure 12 showing the
aggregated data for the different UK countries. According to latest statistics household waste arisings for the
UK fell from circa 35.5 million tonnes in 2005/06 to circa 32.0 million tonnes in 2010/11.over this period.
Figure 12: LACW in Geographic Regions of the UK19
The regional breakdown of LACW waste arisings mirrors the way that population is distributed in the UK, with
the highest arisings of LACW occurring in London and the South East regions. There are several factors that
influence changes in LACW within an authority and also the differing overall amounts of waste arisings:
• Changes in population
• The number of businesses within a local authority for which that authority provides a
collection service
• The relationship between consumption habits and waste generation
• Differences in collection methods and collection frequencies
• Demographic influences (e.g. the proportion of households with gardens producing garden
waste, large families and single person households)
• Approaches to public educational campaigns for promoting recycling behaviours
• Waste prevention initiatives such as packaging changes, and educational campaigns
• Increasing re-use options, especially for example textiles and furniture reuse
Changes in consumption habits have influenced the composition of waste over time, for example there have
been reductions in paper related to the increased use of smart phones, home computers and electronic reading
devices; and reductions in food waste, likely to be due to the economic climate and increased household
awareness regarding food waste. Overall, the waste per capita in the UK is expected to continue to decline with
the UK currently experiencing high population growth due to net migration in comparison to other European
countries with England being one of the most densely populated countries in world.20
19
www.wastedataflow.org 20
Eurostat May 2013, European Environment Agency
UK WASTE SECTOR REPORT
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Defra has forecast for household waste arisings in England to continue to fall gradually to reach 22.6 million
tonnes in 202021 – this estimate is based on the quarterly data reports made through waste dataflow for all
waste authorities in England. Similar developments are expected for the other three countries with Wales
having detailed waste reduction and prevention targets to meet their ‘One Wales- One Planet’ objectives.
1.2.4. Other waste streams
In addition to the three major waste streams (municipal, commercial and industrial, construction and
demolition) there are several smaller specific waste streams, which can be of interest and have been prioritised
in response to the European Directives on Producer Responsibility for waste products or have emerged as part
of the emerging market for waste treatment and recovery.
1.2.4.1. End of Life Vehicles (ELV)
ELV (End-of-Life-Vehicles) refers to all vehicles (cars, trucks, lorries, etc.) that have reached their end of life.
The EU has set specific targets for the recycling of ELVs to ensure that they achieve the greatest rate of
recycling possible. The UK narrowly missed their EU-mandated target of 85% recycling of ELV in 2007 with a
recovery rate of ~83% - this represents a total weight of 1,118,334 tonnes of ELV. In subsequent years, the UK
has continued to fall short of the 85% recovery target – this target is set to increase to 95% in 2015.
Figure 13: Yearly UK ELV Recovery Rates
22
Year BIS Estimate EC Estimate
2006 83.53% 82.29%
2007 84.23% 83.08%
2008 84.98% 84.00%
2009 84.69% 83.54%
Under the ELV regulations, the final owner of a vehicle must be issued a ‘certificate of destruction’ for the
vehicle, and must be allowed to dispose of it free of charge; Manufacturers and importers are required to cover
the cost of this free ‘take-back’ system. Treatment facilities wishing to process ELVs must be authorised and
permitted to accept them, as hazardous waste regulations apply, and affect how ELVs are allowed to be
handled and processed.
1.2.4.2. Waste Electrical and Electronic Equipment (WEEE)
WEEE (Waste Electrical and Electronic Equipment) encompasses all discarded electrical and electronic
equipment – its disposal, recycling, and recovery is laid out by the EU WEEE Directive, which breaks down
WEEE into 10 categories:
Large household appliances
Small household appliances
IT and telecommunications equipment
Consumer equipment
Lighting equipment
Electrical and electronic tools
Toys, leisure and sports equipment
Medical devices
Monitoring and control instruments
Automatic dispensers
In 2011, nearly 1.6 million tonnes of electronic goods were disposed of in the UK – 38.4% of which was
recycled. In recent years, the proportion of electronics that goes to reuse has been increasing, but it is still
estimated that 37% of all used electrical and electronic equipment goes to landfill, therefore showing some
significant opportunity for further infrastructure development.
21
Defra – Forecasting 2020 waste arisings and treatment capacity https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221027/pb13883-forecasting-2020-waste-arisings.pdf 22
UK further behind ELV targets than assumed http://www.letsrecycle.com/news/latest-news/elvs-and-tyres/uk-further-behind-elv-targets-than-assumed
UK WASTE SECTOR REPORT
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Once within the WEEE system, material recovery in the UK has been becoming increasingly effective, with
over 75% of WEEE arising in 2010 being either reused or treated to recover useful materials – this is becoming
increasingly important in the current global marketplace where many of the materials used in electrical and
electronic equipment are subject to concerns over supply security.
1.2.4.3. Waste/Refuse Derived Fuels
Waste, or refuse derived fuels (RDF) are defined as a fuel produced through the processing of solid waste, most
commonly through shredding, sorting and dehydrating, into a product suitable for energy recovery. They are
produced from the combustible residual waste streams from municipal, commercial and industrial sources and
can vary widely in composition and quality. Waste derived fuels are classified into different grades based on
their quality; quality of waste derived fuels is based on:
Calorific value
Moisture content
Ash content
Levels of undesirable material contamination
Physical properties
Chemical properties
The description RDF tends to refer to a lower quality product, typically with a larger particle size, and a lower
average calorific value; the term Solid Recovered Fuel (SRF) refers to a higher quality product to CEN (Comité
Européen de Normalisation) standard CEN/TS 13359 wherein most of the low calorific value materials have
been removed, and the remainder processed to a smaller, more uniform particle size, which serves as a
superior feedstock for incinerators. The majority of RDF/SRF is produced from household waste sources, with
just 15% being produced from commercial and industrial waste.
Nearly 868,000 tonnes of RDF/SRF were exported to mainland European countries from the UK in 2012, with
the main receiving countries being The Netherlands, Germany, Norway, Denmark and Sweden, while SRF was
imported primarily to Estonia and Latvia for use in cement kilns. 85% of the total RDF/SRF exports were from
England. There is a significant difference between the amount of RDF/SRF notified to the appropriate
authorities for shipment, and the amount that is actually exported – it is estimated that less than 20% of the
notified RDF/SRF materials actually leave the UK.
The current lack of energy recovery infrastructure, increasing landfill taxes and high gate fees at the small
number of domestic EfW facilities are making the export of RDF/SRF a competitive waste management
option. The export of RDF has become widespread across the UK, and is expected to increase further in the
short term until the UK energy recovery capacity has been built up and the overcapacity in continental
European countries being reduced. RDF exports are influencing the local market and pricing structure and the
governments in England, Scotland, Wales, and Northern Ireland are trying to address the issue of waste
exports to keep the resources within their economies as well as ensure energy from waste is contributing to the
national renewable energy targets. Currently, it is estimated that the UK is exporting 5 TWhe/10 TWhh worth
of RDF/SRF, but could see an increase to 7.7 TWhe/15.4 TWhh – enough to provide approximately 5% of the
total UK energy demand.23
23
Research into SRF and RDF Exports to Other EU Countries - http://www.ciwm.co.uk/web/FILES/Technical/Research_into_SRF_and_RDF_Exports_to_Other_EU_JULY_2013.pdf
UK WASTE SECTOR REPORT
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1.3. WASTE MANAGEMENT
1.3.1. UK Overview
While the UK has made considerable progress in setting out waste management infrastructure in the form of
collection and treatment of waste, as summarised in Figure 14, it is still behind most European countries in
reaching its envisaged target rates for recycling, recovery and landfill diversion by 2020.
Figure 14: Waste Management of LACW in the UK 2005 - 2011
24
Year 2006/07 2007/08 2008/09 2009/10 2010/11
England
Reuse/Recycling/Composting 9,028,300 9,818,809 10,209,421 10,342,359 10,618,382
Energy Recovery 3,015,510 2,895,987 2,962,706 3,343,546 3,550,296
Landfill 16,345,302 14,337,083 12,593,639 11,022,695 9,840,539
Other 788,121 1,515,449 1,629,252 1,882,223 2,268,556
Total 29,177,233 28,567,328 27,395,018 26,590,823 26,277,772
Scotland
Reuse/Recycling/Composting 973,720 1,080,000 1,125,493 1,173,621 1,200,230
Energy Recovery 60,947 74,603 84,285 85,591 95,740
Landfill 2,398,433 2,256,661 2,076,388 1,935,126 1,844,333
Other 3,945 2,438 1,904 2,938 899
Total 3,437,045 3,413,702 3,288,070 3,197,276 3,141,202
Wales
Reuse/Recycling/Composting 552,301 620,259 661,413 700,907 754,566
Energy Recovery 3,123 961 28,335 33,309 30,355
Landfill 1,157,128 1,039,848 919,868 790,795 700,803
Other 126,741 131,994 120,110 155,866 144,324
Total 1,839,293 1,793,061 1,729,726 1,680,877 1,630,048
Northern Ireland
Reuse/Recycling/Composting 271,343 305,599 321,440 332,331 349,737
Energy Recovery 0 0 0 0 0
Landfill 787,427 749,142 694,758 663,657 618,691
Other 5,320 6,367 1,017 8,032 16,748
Total 1,064,090 1,061,108 1,017,215 1,004,020 985,176
United Kingdom
Reuse/Recycling/ Composting
10,825,665 11,824,667 12,317,767 12,549,217 12,922,916
Energy Recovery 3,079,579 2,971,550 3,075,326 3,462,446 3,676,390
Landfill 20,688,289 18,382,735 16,284,652 14,412,273 13,004,365
Other 924,128 1,656,247 1,752,283 2,049,059 2,430,527
Grand Total 35,517,661 34,835,199 33,430,029 32,472,995 32,034,198
24
www.wastedataflow.org
UK WASTE SECTOR REPORT
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In the UK as a whole, recycling increased by 20% between 2006/07 and 2010/11, while overall waste arisings
decreased by 10% in the same period. England has seen a sharp increase in EfW treatment of residual waste,
increasing by 18%, while Scotland, Wales, and Northern Ireland have been relatively inactive in this sector up
until the past few years.
Figure 15: LACW Management in the UK 2006/07-2010/11
Figure 16 shows the current reuse/recycling/compost rate for the UK is 58%, followed by landfill at 26%, other
pre-treatment options, including mechanical biological treatment and RDF production at 13%, with the final
3% going to energy recovery facilities. A review of the three major waste streams individually, shows a more
diversified picture with construction and demolition waste being the largest contributor to overall waste
tonnage, and also has the sector with the highest recycling rate of the major waste streams, which is largely due
to on-site re-use of aggregates.
Figure 16: Waste streams in the UK by management type (LRS, 2013)
LACW C&Ixx CD&Exx Totalxx
Energy Recovery 3,676,390 1,285,133 0* 4,961,524
Reuse/ Recycling/ Compost 12,922,916 31,648,028 55,145,966 99,716,910
Other Treatment 2,430,527 9,152,919 21,692,412 33,275,857
Landfill 13,004,365 19,082,216 23,782,225 55,868,807
Total 32,034,198 60,081,300 100,620,603 192,736,101
*It is likely that there is a small portion of CD&E waste sent to EfW, but specific data is unavailable due to poor data
reporting for C&D Waste. Since the combustible fraction of C&D waste is relatively small, this number likely insignificant
Waste management policies in the UK are built around, and driven by, the application of the waste hierarchy
outlined in Figure 17. The waste hierarchy prioritises waste management practices that recover value and
minimise environmental impacts.
All parties who handle waste in the UK have a duty of care, which means they are responsible for appropriately
applying the waste hierarchy to waste management decisions, and including declarations with any waste that is
being transferred to demonstrate that they have done so.25 This Duty of care applies to everyone in the supply
chain from the person who first produces the waste, to the party who ultimately disposes of it, or converts it
into a product re-entering the manufacturing industry to replace virgin materials. In specific cases, departing
from the waste hierarchy is allowable if it can be justified by lifecycle analysis on the overall effects of the
generation and management of the waste.
25
2008 Waste Framework Directive (Directive 2008/98/EC) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/218586/l_31220081122en00030030.pdf
UK WASTE SECTOR REPORT
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Figure 17: The waste hierarchy26
The increasing importance of the waste hierarchy will continue to move the UK toward a ‘closed loop’ economy
and drive the waste management sector. The hierarchy requires collection and treatment infrastructure to
recover value from waste and utilise the available resources. In particular in a resource-constrained country
like the UK, with the added pressures of global economic difficulties, it is becoming more important for
organisations to reduce their dependence on virgin raw materials. The hidden costs of operating a standard
production model of resource extraction, manufacture, distribution, and end of life disposal are beginning to
be recognised more widely. The shift in mentality toward a closed loop economy has created a demand for
more consistent and higher quality recyclate for use as a raw material. More and more organisations are
seeking to control access to, and maintain ownership of these materials, and are investing in the traditional
waste and recycling industry, as in the UK, there is still considerable need for infrastructure. This void will
require a different solution for each of the main material streams (paper, cardboard, glass, plastics, metals) as
well as specialised solutions for precious metals and rarer materials.
This chapter presents an overview of the UK waste management sectors illustrating the structure of waste
collection and treatment in the four devolved regions and an outlook for future developments to meet the
waste hierarchy requirements and achieve the UK’s ambitions to become a low carbon, closed loop economy.
1.3.2. Collection
The collection of wastes, in general and individual waste streams in particular, is a crucial part of the implementation of successful waste management activities i.e. if the waste is not collected it cannot be treated and the nature of the collections determine the quality and quantity of waste collected as well as the potential waste management routes. An overview of the logistics and workings of the waste management sector are presented in Figure 18.
26
Defra Waste Management Plan for England July 2013 - https://consult.defra.gov.uk/waste/https-consult-defra-gov-uk-waste/supporting_documents/20130711%20%20Consultation%20Plan.pdf
UK WASTE SECTOR REPORT
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Figure 18 : Collection & Waste Management27
In the following, the collection markets each for Commercial and industrial waste and LACW are being
investigated to provide an overview of the responsibilities and collection systems in the UK.
1.3.2.1. Commercial and Industrial waste collections
The C&I collection market is disparate; while C&I waste from small and medium sized businesses (SME) is
collected by local authorities in some areas, the majority of CI waste is serviced nationally by the waste majors,
with a number of regional and local collection operators.
Businesses have legal responsibilities in relation to managing waste which includes:
Ensuring that waste is pre-treated before being landfilled (which could include separating materials
for recycling)
Taking reasonable steps to apply the waste hierarchy when managing waste
Retaining waste transfer notes
Checking that the organisation collecting their waste has the appropriate licence
Businesses pay for the collection of waste and can choose whether to engage the local authority as their
collection contractor or a private waste management company. In some instances an organisation or individual
will act on behalf of the business to make arrangements for them (such as facilities management firm within a
large office building or shopping centre). Large businesses (such as supermarket chains) often procure a single
contract for collection of waste from a number of sites throughout the UK, but also increasingly are
considering to integrate on-site material and energy recovery to reduce costs and maintain the ownership of
valuable resources.
27
Veolia Environmental 2012
UK WASTE SECTOR REPORT
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1.3.2.2. Local Authority Waste Collection
In the UK, local authority obligations in relation to waste (i.e. their role as a waste authority) are categorised in
the following three ways:
Unitary authorities: Are responsible for both the collection and disposal of waste
Collection authorities: Are responsible for the collection of waste with disposal arrangements made
on their behalf by the disposal authority
Disposal authorities: Make disposal arrangements for a number of collection authorities
England has a mixture of single (unitary) and two tier (collection and disposal) authorities where Scotland,
Wales and Northern Ireland consist of single tier authorities only as shown in Figure 19.
Figure 19: Waste Authorities in the UK
Region/Nation WCA WDA UA Total
London 21 4 12 37
East Midlands 36 5 4 45
East of England 44 6 4 54
North East 13 2 10 25
North West 38 5 5 48
South East 55 7 12 74
South West 35 6 10 51
West Midlands 24 4 10 38
Yorkshire & the Humber 7 1 14 22
England Total 273 40 81 394
Scotland - - 32 32
Wales - - 22 22
Northern Ireland - 3* 26 29
Grand Total 273 43 161 477
*Arc21, NWRWMG, SWaMP2008
The authorities are responsible for either undertaking the collection / disposal operations themselves (using a
team that tends to be referred to as an ‘in-house’ operator or ‘Direct Services Operator’, DSO) or for procuring
a contractor to undertake the operations on their behalf. 50 – 60% of local authority collection contracts are
held in house by local authorities themselves as Direct Service Operators (DSO). Veolia, Sita, Biffa, and Amey
Cespa/Enterprise hold the majority of remaining MSW contracts. Depending on the collection services offered
this includes a number of waste streams such as residual waste, recycling, garden waste, bulky waste, recycling
from public recycling bring banks and waste from street cleansing operations. Generally household waste
forms the greatest proportion of waste collected by a local authority. Typically collection and disposal
arrangements will include:
Collections of residual waste, recycling, organics and bulky waste from households
Collections from schools, charities and businesses (which usually pay for their collections)
Street cleansing and gulley emptying operations (which may include associated services such as
graffiti removal and street washing)
Clinical waste collection
Hazardous material
Removal of fly-tipped waste
UK WASTE SECTOR REPORT
31
Management of bring banks and household Waste Recycling Centres (which may be managed by
collection , disposal or unitary authorities)
The usual contract length for collection services in the UK is seven to ten years (which was historically to
reflect the life of vehicles used) with many authorities including an option for the contract to be extended for a
number of years. Disposal contracts tend to be longer in length, particularly where new facilities are being
procured. Contracts may be procured to include additional service, for example, a local authority may decide to
procure an integrated contract for waste management, grounds maintenance and highways maintenance.
Collection services are provided free of charge within the UK to households with the exception of bulky waste
and garden waste for which authorities may make a charge. The cost of waste management forms part of the
annual council tax bill paid by householders. The cost of business waste removal is not included in annual
business rates paid and therefore businesses must pay the local authority if they chose to use them (rather than
a private waste contractor) for the removal of their waste.
Containers typically used to contain recycling and refuse are:
Wheeled bins of varying sizes (e.g. 140, 180, 240, 360, 1,100, 1,280 litres)
Single use sacks
Reusable bags (for recycling and garden waste, not refuse)
Boxes (generally 55 litre)
Caddies for food waste
Various type of large containers typically used as public bring banks that are serviced by hi-ab crane
vehicles
A small number of authorities use other systems such as underground containers or a vacuum or mechanical
chute system for recycling and refuse although these schemes are not widespread. The containment type,
frequency of service, type and presentation of materials collected tend to be influenced by:
The property type (e.g. services for purpose blocks of flats tend to be based on large communal bins)
Whether the area is urban or rural
Local facilities available for collecting and sorting material
Political influences within the local authority and nationally
Any partnership arrangements
The preferred arrangements stipulated by the local authority or proposed by the contractor when the
contract was let
Details regarding different types of services provided by local authorities are available online from information
collated by WRAP28. Since the introduction of austerity measures local authorities have been seeking ways to
realise efficiency savings from their contractors by renegotiating, adding services or requiring contractors to
improve the economics of their models. The contractor market has become increasingly competitive with new
contracts being negotiated at low margins, making it difficult for smaller and new players to challenge the
international waste providers.
In general materials will be collected:
Fully comingled (materials are all mixed together)
Two (or more) stream (with some materials mixed together and glass/ paper collected separately)
Source separated (with materials presented separately by the households, although often two
materials such as cans and plastic may still be mixed)
Kerbside sort (materials are sorted at the kerbside by collection crews)
In July 2012 the EC published its long-awaited guidance on the rWDF providing further explanation of the
Directives provision relating to separate and comingled collections. While the guidance is not legally binding, it
provides an indication of how the Commission expects the UK to interpret the Directive's requirements.
28
http://www.wrap.org.uk/content/local-authority-waste-and-recycling-information
UK WASTE SECTOR REPORT
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The guidance states that comingled recycling is permitted if the necessary standards are being achieved:
"…Commingled collection of more than one single waste stream may be accepted as meeting the requirement
for separate collection, but the benchmark of 'high quality recycling' of separately collected single waste
streams has to be examined; if subsequent separation can achieve high quality recycling similar to that
achieved with separate collection, then comingling would be in line with Article 11 WDF and the principles of
the waste hierarchy."29
In spite of this guidance the Campaign For Real Recycling raised the challenged that DEFRA and the Welsh
Assembly had not fully transposed the rWFD into the waste regulations for England and Wales. The challenge
went to judicial review in February 2013. The Judge ruled in favour of DEFRA and Welsh Assembly and in
summary it was concluded that commingled collections of metal, plastics, glass and paper can continue to be
carried out, as long as the quality of the recycled material collected does not compromise high quality recycling
or the overall aims of the Directive, which is to preserve the environment and protect human health.
Each waste collection operators has a preferred collection solutions depending on their downstream waste
recycling and treatment solutions and further information on the tie in between collection of individual waste
streams and the recycling, recovery and disposal options has been provided in the following chapters.
1.3.3. Re-use
Within the waste hierarchy, reuse (including repair) sits in the top priority stage after prevention because it
offers the best outcomes for the environment and because of the contribution it can make to the UK’s circular
economy in terms of both economic and social benefits. The waste hierarchy distinguishes reuse and
preparation for reuse and provides the following definitions:
Re-use‘ means any operation by which products or components that are not waste are used again for
the same purpose for which they were conceived (i.e. dealing with waste prevention);
Preparing for re-use‘ means checking, cleaning or repairing recovery operations, by which products or
components of products that have become waste are prepared so that they can be re-used without any
other pre-processing .
Figure 20: Re-use Policies and Strategies in the UK
England Wales Scotland Northern Ireland
Draft DEFRA Guidance
(2010) states that where an
item or object is being
transferred in ownership,
with the intention or reuse
for its original purpose‖, it is
not waste,
even if it needs some
cleaning, checking or repair.
Where the item has been
discarded as waste (e.g. at
an HWRC), it remains waste
until it has been through a
recovery operation. This
means that preparation for
reuse only applies to items
which have been discarded.
The Recycling, Preparation
for Re-use and Composting
Targets (Definitions) (Wales)
Order 2011 sets out the
interpretation of the Welsh
Government of preparation
for reuse with particular
regard to local authority
municipal waste.
Scotland‘s Zero Waste Plan
(2010) also clarifies that
reuse activities are classified
as waste prevention, and so
items donated for reuse, for
example to charity shops,
count towards waste
prevention targets.
The Framework for Waste
Prevention in Northern
Ireland (EHSNI 2005)
predates the Waste
Framework Directive and
does not discuss definitions
of reuse or preparation for
reuse.
29
European Commission - Guidance on the interpretation of key provisions of Directive 2008/98/EC on waste
UK WASTE SECTOR REPORT
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In response to the Framework Directive the UK Governments’ waste strategies are increasingly focussed on
driving up reuse and assisting with the development of business models for reusable products (including
leasing and hiring models). All UK governments policies recognise the need to move up the waste hierarchy as
outlined in Figure 20.
Beyond the strategies the Governments have demonstrated an increasing focus on driving greater reuse and
repair of second-hand items and leasing business models for product reuse both within the business to
business and business to consumer markets, particularly through their support of programme delivered by
WRAP. The most commonly targeted material streams for reuse are: WEEE, furniture and textiles.
For the third sector and charities, the demand for items is driven by necessity, low income and deprivation
alongside of course the demand for second hand goods. It needs to be noted that in particular in the WEEE
sector many electrical items are very cheap to buy (generally small WEEE) making repair and reuse difficult to
justify economically. Since April 2013 the Social Value Act 201230 requires public bodies to consider social
value in procurement and re-use with Local authorities now have the remit to deliver welfare assistance in
their areas, and the rehousing of families into void properties is included in all of this.
This requires a local, ready supply of furniture and EEE so that a home can be prepared quickly and
economically. Local reuse organisations are in an ideal position to provide this and so the Social Value Act as it
is often referred to, is a new source of potential income from local authorities and an opportunity to partner
with those authorities also
In April 2011 the PAS 141 standard (PAS 141: 2011 Reuse of used and waste electrical and electronic
equipment) was launched by the British Standards Institute (BSI), on behalf of the department for business,
innovation and skills (BIS). It was developed by a joint public and private sector working group and is,
according to the BSI, the first of its kind in the European Union. It has two objectives:
To support the growth of the reuse sector by giving potential purchasers of reused electrical and
electronic equipment (REEE) confidence that it has met standards in areas such as safety and
guarantees of functionality.
To assure electronics manufacturers that the placing of products on the market for reuse will not
adversely affect their brands or reputations for safety and quality.
The size and scale of the reuse market in UK is hard to quantify on account of the high number of third sector
(community interest and charitable organisations) involved and the direct exchange between individuals
(donations to friends and family) or via a third party such as on-line platforms like eBay, freecycle and
GumTree. There are also commercial shops, such as vintage outfitters, and repair and hire outlets through
which an unknown quantity of second hand items pass for reuse.
The largest representative body for the reuse sector is Realliance, which supports and represents social and
community enterprises working to use and manage resources sustainably. The organisation‘s six shareholders
are the UK's main community resource and recycling networks:
Community Composting Network (CCN),
Community Resource Network Scotland (CRNS)
Community Resource Network UK (CRN UK)
Cylch (the Wales Community Recycling Network)
London Community Resource Network (LCRN)
Furniture Re-use Network (FRN).
30
http://www.socialenterprise.org.uk/news/new-guide-the-public-services-social-value-act
UK WASTE SECTOR REPORT
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These reuse organisations define reuse as an activity where whole products (or whole parts of products) are
used again in one piece. This includes:
Straight reuse.
Refurbishment – cleaning, lubricating or other improvement.
Repair – rectifying a fault.
Redeployment & cannibalisation – using working parts elsewhere.
Remanufacturing - a full treatment process which guarantees the performance of the finished object.
REalliance, through its networks, has relationships with over 700 community groups and social enterprises
working to reuse products and resources. In the most recent business plan Realliance has committed to
achieving the following outputs:
To divert 60,637 tonnes of material up the waste hierarchy;
To divert 116,852 tonnes of carbon dioxide equivalent;
To increase the turnover of the sector by £5,305,701;
To provide 1,500 value added work placements.
Other trade bodies representing reuse organisations include the Charity Retail Association and the Textile
Recycling Association whose memberships include a diverse range of charity and commercial organisations in
the reuse market place.
Research has been undertaken to evaluate the impact of reuse through charity collections and shops (through
door-to-door collections, bring banks and charity shops). It is estimated that charity shops collect over 15
million sacks of textiles and other materials from UK households every year. In total 1.9 million households are
given the opportunity to reuse and recycle unwanted items every week and over 363,000 tonnes of textiles are
sent on for reuse and recycling by charity shops every year.31
It is estimated that only 2% of materials donated to charity shops end up in landfill32
. Over 20,000 tonnes of
books are reused each year along with CDs, DVDs, videos, toys, furniture, bric-a-brac and electrical items
including mobile phones and print cartridges.
Based on the 2010 landfill tax value of £48 per tonne, the value of textiles reused or passed for recycling by
charity shops in terms of savings in landfill tax was £17,424,000 pa33
.
Some information is available on the size of the volume of reuse being undertaken from bulky waste collections
delivered by local authorities or on their behalf by contractors. According to research undertaken by WRAP
which have generated national estimates based on information reported to DEFRA through WasteDataFlow
(WDF), during 2010/11 the UK collected approximately 1,590,000 tonnes of bulky waste for reuse via kerbside
collections and HWRCs. Approximately twice as much is taken to HWRCs (1,050,000 tonnes) than is collected
at the kerbside (540,000 tonnes). The research estimated that round 42% consists of furniture, 19% textiles
and 19% WEEE. These estimates equate to 670,000 tonnes of furniture and 310,000 tonnes each of textiles
and WEEE disposed by householders in the UK annually. The reuse of products and items for the C&I waste
stream is not quantified, although research is on-going through organisations such as WRAP.
1.3.4. Recycling, Composting & Anaerobic Digestion
Recycling is defined by the EU Waste Framework Directive as “... any recovery operation by which waste
materials are reprocessed into products, materials or substances whether for the original or other purposes.
It includes the reprocessing of organic material but does not include energy recovery and the reprocessing into
materials that are to be used as fuels or for backfilling operations”.34 Recycling and re-use has been increasing
31 Based on data from the Charity Finance "Charity Shops Survey" 2009 and Association of Charity Shops Quarterly Market Analysis 2010
32 Based on data from the Charity Finance "Charity Shops Survey" 2009 and Association of Charity Shops Quarterly Market Analysis 2010
33 Charity Retail Association
UK WASTE SECTOR REPORT
35
in the UK, with the majority of tonnages being recycled aggregates in the construction, demolition and
excavation sector.
However the main focus is on increasing the recycling of dry materials such as aggregates, plastics, glass,
metals and paper and cardboard as well as organics such as green and food wastes in the municipal and
commercial industrial waste sectors. The policies driving the UK to meet its target of 50% recycling and the
more specific objectives of the individual UK countries is summarised in Figure 21 mirroring the waste
hierarchy objectives and showing a clear trends towards recycling and recovery.
Figure 21 : Overview of UK Waste Policies in the UK
35
Country Policy Targets
England Waste Policy Review in 2011 Remain on a path towards a zero waste economy.
Scotland
Zero Waste Plan for Scotland
Waste (Scotland) Regulations 2012
Collection of key recyclable materials and food waste from 2014.
Landfill bans on separately collected recyclable materials from 2014.
Biodegradable municipal waste is to be banned from landfill from January 2021
By 2025, all sectors are to prepare to re-use, recycle or compost 70% of their waste, and a maximum of 5% of waste can be sent to Landfill.
Separate commercial and industrial (C&I) targets to be confirmed.
Wales
Towards Zero Waste – The Overarching Waste Strategy Document for Wales
6 Sector Plans to deliver outcomes, targets and policies of the waste strategy
Waste (Wales) Measure 2010
By 2025, all sectors are to prepare for re-use/ recycle/ compost 70% of the waste.
The statutory recycling target for local authority collected municipal waste is 70% by 2025.
By 2019/20, the cap for limiting the amount of C&I waste that goes to landfill will be 10% of total waste produced, reducing to 5% by 2024/25.
Enables Welsh Government to ban or restrict certain wastes from landfill.
Northern Ireland
Toward Resource Management: The Northern Ireland Waste Management Strategy 2006-2020
Waste (Northern Ireland) Regulations 2011
Waste Strategy under review
Key targets for recycling and composting household waste are 40% by 2015 and 45% by 2020 with new proposed targets for 2020 for 50% by weight of waste from households to be prepared for re-use or recycled and 70% by weight of construction and demolition wastes to be recovered.
Possibility of a statutory recycling target of 60% for LACMW.
Within the municipal sector, recycling in England has increased from just 30% in 2005/06 to 40% in 2010/11
and is expected to grow further, similarly commercial industrial recycling was recorded as 25.0 million tonnes,
or 52 % of C&I waste was recycled or reused in England in 2009, compared to 42 % in 2002/3.
A key driver for recycling of dry materials is the Packaging directive, which aims to minimise the impact of
packaging and packaging waste on the environment. Each stage in the supply chain is responsible for a
different percentage of the responsibility for the reduction and recycling of packaging.36 The UK has set
minimum recovery (60%) and recycling (55%) targets for packaging wastes overall, as well as material-specific
targets for glass (60%), paper and cardboard (60%), metals (50%), plastics (22.5%), and wood (15%).
In 2010, the UK produced 10.8 million tonnes of packaging waste, and met, or surpassed all of its packaging
waste targets, however the required of the revised packaging regulations are ambitious in particular for plastic
packaging wastes.
34
Guidance on the legal definition of waste and its application - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/69590/pb13813-waste-legal-def-guide.pdf 35 CIWM UK Report 2012 36
http://www.valpak.co.uk/Libraries/Packaging_Compliance_Documents/packaging_activities.sflb.ashx
UK WASTE SECTOR REPORT
36
Figure 22: UK Packaging Waste 201037
The improvement of the quality of materials collected for recycling has been driven in the UK by the Revised
Waste Framework Directive (rWFD) and the EU Waste Shipments Regulations. The rWFD promotes high
quality recycling as a way to maximise the environmental benefits of recycling. Article 11 of the directive states
that “Member States shall take measures to promote high quality recycling and, to this end, shall set up
separate collections of waste where technically, environmentally and economically practicable and appropriate
to meet the necessary quality standards for the relevant recycling sectors.”
Whilst working within the same EU legislative framework, the four UK nations are responsible for their own
waste policies and delivery. Although each administration has different approaches to waste policy and
delivery, central government has outlined in its Quality Action Plan (England) that the four administrations
are working closely together on the issue of quality and it is expected that many of the actions aimed at
increasing quality will be taken in agreement and partnership.
1.3.4.1. Dry Recyclables
Dry recyclable materials include glass, paper, metals, plastic, textiles, aggregates and electronics. Different
combinations of these materials are collected by local authorities38 and private contractors from households
and businesses. The UK as a whole recycled nearly 100 million tonnes of municipal, commercial and
industrial, and construction and demolition waste, achieving an overall recycling rate of 58% from those
sectors. While there is a clear emphasis on increasing the amount of waste diverted from landfill and move
waste up the hierarchy ideally to re-use and recycling, there is also a clear trend towards improving the quality
of recyclables.
Figure 23 illustrates the improvement in recycling over the past decade in England illustrating Eastern
England and the South West are currently leading in terms of recycling performance, whereas London, the
North East , Yorkshire & Humber, the North West and the West Midlands will have to improve to meet the
average overall recycling in England of 43% of Household Waste. Similar progress has been made in Scotland
and Wales, where respectively 41.2%39 and 47%40 of household wastes were recycled in 2011/12.
Figure 23: Household Waste Recycling Performance of English Regions 2001/2002 – 2011/2012
Region 2001/
02 2002/
03 2003/
04 2004/
05 2005/
06 2006/
07 2007/
08 2008/
09 2009/
10 2010/
11 2011/
12
Eastern 17.4 19.4 23.4 29.8 34.1 38.3 41.2 44.5 46.1 48.9 49.7
South West 16.6 18.6 21.4 26.6 31.4 37.2 40.3 42.3 43.5 46.6 47.2
37
UK Government – Reducing and managing waste - https://www.gov.uk/government/policies/reducing-and-managing-waste/supporting-pages/packaging-waste-producer-responsibility-regimes 38
Details of collection services provided by different local authorities are available from http://www.wrap.org.uk/content/local-authority-waste-and-recycling-information 39
SEPA - Household waste summary reports - Official Statistics 2011/12 40
Local Authority Municipal Waste Management Report for Wales, 2011-12
Waste Type Total Waste
(Tonnes) Recycled/
Recovered Directive
Target Achievement
Paper 3,787,560 3,099,941 60.0% 81.8%
Glass 2,712,860 1,647,917 60.0% 60.7%
Aluminium 147,500 60,304 40.9%
Steel 652,000 386,621 59.3%
Metal (Steel+Aluminium) 799,500 446,925 50.0% 55.9%
Plastic 2,478,630 598,252 22.5% 24.1%
Wood 1,023,939 771,224 15.0% 75.3%
Total Recycling 6,564,259 55.0% 60.8%
EfW 721,505
TOTAL Recovery 7,285,764 60.0% 67.4%
UK WASTE SECTOR REPORT
37
Region 2001/
02 2002/
03 2003/
04 2004/
05 2005/
06 2006/
07 2007/
08 2008/
09 2009/
10 2010/
11 2011/
12
East Midlands 13.7 15.1 19.3 26.3 31.8 35.6 41.9 44.4 45.6 46.2 46.8
South East 17.7 19.6 22.8 26.1 29.2 33.1 36 38.4 40 41.3 43.3
West Midlands 10.2 13 15.7 19.9 25.1 28.6 33 36.6 40 42.4 42.8
North West 9.2 11.3 14.2 19.2 23.8 28.9 33.4 36.6 38.5 39.8 42.6
Yorkshire and
the Humber 8.9 11.2 14.5 18.6 21.8 26.9 30.5 33.8 36.8 39.5 41.9
North East 5.2 6.6 12.2 15.4 21.1 26.4 28.4 31.1 34.7 36.1 37.9
London 9.3 10.9 13.3 17.6 20.7 22.9 25.5 29.2 31.8 32.4 33.9
England 12.5 14.5 17.8 22.5 26.7 30.9 34.5 37.6 39.7 41.5 43
Overall England saved 4,258,233 tonnes of CO2 equivalent in 2011/2012 by re-using, recycling and
composting the following materials outlined in Figure 24.
Figure 24: Material Recycling in England 2011/2012
41
Ideally, recycling a material would produce a new supply of the same material, but often results in producing
different materials instead through ‘down cycling’ of materials. The greatest benefit in terms of resource-
recovery from recycling occurs when materials are segregated as specifically as possible, so that they can be
easily reprocessed into the same material, but this is not always possible as the comingling of materials during
collection are leading to variable quality of the recyclate input. Comingled recyclables are then sent to a
Material Recovery Facility (MRF) where the individual recyclate streams are separated before being sent to be
recycled at the appropriate facility.
1.3.4.2. Organics – Composting & Anaerobic Digestion
Source segregated green and food waste, which are collected as separate or mixed organic waste streams, are
sent to composting or anaerobic digestion to recover compost/digestate material for soil improvements and
agriculture use as well as some energy, when using Anaerobic Digestion (AD).
41
England Carbon Metric Report May 2013
4'1
08
2'5
88
1'4
34
1'1
40
662
581
354
258
126
114
50
35
23
13
9
8
6
2
0
500
1'000
1'500
2'000
2'500
3'000
3'500
4'000
4'500
To
nn
es (
000s)
Tonnes of Household waste for Recycling / reuse /composting
UK WASTE SECTOR REPORT
38
Recycled organic materials are mainly used in agricultural applications, as the majority of outputs from
composting facilities are coarse 0-40mm grade compost. However, increasing volumes are also going to more
value-added markets such as professional horticulture and landscaping, with indications that PAS 100
certification is enabling producers to obtain higher prices from these markets. Despite this, the majority of
compost is still given away at zero or negative prices with the value of the recycled compost market in 2010
estimated at £9.2 million.
Figure 25: Organic Recycling - total UK input volumes from 2000 to 2010 (excluding MBT)
Note: The 2009 bar represents data grossed using the 2010 methodology, not the figure in the 2009 report.
The latest survey of the organics recycling industry42 was undertaken by WRAP for the year 2010, based on a
combination of data on regulated sites from national environment agencies, and data collected by a sample
survey of processing sites. The 2010 report showed that 7.2 million tonnes of organic waste was recycled
during this period, compared to just over 6 million tonnes in 2009. Windrow and in-vessel composting showed
some growth with a total input of 5.44 million tonnes in 2010, up by 3.9% on the 2009 survey, however the
major growth sector is Anaerobic Digestion.
The vast majority (88%) of input was municipal waste while 12% was commercial and industrial organic waste.
65% of organics were sent to open windrow facilities, which indicates that the majority of organic material
composted is green waste, whereas 35% is mixed organics waste, which require treatment under the Animal
By-Product Regulations in closed or covered facilities in form of In-Vessel Composting or Anaerobic Digestion.
Figure 26: UK Organic Recycling 2010 (input in tonnes)
England
Northern Ireland Scotland Wales UK UK in 2009
Compost (inc IVC)
4,673,719 85,568 564,273 120,532 5,444,092 4,517,594 (1) 5,265,711 (2)
AD 629,036 7,000 514,151 2,680 1,152,867 105,110 (1)
Exempt 598,638 2,337 23,016 11,684 636,560 902,277
Total 5,901,393 94,905 1,101,440 134,896 7,233,519
Note: (1) Un-grossed input tonnage reported in the 2009 study , (2) Grossed input tonnage using 2010 methodology (3) MBT capacity figures presented as mixed input waste stream
42
WRAP, A survey of the UK organics recycling industry in 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
To
nn
es (
000s)
Organic Recycling - total UK input volumes from 2000 to 2010 (excluding MBT)
UK WASTE SECTOR REPORT
39
In 2010, the government introduced an ‘Anaerobic Digestion Strategy and Action Plan’ for the UK. AD is seen
as a means to both reduce the production of greenhouse gases, and generate heat, electricity, and useful
digestate for use as a fertilizer or soil amendment. The AD strategy does not set specific targets or regional
strategies, but is in place to ensure that there are no unnecessary obstacles to the development of AD in the
UK. Since 2010 this growth has been given further impetus through strong support from all UK governments,
and from WRAP’s support for the sector which includes the £10 million AD Loan Fund.” Similarly anaerobic
digestion has been supported through the renewable subsidy schemes with higher subsidies for energy
recovery from this process technology than from incineration or advanced thermal treatment.
The need for landfill diversion of organics will further drive the market and, depending on the roll out of
collection systems for food waste, the AD sector will continue to grow with IVC providing stable and
continuing capacity for mixed organics from households and commercial sources. There is an increasing focus
on diverting organic waste, including wood, from landfill, with a particular focus on the commercial industrial
sector in general, and SMEs in particular. This is a general movement across all wastes and is a result of
actions resulting from the Revised Waste Framework Directive and the Government review of Waste Policy in
England 2011 under which a series of actions are being pursued.
Amongst these actions are moves towards a national waste reduction programme, and an evaluation of a
restriction on wood waste going to landfill. After the consultation was it was decided not to implement a
restriction on the basis that disposal to landfill will continue to decline without any further government
intervention in addition to the current landfill tax escalator that will bring up the landfill tax to £80 per tonne
for non-inert waste in 2014/2015. A more detailed market assessment of industry players, technologies and
facilities in this market has been provided in Chapter 3.
1.3.5. Residual Waste Treatment – Mechanical Biological Treatment (MBT) and Energy from
Waste (EfW)
After re-use, recycling of dry materials and organics, there are still considerable amounts of residual waste left,
which has either not been separated into more distinct material streams for technical, practical or economic
reasons. These residual wastes traditionally went to landfill, however the drive for landfill diversion is pushing
residual waste up the hierarchy towards recovery, which is currently limited by the available EfW and MBT
capacity in England and Wales.
The proportion of all local authority managed waste in England incinerated with energy recovery was 19.1% in
November 2012 and the Defra CI survey 2010 found only 2% of commercial and industrial waste was
incinerated with energy recovery in England, with a negligible amount of wood waste from C&D sources.
Since 2006 Defra has been actively trying to accelerate the program of new waste treatment facilities being
procured through private finance. The government’s PFI (Private Finance Initiative) credits programme
offered Local Authorities procurement support to stimulate the development of new residual MSW recovery
capacity in England and Wales in return for 20 – 25 year contracts with public funding support. These long
term contracts have been driving infrastructure investments in MBT and EfW for residual treatment, but with
the majority of Local Authorities having secured contracts these are getting fewer and fewer.
While pre-treatment via mechanical biological treatment, biodrying and autoclaving reduces the amounts of
incoming waste and produces some recyclables, it mainly refines residual waste streams into RDF and SRF for
energy recovery therefore not providing a final solution. In 2012, 24 EfW facilities treated 4 million tons
residual MSW and SRF and about 1 million tons of mixed CI waste representing less than 20% of the total
waste in the UK.
To date the UK is has 13 million tonnes of residual waste treatment capacity including MBT, EfW, cement kilns
and steel works as well as biomass facilities able to take waste.
Only about half of this capacity is currently operational and the remainder is under construction. In addition,
despite planning difficulties, delays in raising financing and opposition from local interest groups and various
UK WASTE SECTOR REPORT
40
NGOs to thermal waste treatment, there are a large number of EfW plants in the development pipeline as well
as MBT pre-treatment/RDF production facilities to refine mixed waste streams for energy recovery. The
majority of plants will be using conventional incineration technology (moving grate/fluidised bed), but there is
also some growth in the expansion of gasification and pyrolysis plants with several key developments are now
moving forward after having been delayed due to financing or refused/appealed planning permission.
However, at the rate at which projects are being delivered, England is at risk of missing the 2013 EU landfill
reduction target, leaving the UK open to the possibility of fines. More and more merchant capacity for
commercial industrial waste streams is coming on line with the PFI market for residual MSW coming to an
end and the residual waste treatment capacity (assuming some older facility will be closed in the near future
and if all those facilities that have either applied for, or been granted planning permission are built) is set to
double by 2020 and representing one of the largest investment potential in the UK waste management
industry.43
A more detailed market assessment of industry players, technologies and facilities in this market has been
provided in Chapter 3.
1.3.6. Landfill
Based on the most recent data available, the UK sent approximately 56 million tonnes of municipal,
commercial & industrial, and construction & demolition waste to landfill in 2010. In 2009, Defra reported that
with current landfilling rates, some regions (North East, West Midlands) could reach landfill capacity by 2014,
and the entirety of UK landfill facilities could reach capacity by as early as 2017/18 (Eunomia, 2013). In
response to this, the UK has been consistently reducing the amount of waste it sends to landfill. In 2010,
England landfilled 14.6 million tonnes of municipal– significantly less than their 2010 target of 21.7 million
tonnes. By 2020, the England must send no more than 5.5 million tonnes of municipal waste to landfill. EU
targets require a reduction in the amount of biodegradable municipal waste (BMW) sent to landfill – these
targets are set individually for each country.
Figure 27: Maximum Biodegradable municipal waste to landfill targets for the UK (EA, 2012)
Country
Maximum amount (tonnes) in target
year 2010
Maximum amount (tonnes) in target
year 2013
Maximum amount (tonnes)
in target year 2020
England 11,200,000 7,460,000 5,220,000
Scotland 1,320,000 880,000 620,000
Wales 710,000 470,000 330,000
Northern Ireland 470,000 320,000 220,000
UK 13,700,000 9,130,000 6,390,000
In the future, additional landfill tax escalation is will likely be the easiest and most effective route for the
Government to reduce materials going to landfill, however for the time being this has been ruled out. The EU
Roadmap to a Resource Efficient Europe might however supersede this approach as it includes a commitment
for a gradual phase-out of landfill of waste and calls on the Commission to make proposals to that effect by the
end of 2014. The Commission is expected to also revise the 2020 recycling targets set in the Waste Framework
Directive and ensure, by the end of the decade, that there is no incineration of waste that could be recycled or
composted. In addition it advocates the use of economic instruments such as taxes etc.
Overall landfill capacity in the UK is difficult to determine, as it is a constantly changing value. Each year,
landfill sites close, get permit extensions to utilise existing void space and even a few new landfill sites open,
however this is rare as landfill void space is getting scarce.
43
Defra Energy from waste a guide to the debate https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221042/pb13892-energy-from-waste.pdf
UK WASTE SECTOR REPORT
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In addition, there are a significant number of potential landfill sites (abandoned quarries etc.) available in the
UK that are currently not licensed to receive waste. Further complicating matters is the fact that England and
Wales report landfill capacity based on volume, while Scotland and Northern Ireland report based on mass.
1.4. SUMMARY AND FUTURE TRENDS
Over 31 million tonnes of household waste, 59 million tonnes of C&I waste and 100 million tonnes of C&D
waste are being produced in the UK every year and that needs to be managed following the waste hierarchy
principles.
Arisings in all major waste streams have seen a decrease in recent years – largely due to the global economic
crisis in 2008. The downturn in the UK economy constrained overall growth rates in the UK waste market due
to:
• lower levels of waste arisings in response to reduced consumer and business activity
• declining prices for many types of recyclate due to limited demand in the UK and elsewhere
• and the delay to many infrastructure projects as financing of facilities became increasingly difficult
The UK economy has experienced a slow recovery and the targets set by the EU Landfill Directive, Waste
Framework Directive, The Carbon Reduction, renewable energy commitment mean that government and
businesses must progress with waste and recycling objectives in the medium to long term.
While municipal waste is expected to continue to decline or level out in coming years as the amount of waste
produced per person is reducing, it is expected that the UK will see an increase in C&I and C&D waste arisings
with the recovery of the economy. In the Defra Forecasting 2020 document, the central forecasts predict that
by 2020, household waste arisings are expected to fall to 22.6 million (from 22.9 million tonnes in 2011/12)
tonnes and commercial and industrial waste falling to 43.9 million tonnes (from 47.9 million in 2009).
Construction and demolition wastes have decreased each year between 2008 and 2010, due to the economic
crisis, but with a recovery seemingly on the horizon, it is expected that this sector will see increased waste
arisings as well. Therefore in conclusion the household waste is expected to decrease slightly in the future, with
C&I and C&D arisings increasing with economic recovery
Waste quantities and their composition in each sector are driven by economic, environmental, and social
factors that can cause increases in certain waste streams, and decreases in others. As the nature and quantity
of waste arisings from different sectors changes, so have the methods for dealing with the arisings. With all
waste streams it is expected that recycling will increase in line with domestic and EU targets, residual waste
will reduce, but be diverted from landfill.
The rate at which recycling is increasing has slowed over the last few years, but England has yet to reach the
target of 50% recycling of municipal waste by 2020. Both Wales and Scotland have seen significant investment
in infrastructure since introducing their own ambitious targets of 70% recycling by 2025, as well as significant
landfill reduction goals. Northern Ireland has set targets to achieve 45% recycling, composting, or preparing
for re-use of household waste by 2015, and 50% by 2020, they have also set the additional goal to reach a rate
of 60% recycling, composting, or preparing for reuse of all local authority collected waste by 2020. Northern
Ireland has only recently begun investing in the energy from waste sector.
Local Authorities and businesses are implementing new collection infrastructures to support these targets,
however the implemented austerity measures and slow economic growth mean that cost considerations are
often prioritised in the decision making process. This has led to increasing co-mingled collections of recyclates
requiring further sorting, separation and processing up stream before materials can go to the reprocessing
sector. Similarly, as the UK AD strategy and action plan is enacted, and AD capacity increases, separate food
waste collections may become more common as the capacity for food waste feedstock increases.
UK WASTE SECTOR REPORT
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Throughout the recycling supply chain the recyclate quality, material standards and the deregulation of waste
derived products through End of Waste criteria are becoming an important issue in successfully managing
waste to re-enter the manufacturing process to close the material loop.
While increased re-use, recycling and composting/anaerobic digestion is reducing the amount of residual
wastes, there will still be considerable amounts of residual waste requiring landfill diversion through treatment
to further recover value and energy. EfW has seen a steady increase in England, and has experienced recent
growth in Scotland and Wales.
In the next decade the waste market in the UK is likely to continue to undergo significant changes to enable the
UK to meet the aspiration of a closed-loop low carbon economy.
Northern Ireland currently has little capacity for alternative waste treatment options, but is in procurement for
2 large EfWs to service the Arc21 waste authority.
UK WASTE SECTOR REPORT
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2. Regulatory drivers for waste & renewable energy
2.1. REGULATORY FRAMEWORK AND LEGISLATIVE REQUIREMENTS
2.1.1. European & UK Waste Policy & Legislation
The European Union (EU) has become the major source of environmental legislation and guidance in relation
to the management of waste in the UK. A number of key European Directives which aim to increase levels of
recycling and recovery, and thus reduce the amount of waste which is landfilled, have been introduced:
Revised Waste Framework Directive (2008/98/EC)
Landfill Directive (1999/31/EC)
Directive on Packaging and Packaging Waste (94/62/EEC and 2004/12/EC)
Waste Electrical and Electronic Equipment Directive (2002/96/EC and 2012/19/EU)
End of Life Vehicles Directive (2000/53/EC)
Directive on Batteries (2008/103/EC)
Waste Incineration Directive (2000/76/EC)
EU Animal By-Products Regulations (Regulation 2069/2009)
The EU revised Waste Framework Directive (rWFD) 2008 provides the legislative framework for the
collection, transport, recovery and disposal of waste, and includes a common definition of waste. The Directive
requires all member states to take the necessary measures to ensure waste is recovered or disposed of without
endangering human health or causing harm to the environment and includes permitting, registration and
inspection requirements. The revised Directive seeks to increase the use of waste as a resource and to place
greater emphasis on the prevention and recycling of waste. It sets out the new waste hierarchy, shown in
Figure 4, which revises how reuse of materials is defined and how recycling is distinguished from other
recovery.
The Directive’s requirements are supplemented by other directives for specific waste streams through
producer responsibility legislation and disposal options such as landfill and incineration.
EU legislation in the UK is be transposed through UK wide regulations or regulations set by each individual
country. England, Scotland, Wales, Northern Ireland all have separate strategic waste management plans as
part of the requirements of Article 28 of the rWFD which asks the EU Member States’ competent authorities to
establish one or more waste management plans covering all of their territory:
England: “Waste Management Plan for England” 2013: aims to bring current policies
together under one national plan by explaining the following: (1) the application of the Waste
Hierarchy in England and the regulation of waste management by the Environment Agency, (2) the
extend, nature and sources of waste to support waste management, (3) the promotion of better
quality recycling, new collections and infrastructure, (4) the future development of waste streams
Scotland: “Zero Waste Plan” 2010: aims to minimise Scotland’s demand for primary resources
and to increase resource efficiency through reuse, recycling and recovery of waste products
Wales: “Towards Zero Waste” 2010: outlines the actions to be taken for Wales to become a high
recycling nation by 2025 and a zero waste nation by 2050
Northern Ireland: “Towards Resource Management” 2006: set the strategic direction for
waste management in Northern Ireland at the time. Key policies and actions are presented as six
UK WASTE SECTOR REPORT
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policy strands which aim at moving from waste to resource management. Northern Ireland‘s new
waste strategy is due to be published in 2013.
Figure 28 outlines the transposition of Directives by country in the UK
EU
Legislation England Scotland Wales Northern Ireland
Waste
Framework
Directive
2008/98/EC
Environmental
Protection Act 1990
Waste (England
and Wales)
Regulations 2011
Waste Management
Plan for England
2013
Household Waste
Recycling Act 2004
Waste
Minimisation Act
1998
Local Government
Act – Best Value
Regime 1999
Controlled Waste
Regulations 1992
Clean
Neighbourhoods
and Environment
Act 2005
Environmental
Protection Act
1990
Zero Waste Plan
2010
Waste
Minimisation
Act 1998
Local
Government Act
– Best Value
Regime 1999
Controlled
Waste
Regulations 1992
Clean
Neighbourhoods
and
Environment Act
2005
Environmental
Protection Act
1990
Towards Zero
Waste 2010
Waste
Minimisation
Act 1998
Local
Government Act
– Best Value
Regime 1999
Controlled
Waste
Regulations 1992
Clean
Neighbourhoods
and
Environment Act
2005
Environmental
Protection Act
1990
The Waste
Management
Regulations
(Northern
Ireland) 2006
Towards
Resource
Management
2006
Local
Government Act
– Best Value
Regime 1999
Controlled
Waste
Regulations 1992
Clean
Neighbourhoods
and
Environment Act
2005
Landfill
Directive
1999/31/EC
Waste and Emissions
Trading Act 2003
Environmental
Permitting (England and
Wales) Regulations 2010
Landfill (England &
Wales) Regulations 2002
Landfill (Maximum
Landfill Amount)
Regulations 2011
Landfill Allowance
Trading Scheme (LATS)
2005
Landfill Tax Regulations
1996
Waste and
Emissions
Trading Act
2003
Landfill
(Scotland)
Regulations
2003
The Landfill
(Scheme Year
and Maximum
Landfill
Amount)
Regulations
2004
Landfill
Allowance
Regulations
(Scotland) 2005
Landfill
(Maximum
Landfill
Amount)
Regulations 2011
Landfill Tax
Regulations 1996
Waste and
Emissions
Trading Act
2003
Environmental
Permitting
(England and
Wales)
Regulations
2010
Landfill
(England &
Wales)
Regulations
2002
Landfill
(Maximum
Landfill
Amount)
Regulations 2011
Landfill
Allowance
Trading Scheme
(LATS) 2005
Landfill Tax
Regulations 1996
Waste and
Emissions
Trading Act
2003
Landfill
Regulations
(Northern
Ireland) 2003
Pollution
Prevention and
Control
Regulations
(Northern
Ireland) 2003
Waste
Management
Licensing
Regulations
(Northern
Ireland) 2003
Landfill
Allowances
Scheme
(Northern
Ireland)
Regulations
2004 (NILAS)
Landfill
UK WASTE SECTOR REPORT
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EU
Legislation England Scotland Wales Northern Ireland
(Maximum
Landfill
Amount)
Regulations 2011
Landfill Tax
Regulations 1996
Directive on
Packaging
and
Packaging
Waste
2004/12/EC
Producer
Responsibility
Obligations
(packaging waste)
Regulations (2007)
Producer
Responsibility
Obligations
(packaging
waste)
Regulations
(2007)
Producer
Responsibility
Obligations
(packaging
waste)
Regulations
(2007)
Producer
Responsibility
Obligations
(Packaging
Waste)
Regulations
(Northern
Ireland) SR
1999/115
The Producer
Responsibility
Obligations
(Packaging
Waste)
(Amendment)
Regulations
(Northern
Ireland) 2008
Animal By-
Products
Regulations
(Regulation
2069/2009)
Animal By-Products
(Enforcement)
Regulations (England)
2011
Animal By-
Products
(Enforcement)
(Scotland)
Regulations 2011
Animal By-Products
(Enforcement) (No. 2)
(Wales) 2011
Animal By-
Products
(Enforcement)
Regulations
(Northern
Ireland) 2011
Waste
Electrical and
Electronic
Equipment
Directive
(2002/96/EC
and
2012/19/EU)
Waste Electrical and
Electronic Equipment
(WEEE) Regulations
2006
Waste Electrical
and Electronic
Equipment
(WEEE)
Regulations
2006
Waste Electrical
and Electronic
Equipment
(WEEE)
Regulations
2006
Waste Electrical
and Electronic
Equipment
(WEEE)
Regulations
2006
EU Waste
Incineration
Directive
2000/76/EC
Environmental
Permitting (England and
Wales) Regulations 2010
The Pollution
Prevention and
Control
(Scotland)
Regulations 2012
Environmental
Permitting
(England and
Wales)
Regulations
2010
Pollution
Prevention and
Control
Regulations
(Northern
Ireland) 2011
This section focuses on the regulatory framework and the legislative requirements that impact the UK waste
sector. It gives an overview of the main legislative and policy drivers. Where relevant, the individual country’s
transpositions are described. Although most waste legislation in the UK has been introduced to meet the
requirements set by European Directives, the UK Government and its devolved administrations have also
introduced additional legislation, some of which is specifically aimed at encouraging recycling.
Figure 29 provides a summary timeline of recent regulatory developments in the UK with the key provided
below. A more detailed summary of all regulatory developments stretching back to 1975 can be found in
appendix 6.1
UK WASTE SECTOR REPORT
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Figure 29 : Regulatoary Timeline 2005 - present
UK WASTE SECTOR REPORT
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2.1.1.1. EU Revised Waste Framework Directive 2008 (2008/98/EC)
The UK ensures implementation and coverage of entire geographical territory through a combination of the
“national” plans and local waste management plans adopted by local authorities. Revisions to the Waste
Framework Directive have been implemented in England and Wales through the Waste (England & Wales)
Regulations 2011, and amending regulation Waste (England & Wales) (Amendment) Regulations 2012.
Figure 30 below details all of the national and local waste management plans and regulations adopted in order
to deliver against this directive,
Figure 30: UK Implementation of EU Waste Framework Directive
UK IMPLEMENTATION OF EU WASTE FRAMEWORK DIRECTIVE
1990: Environment Protection Act44
Sets out requirements for waste producers regarding the storage, treatment and disposal of waste
1999: Local Government Act – Best Value Regime
Requires local authorities to regularly review the economics, efficiency and effectiveness of their
functions to provide ‘best value’ services and ensure continuous improvement
The reporting is done annually through ‘Best Value Performance Indicators’ (BVPIs) of their services
2004: Household Waste Recycling Act (England)
Requires English Waste Collection Authorities (WCA) to collect at least two types of recyclable material
separately
Aims at increasing household recycling rates
1998: Waste Minimisation Act
Enables local authorities to implement household waste minimisation schemes
Does not give councils the permission to impose requirements on business or households for waste
minimisation
2004: Household Waste Recycling Act (England)
Requires English Waste Collection Authorities (WCA) to collect at least two types of recyclable material
separately
Aims at increasing household recycling rates
2012: Weekly Collection Support Scheme45 (England)
Establishes a challenge fund for the support of local authorities to introduce, retain or reinstate weekly
collections of residual waste and/or recycling, such as for food waste
Local authorities are required to bid in order to become eligible to funding
2011: Mayor of London’s London Plan and Municipal Waste Management Strategy46 (London)
Sets out a proposal for reducing the amount of municipal waste produced, increasing the amount of
waste reused, recycled or composted, generating low carbon energy from waste remaining
Establishes how the Mayor of London will help to develop waste management infrastructure in London
through the London Waste and Recycling Board
2011: Government review of Waste Policy in England (England)
Focus on sustainable waste management and improved resource efficiency through the waste hierarchy
and recognition of the carbon impact of waste to move towards a zero waste economy between 2012
and 2020
44 http://www.legislation.gov.uk/ukpga/1990/43/contents (11/09/2013). 45
“Weekly Collection Support Scheme – Frequently asked questions”, Department for Communities and Local Government, May 2012. 46
https://www.london.gov.uk/priorities/environment/publications/the-mayors-waste-management-strategies (08/09/2013).
UK WASTE SECTOR REPORT
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UK IMPLEMENTATION OF EU WASTE FRAMEWORK DIRECTIVE
Improvement of services to households and businesses
2010: Scotland’s Zero Waste Plan47 (Scotland)
Aims at minimising Scotland’s demand for primary resources and to increase resource efficiency
through reuse, recycling and recovery of waste products
Set to contribute towards the targets of the Climate Change (Scotland) Act 2009 by reducing
greenhouse gas emissions by 42% by 2020 and 80% by 2050
Incentivises the growth of a green economy through businesses and jobs that apply a zero waste
approach
2010: Towards Zero Waste48 (Wales)
This high-level strategy documents presents the overarching waste strategy for Wales, including a
resource efficiency and waste management framework from 2010 to 2050
Specific sector plans aim at implementing the strategy in the following sectors: (1) Municipal Waste, (2)
Construction and Demolition, (3) Wholesale and Retail, (4) Collection, Infrastructure and Markets, (5)
Public Sector
Key targets are derived from the One Wales agreement (see above): (1) ‘sustainable environment’ by
reducing the ecological footprint of waste through waste prevention and recycling, (2) creating a
sustainable, resource efficient economy by incentivising ‘green jobs’ and favouring businesses that
advocate resource efficient practices, (3) realising actions within society to prevent, reuse and recycle
waste
2009: One Wales: One Planet49 (Wales)
Sets out the sustainable development vision for Wales with an a strategic approach, policies and
programmes through the following principles: (1) living within environmental limits, (2) ensuring a
strong, healthy and just society, (3) achieving a sustainable economy, (4) promoting good governance,
(5) using sound science responsiblity
2007: National Waste Strategy (England)
Sets the Government’s vision for sustainable waste management
Key objectives: (1) decouple waste growth in all sectors from economic growth by emphasising waste
prevention and re-use, (2) meet and exceed the Landfill Directive for biodegradable municipal waste in
2010, 2013, 2020, (3) increase diversion from landfill of non-municipal waste and ensure better
integration of municipal and non-municipal waste treatment, (4) secure infrastructure investments for
diversion of waste from landfill and for management of hazardous waste, (5) maximising
environmental benefits from investments through recycling and energy from residual waste
2006: Towards Resource Management50 (Northern Ireland)
Key policies and actions are presented as six policy strands which aim at moving from waste to resource
management: (1) Waste Prevention, (2) Recycling and Recovery, (3) Waste Planning, (4) Data and
Research, (5) Legislation and Enforcement, (6) Learning and Communication
For full details on each of the above please see Appendix 6.1.1.1
47
“Scotland’s Zero Waste Plan”, The Scottish Government, Edinburgh 2010. 48
“Towards Zero Waste - One Wales: One Planet, The Overarching Waste Strategy Document for Wales”, Welsh Assembly Government, June 2010. 49
“One Wales: One Planet – The Sustainable Development Scheme of the Welsh Assembly Government”, Welsh Assembly Government, May 2009. 50
“Towards Resource Management – The Northern Ireland Waste Management Strategy 2006-2020”, Department of the Environment, Northern Ireland Government.
UK WASTE SECTOR REPORT
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2.1.1.2. EU Animal By-Products Regulations (Regulation 2069/2009)
All administrations have adapted implement the EU Animal By-Products Directive to set standards for the
disposal of these products.
Figure 31: UK regional government legislation affecting waste management.
UK IMPLEMENTATION OF EU ANIMAL BY-PRODUCTS REGULATIONS (REGULATION 2069/2009)
2011: Animal By-Products (Enforcement) Regulations (England)
Implement the EU Animal By-Products Regulations (Regulation 2069/2009)
Any material which might have been contaminated by meat products has to be composted in a suitable composting
facility
Sets out the requirement for kitchen waste to undergo ‘In-vessel’ composting or ‘anaerobic digestion’ to reduce
pathogens to a specified level; facilities have to gain appropriate authorisation before operation and are inspected by
Animal Health
Domestic kitchen waste can still be land filled; the Windrow composting methodology is no longer accepted
2011: Animal By-Products (Enforcement) Regulations (Northern Ireland)51
Implement the EU Animal By-Products Regulations (Regulation 2069/2009)
Approval for the handling of animal by-products is required for premises, operators or equipment involved in the
storage, processing, treatment or disposal of animal by-products
Department for Agriculture and Rural Development is required to carry out an inspection prior to the granting of the
approval
2011: Animal By-Products (Enforcement) (Scotland) Regulations52
Implement the EU Animal By-Products Regulations (Regulation 2069/2009)
Prohibits amongst other measures the burial or burning of fallen stock on-farm
2011: Animal By-Products (Enforcement) (No. 2) (Wales) Regulations53
Implement the EU Animal By-Products Regulations (Regulation 2069/2009)
Sets out the approval of animal by-products for premises that receive, handle, use, treat or destroy these products
2.1.1.3. Key Waste Policy Documents
In addition to regulating landfill in order to make it less attractive as a waste treatment option, the 2013 draft
Material Recycling Facility Code of Practice aims at improving the quality of products for recycling on a
national level.
Figure 32: UK national government legislation affecting waste management.
KEY NATIONAL POLICIES
2013: Draft Materials Resource Facility (MRF) Code of Practice54
Aims at measuring the quality of the products supplied by MRFs and other processing facilities and making this
information available to customers
MRFs are required to put a quality management system in place, to collect information on non-target and non-
recyclable levels of in- and outputs by material type
The Code of Practice will come into force in October 2013 with quality measures applying from April 2008 and is
likely to apply to MRFs with an output of more than 1,000 tonnes p.a.
51 http://www.dardni.gov.uk/index/animal-health-and-welfare/animal-by-products/animal_by-products_governance_and_legislation.htm (10/09/2013). 52 http://www.scotland.gov.uk/Topics/farmingrural/Agriculture/animal-welfare/ABPs (10/09/2013). 53 http://wales.gov.uk/topics/environmentcountryside/ahw/animalbyproducts/?lang=en (10/09/2013). 54 Quality Action Plan, Proposals to promote high quality recycling of dry recyclates, Defra, February 2013, p. 15-16
UK WASTE SECTOR REPORT
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2013: Quality Action Plan55
Aims at improving the quality of recyclates and how to help the recycling industry grow by using waste as a
tradeable commodity
Sets out the Government’s interest in increasing recyclates quality and how to deliver this with a focus on dry
recyclates, although also including food and garden wastes
Discusses whether proposed actions need to be reviewed
2012: Waste Hierarchy Guidance Review56
The guidance is based on life-cycle assessment, including ecological foot-printing for the different criteria along the
waste hierarchy
2013: Reducing and managing waste57
Sets out the actions for the UK to move to a ‘Zero Waste Economy’ by preventing waste, recycling, making
businesses responsible for what they produce, working with the waste industry etc.
2012: UK Plan for Shipments of Waste58
Strictly limits when waste may be shipped to or from the UK for disposal in addition to the Waste Shipment
Regulations and the Transfrontier Shipment of Waste Regulations 2007
The Waste Hierarchy Guidance Review (2012) mentioned in Fehler! Verweisquelle konnte nicht
gefunden werden., as well as the policy on Reducing and Managing Waste (2013) both focus on the UK
working towards a ‘Zero Waste Economy’. Policy documents, such as the Landfill Allowance Trading Scheme
(2005) that was developed to meet the Landfill Directive targets on diverting biodegradable municipal waste
from landfill, as well as the UK Plan for Shipments of Waste (2012) which aims to limit the waste shipped to
and from the UK for disposal, both intend to contribute to achieving the ‘Zero Waste Economy’.
Regulations overview from the Waste Management Plan for England (2013)
Measures to promote high quality recycling: Waste Review 2011, Weekly Collection Support Scheme,
Waste Regulations 2011 (England and Wales), Revised Waste Framework Directive, consultation on
draft Regulations on MRFs, Quality Action Plan
Separate collection of biowaste: Anaerobic Digestion Strategy and Action Plan, WRAPs voluntary
agreement with the HaFS sector
Arrangements for Hazardous Waste: Government’s Strategy for hazardous waste management in
England, revised Waste Framework Directive, Landfill Directive, Planning Act 2008 (Defra) –
National Policy Statement for Hazardous Waste
Arrangements for Construction and Demolition Waste: Waste Framework Directive, 2008
Sustainable Construction Strategy
Arrangements for Marine Waste: OSPAR Convention 1992, London Convention 1996, Marine and
Coastal Access Act 2009, Merchant Shipping (Prevention of Pollution by Sewage and Garbage from
Ships) Regulations 2008, Marine and Coastal Access Act 2009
Business Waste: Waste Review 2011, Waste Prevention Programme (due end of 2013), Business
Waste and Recycling Collection Commitment (2011)
Packaging and Producer Responsibility: Producer Responsibility Regime, Directive on Packaging and
Packaging Waste (94/62/EC), BIS’ Packaging (essential requirements) regulation 2003, Producer
Responsibility Obligations (Packaging Waste) Regulations 2007, WEEE regulation
Fehler! Verweisquelle konnte nicht gefunden werden. below mentions further relevant key
egulations with regards to energy generation, supply and consumption.
55
“Quality Action Plan – Proposals to promote high quality recycling of dry recyclates”, DEFRA, February 2013. 56 https://www.gov.uk/waste-legislation-and-regulations (06/09/2013). 57 See https://www.gov.uk/government/policies/reducing-and-managing-waste (08/09/2013) for more information. 58 “UK Plan for Shipments of Waste”, DEFRA, May 2012.
UK WASTE SECTOR REPORT
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The Climate Change Act, established in 2008, builds the framework for all energy legislation, setting legally
binding national emissions reduction targets for 2050. Driven by EU legislation, the UK implemented the
Greenhouse Gas Emissions Trading Scheme regulations in 2012, followed by the Feed-in-Tariffs Order in
2012/2013. The latter encourages small-scale low carbon electricity production which complements the
Renewables Obligation from 2002 that aims at supporting large-scale renewable electricity projects in the UK.
Figure 33: UK national government legislation regarding low-carbon energy.
RENEWABLE ENERGY LEGISLATION
2013: Feed-in Tariffs Order 2012 and Amendment (2013)
Feed-in Tariffs (FITs) provide a guaranteed price for a fixed period to small-scale electricity producers
Aims at encouraging the provision of small-scale low carbon electricity
Larger scale AD installations are eligible for FITs, non-domestic EfW from biomass installations are not eligible for
FITs
2012: Greenhouse Gas Emissions Trading Scheme Regulations59
Implements the EU ETS Directive (2009/29/EC)
Provides a scheme for the collection of data to prepare a national inventory on greenhouse gas emissions in the UK
Set out reporting requirements and penalties for non-compliance with the scheme
2008: Climate Change Act60
Establishes a development framework to reduce emissions in an economically viable way
Identifies UK emissions reduction targets for up to 2050
Introduces legally binding carbon budgets which puts a cap on greenhouse gas emissions
Sets up the Committee on Climate Change to advise the Government on emissions targets and report to Parliament
on progress
Implements a national adaption plan to assess the UK’s risks from climate change
2002: Renewables Obligation (RO) Order
Sets out the main support for large scale (> 5 MW) renewable electricity projects in the UK to provide certainty to
investors
Ofgem administers the RO and issues Renewables Obligation Certificates (ROCs): green certificates issued to
accredit generators for each MWh of eligible renewable electricity generated and supplied within the UK by a
licensed electricity supplier
The scheme is guaranteed in law until 2037; the new generation capacity starts in March 2017
On a regional level, England has passed an addition to the Feed-in-Tariffs in 2013 with the Feed-in-Tariffs
with Contracts-for-Difference, introducing a more flexible price scheme than implemented at UK level.
Additionally, the Renewable Heat Incentives Scheme regulations (2013) intend to incentivise the installation
of renewable heat technologies.
Figure 34: Legislation for England regarding low carbon energy
KEY REGIONAL LOW CARBON ENERGY LEGISLATION
2013: Feed-in Tariffs (FiT) with Contracts-for-Difference (CfD)
FiT with CfD will be introduced to replace the current ROC scheme (see Renewable Obligation below)
Aims at encouraging investment in the renewables sector while preventing generators from either suffering, or
gaining any ‘windfall’ benefits from market volatility
Under CfD, the FiT varies depending on the market price; generators will be paid a set amount per unit of energy up
to the ‘strike price’; if the electricity price rises above, generators will be required to pay back the surplus
59 “Amendments to UK greenhouse gas emissions trading scheme and national emissions inventory regulations: a public consultation”, Department of Energy and Climage Change, 8 August 2013. 60 http://www.theccc.org.uk/tackling-climate-change/the-legal-landscape/global-action-on-climate-change/ (02/09/2013).
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2013: Renewable Heat Incentives Scheme (Amendment) Regulations61
Aims at helping businesses, the public sector and non-profit organisations to meet the cost of installing renewable
heat technologies
The scheme covers the following heating types: biomass, heat pumps (ground and water source), geothermal, solar
thermal collectors, bio-methane and bio-gas
A second major goal of the UK government is to decarbonise the energy sector by incentivising renewable
energy, as outlined in the National Renewable Energy Policy and Action Plan (2010). The steps towards
deployment are detailed in the UK Renewable Energy Roadmap (2011) and to secure benefits for the UK
electricity, heat and transport markets. The UK Bioenergy Strategy (2012) aims to achieve just that.
Figure 35: UK national government policies affecting the waste sector.
KEY NATIONAL POLICIES
2012: UK Bioenergy Strategy62
Aims at securing the benefits of bioenergy for electricity, heat and transport through a sustainable use of biomass
Four principles build the framework of the strategy to bioenergy for: (1) delivering carbon reductions to help meet
the UK’s 2050 carbon emissions target, (2) making a contribution to reducing cost as part of the overall energy goals,
(3) maximising benefits and minimising costs across the economy as a whole, (4) assessing and responding to
impacts on food security and biodiversity
2011: UK Renewable Energy Roadmap63
Aims at increasing the deployment of renewable energy across the UK electricity, heat and transport markets
By 2030, the UK Government aims at achieving a decarbonising of the energy sector with the following options:
nuclear, carbon capture and storage, improvements in energy efficiency
Focuses on the following technologies: (1) onshore wind, (2) offshore wind, (3) marine energy, (4) biomass
electricity, (5) biomass heat, (6) ground source and air source heat pumps, (7) renewable transport
2010: National Renewable Energy Policy and Action Plan64
Aims at increasing the amount of energy from renewable sources to better security to UK energy suppliers, providing
new investment in new industries and new technologies by developing skills in these areas
Overall objective: decarbonising the economy
The action plan sets out measures to achieve the 2020 targets and for providing a framework for businesses to
develop new industries, supplying jobs and cutting greenhouse gas emissions
The table below lists the relevant policy documents for the UK waste sector. England’s Electricity Market
Reform (2013) aims to stimulate a stable and secure energy supply market by developing low carbon
generation technologies, maximising benefits and minimising costs. The remaining policy documents for
England focus on waste, building on the National Waste Strategy which aims at breaking the link between
economic and waste growth and to implement sustainable waste management. The government review of the
waste policy in England and the Mayor of London’s London Plan and Municipal Waste Management Strategy,
both published in 2011, focus on improving resource efficiency through sustainable waste management. This is
also supported by the Weekly Collection Support Scheme (2012) that supports local authorities with funding
for weekly residual waste and recycling collections. In 2013, the English government published the Waste
Management Plan, the Quality Action Plan and the Anaerobic Digestion Strategy and Action Plan in order to
help delivering the waste hierarchy by, for example, improving the quality of recyclates and increasing energy
from waste production.
61 https://www.gov.uk/renewableheatincentive/overview (05/09/2013). 62 “UK Bioenergy Strategy” Department for Transport, DECC, DEFRA, April 2012. 63 “UK Renewable Energy Roadmap”, DECC, July 2011. 64 “National Renewable Energy Action Plan for the United Kingdom – Article 4 of the Renewable Energy Directive 2009/28/EC”, DECC, July 2010.
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Wales, Scotland and Northern Ireland all published separate policies to support the development from waste
to resource, increase resource efficiency and minimise the use of primary resources.
Figure 36 UK regional government policies affecting the waste sector.
KEY REGIONAL POLICIES ENGLAND SCOTLAND WALES NORTHERN
IRELAND
2013: Anaerobic Digestion Strategy and Action
Plan65 x
Aims at delivering the Government’s commitment to increase the energy from waste produced through anaerobic
digestion (AD)
According to the waste hierarchy AD is the best option for dealing with separately collected food waste
The action plan tackles barriers to the increased uptake of AD in England rather than focusing on the adoption of
the technology
2013: Electricity Market Reform (EMR) x
The EMR will be phased in beginning of 2014 with a transition from the Renewable Obligations scheme (see RO) to
Feed-in-Tariffs with Contracts for Difference (see FiT with CfD)
Allows the government to hold capacity auctions if necessary, and sets a Carbon price floor to underpin the
Emissions Trading Scheme
The main regulatory stakeholders mentioned in this section are explained in the following chapter.
65
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229432/pb14019-anaerobic-digestion-annual-report-2012-13.pdf (05/09/2013).
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2.2. MAIN REGULATORY STAKEHOLDERS
This section provides an overview of the main regulatory stakeholders and their role, in the UK waste sector.
2.2.1. UK Government Departments
In the UK, government policy is put into practice by 24 ministerial and 21 non-ministerial departments as well
as over 300 agencies and other public bodies.66 Government departments are headed by ministers appointed
by the UK government. Most of them cover the whole of the UK but some functions are assigned to regional
bodies in England, Wales, Scotland or Northern Ireland. Non-ministerial departments are led by senior civil
servants and provide regulatory or inspection functions.67 The UK government departments relevant to the UK
waste sector are listed in Figure 37.
Figure 37: UK Government Departments, ministerial and non-ministerial.
UK GOVERNMENT
DEPARTMENTS,
MINISTERIAL AND NON-
MINISTERIAL
DESCRIPTION PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
Department for Environment,
Food and Rural Affairs (Defra)
Being responsible for policy and
regulation on environmental, food and
rural issues, Defra is responsible for
increasing rural economic growth,
improving the environment and protecting
animal and plant health. Defra works with
39 other agencies and public bodies. The
department covers the whole of the UK
but also works with the devolved
departments in England, Wales, Scotland
and Northern Ireland as well as leading
EU and international negotiations.
Sets policy to reduce pollution, the
amount of waste sent to landfill and
to enforce water and air pollution
control
Department of Energy and
Climate Change (DECC)
DECC’s main objective is to ensure
secured, clean and affordable energy
supplies for the UK as well as to support
climate change mitigation action on an
international level. Its work is supported
by 8 agencies and public bodies which
include the non-ministerial department
Ofgem, the executive non-departmental
public body, the Committee on Climate
Change, and the Committee on
Radioactive Waste Management, an
advisory non-departmental public body.
Encourages the sourcing of energy
from renewable sources and supports
the growth of the global green
economy
Department for Business,
Innovation and Skills (BIS)
BIS promotes trade, boosts innovation,
helps with the start-up of new business
and enhances consumer protection in the
context of economic growth within the
UK. This has been achieved through
investment in skills and education. 47
agencies and public bodies support the
work of BIS.
Encourages the development of new
businesses within the UK and
making regulations more efficient
and valuable for businesses
66
https://www.gov.uk/government/how-government-works (12/09/2013). 67
https://www.gov.uk/government/how-government-works (12/09/2013).
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UK GOVERNMENT
DEPARTMENTS,
MINISTERIAL AND NON-
MINISTERIAL
DESCRIPTION PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
Department of Communities
and Local Government (DCLG)
DCLG works to move decision-making power from central government to local councils. This helps put communities in charge of planning, increases accountability and helps citizens to see how their money is being spent. DCLG is a ministerial department, supported by 11 agencies and public bodies.
Puts local authorities and businesses
in charge of stimulating economic
growth through developing new
business and jobs in their areas
Department of Culture, Media
and Sport (DCMS)
DCMS is here to help make Britain the
world’s most creative and exciting place to
live, visit and do business. DCMS protects
and promotes Britain’s cultural and
artistic heritage and help businesses and
communities to grow by investing in
innovation and highlighting Britain as a
fantastic place to visit. Alongside this,
DCMS protects Britain’s deeply held
beliefs in freedom and equality. DCMS
helps to give the UK a unique advantage in
the global race for economic success.
Works with English Heritage (EH) as
a strategic consultee for Strategic
Environmental Asssessments
HM Revenue & Customs
(HMRC)
HMRC, a non-ministerial department, is the UK’s tax authority. HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.
Collect and enforce environmental
taxes as well as climate change and
aggregates levy and landfill tax
Office of Gas and Electricity
Markets (Ofgem)
As a non-ministerial government
department and an independent National
Regulatory Authority, Ofgem’s main
purpose is to enhance consumer
protection regarding the functioning of the
gas and electricity markets. It is governed
by the Gas and Electricity Markets
Authority (GEMA) and engages with the
UK government, energy industry
stakeholders and others through a legal
framework. The Feed-in-Tariff (FIT)
scheme and the Renewables Obligation
(RO) are environmental programmes
administered by Ofgem on behalf of the
UK government.
Engages with the energy industry
and environmental groups amongst
others to promote the security of
supply and sustainability
Regulates government schemes and
supervises the development of
markets and competition
UK Trade & Investment (UKTI) UKTI works with UK-based businesses to
ensure their success in international
markets and encourage the best overseas
companies to look to the UK as their
global partner of choice.
Aim at improving business
performance with an emphasis on
innovative and R&D active firms
based in the UK
Increase the contribution of foreign
direct investment to knowledge
intensive economic activity in the UK
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In addition to the UK-wide departments mentioned above, England, Wales, Scotland and Northern Ireland
administer a number of bodies on a regional level that are responsible for:68
Health
Education
Culture
The environment
Transport
Government departments oversee executive agencies that provide government services. Additionally Ministers
government departments are accountable for executive and advisory non-departmental public bodies. In the
case of executive non-departmental public bodies, they work directly with the UK government in specific areas.
Advisory non-departmental public bodies on the other hand operate independently and supply the UK
government with advice in their area of expertise.69 Both of these types of public bodies mostly operate on
regional levels. The following table details their responsibilities and which area they operate in.
Figure 38: Executive agencies and other public bodies.
EXECUTIVE AGENCIES,
AGENCIES AND NON
DEPARTMENTAL PUBLIC
BODIES
DESCRIPTION PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
Environment Agency (EA) for
England
The EA is an executive non-departmental
public body supporting the work of Defra
and delivering central government’s
environmental priorities. Fostering
sustainable development and improving
the environment in England account for
the Environment Agency’s main
objectives. The EA plays a central role in
implementing the government's
environmental strategy in England. The
EA is the main regulator of waste
management in England. Among its
responsibilities are the determination of
applications for environmental permits
required under Article 23 of the revised
Waste Framework Directive; and carrying
out inspection and other compliance
assessment activities. The Agency also
registers exemptions for low risk waste
treatment.
Responsible for waste regulation,
contaminated land, conservation and
ecology
Works with businesses and other
organisations to use resources more
efficiently and protect the water, land
and air through pollution control
English Heritage (EH) English Heritage (EH) preserves aspects of the built environment, complementing the work of Natural England which protects the natural environment. It also advises the government on policy and in cases such as registering listed buildings and scheduled ancient monuments. EH is an executive non-departmental public body of the Department for Culture, Media & Sport (DCMS)
Advises the government and local
authorities on managing historic
sites and monuments in England,
working with the DCMS
Consultee for SEAs
68 https://www.gov.uk/government/how-government-works (12/09/2013). 69
https://www.gov.uk/government/how-government-works (12/09/2013).
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EXECUTIVE AGENCIES,
AGENCIES AND NON
DEPARTMENTAL PUBLIC
BODIES
DESCRIPTION PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
Natural Resources Wales
(NRW)
Established in April 2013 as an
independent organisation from the
Environment Agency, Natural Resources
Wales is responsible for sustainably
maintaining and enhancing Wales’ natural
resources. The body’s regulatory
responsibilities affect the storage,
treatment and disposal of waste amongst
others. NRW is the principal adviser to the
Welsh Government on the environment,
enabling the sustainable development of
Wales’ natural resources for the benefit of
people, the economy and wildlife.
Ensures the sustainable maintenance
of Wales’ natural resources the
implementation of environmental
regulation and advising the Welsh
government in this area
Scottish Environment
Protection Agency (SEPA)
The protection and enhancement of
Scotland’s environment is SEPA’s main
purpose. The environmental regulator
provides support for businesses, industry
and consumers regarding the
implementation of legislation, including
the storage, use and disposal of
radioactive substances. SEPA is a non-
departmental public body, accountable
through Scottish Ministers to the Scottish
Parliament.
Manages waste in Scotland and
implement waste regulation
Northern Ireland Environment
Agency
The Northern Ireland Environment
Agency forms part of the Northern Irish
Department of Environment and is
responsible for the implementation of
environmental policy and strategy in the
region.
Aims at protecting, conserving and
promoting the natural environment
and built heritage in Northern
Ireland
Natural England Natural England works with farmers,
planners, researchers and scientists and
the public to create a better natural
environment for people and wildlife across
all of England's urban, country and coastal
landscapes. NE is an executive non-
departmental public body of the
Department for Environment, Food &
Rural Affairs
Manages England’s green farming
schemes, such as on environmental
stewardship and resource efficiency
for farmers
UK Green Investment Bank
(GIB)
GIB is the world’s first investment bank
dedicated to greening the economy. With
government funding of £3 billion, the GIB
invests in innovative, environmentally-
friendly areas for which there is a lack of
support from private markets. This
includes offshore wind power generation,
waste-handling plants, energy efficiency
Waste is one of the priority sectors
within the GIB’s investment mandate
It contributes to the GIB’s effort to
reduce greenhouse gas emissions,
advance efficiency in the use of
natural resources, work on targets
for household recycling rates and
landfill diversion
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EXECUTIVE AGENCIES,
AGENCIES AND NON
DEPARTMENTAL PUBLIC
BODIES
DESCRIPTION PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
measures, biofuels, biomass, carbon
capture and storage, marine energy and
renewable heat generation. GIB works
with the Department for Business,
Innovation & Skills
Waste and Resources Action
Programme (WRAP)
Funded by the UK Governments and the
EU and established as a not-for-profit
company, WRAP focuses on minimising
resource use through the promotion of
resource efficiency and diverting priority
materials from landfill.
Works with businesses and
households to realise economic and
environmental benefits by recycling
more and wasting less resources
Focuses on waste prevention support
and advice
Waste and Resources Action
Programme Cymru/Wales
(WRAP Cymru)
WRAP Wales is part of the Waste and
Resources Action Programme and
responsible for implementing the Welsh
Government’s targets on zero waste by
2050.
Works with businesses and
individuals to reap the benefits of
reducing waste, developing
sustainable products and implement
resource efficiency
Aims at making the reduction of
waste and recycling easier for
businesses and individuals
Zero Waste Scotland (ZWS) Zero Waste Scotland is programme of the
Scottish Government, managed by WRAP
(see above) which aims at achieving ‘Zero
Waste to Landfill’. In order to achieve this
objective, ZWS provides support services
to businesses, initiates campaigns and
carries out research and training in the
area to provide best practice guidance.
Provides market information,
support, funding and guidance to the
resource management sector
Works with the Environment Agency
and WRAP on the development of
waste Quality Protocols
In addition to the key regulatory stakeholders, there are also other influential stakeholder as outlined in figure
39, which could also provide support for entry to market as described in Chapter 4 in more detail.
Figure 39: Other Interested Stakehoders .
OTHER INTERESTED
STAKEHOLDERS DESCRIPTION
PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
The Chartered Institution of
Wastes Management (CIWM)
CIWM is the professional body which
represents waste and resource
professionals working in the sustainable
waste and resource management sectors
worldwide. CIWM sets the professional
standards for individuals working in the
industry and has various grades of
membership determined by education,
qualification and experience.
Aims to influence businesses, the
policy and legal environment of the
sector as well as encourage behaviour
change with regards to resource use
and waste production
The Local Authority Recycling
Advisory Committee (LARAC)
LARAC is an organisation for Local
Authorities run by an Executive of 20 local
authority waste management officers.
Represents and lobbies on behalf of
local authority officers on recycling
and waste management issues
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OTHER INTERESTED
STAKEHOLDERS DESCRIPTION
PARTICULAR ROLE /
INTEREST IN WASTE SECTOR
LARAC represents local authority views in
waste and recycling issues, with members
from authorities in England, Scotland,
Northern Ireland and Wales including
associates from the Isle of Man and the
Channel Islands. Associate memberships
open to any Local Authority with a waste
function within the EU.
Aims to progress recycling and
resource management within the UK
The Environmental Services
Association (ESA)
ESA's Members represent 85% of the sector, including all the major companies, and ESA speaks on their behalf in Britain and in the EU. The ESA lobbies constructively for a policy framework which enables ESA members to operate profitably and responsibly for the benefit of the UK environment, prepares sector health and safety guidance, works to raises operational standards across the industry
Consults and represents its members
on a variety of topics from Anaerobic
Digestions to Zero Waste
Local Government Association
(LGA)
The LGA is the national voice of local government, working with councils to support, promote and improve local government. LGA is a politically-led, cross-party organisation that works on behalf of councils to ensure local government has a strong, credible voice with national government. LGA aims to influence and set the political agenda on the issues that matter to councils so they are able to deliver local solutions to national problems. A membership organisation, with a total of 412 local authority members, including English local councils, Welsh councils via the Welsh LGA, and fire, national park, passenger transport and police authorities, plus one town council.
Supports local government in
managing opportunities and risks
from changes in planning through
the Planning Advisory Service
programme
Help councils to implement national
policies, such as for the reduction of
waste to landfill and to increase
recycling rates
Federation of Small Businesses
(FSB)
The FSB, non-profit making and non-
party political, is the UK's largest
campaigning pressure group promoting
and protecting the interests of the self-
employed and owners of small firms.
Formed in 1974, it now has 200,000
members across the UK.
Lobbies on behalf of small businesses
negatively affected by national waste
policy and legislation
CBI (Confederation of British
Industry)
The CBI is the UK's premier business
lobbying organisation, providing a voice
for employers at a national and
international level; on behalf of more than
240,000 companies of every size,
including many in the FTSE 100 and FTSE
350, small to medium sized companies,
and trade associations, across every sector.
Supports businesses in tackling
climate change by becoming more
energy efficient and operating carbon
neutral
Campaigns for maximising the
potential of green business
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2.3. PRODUCT LABELS AND UK END OF WASTE STANDARDS
Quality protocols set out criteria for the production and use of a product from a specific waste type.
Compliance with these criteria is considered sufficient to ensure that the fully recovered product may be used
without undermining the effectiveness of the Waste Framework Directive and therefore without the need for
waste management controls. Quality protocols aim to provide increased market confidence in the quality of
products made from waste and so encourage greater recovery and recycling.
Waste derived products and materials can be categorised and specified using the Purchasing Available
Specifications (PAS) standards. To further process the material or export it, a producer requires a waste
management licence or exemption. The latter can be implemented if a product achieves End of Waste status.
According to the EC End of Waste Regulation which determines when a product ceases to be waste, a resource
needs to meet certain quality criteria in order to reach this status. The overall aim of the different
classifications of waste materials is to contribute to the long-term objective of diverting waste from landfill by
recovering the resources and making them available to be manufactured into new products. The following
table explains the product labels and end of waste standards in more detail.
Figure 40: Types of product labels and UK End of Waste standards.
PRODUCT LABELS AND UK
END OF WASTE STANDARDS DESCRIPTION
Purchasing Available Specification
(PAS)
Purpose: to provide guidance on good practice for collection, handling
and transport of waste materials
Regulated under the EU Waste Framework Directive and UK law
Enables the comparison of waste products and therefore making them
more valuable and competitive in the market place
Applies to a variety of common waste materials, for re-use and
reprocessing within their end markets
End of Waste Criteria Purpose: to avoid confusion about the waste definition and to clarify
when certain waste that has undergone recovery ceases to be waste.
If these are met, waste materials are considered a resource and no
longer regulated by the Environment Agency in England and Wales,
the Scottish Environment Protection Agency and the Northern Ireland
Environment Agency
England and Wales: End of Waste criteria are specified in Quality
Protocols for most materials
Objective of Quality Protocols in England and Wales: to encourage the
increased recovery and recycling through guaranteeing the quality of
waste resources.70 This renders additional waste management control
obsolete and provides guidance on waste recovery to industry
stakeholders.71
Scotland: waste producers, carriers and anyone handling waste
material are required to apply for a waste management license72; some
activities are exempt from waste management licensing under the
Waste Management Licensing (Scotland) Regulation 2011 and
therefore need to be registered with SEPA73
End of Waste status Purpose: to identify when certain specified wastes cease to be waste,
i.e. when it has undergone a recovery, including recycling operations
and complies with specific end of waste criteria
70 http://www.environment-agency.gov.uk/business/sectors/142481.aspx (22/08/2013). 71 http://www.wrap.org.uk/content/quality-protocols (22/08/2013). 72 See “A guide to Waste management licensing”, SEPA, May 2009 for more information. 73 http://www.sepa.org.uk/waste/waste_regulation/application_forms/exempt_activities.aspx (12/09/2013).
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PRODUCT LABELS AND UK
END OF WASTE STANDARDS DESCRIPTION
Can be achieved by meeting quality criteria as set out in the EC End of
Waste Regulation
Producers or importers are required to produce a compliance
certificate and to implement a certified quality management system to
demonstrate the performance against the quality criteria74
Exemption of waste management license for producers and importers
in England and Wales: to carry out an end of waste submission to the
Environment Agency via its website75; The material is tested against
the corresponding Quality Protocol. If it meets the criteria set out by
the standard, the product is no longer considered a waste material and
is therefore exempt from the requirement of a waste management
licence.
Exemption of waste management license for products and importers
in Scotland: to be free of causing a risk to human health or harming
the environment by complying with the following criteria (according
to the Waste Management Licensing (Scotland) Regulation 2011): (a)
Presenting a risk to water, air, soil, plants or animals, (b) Causing
nuisance through noise or odours, or (c) Adversely affecting the
countryside or places of interest.76
The section below provides an overview of the PAS standard, the Quality Protocol as well as the End-of-Waste
criteria and its implications for producers and buyers regarding dry recyclables and biodegradable materials.
2.3.1. Product Labels, Specifications and End of Waste Criteria for dry recyclables
2.3.1.1. Glass
The requirements for good quality recovered container glass are specified in PAS 101. The standard tries to
bring various independent specifications together by providing a comprehensive standard for all raw container
glass collected in the UK. Raw cullet quality is determined by its degree of colour separation. PAS 101 therefore
provides a log sheet for visual inspection with a four tier grading system.77
The flat glass cullet specification by the Environment Agency, provides guidance to cullet processors who
supply manufacturers of new glass with glass cullet. The document outlines the composition and particle size
needed to achieve a certain quality for the material. As manufacturers may have individual requirements, the
specification should only be used as a guidance document.78
Input controls are set out in the corresponding Quality Protocol and require glass cullet to be produced using
materials to an approved standard79 which is relevant to the market that the cullet will be sold in. It also
requires for the cullet to meet good practice criteria80 outlined in the Quality Protocol.81
74 http://www.environment-agency.gov.uk/business/regulation/129311.aspx (22/08/2013). 75 See http://www.environment-agency.gov.uk/business/sectors/138659.aspx (23/08/2013) for more information. 76 http://www.sepa.org.uk/waste/waste_regulation/application_forms/exempt_activities.aspx (12/09/2013). 77 Summary of PAS 101, Recovered container glass, Specification for quality and guidance for good practice in collection, WRAP/BSI (http://www2.wrap.org.uk/downloads/Summary PAS101.45305f14.313.pdf 20/08/2013). 78 Specification for flat glass cullet used in flat glass manufacture, The Environment Agency, March 2008 (http://www.wrap.org.uk/sites/files/wrap/WRAP_Flat_Glass_spec_FINAL.pdf 19/08/2013). 79 The approved standards to which this Quality Protocol applies are listed in Appendix B of the Quality Protocol. 80 Sources of guidance on good practice for this Quality Protocol are listed in Appendix C of the Quality Protocol. 81 http://www.environment-agency.gov.uk/static/documents/Business/Quality_protocol_for_flat_glass.pdf (12/09/2013).
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BSI PAS 101: 2003 Recovered container glass – specification for quality and guidance for good
practice in collection
BSI PAS 102: 2004 Specification for processed glass for selected secondary end markets
WRAP – Recycling your window waste: a good practice guide. Available from:
www.wrap.org.uk/downloads/FlatGlassGoodPracticeGuide.01812236.pdf[Accessed 28th April
2008].
Waste Protocols Project, 2007a Collection of flat glass for use in flat glass manufacture – a good
practice guide. Waste Protocols Project Report. Bristol: Environment Agency; Banbury: WRAP.
[anticipated publication by June 2008 – draft available at www.environment-
agency.gov.uk/subjects/waste/1019330/1334884/1900973/?lang=_e
Waste Protocols Project, 2007b Specification for flat glass cullet waste used in flat glass manufacture.
Waste Protocols Project Report. Bristol: Environment Agency; Banbury: WRAP. [anticipated
publication by June 2008 – draft available at www.environment-
agency.gov.uk/subjects/waste/1019330/1334884/ ]
2.3.1.2. Ferrous Metals and Aluminium
There is no national standard, PAS or Quality Protocol, for Aluminium recycling; instead reprocessors have
developed their own standards and acceptance protocols.
The Novalis specification, for example, states that material must be free of steel, lead, iron, plastics, sand,
paper, glass, foil, dirt, grease and any other foreign substance. The specifications do not put a measurable
threshold on contamination by foreign bodies – however, in practice, there is an operational limit of around
1%. The specification also states that no more than 2% of the weight of the load may be made up of aerosols,
and sets a moisture limit of 4% with all aerosols being deflated and delivered without caps. Companies that fail
to meet the quality requirements laid down by Novelis have the option of having the material rejected or
decontaminated, with the cost of decontamination taken off the price paid for the load.82
2.3.1.3. Paper
PAS 105 outlines the key factors to guarantee the efficient recycling of recovered paper. Its good practice
recommendations cover the collection, handling and processing of recovered paper from households through
to recycling for the UK end markets. The standard includes guidance on the delivery of recovered paper to
reprocessors, the grading of recovered paper, responsible sourcing and contamination to be avoided amongst
other good practice measures. The document can be obtained free of charge from the WRAP website.83
In addition to PAS 105, BS EN643 sets grading standards for recovered paper and board and is in line with
European standards. It is intended for use by industry, professionals, organisations and individuals who are
interested in the material.84
There is no Quality Protocol for paper.
2.3.1.4. Plastics
PAS 103 sets out a system to classify and grade collected waste plastics and packaging for recycling. A visual
inspection log sheet which is part of PAS 103 identifies characteristics of the material, such as colour, net
weight and polymer type as well as contaminants.85
82 “Used Aluminium Beverage Can Recycling – Information for Suppliers & Specification for Supply”, Novalis, August 2012. 83 Introduction to PAS 105 - Recovered paper sourcing and quality for UK end markets, Code of practice, BSI (http://www.wrap.org.uk/sites/files/wrap/Mini-PAS105.72588391.4353.pdf 20/08/2013). 84 http://shop.bsigroup.com/en/ProductDetail/?pid=000000000030062350 (20/08/2013). 85 Introduction to PAS 103 – Collected waste plastics packaging, Specification for quality and guidance for good practice in collection and preparation for recycling, WRAP/BPF Recycling Council/BSI.
UK WASTE SECTOR REPORT
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Plastic packaging is diverse and comprises of multiple materials, all of which have different characteristics,
recycling challenges and markets. below shows the common types of plastics and their application.
Figure 41: Common types of plastic and their application.
POLYMER TYPES EXAMPLES OF APPLICATIONS SYMBOL
Polyethylene Terephthalate
Fizzy drink and water bottles. Salad trays.
High Density Polyethylene
Milk bottles, bleach, cleaners and most shampoo bottles.
Polyvinyl Chloride
Pipes, fittings, window and door frames (rigid PVC). Thermal insulation (PVC foam) and automotive parts.
Low Density Polyethylene
Carrier bags, bin liners and packaging films.
Polypropylene Margarine tubs, microwaveable meal trays, also produced as fibres and filaments for carpets, wall coverings and vehicle upholstery.
Polystyrene Yoghurt pots, foam hamburger boxes and egg cartons, plastic cutlery, protective packaging for electronic goods and toys. Insulating material in the building and construction industry.
Unallocated References Any other plastics that do not fall into any of the above categories - for example polycarbonate which is often used in glazing for the aircraft industry
Source: http://www.wrap.org.uk/content/types-plastic (19/08/2013).
To comply with the corresponding Quality Protocol, non-packaging plastic waste must not contain oil,
solvents, glues, paint, aqueous nor fatty foodstuffs that can be detected by visual inspection.The self-
monitoring requirements under this criterion demand qualified staff to carry out a visual inspection of each
consignment.
Where a visual inspection reveals the presence of signs of fluids except water that may result in e.g. mould
growth or odours, and these signs are non-negligible, the consignment shall remain waste. The procedure of
recognising contamination shall be documented under the quality management system.86
2.3.2. Product Labels, Specifications and End of Waste Criteria for biodegradable materials
2.3.2.1. Anaerobic digestate
All anaerobic digestion (AD) systems accepting source-segregated biowastes and biodegradable non-waste
materials are covered by PAS 110. The standard specifies the controls on input materials as well as the
management system for the process of anaerobic digestion and associated technologies. It also sets the
standard for the minimum quality of whole digestate, separated fibre and liquor and outlines what information
needs to be provided to the digestate recipient.87 AD systems can accept packaged biowastes or biodegradable
non-wastes that have been depackaged before given to anaerobic digestion. To meet minimum quality
requirements set out in PAS 110, producers are asked to implement and adhere to a Quality Management
System as well as to carry out a Hazard Analysis and Critical Control Point (HACCP)88 planning.89
86 http://www.environment-agency.gov.uk/static/documents/Business/Quality_protocol_for_non-packaging_plastics_.pdf (12/09/2013). 87 http://www.wrap.org.uk/content/bsi-pas-110-producing-quality-anaerobic-digestate (19/08/2013). 88 See http://food.gov.uk/business-industry/caterers/haccp/#.UjHRYdKsiSo (12/09/2013) for an introduction to HACCP. 89 http://www.organics-recycling.org.uk/uploads/article1775/PAS-110.pdf (12/09/2013).
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To comply with the corresponding Quality Protocol, anaerobic digestate is required to have been produced
with source-segregated input materials only, to meet PAS 110 as the approved standard. Additionally, the
material meets the requirements of the Protocol if it is destined for the appropriate use in designated market
sectors, such as, agriculture, forestry and soil/field-grown horticulture or land restoration.90
2.3.2.2. Compost
The PAS 100 covers biodegradable materials which have been produced at centralised composting facilities, on
farms and in communities. It does therefore not apply to products which are composted for self-use at home.
The standard only refers to biodegradable material which is stored separately from non-biodegradable
products.91 Additionally, PAS 100 is relevant to centralised, on-farm and community composting. Composters
are required to support Hazard Analysis and Critical Control Point planning and to operate a Quality
Management System (QMS).92
Adhering to PAS 100 is one of the requirements for compliance with the Quality Protocol for compost.
Additionally, the material needs to be produced from specific source-segregated input materials which are
detailed in the Quality Protocol document.93 The designated market sectors for compost include the following:
land restoration and soft landscape operations, domestic or professional horticulture, agriculture and soil-
grown horticulture, forestry. The product complies with the Quality Protocol if further processing, such as
maturation or re-screening, are not required. Finally, it may also need to adhere to customer specifications,
such as further processing, which supplier and customer may have agreed.94
In addition there are Quality Protocols for England and Wales for Aggregates, Cooking oil and rendered animal
fat, Lubricating oil, Plasterboard, Poultry litter ash, Pulverised fuel ash and furnace bottom ash Tyre-derived
rubber material, however these have not been discussed further in this report.
90 http://a0768b4a8a31e106d8b0-50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn.com/geho0610bsvd-e-e.pdf (12/09/2013). 91 http://www.wrap.org.uk/content/bsi-pas-100-compost-specification (19/08/2013). 92 http://www.organics-recycling.org.uk/page.php?article=1932&name=PAS+100%3A2011 (12/09/2013). 93 See Appendix B of the Quality Protocol for further information on input materials. 94 http://a0768b4a8a31e106d8b0-50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn.com/geho0812bwpl-e-e.pdf (12/09/2013).
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3. The UK Waste Management Sector
3.1. INTRODUCTION
Although waste management in the UK is driven by government targets and regulatory requirements only the
collection infrastructure is dominated by public sector, the actual sorting, separation, treatment and
processing of waste is owned, operated and being developed by the private sector. The waste management
sector in the UK consists of over 1,200 licensed facilities operating across the waste hierarchy, as outlined in
Figure 42, with many more small scale local plants operating under an exemption which are processing very
small quantities or very specific non-hazardous waste streams. With numerous plants in the construction and
planning pipeline the UK is still a developing and maturing market place with a need for further infrastructure
and knowledgeable and qualified personnel to meet the aspirations of the future and handle the challenges of a
global economy.
Figure 42: Waste Management Facilities in the UK (2012)
Waste Management # of Facilities
MRF 220
Composting 350
Anaerobic Digestion 110
EfW 35
Landfill 549
Total 1,264
The downturn in the UK economy from 2008 constrained overall growth rates in the UK waste market due to
lower levels of waste arisings in response to reduced consumer and business activity, declining prices for many
types of recyclate due to limited demand in the UK, Europe and the Far East, which led to a slowdown in
infrastructure developments as financing of facilities became increasingly difficult. While the UK economy
slowly recovered to date and the key targets set not only by the EU Landfill Directive, Waste Framework
Directive, but also the carbon reduction, sustainability and renewable energy targets, mean that, regardless of
the economic situation, central government, local authorities and businesses do not have the option of scaling
back waste reduction and recycling objectives in the medium to long term future.
This chapter will firstly present the leading waste management companies and private stakeholders in the UK
industry before further analysing the overall UK waste sector and individual market segments namely the
recyclate reprocessing, organic and biological treatment and residual treatment sectors and then provide a
concluding section on future market shares and developments in the UK waste sector.
3.2. PROFILE OF LEADING WASTE MANAGEMENT COMPANIES AND MAIN PRIVATE
STAKEHOLDERS
The waste industry in the UK has been undergoing changes and shifted its focus from landfill to waste
processing and the secondary resources market.95 This has opened up opportunities for stakeholders in the
Facilities Management sector, the construction and the utilities sector to engage with the traditional players in
the waste market.
Key to the market are the leading waste management companies of which the top 10 represent 90% market
share.96 Figure 43 lists the top 10 waste management companies according to their revenue generated in the
UK during the financial year (FY) of 2012.
95
“Waste and Resource Management – M&A update”, Catalyst Corporate Finance and LRS Consultancy, Winter/Spring 2013. 96
“Good Growth, A Positive Outlook” by Catalyst Corporate Finance, CIWM Magazine, August 2013.
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Figure 43: Leading waste management companies operating on the UK market.
COMPANY REVENUE
(FY 2012)
OWNERSHIP REVENUE SHARE
Veolia Environmental Services £ 1,469 million Foreign Listed 28.9%
Biffa Group £ 843 million Private Equity 16.6%
SITA UK (Suez) £ 784 million Foreign Listed 15.4%
Viridor (Pennon Group) £ 704 million UK Listed Group 13.8%
FCC Environment (FCC) £ 522 million Foreign Listed 10.3%
Cory Environmental £ 236 million Private Equity 4.6%
Shanks Group £ 174 million UK Listed Group 3.4%
DS Smith Recycling UK (Previously SCA
Recycling)
£ 169 million UK Listed Group 3.3%
DCC Waste Services £ 97 million Foreign Listed 1.9%
SRCL (Stericycle) £ 87 million Foreign Listed 1.7%
Source: “Good Growth, A Positive Outlook” by Catalyst Corporate Finance, CIWM Magazine, August 2013.
The next tier of medium sized companies acting regionally and locally are summarised in Figure showing a
mixture of regional waste management companies like Grundon, London Waste and Hills Waste Solutions as
well as specialist providers who focus on one material steam, like Saica and PHS All Clear focussing paper and
cardboard and clinical/hazardous waste solutions respectively.
Figure 44: Regional and medium sized waste management companies operating on the UK market.
Rank Company Revenue in 2012 (£m) Revenue latest year £m
11 Grundon Waste Management 74 77
12 Saica Natur UK (SAICA) 74 75
13 LondonWaste 69 70
14 PHS All Clear 60 62
15 LEO Group 57 60
16 J&A Young Group 49 55
17 Hills Waste Solutions 53 55
18 Cleansing Service Group 53 54
19 MTS Cleansing Services
49
20 J G Pears (Newark) 43 47
21 Eazyfone 43 -
The waste industry is highly capitalised with a huge fixed costs base related to the cost of running collection
and bulking vehicles, fuel, staff and the existing plants with huge investments being made into new
infrastructure. The companies with large vehicle fleets and numerous plants are exposed to high risks if long
term municipal contracts cannot be secured or if significant delays are experienced in the start of operation
resulting in reduced and delayed income generation. Figure provides an overview of the capital expenditure in
the UK market sector in the past five years with Veolia, Viridor and Biffa being the largest investors. The top
five waste firms accounted for 52% of the gross investment during this time. However it needs to be noted that
the ‘Others’ including local and regional players are representing nearly half of the investment volume
illustrating the considerable changes in infrastructure in the UK. Waste infrastructure investment, including
UK WASTE SECTOR REPORT
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recycling facilities, residual waste treatment capacity, and collection fleets & depots exceeded £3.8 billion from
2007-2012; averaging £750 million annually.
Figure 45: Waste Industry Capital Expenditure 2007-2011
97
According to corporate financial advisor’s Catalyst Corporate Finance the volumes of merger and acquisitions
in the UK waste sector are steadily returning to their pre-recession levels. The UK continues to be an attractive
investment destination for overseas parties with a third of trade deals in the last 12 months involving an
overseas firm. While the major French-owned environmental businesses are still dominating the UK market,
there has been some acquisition by Spanish firms, which is expected to continue for the next few years.
Examples are as follows:
In the paper recycling sector, Zaragoza-headquartered SAICA has now completed four acquisitions
across the UK to secure recovered paper for its mill in Partington.
Tradebe, the hazardous waste specialist, acquired Solvent Resource and will continue to look for
opportunities to enhance their business.
Ferrovial, through AmeyCespa, acquired Enterprise in 2012.
Urbaser, owned by Madrid-headquartered ACS, are rapidly building a municipal waste business with
the recent contract successes in Essex and Gloucestershire.
However, Cory’s Spanish financial backers are expected to exit their investment in the future.
Local operator Viridor continued to use M&A to build its recycling infrastructure. Other UK businesses have
been making acquisitions to ensure security of supply of commodities, such as Recycling UK’s acquisition of
Oswestry Waste Paper and the acquisition of May Guerney by Kier. While Biffa was able to avert a sale, the
completion of the DS Smith’s take over by SCA and the potential merger of businesses between Veolia and Sita
are just a couple of deals being discussed in the market, many of these have the potential to change the
structure of the UK market.98
Below short profiles of the main private stakeholders in the UK waste management sector have been given to
outline their backgrounds, main areas of business and overall development strategies where publicly available.
97
“Waste and Resource Management – M&A update”, Catalyst Corporate Finance and LRS Consultancy, Winter/Spring 2013. 98
http://www.catalystcf.co.uk/uploads/top_20-2012.pdf
UK WASTE SECTOR REPORT
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3.2.1. Veolia Environmental Services (VES)
Veolia remains the largest player in the UK waste management sector active in waste collection, sorting and
separation as well energy recovery and landfill and one of the major international waste management
companies. Between 2008 and 2011 Veolia‘s business grew by 2% in revenue terms and the company saw its
revenue increase by 4.6% to £1.47 billion for 2012.99 This was largely due to increases in waste sent for Energy
from Waste, as well as increased volumes of MSW. For Veolia, the fall in recyclate prices was offset by these
increased volumes. The company has invested £1.2 billion in resource and recovery infrastructure with another
£1 billion planned to be spent by 2020 to create a further 945,000 tonnes of recycling and recovery capacity.
3.2.2. Biffa Group
Biffa remains the second largest player in the UK market, with a 2012 revenue of £843 m. Despite the
speculation of a buyout of Biffa last year, no sale occurred, and Biffa has undergone a restructuring. Biffa has
received High Court approval for a £1 billion recapitalisation, including a 55% write-down of debt, (Down to
£520 million) and a capital injection of £75 million. Biffa’s business focusses on CI waste, with MSW contracts
only expected to represent 20% of their business. In addition the company has been slow to move from landfill
to recycling and recovery and is currently in the process of building up new infrastructure receiving planning
permission for a number of plants including an EfW facilities in Leeds. In 2012 Biffa close several facilities,
notably the £13m Trafford Park MRF due to low volumes. The company bought Greenstar in 2010 in a £ 166
million deal to enhance its recycling business, which has performed well, however it did not manage to
reposition the company quickly enough to stop the difficulties experienced in 2011/12. The recovery of the
economy is expected to lead to an increase in C&I waste volumes and the growing trend towards recovery of
residuals which will benefit Biffa. Biffa has a five year, £250 million investment strategy, including $40 million
to develop dirty MRFs in the North East, Birmingham, and London.
3.2.3. SITA UK (Suez)
SITA is the second French owned major waste management company in the UK and in October 2012 the
French parent companies of Veolia and SITA put out statements denied merger talks following intense market
speculation about the possibility of a deal. In 2012, SITA recorded a turnover of £748 million – a rise of 1.6%
from the previous year. Sita entered into a partnership with North East technology company, Solvert as well as
the gasification company Ascot Environmental to get involved with the Cyclamax advanced thermal treatment
technologies . They plan to collaborate on converting organic waste into feedstock for use in industrial
fermentation processes to produce chemicals, and produce synthetic fuels from end of life plastics as well as
gasification of MRF residues and RDF at three sites in the Uk. Unfortunately Ascot Environmentatl
experiences issues raising financing and went into administration in 2012. While the novel technology side is
still in development, Sita has experienced success with building up their more traditional incineration waste
treatment capacity, with the latest contracts in Merseyside, Durham, BDR and other enabling the company to
expandthe Teeside facilities at Haverton Hill and Wilton to over 1.1 million tonnes - nearly all of which will be
utilised for long term local authority contracts.
3.2.4. Viridor (Pennon Group)
Viridor operates only in the treatment of waste, and has nearly completely divested its collection infrastructure
since emerging from a small regional waste business into one of the UK majors. While being successful in
winning contracts in the MSW sector, their revenue fell by 7.5% to £704 million in 2012, due to several delays
in plants becoming operational due to planning and legal challenges. Viridor is focussing on its new treatment
and sorting assets and has closed six facilities in the UK with plans to close 16 of its 21 landfill sites. Viridor
has a total operational, under construction, and committed EfW capacity of 2.5 million tonnes, and roughly 1.3
million tonnes is tied to long-term municipal contracts. Viridor has invested £1 billion in EfW facilities, and
are aiming to double their renewable energy generation capacity to 300 MW by 2020.
99
Reducing carbon impact – turning waste into a resource‘, Veolia Waste Management, 2013
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Viridor has also been investing heavily in glass recycling, and mixed plastics recovery, providing one of the
most modern MRF’s in Europe for their Midlothian contract in Scotland as well as upgrading the facilities
around their 300,000 tpa MRF in Crayford, Kent implementing a new mixed plastics sorting facility and
enhanced glass sorting. Viridor aims to have a 15% share of the UK EfW market by 2020 and has plans to
invest heavily in the EfW sector, and is expecting significant growth due to this, suggesting that it’s EfW
contracts will generate £100 million by 2019. Viridor has recently secured several contracts with local
authorities, including Glasgow City Council (£254 million, 25 years, 200,000 tpa), South London Waste
Partnership (£900 million, 25 years, 200,000 tpa), Peterborough City Council (25 years + extension, 80,000
tpa) and received preferred bidder status with Prosiect Gwyrrd (a coalition of 5 councils in Wales).
3.2.5. FCC Environment (FCC)
FCC has traditionally been very landfill oriented, but since 2010, they have been developing recycling
infrastructure following their announcement in 2012 to shift toward treating waste as a 'valuable resource'. In
July 2013, FCC launched a service that allows large and small organisations to research, book, and pay for
recycling and waste collections online. They hope that making their services more convenient to locate and
easily accessible will encourage SMEs to improve their recycling habits . Since 2010, FCC has shifted its focus
in the UK from waste disposal to recycling, collection, C&I waste services, and renewable energy. In line with
this shift in philosophy came the consolidation of WRG and Focsa Services in May 2012. The last financial year
showed FCCs revenue increase 4.9% fo £520 million – the highest growth rate seen among the top five players.
FCC recently signed a 30-year contract with Buckinghamshire County Council for the treatment of 300,000
tpa of residual waste at their 22 MW EfW in Greatmoor. In November 2012, Pennine Resource Recovery – a
consortium comprised of FCC, Skanska, and AECOM received planning permission for a combined heat and
power plant in Bradford – the associated waste treatment contract is worth £1 billion over 25 years. In
advancing it’s renewable energy goals, FCC has harvested its first crop of biomass fuel (Miscanthus grass) on
restored landfill and quarry sites in Nottinghamshire and West Yorkshire. It is estimated that these sites will
produce 300 tonnes of fuel annually, and will be used to generate electricity at the Ferrybridge power station
owned and operated by Scottish Southern Electrics (SEE).
EfW infrastructure has become a strategic focus for Viridor, Sita, and Veolia, with 26 new EfW facilities
planned between them over the next 7 years. Viridor has committed to a £1 billion investment in energy from
waste infrastructure, which should see the completion of 9 more EfW facilities. Sita is also pursuing more
cutting-edge opportunities in the renewable chemicals industry using novel process including gasification. FCC
has begun to shift its focus from landfill to resource recovery, and has seen rapid expansion of recycling
infrastructure with a focus on aggregating CI waste.
3.3. CURRENT MARKET STRUCTURE & SEGMENTATION
This chapter investigates the structure of the overall UK waste sector and individual market segments from an
economic perspective
The UK waste market has been divided into:
recyclate reprocessing
organic and biological treatment
and residual treatment segments.
In the following we will review each segment in terms of its market size, structure and major players as well as
future developments and trends, which could provide opportunities for Swiss companies in the UK.
3.3.1. Reprocessing
The UK’s reprocessing sector is defined by material stream, but within the supply chain reprocessors typically
play the same or very similar roles. Figure demonstrates how they fit into the circular materials economy,
performing functions that prepare materials for recycling and recycling/reprocessing them. In many instances
reprocessors are also manufacturers (especially in the packaging industry).
Figure 46 : Reprocessing / Recyclate Supply Chain
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The UK is trying to close the loop, however, while increasing amounts of material are being collected, the lack
of suitable reprocessing infrastructure in the UK as shown in Figure is leading to large amounts of exports of
materials to Europe and the Far East, where dry recyclates in particular can be recycled and recovered
economically.
Figure 47: Recycling Collection vs Reprocessing Capacity in the UK (2013) - (ESA Practical Guide to the Circular Economy)
In the following, a more detailed assessment of the dry recyclables material sorting and separation sector as
well as the four main dry recyclable market sectors, namely plastics, metals, glass and paper and cardboard are
presented by material to demonstrate opportunities for the future in the recycling and reprocessing sector.
3.3.2. Material Sorting & Separation of Dry Recyclables
Materials Recovery Facilities are increasingly important in providing quality raw materials to industry as the
number of Local Authorities collecting comingled dry recyclables has increased in recent years in an effort to
meet recycling targets as well as in response to the austerity measures.
In most cases, MRFs are designed to separate co-mingled recyclables into their individual material streams
and prepare them for sale in the commodity markets.
In 2006, the total UK MRF capacity was around 2.5M tonnes per annum, representing the combined
capacities of 82 facilities with 28% larger MRFs (>50,000 tonnes per annum) totalling 1.6M tonnes per
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annum; and 72% were smaller MRFs (<50,000 tonnes per annum) totalling 0.9M tonnes per annum. In 2013
there are an estimated 200 MRFs operating in the UK including a number of large scale MRF’s with over
200,000 tpa capacity. The number of MRFs, based on permitting data 2010/11, is estimated as 87 MRFs in
England and 13 in Wales with an estimated 2,385,000 tpa throughput.
Figure 48: Classification of sites in England and Wales by size and number
MRFS TOTAL
SMALL
(<5KTPA)
MEDIUM
(20 – 75 KTPA)
LARGE
(> 75KTPA)
England 124 82 36 6
Wales 24 20 4 0
Scotland 8 0 5 3
TOTAL 148 102 40 6
Note: For Scotland only an estimated number of MRFs was available
The waste majors Viridor and Veolia are dominating the market, outstripping the nearest competitor(s) by
more than double the number of operational facilities as shown in Figure .
Figure 49: Leading MRF Operators
Operator # Facilities
Viridor 19
Veolia 11
Biffa 5
Sita 5
FCC 4
Grundon 3
Shanks 3
Recresco 3
Nordic Recycling 2
SCA Recycling UK 2
Technology suppliers for MRFs do not typically operate the facilities themselves, but provide Engineering,
Procurement and Commissioning (EPC) services when designing new facilities before handing the facility over
to the operators. The market for the building and technology of MRFs is quite segmented, but noteworthy
names include a number of well-known European manufacturers of sorting and separation equipment:
Machinex
Bollegraaf
Kaizen
CP Manufacturing
Okay Engineering
Stadler
MRF capacity is estimated to grow between 0-5% -2.5% in the next five years depending on growth in waste
arisings, household recycling rates and changes in collection method ,which all interact to influence the
amount of co-mingled municipal waste requiring sorting by a MRF.100 The market for MRFs and in particular
small scale MRFs will also be impacted by a major regulatory change following the introduction of a
mandatory MRF Code of Practice to enhance material quality for reprocessing.
A voluntary approach has been attempted by the waste management industry already and the proposed
regulation builds upon the provisions of the existing ‘Recycling Registration Service’ (RRS) which was
100
Impact Assessment 2012 for Amendment to the Environmental Permitting (England and Wales) Regulations 2010 - new schedule for Materials Recovery Facilities (MRFs), Environment Agency
UK WASTE SECTOR REPORT
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launched in April 2007 by the Environmental Services Association (ESA), the trade association for waste
management companies. The RRS established similar monitoring requirements, but it failed to attract
significant uptake (only about 20 MRFs, 15% of total MRFs).
However, recent reviews by WRAP and the feedback from reprocessors showed that the output from these
MRFs does not always meet the material quality standards or reprocessor requirements and needs
considerable cleaning and additional separation of materials. This issue has been recognised in the UK and led
to the Draft Materials Recovery Facility (MRF) Regulations for insertion into Environmental Permitting
(England and Wales) (Amendment) Regulations 2013. The purpose of the proposed MRF regulations is to help
stimulate the market conditions necessary to improve the quality of the material produced by MRFs so that it
can be more readily recycled.
In essence, these regulations will require MRF operators to test the composition of the material put through
the sorting process, making the results available to the Environment Agency, reprocessors and local
authorities. This is expected to stimulate the market conditions needed to improve recyclate quality and so
supports both the objective in the WFD to promote high quality recycling and compliance with the Waste
Shipments Regulation.
Delivering high quality recyclate is important because it can help support the UK economy and growth of the
recycling industry by maximising the economic value of the material collected. By minimising the amount of
collected recyclate that ends up in landfill it also helps increase public confidence and participation in recycling
and maximises the environmental benefits of recycling.
3.3.2.1. Plastic recyclates material stream
Plastic packaging is diverse and comprises of multiple materials, all with different characteristics, recycling
challenges and markets.
shows the common types of plastics and their application101 with the associated Red Amber Green (RAG)
rating showing the perceived ease of recycling for each material fraction.
Figure 50: Common Types of Plastic Polymer, Their Applications and Ease of Recycling
Polymer
Types
Examples of
applications
Symbol Ease of Recycling: RAG rating
Polyethylene
Terephthalate
Fizzy drink and water
bottles. Salad trays. null
Bottles:
Clear and light blue tint – G (widely recycled)
Colour bottles – G (not in as much demand as the
clear)
PET Trays
A (accepted with the bottles at low percentages as a
separate stream emerging markets)
cPET trays (microwaveable trays) R
High Density
Polyethylene
Milk bottles, bleach,
cleaners and most
shampoo bottles. null
Bottles: G
Trays: G (limited volume so tends to be sorted with
the coloured bottles)
Polyvinyl
Chloride
Pipes, fittings, window and
door frames, (rigid PVC).
Thermal insulation (PVC
foam)and automotive
parts.
null
Bottles: R (very limited demand)
Trays: R (very limited demand)
Low Density
Polyethylene
Carrier bags, bin liners
and packaging films. null
Film – household film
A (emerging markets in mainland Europe)
101
http://www.wrap.org.uk/content/types-plastic
UK WASTE SECTOR REPORT
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Polymer
Types
Examples of
applications
Symbol Ease of Recycling: RAG rating
Polypropylene Margarine tubs,
microwaveable meal trays,
also produced as fibres
and filaments for carpets,
wall coverings and vehicle
upholstery.
null
G
Polystyrene Yoghurt pots, foam
hamburger boxes and egg
cartons, plastic cutlery,
protective packaging for
electronic goods and toys.
Insulating material in the
building and construction
industry.
null
Trays: A (limited demand and some technical
challenges in recycling)
No food approved route for recycling polymer to be
included in food packaging
Unallocated
References
Any other plastics that do
not fall into any of the
above categories - for
example polycarbonate
which is often used in
glazing for the aircraft
industry
null
R
The plastics supply is highly fragmented, with approximately 200 recyclers in the UK. For non-food grade
plastics, recyclers have many selling options and manufacturing have many buying options; consequently the
balance of power is relatively equal. Whilst for food grade plastics there is a strong and growing demand for
recycled PET (rPET) and HDPE from brand owners and retailers. Over the last few years the prices of
rpolymer has, on occasions, risen above the virgin polymer, PET. This in the most part is driven by increasing
virgin prices and supply pressure, and the need to meet corporate carbon reduction, and packaging reduction
and recovery targets. For example, each tonne of PET recycled back to a PET application saves 1.5t CO2102.
Figure 51 provides an overview of the market size.
Recovered plastic packaging is often exported for recycling overseas, but domestic capacity is increasing,
notably for household plastic packaging streams such as plastic bottles. 11% of household waste is plastic, 40%
of which if plastic bottles. The rapid expansion in plastic bottle collection has allowed investment in UK sorting
and reprocessing capacity, with current estimates of capacities being 315kt for plastic bottle sorting (with some
additional capacity currently being developed) and 150kt for plastic bottle reprocessing. Of this current
capacity, approximately 250kt of the sorting capacity and 80kt of the reprocessing capacity has been developed
over the last 5 years in addition to 20kt of reprocessing capacity for PTT material.
102
Source: Key Note Report ISBN 978-1-84729650-4
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Figure 51: U.K. Market Size103 and Dynamics104
(2009)
Recycling of rigid mixed plastics is less well developed, and historically considered too difficult and low value;
1 million tonnes of mixed plastics in the UK household waste stream are landfilled105. The cost of recovering
non bottle rigid plastics is expensive due to the wide range of polymers used in production. There are also
technical challenges such as a limit to which tray and bottle material of the same polymer can be mixed.
However, mixed rigid plastics provides the greatest potential for growth as sorting technologies become more
cost effective and landfill tax continues to increase. Wider collection of non-bottle rigid material should
facilitate investment in sorting and reprocessing infrastructure, notably for Polypropylene (PP). Targeting this
material, increasing the capture of commonly recycled plastics (clear PET/HDPE) and investing in technology
to process plastics that cannot yet be recovered in the U.K. (LDPE), will be essential if the proposed new plastic
packaging targets are to be adopted and met.
The recycling of rigid mixed plastics provides the greatest potential for growth as sorting technologies become
more cost effective and landfill tax continues to increase.
Key players in the plastic sector in UK include:
British Polythene Industries (BPI), which is the largest recycler of polythene film in Europe and
leading manufacturer of food packaging, polythene film, bags and sacks in Europe
Centriforce, which is a market leader in plastic recycling and manufacturer of high performance
recycled products from plastic waste e.g. plastic bottles, carrier bags, agricultural film
Viridor polymers, which is a business unit of the waste management organisation
Eco plastics, which is the operator of Europe’s largest mixed plastic bottle sorting facility
Jayplas, which is the UK’s largest plastic recycler recycle most polymer types including LDPE films
Closed Loop Recycling, which is a producer of food-grade recycled PET and HDPE from plastic
bottles , Processing the clear bottles from
3.3.2.2. Metals recyclates material stream
Metal recycling in the U.K. is a £5.6 billion industry, processing ferrous and non-ferrous metal scrap into vital
secondary raw material for the smelting of new metals. The industry employs over 8,000 people and makes a
net contribution to UK balance of trade106. In 2005, 13 million tonnes of metal was recycled in the UK, of
which approximately 40% was consumed in the UK, and the remaining 60% exported worldwide.
103
Source: Key Note Report (2009) ISBN 978-1-84729650-4 104
www.uktradeinfo.com 105 http://www.zerowastescotland.org.uk/content/recycling-mixed-plastics-1 106 http://www.recyclemetals.org/about_metal_recycling
• 5 million tonnes per annum Total plastics sector output
• 1.65 million tonnes per annum Packaging products
• £3.5 billion Total market sector sales
• 25% (of which 300,000 tonnes is ex-production scrap) Material recovery rate
• 183,000 tonnes (2011) Packaging recycled in the UK
• £19.5 million (46,000 tonnes per annum), 98% from the EU Total plastics imports
• 427,000 tonnes (2011) Plastic packaging recyclates exports
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The UK is one of the five largest metal scrap exporting countries in the world. From 3 December 2012, changes
to the Scrap Metal Dealers Act will make it illegal to buy scrap metal for cash, which should drive more formal
collection arrangements.
Key players in the metal sector in the UK include:
EMR, which is a UK based global scrap metal recycler
Sims Metal Management, which is the worlds’ largest metals and electronics recycler
Novelis Warrington, which is the UK part of a US multinational and which produces 17% worlds
rolled aluminium and is a leading recycler of aluminium cans
TATA Steel, which is the UK part of the Indian multinational (formerly Corus in the UK)and is the
second largest steel producer in Europe
The achievement of proposed future recycling targets and the carbon savings that can be realised from
recovered aluminium makes its recovery from the municipal waste stream a priority for national government
and local authorities.
Alupro estimates that in order to meet the new aluminium packaging recycling targets a further 19,000 tonnes
of aluminium packaging will need to be recovered and that the majority of this material will have to come from
improving capture rates from kerbside collections and by officially recognising the aluminium that is recovered
from incinerator bottom ash (IBA).
Figure 52: U.K. Market Size (2010)107 and Dynamics (2011)
108 109
The price paid for aluminium cans is closely linked to the price of primary aluminium; however, increased
competition from traders and specialist sorting operations (handling contaminated grades) has helped keep
prices high in recent years.
The recovery of high value and precious metals from waste materials and fines has been identified as a major
opportunity in the UK and European waste markets, however the recycling and recovery of these is a complex
business with small quantities at high value to be recovered.
While there are some market dynamics in the aluminium sector, the reprocessing of steel in the U.K. is
currently monopolistic110, with the Indian Tata group (acquired Corus in 2007), operating the only two
furnaces in the U.K. (Port Talbot and Scunthorpe).
Figure 53: U.K. Market Size (2009)111 and Dynamics112
107
Source: www.alupro.org.uk 108
Source: www.uktradeinfo.com 109
Source: Aluminium Stockholders Association 110
Thamesteel (Sheerness) went into administration in January 2012. In summer 2012 it was bought by Al-Tuwairqi Group so could re-enter the market. 111
Source: Key Note Report (2009) ISBN 978-1-84729650-4
• 706,800 tonnes per annum
• 210,000 tonnes (primary)
• 496,800 tonnes (recycled)
Total market aluminium output112
• 160,000 tonnes per annum Total aluminium packaging sales
• 42% Aluminium packaging recycling rate
• 55% Aluminium cans recycling rate
• 890,000 tonnes Total imports
• 580,000 tonnes Total exports
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This market sector is fully dominated by the Tata Group, as part of their international metal business, and
therefore unlikely to provide market opportunities for Swiss companies. However, the preparation of metals
and in particular the baling requirements might provide some opportunities as metal bales have to meet the
requirements of the Tata furnaces and therefore collected metals will need to be baled at specialist outlets
before being sent for processing.
3.3.2.3. Glass recyclates material stream
The traditional remelt market for container glass requires clear cullet, of which there is an increasing shortage,
to be returned to glass manufacturers, where it is combined with virgin raw materials and manufactured into
new glass. Whilst clear cullet is more valuable, the economies of sorting mixed-colour cullet at kerbside to
make it suitable for use by the UK glass container industry and issues surrounding the quality of cullet have
resulted in a decrease in the proportion of glass going to re-melt and an increase in glass going to aggregates.
The aggregates market undoubtedly provides an important route for glass materials coming from local
authorities that would otherwise end up in landfill. However rising PRN prices are beginning to make it more
economically viable to collect and reprocess mixed glass. In addition, the new glass recycling targets for the
Producer Responsibility Regulations that require 63% of glass recycling to come from remelt from 2013
(increasing to 64% in 2016) will also drive more glass back to remelt. There is therefore an opportunity to more
widely adopt technology to separate coloured glass from mixed cullet.
Despite the plethora of waste management companies involved in the initial treatment of glass there are
relatively few reprocessors. Within the U.K., the remelt industry is an oligopoly (Ol Glass and UK Recycling),
and it is these companies that control the supply chain. The prices paid by the remelt industry are relatively
independent of PRN prices (certainly for the amber and clear glass grades) and have remained relatively stable
over many years. This is due to the limited number of major buyers in the U.K. and there being formalised
commercial arrangements between several of the big glass merchants and remelt furnaces.
Green and mixed glass grade prices tend to be more impacted by PRN / PERN values due to the wider range of
buyers (aggregates, alternative markets and export markets in Europe where both grades are used in the
manufacture of green glass in wine producing regions). With regards to PERN, when prices are high and their
value is combined with the price paid for the glass from overseas merchants, export can become more
attractive.
Within the mixed glass recycling industry the relationships are more balanced as the glass merchants are less
reliant on the remelt industry and have an number of options regarding the end destination for mixed glass,
e.g. the aggregate industry, producers of fibreglass, exporters to wine producing regions of Europe
Approximately 20 companies are registered by the Environment Agency as accredited glass reprocessors –
fewer actual cullet producers.
112
Source: www.uktradeinfo.com
• 9.4 million tonnes per annum Total steel market output (2011)116
• 652,000 tonnes Total UK steel consumption (2009)
• 59%; 386,000 tonnes Recovered Steel
• 5,073,000 tonnes; 68% from the EU Total imports
• 4,531,000 tonnes; 72% to the EU Total exports
UK WASTE SECTOR REPORT
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Key players are:
Glass Recycling UK, which is the UK's largest independent glass recycling company and collects and
processes into cullet Remelt
Berryman, which is the UKs largest purchaser and recycler of waste glass
Viridor, which is the UK waste management group and uses colour separation, screening and
crushing equipment to supply glass cullet to remelt, aggregate industries
Ardagh Group, which is an Irish based global packaging manufacturer
OI , which is a global glass packaging manufacturer, with facility in Alloa Scotland, which are
currently being upgraded
Day Group, which is a producer of aggregates processing commingled glass into cullet End products
do not require colour separation
Lafarge, which is multinational materials group
Figure 54: U.K. Market Size and Dynamics
113
3.3.2.4. Paper and Board
Within the U.K., the market for certain grades of paper and board is growing, and increased by 9.5% in 2011 in
comparison to the previous year114. There is has been recent inward investment by some manufactures in for
example container board production.
Whilst the infrastructure for the reuse and recycling of paper and board is well-established and extensive,
access to suitable materials for recycling remains the key issue facing the U.K. Paper Industry, which in part is
reflective of a decline in the newsprint readership market, light weighting and the recession. This has resulted
in leading paper and board producers actively diversifying operations into recovery and reprocessing to secure
material supply.
However, recovered paper and board is a global commodity, and the U.K. market is heavily reliant upon
export. Currently the U.K. and European recovered paper are coming under increasing pressure from material
supplied from other parts of the world. China for example is shifting its attention towards domestic security of
supply and in 2011 announced their intent to develop a “complete and advanced” system to recycle 70% of
major waste products, including paper. Recovered paper that is of a poor quality will become increasingly
unacceptable by both U.K. reprocessors and export markets. As such, increased attention must be given to
keeping paper dry, reducing contaminants and most importantly improving the fibre quality, the % of yield,
versus final product is a key metric for paper mills.
Figure 55: U.K. Market Size and Dynamics 115 116
113
http://www.defra.gov.uk/environment/waste/business/packaging-producer 114
https://www.keynote.co.uk/media-centre/in-the-news/display/paper-and-board-packaging-recovery-continues/?articleId=923
• 3.5 million tonnes per annum Total market output116
• 39% Material recovery rate
• 2.1 million tonnes (60% of production is for containers) UK total packaging consumption
• 1.65 million tonnes recovered (640,000 tonnes is recycled into containers, and the remainder into aggregates)(KeyNote 2009)
Packaging recycled in the UK
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Key players:
UPM Fibre- and biomass-based business multinational Newsprint
Aylesford Newsprint
DS Smith
3.3.3. Organic Waste Treatment
The organic waste treatment sector can be divided into composting and anaerobic digestion as the main
technology and material recovery options. Whereas composting is an established mature market sector, the
anaerobic digestion sector is still relatively new, growing rapidly and expected to mature in the coming years.
3.3.3.1. Windrow & In-Vessel Composting Sector
The total compost market value was estimated at £9.2 million in 2010 and Figure 56 shows the supply chain
for composting illustrating the sources of organics, treatment methods and outputs for this market sector.
The 2010 WRAP Survey identified 308 composting sites in the UK (a 9.6% increase on the survey of 2009),
with an estimated 5.4 million tonnes of input material in the UK as a whole. The majority of organic input
material (88%) came from municipal sources and 12% from commercial and industrial sources. Comparing
tonnages shows that inputs from non-municipal sources reduced between 2009 and 2010. As most organic
waste from commercial sources is food waste, this reduction could well be a reflection of the increase in AD
tonnages in 2010.
Open windrow remains, by far, the most common processing technique accounting for the treatment of 65% of
the input tonnage while aerated static pile composting accounts for 1%, only treating green and garden waste,
with IVC representing 33% as it is able to process Category 3 animal by products including food waste in
combination with green and garden waste. In 2010, an estimated 115 sites were certified to PAS 100, making
them therefore potentially able to meet the Compost Quality Protocol and End of Waste Standards. Pricing
varies significantly, although some added value benefit is seen from specialist markets such as horticulture and
sports turf. Overall, prices seem to have become less volatile between 2009 and 2010, although there is still
considerable material being supplied to agriculture and landscaping at zero or at costs, where the site paying
for the removal of material. 117
115
CPI 116
Source: Key Note Report (2009) ISBN 978-1-84729650-4 117
WRAP /AFOR A survey of the UK organics recycling industry in 2010
• 4.34 million tonnes per annum; £3.9 billion Total paper and board market output118
• 8.2 million tonnes per annum; total packaging waste was 10.2 million tonnes per annum (DEFRA)
Total recovered paper119
• 3.8 million tonnes per annum Total UK board consumption
• 140,000 tonnes per annum; 92% from the EU Total imports
• 4 million tonnes per annum; £329.5 million; 24% to the EU Total exports
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Figure 56: UK Composting Supply Chain Flow118
The latest gate fee information has been displayed in Figure 57 and shows the range of gate fees charged by
composting facilities in the UK. The lower end gate fees are for windrow composting, where for IVC gate fees
between £30 – 45 per tonnes are being charged.
118
WRAP /AFOR A survey of the UK organics recycling industry in 2010
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Figure 57: Composting Gate Fees119
The market is expected to remain stable with some slow growth in this sector, however, the potential drive to
ban organic materials from landfill might benefit the composting industry. The current austerity measures
imposed on Local Authorities in England have led to a slowdown in implementing separate food waste
collections and many Authorities opt for cheaper mixed organics collection of food and green waste where ABP
compliant IVC facilities offer more appropriate technology concepts than wet AD, however dry AD facilties
would be a strong competitor.
3.3.3.2. Anaerobic Digestion Sector
To help develop AD capacity, WRAP has set up a loan fund to stimulate investment in infrastructure; a total of
£10 million over 4 years from 2011 to provide debt financing and encourage investment in the AD sector. The
Green Investment Fund and Bank is also expected to target AD projects for funding.
The current AD infrastructure consists of 78 anaerobic digestion facilities in the UK with an overall capacity to
process more than 5 million tonnes of material per annum and a total installed generating capacity of over
170MW of electricity. These include 30 farm-fed AD plants operating in the UK with a capacity to process
around 300,000 tonnes of feedstock per annum and 48 Waste-fed AD plants in the UK with a processing
capacity of around 3.8 - 4 million tonnes per annum and a potential to generate around 60 MW of electricity
(of these, one plant injects biogas directly into the gas grid).
Waste-fed - Industrial - These are 13 AD facilities which accept wastes arising from their own ‘on-
site’ activities with a capacity to process around 2.5 million tonnes per annum of high liquid content
feedstock and a potential to generate approx. 12 MW of electricity.
Waste-fed - Non Industrial - There are 35 AD plants which accept food waste from commercial
and municipal sources with a capacity to process around 1.3 – 1.5 million tonnes per annum and a
potential to generate approximately 48 MW of electricity, including 30 large scale food waste-fed non
industrial AD facilities which operate on a commercial basis in the UK, with a capacity to process
around 1.1 million tonnes per annum and a potential to generate 44 MW of electricity.
119
WRAP Gate Fee Reports 2010, 2011, 2012 and 2013
£33
£49 £51 £51
£53
£45
£17
£12 £11
£6
£15
£6
£23 £23 £24 £24 £25 £24
£0
£10
£20
£30
£40
£50
£60
2008 2009 2010 2011 2012 2013
Gate
Fe
e (
£/t
)
Compost Gate Fees
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In addition, there are an estimated 123 AD facilities in the UK pipeline as outlined in Figure 58.
Figure 58 : Pipeline of AD Facilities in the UK
Feedstock # Capacity Tonnage Generation Potential
Waste 85 > 3 Mtpa Approx. 125 MWe
Agricultural 38 > 550ktpa Approx. 21MWe
Total 123 > 3.5Mtpa Approx. 146Mwe
The rapid growth in the market has led to a variety of technologies and suppliers, however over 95% of AD
facilities in the UK are operated under mesophilic wet conditions, with only a few operating dry AD
technology. The AD market is currently largely dominated by Biogen with a mixture of farm and waste AD
plants in the market, but others are catching up as displayed in Figure 59, which provides an overview of
suppliers by number of plants. Other significant AD technology suppliers include: BioGroup, Agrivert, Xergi
and TEG, who have two facilities operating at the moment and are developing further plants with site owners
and developers.
Figure 59: Overview of AD Technology Suppliers
Operator # Facilities
Greenfinch/Biogen 18
Weltec 7
Biogas Nord 5
Envitech 5
Monsal 5
Enpure 4
Fre-Energy 4
Hochreiter 3
MT-Energie 3
Future Biogas 3
TEG 2
Others 19
TOTAL 78
The company Tamar Energy, formed in 2012, has announced plans to open 40 anaerobic digestion plants
around the UK by 2018 – generating 100 MW worth of electricity and biogas and has emerged as the largest
single AD developer. The company has raised £97 million in capital to support its ambitious plan. In 2013
Tamar Energy acquired the Countrystyle Group and rights to a number of AD facilities with planning
permission. The company is currently building its first set of plants with a number of technology suppliers.
Other major developers include supermarkets and retailers, utilities, property companies as well as a large
number of small private site owners.
The latest gate fee information has been displayed in Figure and shows the range of gate fees charged by
anaerobic digestion facilities in the UK. The gate fees range depending on the quality of feedstock and the type
of AD facilties. In this emerging market, gate fees fluctuate on an annual basis depending on capacity built up,
market expectations and the regulatory drivers.
UK WASTE SECTOR REPORT
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Figure 60: Anaerobic Digestion Gate Fees120
It is estimated that the UK has the potential to generate 3-5 TWh per year via anaerobic digestion by 2020 and
the industry is expected to grow considerably driven by waste and energy policies and strategies for organic
waste treatment and renewable energy production.121
3.3.4. Residual Waste Processing
The residual waste treatment sector can be divided into pre-treatment of residual waste via mechanical
biological technologies, mechanical heat treatment and autoclaving for RDF and SRF production and secondly
into energy recovery using traditional combustion technologies as well more advanced thermal solutions such
as gasification and pyrolysis.
3.3.4.1. MBT
Historically, technologies similar to Mechanical Biological Treatment plants were only developed in very
limited circumstances in the UK. Early examples of similar processes in the UK included ‘Refuse Derived Fuel’
(RDF) processing plant and residual waste Materials Recovery Facilities (‘Dirty MRFs’). This early generation
of mixed waste processing facilities often encountered technical and marketing difficulties during operation
and most have closed or been reconfigured. However, new MBT technologies are now second or third
generation plants that are well established with proven examples of successful operation and bankable
viability. In continental Europe many of these processes are more widespread and developed. The MBT
market has matured and the main operator in the UK are currently Shanks, using the EcoDeco biodrying
concept; New Earth, applying covered windrow MBT; and Viridor Laing, operating six facilities in Manchester
using a variety of technologies including AD. With a long heritage in continental Europe there are a number of
equipment suppliers as well as whole MBT contractors in the market providing shredding, sorting, separation
and biological treatment equipment. 122
In their Waste Infrastructure 2010 Report the Environment Agency reported 19 permitted MBT facilities in
England with a total permitted annual capacity of 2,728,300 tonnes; plants range in the capacity of 50,000 to
305,000tpa. To date, the UK is estimated to have over 25 medium to large scale MBT facilities recovering
recyclables, organic and RDF from residual “black bin” waste from municipal sources as well as commercial
industrial outlets. The total capacity is estimated at 3.5 million tonnes of mixed waste producing with the
majority of the capacity being located in England and a small number of facilities in Scotland and Wales.
120 WRAP Gate Fee Reports 2010, 2011, 2012 and 2013 121 www.biogas-info.co.uk 122 Defra, Mechanical Biological Treatment of Municipal Solid Waste, February 2013
£60 £65
£90
£64 £60
£25 £30
£40
£50
£36 £35
£66
£52 £57
£43 £41 £41
£0
£10
£20
£30
£40
£50
£60
£70
£80
£90
£100
2008 2009 2010 2011 2012 2013
Gate
Fe
e (
£/t
)
AD Gate Fees
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The latest gate fee information has been displayed in Figure and shows the range of gate fees charged by MBT
facilities in the UK. Gate fees in 2013 have been reported to be significantly lower in comparison to previous
years, reflecting a maturing market for this treatment option.
Figure 61: MBT Gate Fees
123
The European Landfill Directive and the UK’s enabling act, the Waste & Emissions Trading Act 2003, require
the diversion of biodegradable municipal waste (BMW) from landfill and, in the latest Waste Regulations
2012, the pre-treatment of waste before landfill. MBT systems have the potential to divert BMW from landfill.
Any outputs that are recycled, used as soil conditioner (under an exemption) or burnt as RDF, and which are
not landfilled, will count directly towards diversion targets. The ability of MBT to meet a high level of landfill
diversion will therefore depend upon the availability of markets for, and the quality of, the process outputs. To
date the EfW capacity has not been sufficient to cover the amount of RDF and SRF produced with large
quantities going to EfW in Europe, however the increasing capacity in the market and the demand for higher
calorific prepared fuels for energy production is driving the MBT market in line with the EfW sector as
described below.
3.3.4.2. Energy from Waste
The thermal EfW industry is dominated by incineration facilities utilizing moving grate technology and some
fluidised bed gasification, pyrolysis and rotary kiln equipment. The latter have been slow to develop market
share due to technical, efficiency, and financing issues, despite being promoted as Advanced Thermal
Treatment (ATT) by the government and receiving additional revenues to drive markets towards these more
novel technologies. ATT have the potential to produce more efficient and greener energy and chemical
products and are mainly competing in the market for more homogenous fuels (i.e. RDF/ SRF) products made
from commercial or municipal wastes.
Key thermal EfW categories :
Medium to large scale ‘PFI’ driven developments are being built in response to long term residual
MSW contracts with some merchant capacity for CI wastes; these can be exposed to planning and
permitting risks
Medium to very large scale merchant EfW for CI wastes or RDF, which are either planned and located
as such or result from a changed business plan arising due to an inability to secure long term residual
MSW contracts; these can be exposed to financing risks (as well as planning/permitting risks)
Small to medium scale wood waste EfW focussing on category B and C wood wastes with the ability to
take RDF or prepared wastes in addition to the wood waste stream; these can be exposed to feedstock
risks
Cement kilns, steel works and other production facilities able to burn waste in their plants if IED
compliant
123
WRAP Gate Fee Reports 2010, 2011, 2012 and 2013
£53
£82 £75
£100 £101
£82
£42
£57 £44
£66 £62
£84 £82 £76
£0
£20
£40
£60
£80
£100
£120
£140
2008 2009 2010 2011 2012 2013
Gate
Fe
e (
£/t
)
MBT Gate Fees
UK WASTE SECTOR REPORT
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To date the EfW Industry in the UK consists of over 110 dedicated and industrial waste and biomass facilities
using thermal and biological treatment technologies to recover energy.
In 2010, this accounted for 6.2% of the UK’s total renewable electricity generation, and 4.7% of the UK’s total
renewable combined heat and power generation. This equates to 1.2 TWh, and is projected to reach between
3.1 TWh and 3.6 TWh by 2020. Currently, there are 29 operational EfWs in England, with another 11 under
construction. 124 Scotland currently has 4 operational EfW facilities treating municipal waste, and Wales has 2.
Northern Ireland currently has no EfW capacity, but two facilities in Lisburn and Mallusk have both been
given planning permission. In addition, a large gasification plants is going to be built by Air Products at
Teeside in the North East of England. Their first plant (50 MW/350,000 tpa) is currently under construction,
with another identical plant to be built nearby being granted planning approval. The plant currently under
construction will be the largest in the world, and the first plant of its kind in the UK. Despite the rapid increase
in EfW infrastructure seen in the UK, there is still a large capacity gap, and this has resulted in increased
export of waste derived fuels to continental Europe, particularly Germany and the Netherlands.
The key waste majors Veolia, FCC, Sita, Viridor are dominating the market operating 6.4 million tonnes of
EfW capacity with Veolia being the leading EfW supplier (2.4 Mtpa), followed by Viridor (2.1 Mtpa), FCC (960
ktpa), and Sita (910 ktpa) as shown in Figure . Other major independent EfW operators are M.E.S
Environmental Ltd, an independent merchant operator (450 ktpa), and Coventry & Solihull Waste Disposal
Company Ltd (300 ktpa) in Coventry as well as Energos and NES who are building and operation advanced
thermal treatment facilities using gasification technologies.
Figure 62: Leading EfW Operators
Operator # Facilities Capacity
Veolia 11 2,389,500
Viridor 6 2,097,100
FCC 3 960,000
Sita 3 919,000
LondonWaste 1 675,000
Cory 1 670,000
MES Environmental 3 425,000
New Earth 2 149,000
ENERGOS 2 110,000
The expansion in this waste sector and the convergence with the energy sector, via power generation,
continues to attract new players into the UK waste management industry, particularly from overseas. In recent
years, the market saw a number of foreign investors and Energy from Waste providers such as MVV Umwelt,
EON, Urbaser, Amey Cespa, Wheelabrator and Covanta entering the market. Of these MVV, Urbaser and
Amey Cespa have won long term MSW contracts with EON currently developing merchant facilities for RDF at
large scale, whereas Covanta and Costain are reducing their commitment in the UK waste market.
The latest gate fee information has been displayed in Figure and shows the range of gate fees charged by EfW
facilities in the UK. EfW gate fees depend on the EfW plant generation, with newer plants expected to charge
between £65 and £85 per tonne. However there have been some lower gate fees charged by EfW plants at the
end of their life (fully written off) or new merchant facilities attempting to attract feedstock at spot market
prices.
124
Defra Energy from waste a guide to the debate https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221042/pb13892-energy-from-waste.pdf
UK WASTE SECTOR REPORT
85
Figure 63: EfW Gate Fees125
The recent Defra Guidance for EfW published in 2013 provides a good understanding of the Government’s
view and expectations for this sector in England. While Wales and Scotland have put some limitations on EfW
developments, there is a clear recognition that EfW will need to play a considerable role in the development of
residual treatment infrastructure.
3.4. UK MARKET SHARE AND FUTURE TRENDS
The sector has been gradually transforming itself from an industry of waste disposal, to one of reuse, recycling,
and energy recovery. This shift in scope has led to significant investment in infrastructure, and major
companies have committed to invest nearly £7 billion in waste treatment infrastructure over the next six years.
The changing landscape and market opportunities are leading to overall consolidation in a maturing market,
while at the same time attracting new major European and North American companies to the sector.
The existing landfill reduction, renewable energy and resource recovery ambitions mean that the UK needs to
improve the waste recovery rates, particularly in the commercial and industrial sectors, and to develop waste
treatment and recycling infrastructure. From 2012 through to 2016, an increase in the market growth rates are
expected to be driven mainly by the EU Landfill Directive target for 2013, which will necessitate an increase in
waste recovery rates and a major increase in investment in the infrastructure mostly evident in the
implementation of the residual MSW PFI contracts and associated infrastructure. Post 2013, the rate of growth
in the recycling and treatment sector might stabilise for a couple of years before accelerating once more to
meet 2020 targets of the Landfill Directive, Waste Framework and the EU Renewable Energy target. The
majority of currently planned investments in the waste sector are in material sorting and separation as well as
residual waste treatment facilities, particularly in the production of energy from waste.
• Over 80% of the c. 70 EfW plants currently in the pipeline are held by major players with strong
balance sheets, development records, and secure long-term waste contracts.
• The surge in EfW investment will likely subside by 2018, as this should be significant time to bridge
the residual waste treatment capacity gap.
• Independent developers lacking the strong balance sheets and track records of larger firms will find it
difficult to secure project funding and therefore nearly impossible to realise planned facilities. 125
WRAP Gate Fee Reports 2010, 2011, 2012 and 2013
UK WASTE SECTOR REPORT
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Figure 64: UK Investment Need126
Projections Base Case High End Scenario
Capacity Gap
Residual infrastructure million tonnes (mt) 6.6 10.6
Residual waste treatment million tonnes (mt) 5.6 8.7
Total million tonnes (mt) 12.2 19.3
Capital Cost
Recycling infrastructure (£billion) 0.80 1.27
Residual waste treatment (£billion) 4.03 6.26
Total (£billion) 4.82 7.54
Facilities
Recycling 130 210
Residual Waste Treatment 20 40
Figure 64 outlines the estimated investment need for the future as stated by the Environment Service
Association in 2010, which assumes 4.8 to 7.5 billion in capital investment are needed to close the UK capacity
gap. In the ‘Going for Growth report’ published by the ESA in 2013, the organisation expects the shift toward a
circular economy in the UK, where materials that are increasingly reused and recycled could help generate
50,000 new jobs with up to £10 billion investment, boosting GDP by £3 billion. SITA stated in their
publication ‘Driving Green Growth-The role of the waste management industry and the circular economy’ in
2012 that the UK waste sector could invest £20 – 25 billion into additional infrastructure across the waste
hierarchy and create 84,000 additional direct and indirect jobs in the next ten years.
It has been suggested that transitioning to a circular economy is the best long-term approach to achieve
sustainable growth in the UK and the government is progressing to drive and shape the waste management
sector with regulations, policy and strategy targets as well as subsidy and investment schemes to generate
growth and opportunities.
126
Environmental Services Association (2011)
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4. Market Entry into the UK
4.1. INTRODUCTION
The final chapter of this report analyses the information from previous chapters in the context of Swiss interest
in the entry, expansion or diversification in the UK waste market sector.
The amount of waste produced in Switzerland has tripled in the past 25 years, and it is still increasing due to
population growth, increased economic activity and consumption patterns. At the same time, waste
management and recycling has been improving continuously, and Switzerland achieved a recycling rate of 50%
in 2011. The Swiss are world leaders in recycling a range of goods achieving the following recycling rates for
key materials and reduced the amount of waste per person going to landfill to 344 kg per person in 2011.
Figure 6566: Swiss Recycling Rates for Dry Recyclables
127
Materials/Recycling rate Target 2012
Glass 94% 96%
Aluminium Cans 91% 92%
PET bottles 81% 81%
Paper & cardboard 91%
Protecting the environment and taking great care of natural resources is a well-established tradition in
Switzerland and has driven the development of waste management concepts, technologies and facility design
throughout the waste hierarchy. Caring for the environment has become part of everyday life, and thanks to
the support of the general population, politicians were able to define and implement the necessary processes
and regulations to support behavioural changes to increase waste reduction, recycling and recovery of valuable
resources.
Swiss industrial companies are key suppliers in the fields of waste management and renewable energy, with
Swiss businesses having national and international expertise in the following key areas:
Disposal of household waste – landfill engineering and gas extraction
Recovery of valuable materials ― collection, separation and reprocessing including the engineering
and construction of sorting and reprocessing equipment and turnkey plants
Thermal waste treatment including traditional combustion and incineration technologies as well as
advanced thermal treatment using gasification and pyrolysis technologies
Biological treatment covering composting and anaerobic digestion including the main technology
concepts as well the introduction of heating networks, biomethane production and biogas to grid
Specialist waste streams such as the safe treatment of hazardous and clinical waste, Electronic waste
and plastics recycling
Therefore, in principle, Swiss companies could enter the UK market in many different segments, providing
know-how, competency and equipment that are transferable between markets and market niches. In the
following, the report analyses the challenges and opportunities in the UK waste sector today.
Infrastructure development has been slow in the UK due to the reliance on private sector investment in the
waste industry and the difficulties in securing finance for individual projects, technologies and companies.
127 BAFU, Bundesamt für Umwelt, Schweiz - http://www.bafu.admin.ch/umwelt/status/03964/index.html?lang=de
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Therefore, information on the investment and project structure in the UK, as well as available grants and
public funding sources have been presented to provide an understanding of the UK situation for investment
and the selling of know-how and equipment to project developers, investors and contractors. Finally, this
chapter provides a summary of key issues and risks for a market entry to the UK, before presenting potential
routes to market and strategies for a market entry, as well as potential approaches to engage with private
stakeholders and market players.
4.2. OPPORTUNITIES & CHALLENGES WITHIN THE UK MARKET
This chapter summarises the challenges and opportunities in the UK waste sector and identifies potential
(niche) market opportunities for Swiss companies and target industries in the waste to energy sector.
4.2.1. Challenges & Threats
The transformation of the UK waste sector from a ‘waste disposal industry’ to a ‘waste management sector’ and
finally to a ‘resource recovery business’ and circular or closed loop economy has not been a smooth transition
and in the past years there have been considerable challenges for the industry caused by internal and external
factors.
The key challenges still expected to influence the UK waste sector are:
• Lower waste volumes due to reduced economic activity
o Local authority waste volumes have showed a negative growth trend as a result of reduced
economic activity, and the success of waste prevention schemes.
o Though specific data is unavailable for commercial and industrial streams evidence suggests
that these volumes have also decreased and are just slowly starting to recover with some
modest growth expected to the short to medium term future
• There has been increasing external demand for waste derived fuels (RDF/SRF), particularly from
markets in the Netherlands and Germany. Over 1.9 million tonnes of waste derived fuel is currently
permitted for export by the Environment Agency, which is putting pressure on market prices for EfW
• The Government has brought an end to PFI funding for residual local authority waste contracts and
the resulting withdrawal of PFI credits for projects in procurement has led to judicial reviews and
considerable delays in projects reaching financial close
• Slow development of subsidy systems for renewable energy from waste and the strong technology
focus on biomass heat, anaerobic digestion and gasification to address market failure in these
segments caused uncertainty in business planning and let to delay of financing deals or even project
abortions as the business plan could not be agreed without subsidy security
• The market is undergoing a shift to shorter-term contracts, and contracts based on specific waste
streams across (municipal, industrial & commercial) sectors
• Changes in planning regulations and consultation processes introducing more localised decision
making for small to medium sized plants could potentially cause delays in reaching planning approval
• There have been decreases in bank funding and increases in financing costs to obtain funding from
private investors, in particular for merchant plants targeting commercial industrial wastes
• After a steady rise from 2008-2012, recyclate prices have shown a continuous decline as global
demand for these commodities has decreased.
Despite these challenges and the UK waste sector risk profile, there has been positive growth among 16 of the
largest waste players, mainly due to continued infrastructure investments and business expansion. While the
top 10 waste management firms, representing 80 - 90% of the market share, showed average growth rates of
1.8%, the more flexible regional and medium sized businesses achieved a 9.5% average growth rate. In line
with the general trend in the UK industry to date, 30% of the top 20 waste management firms operating in the
UK are under foreign ownership and therefore influences from Europe, the Far East and North America are
increasingly making the UK waste sector an international business involving multinational deals and
arrangements.
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At the same time new market entrants such as Coca-Cola, Tesco and Sainsbury’s are beginning to invest large
amounts of capital into their recycling capabilities via joint ventures and partnerships to gain greater control
over secondary resources needed for their production of goods and services.
4.2.2. Opportunities and potential market niches
As the UK waste industry is focussing on the production of secondary resources for the wider economy through
recycling or energy recovery, and diverting waste from landfill, new opportunities and market niches will open
up, including:
• The UK continues to have a lack of recycling and reprocessing capacity to deal with the increasing
volumes of collected materials, comingled wastes and residual waste streams leading to considerable
waste exports to continental Europe and the Far East
• Meeting the need for increased infrastructure in all areas of the waste hierarchy with particular focus
on sorting and separation, reprocessing and recovery facilities to enable the UK to recover value from
waste within the UK economy and reduce the reliance on exports
• Exploiting the focus on key waste streams to be recycled, including WEEE, ELV and glass
• Addressing the development of Energy from Waste infrastructure, including anaerobic digestion and
thermal treatment and in particular advanced thermal treatment
• Accessing national financing support for waste and resource infrastructure by the UK Green
Investment Bank (GIB), which is expected to support £15 billion in private investment to the UK’s low
carbon industries, with a portion of that being committed directly to the waste industries
• Leveraging overseas experience; over ¼ of the transactions by trade buyers during 2012 involved an
overseas buyer. Overseas companies are attracted to the scale of investment, pace of change within
the market, and the opportunity to secure access to raw materials.
• Capitalising on shifting economic landscapes; the landfill tax levels have made landfill more
expensive than treatment and the increase to £80/tonne from April 2014 will further stimulate the
demand for landfill diversion
• Recognising regulatory drivers, targets and implementation plans in Scotland and Wales, which are
clearly guiding investment and design of future infrastructure
• Accessing private equity which is attracted to the growth potential in the waste industry, particularly
in areas such as recycling and anaerobic digestion
• Understanding the recent reclassification of certain material types from ‘inert’ to ‘active’ waste
• Recognising the need for more efficient and effective collection, sorting and separation infrastructure
to meet the requirements of high quality recyclables as required in the revised EU Wasteframework
Directive, the implemented waste regulations and Quality Action/Implementation plans in the UK
• Understanding the impact of the introduction of mandatory material input and output sampling for
MRF’s as well as for other waste treatment facilities like MBT and ‘voluntary’ schemes for biological
process technologies to meet product standards and more importantly end of waste criteria
In summary, the future UK waste sector will be shaped by the transformation to a circular/closed loop
economy. This means that recycling will increase and the quality of materials will be raised considerably to
create a UK based material resource economy which is robust enough to address shortage of raw virgin
materials and rising energy costs. To meet this vision, collection infrastructures will need to be as efficient and
economic as possible and technology and know how will need to be applied in sorting, separation and
reprocessing to ensure materials are recovered and up-cycled where possible. Countries like Switzerland,
where there are a significant number of businesses with considerable know-how in recycling collections and
processing can help the UK to achieve these aims.
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4.3. PROJECT STRUCTURES, INVESTMENT AND AVAILABLE GRANTS
The UK waste sector, and in particular the development of collection and waste management infrastructure, is,
today, nearly fully reliant on private investments. The public sector provides the regulatory and policy
framework, some contract structures and procurement support and, where possible, some business and
financing support to address market failure and drive strategically important sectors and technologies in line
with the political strategies and targets set in the regulatory framework. While some Local Authorities invest in
collection infrastructure (i.e. bins, vehicles etc.) as well as in civic amenity sites, household waste recycling
centres and some basic windrow composting, the majority of Authorities are procuring private services to
avoid capital expenditure due to the restrictions and austerity measures placed on public sector spending.
This means that increasingly finance for resource infrastructure is expected to come from the private sector
alone, which has been made difficult by a fall in bank lending and the inherent perceived risk in waste
infrastructure projects. While there is always some technology risk in a continuously improving and
developing industry, the main commercial risk factor associated with these infrastructure projects is the
uncertainty and lack of predictable and consistent revenue stream over time. In addition, policy and regulatory
uncertainty, as well as delays in the planning and permitting system, further undermine the confidence of
potential investors and have led to very slow progress in developing the necessary infrastructure to enable the
UK to secure resources, manufacturing and develop a green economy to meet its ambitious carbon targets.
For medium to large scale projects involving design, build, finance and operate (DBFO) programmes, Public
Private Partnerships (PPPs) have emerged as one of the most important models to close the infrastructure-
funding gap. Waste and resource related infrastructure PPPs have particular requirements and structures as
the private sector needs to finance and build the facility before being able to provide on-going, operational
services across the contract term (i.e. major finance is required upfront). The income received over the
contract period is effectively the payment for the service delivered and, over a period of time, the cost of
constructing, financing and operating the waste infrastructure. The variability in the proportion of the gate fee
charge/ rebate payment and revenues between on-going services and the payment for utilisation of capital
infrastructure determines the financing arrangements and the costs.
In recent years as competition has intensified and the value of recyclables has increased, contractors and
operators have placed an increasing emphasis on off-take or third party revenue instead of gate fees and
rebates and as a result, higher risk premiums have been placed on waste infrastructure projects. This has led to
higher debt costs and less value for money for the developers over the lifetime of the contract. In addition, the
current risk-averse environment means that banks will only account for off-take revenue when this is
guaranteed by the developer over an acceptable period and on conservative pricing.
In the following an overview of the situation for third party funding and potential grants and support to the UK
waste sector has been presented.
4.3.1.1. Third Party Finance
Due to the complexity of waste infrastructure and the potential returns available third party finance is a major
funding source for the industry and, while not cheap, it now provides a secure stream of funding. There are a
number of options for third party finance as outlined in the detailed From Rubbish to Resource – Financing
new Infrastructure report published in 2011. In addition to the standard approach available in all
industrialised countries for waste and other infrastructure projects, there are further future sources and
options for third party funding discussed for the UK, such as:
• Real Estate Finance, which is engaging with the real estate industry for long term leases to obtain
alternative funding sources, an option which has been successfully implemented in the retail and
supermarket, manufacturing and aggregates sectors
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• Sale & Leaseback Model, which can provide waste infrastructure developments with lower cost
capital. This model can allow a waste management company to enter into a long-term lease
agreement for the land or property it sells to the property investor. The capital generated from this
sale can provide a significant amount of money toward the waste infrastructure development. The
rent paid through the lease agreement means this capital comes at a lower cost than bank debt
• Mezzanine Debt and pari passu equity products outlined by the UK GIB to increase the deliverability
of waste infrastructure projects. The mezzanine debt, placed between the senior debt and equity in a
project, would safeguard against the inability of project sponsors to service the senior debt
• This would reduce the senior debt contribution and increase the likelihood of commercial lenders and
equity providers to commit finance. However, the mezzanine debt providers must respect the limited
contribution of the senior debt and equity providers. The pari passu product is an equity equivalent
investment arrangement, where the GIB would act as the supporting equity partner. Such an
arrangement would provide equity investors, such as institutional and pension funds, with sufficient
comfort and encouragement to commit finance to waste infrastructure, even if their choices are
limited by length and location
In addition, once the facility is operational and proven, third party finance often becomes available as a
refinancing option. This financing will have lower rates than that required by using corporate balance sheets,
improving the costs/affordability of projects and returns. Whilst the prospect of refinancing introduces
potential complexity, it is an aspect that needs active consideration, including consideration of how the risks
and rewards of refinancing are to be allocated between public and private sectors as well as between private
partners.
To aid funding and investment in the Clean Tech and Low Carbon sector the Green Investment bank was
formed as a public company in May 2012 and became fully operational in October 2012, when it was granted
State Aid approval by the European Commission to make investments on commercial terms. It was established
with the goal of “accelerating the UK's transition to a green economy and to create an enduring Institution,
operating independently of Government”. The GIB invests in projects which are both “green” and
“commercial” and has a government mandate to deploy at least 80% of their capital in offshore wind, waste
recycling & EfW, and energy efficiency. There has been some discussion that the GIB will guarantee to expedite
the delivery of future hybrid and PPP deals, and therefore lately many waste infrastructure projects have been
financed through the private investors and/or in conjunction with the UK Green Investment (UK GI) Fund or
similar Capital Funds providing seed funds and capital with help from the Government.
4.3.1.2. Third Party / Government Grant Funding
There are number of grants available for capital infrastructure projects ,as well as support for project
mobilisations etc.; however depending on the scale and location of the project, as well as the partners involved,
they might not be suitable. There are a number of different loans and grants available from governments in
Europe and the UK:
• Low interest or no interest loans
• Government guaranteed loans
• One-off non-repayable grants
• Conditionally repayable contributions (if venture successful)
• Equity Financing
In the following we have highlighted a number of potentially available grant schemes (the list is not
conclusive),. Loans and repayable contributions have not been included for the purposes of this report.
4.3.1.3. European Social Fund
The European Social Fund (ESF) is designed to improve the skills of the workforce and to help people who
have difficulties finding work. The current funding period 2007 – 2013 was closed in 2012 and the new
programme is currently under consultation. ESF funding opportunities are comprised of:
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• Co-financing Organisations (CFOs) funding, which makes up the majority of ESF funding. CFOs are
public bodies which bring together ESF and domestic funding for employment and skills so that ESF
complements national programmes. The Skills Funding Agency, the Department for Work and
Pensions Delivery Directorate and the National Offender Management Service are CFOs across the
whole of England. A few local authorities are also CFOs
• Technical assistance funding for preparatory, management, monitoring, evaluation, information and
control activities of the ESF Operational Programme, together with activities to reinforce the
administrative capacity for implementing the funds, at national and local levels. These funds are
predominantly used to support ESF delivery by Co-Financing Organisations (CFOs)
• Community Grants are grants of up to £12,000 which enable small voluntary and community
organisations to reach out to some of the most disadvantaged and excluded people and engage them
in activities that can help them move closer to the labour market
The European Commission published a working document on a "Common Strategic Framework" for EU funds
in 2014-2020 in March 2012. The Common Strategic Framework will cover the European Social Fund,
European Regional Development Fund, Cohesion Fund, European Agricultural Fund for Rural Development
and European Maritime and Fisheries Fund. It sets out how the funds can work together and contribute to the
Europe 2020 strategy for growth and jobs. The status and content of the framework is subject to the outcome
of negotiations on the draft EU regulations governing the funds. In the UK the Department for Business,
Innovation and Skills published the results from its informal consultation on the delivery of EU Funds and
after receiving the UK responses the Government is now taking forward the next phase of work.
4.3.1.4. European Regional Development Fund
The European Regional development fund (ERDF) is one of the largest available funding sources. The
Department for Communities and Local Government (DCLG) manages the European Regional Development
Fund (ERDF) programmes in England, however in London the overall project management is undertaken by
the Greater London Authority. Funding is allocated over ‘programming periods’, with the current 10th
programming period running from 2007 to 2013 worth around €3.2 billion. The money goes to public, private
and voluntary sector organisations to support economic growth.
The current programming period priorities are to:
• Support innovation and the knowledge-based economy
• Stimulate enterprise and support successful businesses
• Ensure sustainable development, production and consumption
• Build sustainable communities
Funding is managed in 3 strands:
• Convergence
• Regional competitiveness and employment
• European territorial co-operation
Nine of the programmes focus on regional competitiveness and employment, which aim to strengthen a
region’s competitiveness by promoting innovation and enterprise, as well as development, production and
consumption that does not damage the environment.
ERDF generally pays up to 50% of the eligible costs of a project, which needs to be match funded by the
applicant and can come from a range of public, private and voluntary sources. In principle grants go to projects
that would not have taken place without it.
Potential funding for this project would be in the next ERDF funding round to be agreed with the European
Union. Negotiations are currently on-going for the 11th ERDF, which, as proposed, would cover the period
2014-2020. This one-year extension compared to the 10th EDF allows the end of the 11th EDF to coincide with
the expiration of the Cotonou Partnership Agreement in 2020 and the EU budget period.
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4.3.1.5. LIFE
LIFE is the European Union’s financial instrument supporting environmental and nature conservation
projects throughout the European Union and in some candidate and neighbouring countries. The sixth LIFE+
call for proposals was run in 2012 for projects due to start in 2013. Three project strands were available in the
last programme round and only the LIFE+ Environment Policy & Governance strand seems to be suitable for
which further information has been included:
LIFE+ Nature & Biodiversity
LIFE+ Environment Policy & Governance, which continues and extends the former LIFE-
Environment strand. It will co-finance projects that contribute to the implementation of EU
environmental policy, the development of innovative policy approaches, technologies, methods and
instruments, the knowledge base as regards environment policy and legislation, and the monitoring
of environmental pressures (including the long-term monitoring of forests and environmental
interactions)
LIFE+ Information & Communication
The mid-term evaluation of the LIFE programme concluded that ‘while LIFE remained a crucial, successful
and effective financial instrument for achieving EU environmental policy objectives, it required some
modifications in order to fulfil its EU added-value potential.’ The Commission therefore launched a discussion
process on the future of LIFE+ from 2014 onwards; with a view to designing a future EU financial instrument
(a continuation of LIFE+) that would best address the needs of the environment and climate protection. In
December 2011 the Commission proposed to allocate EUR 3.2 billion over 2014-2020 to a new Programme for
the Environment and Climate Action – LIFE. This proposal will need to be ratified by the European
Parliament and the Commission, but aims to have a clearer definition of priorities with multi-annual work
programmes adopted in consultation with the Member States as well as to include new possibilities to
implement programmes on a larger scale through "Integrated projects" which can help mobilise other EU,
national and private funds for environmental or climate objectives.
The sub-programme for Environment will support efforts in the following areas:
"Environment and Resource Efficiency" will focus on more innovative solutions for better
implementation of environment policy and integrating environmental objectives in other sectors
"Biodiversity" will develop best practices to halt biodiversity loss and restore ecosystem services
"Environmental Governance and Information" will promote knowledge sharing, dissemination of best
practices, and better compliance, in addition to awareness raising campaigns
It’s expected that similar criteria for the eligibility and selection of process will be applied; however this will
only become clear when the EU publishes the final funding programme descriptions and/or the call for project
proposal in 2013/2014.
4.3.1.6. EU’s Seventh Framework Programme for Research (FP7)
The largest and final round of the EU’s Seventh Framework Programme for Research (FP7) was procured in
2012 as part of the European Commission’s commitment to work for growth and jobs in Europe. It was part of
a €10.8 billion budget for research and innovation agreed for 2013, where the European Commission
announced an €8.1 billion euro package of calls for proposals under the FP7. The call for proposals closed in
September 2012.
4.3.1.7. Waste Resources Action Plan (WRAP)
WRAP was set up in 2000 with a goal to develop the recycling industry in the UK and to create a market for
recycled materials. This concept gradually evolved into the understanding that what is generally thought of as
‘waste’ is actually a resource unto itself, and that action should be taken to harness this resource, and move
toward a circular economy.
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WRAP is providing two types of grant funding including:
‘De minimis’ funding, is offered under the EC regulation EC/1998/2006 – ‘de minimis’ aid
regulation, which allows WRAP/Defra to make the provision of financial support of up to €200,000
(currently equivalent to £172,000) per company within a rolling three year fiscal period. It is the
responsibility of the grant recipient to ensure that this limit is not exceeded. These programmes
operate on a rolling basis within a financial year – 1 April to 31 March
WRAP’s Capital Grants and Lease Guarantee Fund Scheme (State Aid Notification N517/2010), which
is subject to EU State Aid legislation and assessed on a competitive basis against laid down criteria
and operated with a specific launch date and deadline date for applications.
Currently WRAP is offering the following funds, of which only the eQuip fund may potentially be suitable:
Mixed plastics loan fund, which aims to develop mixed plastics processing
Waste Prevention Loan Fund, which is aimed at cutting waste and increasing re-use in electrical
equipment, furniture and textiles
Grant support for re-use and repair, which is supporting the increase re-use and repair in textiles,
electrical equipment and furniture
‘eQuip - leasing made easy’, which provides financial assistance for recycling plant and machinery
Anaerobic Digestion (AD) Loan Fund (£10m), which is to support new AD capacity in England
In addition, WRAP also provides business and market support via advisors and workshops.
4.4. KEY ISSUE FOR A MARKET ENTRY & ROUTES TO MARKET
The final chapter summarises the key issues and risks regarding a market entry to the UK, before presenting
potential routes to market and strategies for market entry as well as potential opportunities to engage with
private stakeholders and market players. Due to the multiple opportunities potentially available for Swiss
Companies, a relatively high level analysis has been provided.
4.4.1. Key issues and requirements for a market entry in the UK
While the UK is a member state of the European Union, Switzerland is not, and therefore all relevant
restrictions and permissions need to be considered as in any other business sector when entering the UK waste
market.
The UK and, in particular the four devolved regions, have implemented a number of EU directives in a
different manner from continental European countries to meet the country’s needs and policy framework as
outlined in Chapter 2 of this report. There may be differences in how waste is defined or regulations that
indirectly affect the waste sector, such as health and safety and hygiene requirements. The Animal By Product
Directive, for example, has much more stringent design, operating and reporting requirements in UK than in
many continental European countries, as the UK suffered considerably during the BSE crisis and SO the
regulatory framework reflects the considerable need for food safety based on the UK experience. In addition,
there are often different requirements in each of the devolved countries, which can impact on the potential
market size and opportunity.
There are complex rules relating to the taxation of goods and services sold in the UK depending on their origin,
type and the nature of the transaction. Her Majesty’s Revenue & Customs (HMRC) is the agency responsible
for enforcing all taxation laws and can be consulted to determine the applicable law and relevant
administrative processes for any proposed transaction in the UK where there is uncertainty.
If a Swiss business wishes to establish a UK business operating waste collection, transportation, treatment,
disposal or export activities, it will need to be licensed to do so by the relevant regulatory bodies (see Chapter
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2.2). The time taken to become licensed will depend on the nature of the activity and the processes of the
relevant regulator.
For example, to secure an environmental permit for a new waste treatment may take 6-
12 months. [Please treat this as a guide only as the actual time needed will very much depend on the specific
circumstances of the application and the location. Planning permission will also have to be obtained where
relevant from the local authority.]
Currency risk needs to be assessed early on and with the European crises continuing, the supply of parts,
equipment etc. at secure prices needs to be taken into account when providing offers and bidding for contracts.
Procurement of goods and services can be a long drawn out process in the UK, especially for waste
management infrastructure, using competitive dialogue procedures, which can take 1 – 2 years or restrictive
tender, which are much shorter but only applied to minor service contracts or infrastructure proposal such as
HWRCs or windrow composting sites.
Sustainable procurement has been gaining traction in the UK over the last decade and has been lead largely by
the public sector. Sustainability criteria are increasingly being incorporated into the whole procurement
process: defining the need, evaluating options, design and specifying, supplier selection, tender evaluation,
post-contract management and supplier development.
Within the public procurement rules, the key opportunity to consider environmental issues is at the earliest
stage of the process, in defining the user requirements. Criteria such as "100% recycled fibre content" can be
built into the specification. Then, at the award stage, the best value for money option that meets the
specification will be awarded the contract. Environmental criteria can be used at the award stage, provided
they are relevant to the subject of the contract and provide a value for money benefit for the awarding
authority.
The Social Value Act, which became law in 2012, also places a duty on public bodies to consider social value
ahead of procurement.
Private sector organisations have adopted sustainability policies and processes in their management practices,
both in recognition of the requirements being placed on them by their public sector clients, and in recognition
of the opportunity they provide to develop competitive and future-proofed business models.
Most public and private sector procurers in the UK will require suppliers of technologies and services to
provide evidence of quality and environmental management procedures. Usually this will be demonstrated by
voluntary accreditation to a relevant ISO standard or the specific BSI standards. The relevant output product
standards have been presented in Chapter 2.3 and will need to be taken into account when marketing process
technology as these do not only impact on the overall business plan and viability, but might also present a
market barrier to entry as the output quality determines the regulatory status i.e. energy recovery vs disposal,
if efficiency criteria are not met, or recovery vs recycling if material quality standards are not fulfilled.
In particular implementing turnkey projects in the UK can be a complex process, impacted by regulatory
uncertainties, land use issues, planning and permitting delays as well as climate change, carbon reduction and
renewable energy policies related to waste derived electricity, heat and gas. When developing business plans
investors like the Green Investment Bank will expect some future proofing of the expected capital returns and
ensuring that the required viability and sustainability criteria are met.128
Figure 67 summarises some key issues and risks associated with foreign companies entering the UK market
and depending on the type of business and the opportunity there are considerable preparation needed to
enable to develop a comprehensive business and marketing plan for the UK.
128
Waste and Resource Management M&A Update - http://www.lrsconsultancy.com/documents/LRSCatalyst_Waste_Resource_Management_MandA_Report_Jan_2013.pdf
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Figure 67 : Overview of Key Issues and Risks by Company Type
TURNKEY SUPPLIER MACHINERY & EQUIPMENT SUPPLIERS
Technology transfer to the UK ensuring the technology can meet/supersede UK standards
Review outputs and compare to UK outputs and PAS standards, Quality Protocol requirements and End of Waste criteria to identify market barriers
Competition with existing technologies in a busy market place
Bidding process and procurement costs
Identification of site and negotiation of site options
Planning approval and environmental permit for a new technology/ concept in the UK
Identify and secure feedstock and output contracts with direct supplies or through existing collectors, producers and waste management companies
Short term contracting for CI waste with reluctance of waste producers to commit at early stages of the project
Longer term contracts can often only be secured at reduced gate fees
Energy markets complex with trading for electricity, heat and gas as well as carbon and renewable certificates
Find project developers and investors to secure project and/or company financing
Understanding of relevant construction, building, health & safety requirements
Need for architectural design in the UK
Crowded market place with numerous UK and European/North American suppliers of machinery and equipment
Partner search, strategic alliances and agreements with small number of large waste management players dominating the industry
Identification of USP and barriers to technology transfer to the UK
Request for Engineering, procurement and construction support as principal contractor
Set up, training, maintenance and on-going support during the plant life
Outlays for bidding and design proposals during drawn out procurement processes in the public sector
Conversion and adaptation of control and monitoring technology to UK standards
Performance specifications to meet all relevant regulatory and policy requirements
Number of investments per UK player can be low, which might require a broad customer base
Transport and transfer of equipment, spares etc. to the UK
There are no particular differences involved in marketing waste management technologies and services in the
UK as compared to any other industrialised EU state. The Swiss industry is perceived well in the UK and has a
reputation for providing advanced technological solutions, particularly for material reprocessing, organic
waste and energy recovery. The UK is trying to take lessons from developments and experiences in overseas
markets and Switzerland is understood to have an advanced waste management infrastructure and level of
performance in comparison. These are positive factors for Swiss businesses wishing to trade in the UK.
4.4.2. Routes to Market & Market Entry Strategies
The potential routes to market and market entry strategies depend on the type of business opportunity sought
and for the purpose of this report potential strategies for the main business types based on the key issues and
risks outline above have been summarised in figure 68
Figure 68 : Overview of Market Entry Strategies for Turnkey Suppliers and Equipment/Machinery firms entering the UK Market
TURNKEY SUPPLIER MACHINERY & EQUIPMENT SUPPLIERS
Consult government &waste authorities to understand their strategies
Review government & waste authority strategies to work out where your machinery
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TURNKEY SUPPLIER MACHINERY & EQUIPMENT SUPPLIERS
Identify waste majors and regional players who hold major contracts to promote services, strategic alliances and/or exclusive partnerships
Monitor & respond to tender opportunities for turn key solutions, however most public tenders require UK references
Attend major trade shows to find contacts & customers
Review WRAP programmes to find funds to demonstrate your technology
Review regulatory controls to ensure your technology can meet UK standards
Review outputs and compare to UK outputs and PAS standards, Quality Protocol requirements
could be in demand Find out who major and regional waste
management contractors Develop USP for machinery and equipment
Utilise existing reference list in Switzerland and other Continental European Countries
Consult trade magazines & trade associations to find distributors & agents
Promote case studies of your machinery to demonstrate its effectiveness
Use trade shows to make business contacts & find customers
Depending on the business sector to be targeted, it could be advantageous to establish a UK partnership,
subsidiary or operating unit of the Swiss business. The location should be selected on the grounds of its
proximity to the market or transaction but also to ensure that any relevant grant funding or other public
support could be secured as this is usually geographically sensitive.
4.4.3. Engaging with UK Market Opportunities
The major opportunities in the UK market for Swiss companies are aligned to the private waste management
sector as the majority of waste infrastructure is built, owned and operated by private companies on service
contracts to Local Authorities. Similarly the increasing number of merchant facilities for short to medium term
commercial industrial waste contracts are also operated by private companies with differing levels of
involvement by waste majors, as the top five are currently controlling the market.
There are a number of strategic partnerships between technology suppliers and waste management companies
and most waste firms have a preferred suppliers list with established contacts, however the increasing
pressures in the market are forcing all players to look for more efficient and cost effective solutions. While
there are still contract opportunities with Local Authorities there is some reluctance to contract with non-UK
suppliers and early stages of procurement often require UK references and service examples.
In brief, Swiss companies need to understand the status of municipal contracts and the extent to which
companies holding or bidding for the contracts might require technologies and services now and in the future.
This can be established by investigating the following:
Sub-regional and local waste management strategies of groups of municipal authorities
Procurement Notices in the Official Journal for Europe by UK municipal authorities
Specific local authority waste management plans and procurements
Related municipal authority procurements to understand their future waste management plans and
procurement ambitions
UK waste management media stories concerning the award of contracts and strategies of municipal
authorities and market reports from the Waste & Resources Action Programme
Trade associations and their networks
UK consultancies specialising in waste management can be contracted to research the above sources against
specific business briefs, thus saving time and providing additional expertise and understanding. In addition,
local knowledge can help identify and approach potential partners or agents in the UK.
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The Government funds major research and development programmes for new waste technologies. These are
usually designed to bring emerging technologies to market and may provide opportunities for Swiss businesses
to partner with UK businesses or research organisations, thus facilitating market access or creating
competitive new technologies. These programmes are primarily funded by the Technology Strategy Board,
Energy, Technologies Institute97 and the Carbon Trust. The Technology Strategy Board, for example, funds
Knowledge Transfer Networks (KTN). Two of these networks, the Resource Efficiency KTN and the
Environmental KTN have a focus on waste
The Government, through DEFRA and The Waste & Resources Action Programme is actively developing waste
treatment and recovery technologies, notably for organic waste and C&D waste recovery. WRAP is staffed by
specialists, and funds R&D and capital investment through a series of programmes. It could therefore facilitate
links with companies in the sector as well as potentially provide direct support.
4.4.4. Events and other marketing opportunities
The following section presents recurring events concerning the UK waste sector as well as industry journals
which might be of interest to those aiming to entering the UK market.
Please find a list of annual industry events in Figure 69
Figure 69 : List of Industry Sector Events
INDUSTRY SECTOR EVENT
Aggregates Industry HILLHEAD 2014 (WWW.HILLHEAD.COM)
UK CONCRETE SHOW 2014 (WWW.CONCRETESHOW.CO.UK)
Construction industry ECOBUILD (WWW.ECOBUILD.CO.UK)
Waste Management
Industry
ABDA (ANAEROBIC DIGESTION AND BIOGAS ASSOCIATION) NATIONAL CONFERENCE 2013
(HTTP://WWW.ADBIOGAS.CO.UK/EVENTS/ADBA-NATIONAL-CONFERENCE-2013/)
CIWM CONFERENCE (WWW.CIWMCONFERENCES.COM/ANNUAL)
END OF WASTE CONFERENCE
ESA (ENVIRONMENTAL SERVICES ASSOCIATION) ANNUAL LUNCH
LARC (LOCAL AUTHORITY RECYCLING ADVISORY COMMITTEE), ANNUAL FORUM FOR
WASTE AND RECYCLING OFFICERS (WWW.LARACCONFERENCE.ORG.UK)
ORGANICS RECYCLING CONFERENCE AND AWARDS
RWM
RESOURCE EFFICIENCY AND WASTE MANAGEMENT SOLUTIONS
(WWW.RWMEXHIBITION.COM)
10TH INTERNATIONAL CONFERENCE ON ENERGY FROM WASTE (WWW.EFWLONDON.EU)
SUSTAINABILITY LIVE (WWW.SUSTAINABILITYLIVE.COM)
UK AD AND BIOGAS CONFERENCE (ANAEROBIC DIGESTION AND BIOGAS ASSOCIATION –
ADBA, WWW.ADBIOGAS.CO.UK)
Utilities sector THE RENEWABLES EVENT (RENEWABLE ENERGY ASSOCIATION) 2013 (HTTP://WWW.R-E-
A.NET/EVENTS/THE-RENEWABLES-EVENT-2013)
WATER UK – CITY CONFERENCE 2014
(HTTP://WWW.WATER.ORG.UK/EVENTS/VIEW_EVENT.PHP?EVENTID=67&&DATEID=39)
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In addition to the events mentioned in the above table, the following organisations and networks offer events
listings on their websites.
Aggregate Recycling Information Network: www.agg-net.com
Aldersgate Group: www.aldersgategroup.org.uk
Associate Parliamentary Sustainable Resource Group: http://www.policyconnect.org.uk/apsrg/
BRE: www.bre.co.uk
Chartered Instituted for Wastes Management (CIWM): www.ciwm.co.uk
EDIE: www.edie.net
Energy and Utilities Alliance: www.energyandutilities.org.uk
Green Mondays: www.greenmondays.com
Guardian sustainable business: http://www.guardian.co.uk/sustainable-business
Renewable Energy Association (REA): www.r-e-a.net
Resource Association: www.resourceassociation.com
2degrees Network: www.2degreesnetwork.com
The list of industry journals and websites below are available to subscribers, or free of charge, or with
membership of the corresponding organisation.
Aggregate business Europe
CIWM Magazine
Construction News
Edie.net
ENDs Report
Industrial Minerals
LetsRecycle.com
MRW
Mineral Products today
Municipal Journal
New Civil Engineer
Quarry Management
Regeneration Magazine
Resource Magazine
The Environmentalist
Utility and Energy
Utility Week
Warmer Bulletin
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5. Conclusions and Recommendations
The UK operates as a single country internationally, but domestically, it is split into four distinct devolved
regions England, Wales, Scotland and Northern Ireland; each with their own environmental policies, strategies
and regulations.
The UK waste sector has been undergoing significant change in recent years, shifting from a landfill disposal
industry, to one of resource recovery through re-use, recycling and reprocessing as well as recovery. While this
was initially driven by regulatory targets set out in the European Landfill Directive and the relevant UK
regulations, the waste management sector has been steadily evolving; new players from the retail, packaging,
manufacturing and facilities management sectors are entering the market, driven by concerns not only about
waste management budgets of their own operations, but also to the wider supply chain risks to their future
business models, such as volatility in secondary commodity material prices linked to availability of quality
materials, and energy security to sustain their core business. Demand for closed loop resource efficiency
concepts, waste management services and associated technologies, notably for the recovery of value from
materials for reprocessing and energy, is forecast to continue to grow over coming decades. This will create
new business opportunities for companies able to supply viable and effective solutions particularly in more
advanced technologies.
The UK is trying to ‘close the recycling loop’ by keeping resources in the country for onward remanufacturing,
however while increasing amounts of material are being collected, the lack of suitable reprocessing
infrastructure in the UK is leading to large amounts of exports of materials to Europe and the Far East, where
dry recyclates in particular can be recycled and recovered economically. Therefore the reprocessing sector for
dry recyclables like plastics for example could provide a good opportunity for Swiss businesses to engage with
the UK waste sector, similarly the recycling and recovery of ELV and WEEE requires specialist expertise and
might be a good niche market.
To develop the UK’s circular economy the Local Authority waste market is currently focused on efficient and
effective collection, sorting and separation and reprocessing of materials for recycling to provide high quality
materials for onward remanufacture. Local Authority waste volumes have been impacted nationally by the
economic conditions and the impact of waste prevention programmes. The residual local authority waste
market is contracting as most local authorities have procured long term contracts during the PFI funding
phase (2006 – 2012) and there are only few infrastructure contracts being procured. However the pipeline for
construction, commissioning and operation of these facilities procured in recent years is good and could
provide opportunities for machinery and equipment suppliers.
The commercial industrial waste sector is the less developed and considerably larger market but contracts are
shorter term and the turnkey plant delivery market is complex and slow to develop as the financing of these
type of facilities is increasingly difficult. However this market has the largest potential for turnkey suppliers of
biological and residual waste treatment plants as well as RDF production and material recovery capacity.
Similarly to the MSW market, if the pipeline of merchant CI plants is being developed, there should be
opportunities for machinery and equipment suppliers.
The UK market offers significant potential at this point in time. The market is consolidating and international
companies, with proven concepts and operational track records are moving into the UK to realise this
potential. A third of trade deals in the last 12 months involved an overseas firm. Within each market segment
the following opportunities for turnkey suppliers as well as machinery and equipment companies with waste
management skills across the waste hierarchy could be realised in the future:
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Materials Recovery Facilities are increasingly important in providing quality raw materials to
industry as the number of local authorities collecting comingled dry recyclables has increased in
recent years in an effort to meet recycling targets as well as in response to the austerity measures.
MRF capacity is estimated to grow between 0-5% -2.5% in the next five years depending on growth in
waste arisings, household recycling rates and changes in collection method ,which all interact to
influence the amount of co-mingled municipal waste requiring sorting by a MRF.
The recycling of rigid mixed plastics provides the greatest potential for growth in the plastic
packaging sector, as sorting technologies become more cost effective and landfill tax continues to
increase.
The aluminium packaging recycling trade body, Alurpo, estimates that in order to meet the new
aluminium packaging recycling targets a further 19,000 tonnes of aluminium packaging will need to
be recovered, leading to opportunity for development within this material sector.
The steel recycling sector is fully dominated by the Tata Group and therefore unlikely to provide
market opportunities for Swiss companies, however the preparation of metals and in particular the
baling requirements, might provide some opportunities as metal bales have to meet the requirements
of the Tata furnaces, and therefore collected metals will need to be baled at specialist outlets before
being sent for processing.
Despite the large number of waste management companies involved in the initial treatment of glass
there are relatively few reprocessors, which may represent an opportunity for Swiss businesses.
The organic waste treatment sector can be divided into composting and anaerobic digestion as the
main technology and material recovery options. Whereas composting is an established mature market
sector, the anaerobic digestion sector is still relatively new, growing rapidly and expected to mature in
the coming years.
The expansion in the EfW sector and the convergence with the energy sector, via power generation,
continues to attract new players into the UK waste management industry, particularly from overseas.
However there have been some lower gate fees charged by EfW plants at the end of their life (fully
written off) or new merchant facilities attempting to attract feedstock at spot market prices.
There are a relatively large number of turnkey suppliers, machinery and equipment suppliers in the market
looking for market expansion, strategic alliances and potential exclusivities to do business in the UK, but the
waste management industry itself is dominated by 5 players. Further consolidations are likely as smaller
regional and local players seek to secure their business in the future, which provides opportunity for Swiss
businesses, as long as partners are chosen with care and following full due diligence exercises. Companies with
a European track record and reference list are typically considered to be good partners and Swiss companies
are perceived well in the UK on account of the experience and know-how that they can bring from overseas
markets that are more advanced than UK, generating considerable opportunity for learning, technology and
knowledge transfer into the UK.
The industry is highly capitalised with a huge fixed costs base related to the cost of running collection and
bulking vehicles, fuel, staff and the existing plants with huge investments being made into new infrastructure.
Investment into waste and recycling projects can be a complex process, impacted by regulatory uncertainties,
land use issues, planning and permitting delays as well as climate change, carbon reduction and renewable
energy policies related to waste derived electricity, heat and gas. When developing business plans investors like
the Green Investment Bank will expect some Future proofing of the expected capital returns and ensuring that
the required viability and sustainability criteria are met.129
Success depend on understanding the UK market and potential risks, assessing and realising unique selling
points (USPs), identify market barriers and market potential, recognising the right opportunity, finding the
right partner or agent, accessing the private sector supply chain and deliverable marketing and business plan
which will secure investment and demonstrate a strong business model.
129
Waste and Resource Management M&A Update - http://www.lrsconsultancy.com/documents/LRSCatalyst_Waste_Resource_Management_MandA_Report_Jan_2013.pdf
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6. Appendix
6.1. REGULATORY REQUIREMENTS; A DETAILED TIMELINE
The table below provides a summary timeline of all regulatory developments in the UK prior to 2005 (with the
key provided below). Following the table full detail on each of these regulations can be found.
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6.1.1.1. EU Revised Waste Framework Directive 2008 (2008/98/EC) in detail:
The Environmental Protection Act (EPA) 1990 is an overarching piece of legislation that implements the
original waste framework directive 1975 in England, Wales and Scotland. The EPA 1990 sets out
requirements for waste producers regarding the storage, treatment and disposal of waste. The Act was
intended to strengthen pollution controls and support enforcement with heavier penalties. Before the Act
there had been separate environmental regulation of air, water and land pollution and the Act brought in an
integrated scheme that would seek the "best practicable environmental option". There was previously no
uniform system of licensing or public right of access to information. The Act requires waste to be disposed of
without endangering human health; without processes or methods that could harm the environment; without
risk to water, air, soil, plants or animals; without causing nuisance through soil or odour; without adversely
affecting the countryside or places of special interest.
The EPA 1990 imposes a ‘Duty of Care’ on waste producers to ensure that their waste is kept safe and is
properly disposed of. The Act also provides persons who are carrying waste in the course of their business to
be registered with the Environment Agency. The introduction of the Household Waste Duty of Care
Regulations 2005 extend the Duty of Care making it applicable to householders as well as businesses. The
Duty of Care applies to everyone handling waste from the person who produces it to the person who finally
disposes of or recovers it.
The Act also sets out the statutory duties of waste collection and disposal authorities to provide waste
collection and disposal services. The Controlled Waste Regulations 1992 were introduced pursuant to
the Act and set out in detail from what premises an authority has an obligation to collect waste and types of
waste for which a change could be levied.
To implement the waste hierarchy on a local government level, the Waste Minimisation Act 1998 gives
local authority the right to implement household waste minimisation schemes. On a regional level, England
has also implemented the Household Waste Recycling Act 2004 with the aim of increasing recycling
rates. Local authorities can further tackle poor environmental quality which is supported by the Clean
Neighbourhoods and Environment Act 2005. In England, Wales and Scotland, the Local
Government Act 1999 guarantees the regular review of local government’s performance in terms of the
economics, efficiency and effectiveness of their functions, such as their waste management. This aims to
encourage the development and continuous improvement of ‘best value’ services.
The Waste (Scotland) Regulations 2005 made several miscellaneous changes to waste management
legislation by amending the Environmental Protection Act 1990, the Controlled Waste (Registration of carriers
and seizure of vehicles) Regulations 1991, the Controlled Waste Regulations 1992, the Waste Management
Licensing Regulations 1994, and the Groundwater Regulations 1998 with regard to:
Indiscriminate disposal of controlled waste from domestic properties
Duty of Care relating to domestic properties
Categorisation of mining, quarry and agricultural waste
Registration of Carriers of Controlled Waste
Waste Management Licensing
The Waste Management Regulations (Northern Ireland) 2006 amend Articles 2, 4, 5 and 31 of the Waste and
Contaminated Land (Northern Ireland) Order 1997, the Controlled Waste (Registration of Carriers and Seizure
of Vehicles) Regulations (Northern Ireland) 1999, and the Controlled Waste Regulations (Northern Ireland)
2002, in order to implement (in part), the Waste Framework Directive (75/442 EEC) and the Landfill
Directive (1999/31/EC).
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6.1.1.2. Landfill Directive 1999/31/EC
The Landfill Directive 1999 aims to prevent, or minimise, the negative effects on both the environment and
human health caused by landfilling of wastes. It has and will continue to have a significant impact on landfill
practices in the UK. The Directive requires a reduction in biodegradable waste sent to landfill, pre-treatment
of waste, and sets targets for Biodegradable Municipal Waste (BMW), the scope of which currently includes all
waste collected by or on behalf of a Local Authority.
It also bans various materials from landfilling, including liquid waste, explosive and flammable waste, hospital
and clinical waste and tyres, whether whole or shredded. It also introduced new categories of inert,
nonhazardous and hazardous landfill sites.
The introduction of the Directive has resulted in a significant reduction in the number of landfill sites in the
UK accepting hazardous wastes. The ban on landfilling of certain wastes, such as tyres, from 2006 has meant
that new arrangements for their collection and management have been introduced. The Landfill Directive
1999/31/EC requires the amount of biodegradable municipal solid waste sent to landfill in the UK to be
reduced:
to 75% of 1995 levels by 2010 (the UK met this target)
to 50% of 1995 levels by 2013, and
to 35% of 1995 levels by 2020.
The Landfill Directive was transposed in England and Wales through the Landfill (England & Wales)
Regulations 2002. The UK Government implemented the requirements for landfilling of BMW through the
Waste and Emissions Trading Act 2003 (WET Act) via:
The setting of a maximum amount of BMW to landfill from each country in the UK
The allocation on landfill allowances, which may be tradable, to waste disposal authorities
The preparation, in each country of the UK, of a strategy for reducing the amount of biodegradable
waste going to landfills
Details of the landfill allowances scheme being established in subordinate legislation by the
appropriate authority in each country of the UK
The most recent landfill allowance targets of BMW, required by the WET Act, are allocated under the Landfill
(Maximum Landfill Amount) Regulations 2011 (SI 2011/2299), stating both individual targets for
England, Scotland, Wales, Northern Ireland as well as a collective targets for the UK as a whole to be achieved
in 2013 and 2020.
The WET Act introduced the Landfill Allowance Trading Scheme (LATS) 2005 that sets out restrictions
for disposal by each local authority in England and Wales. The Act permits each waste disposal authority
(WDA) to sell its yearly quota of landfill allowances to other WDAs, creates financial incentives for good
performance and encourages WDAs to maximise alternatives to landfill. The permits are to be traded, the
penalty for breaching the target without purchasing LATS from other authorities was set at £150 per tonne,
and the Secretary of State sets each WDAs landfill disposal allowance annually, to reflect nationally the
downward trend of the EU Landfill Directive, which deals with bio-degradable municipal waste. The targets
are 50% of 1995 levels by 2009, and 35% by 2016.
The LATS scheme will run until the end of 2012/13 scheme year with conclusion of trades on 30 September
2013. It may be subject to revision during the forthcoming years.
The materials going to landfill are additionally regulated by the Environmental Permitting Regulations in
England and Wales (2010). This feeds into the Landfill Regulations (SI 2011/2299) that set individual and
collective landfill targets to be achieved within the UK as a whole as well as for each country.
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The Landfill Tax Regulations 1996 introduced in England, Wales and Scotland in 1996, sets increasing
disposal costs aimed at incentivising more sustainable means of waste treatment and therefore links the
environmental impact of landfill to financial effects. Landfill Tax is a tax payable for each tonne of waste sent
to landfill and was introduced by the Government in 1996 through the Financial Act 1996 as a way of
encouraging more sustainable means of waste management through recognising the hidden financial effects of
the environmental impact of landfill. The landfill tax has been set to increase at a rate of £8 each year from 1
April 2011 until at least 1 April 2014. There will then be a floor under the standard rate ensuring the rate will
not fall below £80 per tonne from 2014/15 to 2019/2020. This increase in landfill tax has caused a significant
increase in waste disposal costs and is a further incentive to move to more sustainable means of waste
treatment in the near future.
In Scotland, the Landfill (Scotland) Regulations 2003 implement most requirements of the Landfill
Directive (99/31/EC). The Landfill (Scheme Year and Maximum Landfill Amount) Regulations
2004 and Landfill Allowance Regulations (Scotland) 2005 implement Section 4 of the WET Act 2003
making an allocation of allowances of biodegradable municipal waste (BMW) to landfill to local authorities for
each scheme year. Allowances may potentially be banked, borrowed or transferred subject to approval by the
Scottish Environmental Protection Agency (SEPA). The Landfill allowances Trading Scheme is currently
suspended in Scotland.
The Landfill Regulations (Northern Ireland) 2003 implement the Landfill Directive in Northern
Ireland and set out a pollution control regime for landfills for this purpose. Part 2 and Schedule 1 of the
regulations detail waste acceptance criteria. Landfills are also subject to the Pollution Prevention and
Control Regulations (Northern Ireland) 2003 which implemented Council Directive 96/61/EC
concerning Integrated Pollution Prevention and Control and the Waste Management Licensing
Regulations (Northern Ireland) 2003. The Landfill Allowances Scheme (Northern Ireland)
Regulations 2004 (NILAS) were made under the WET Act 2003 for the purpose of implementing Articles
5(1) and (2) of Council Directive 99/31/EC on the landfill of waste in Northern Ireland. They make provision
on the allocation, borrowing and transfer of landfill allowances subject to approval by the monitoring body, the
Northern Ireland Environment Agency (NIEA) and the Department of the Environment NI. Trading of
allowances is not permitted in Northern Ireland.
UK IMPLEMENTATION OF EU LANDFILL DIRECTIVE
2011: Landfill (Maximum Landfill Amount) Regulations (SI 2011/2299)
Implements the EU Landfill Directive (1999/31/EC)
Individual and collective landfill targets (2013-2020) for England, Scotland, Wales, Northern Ireland
1996: Landfill Tax Regulations
Introduces the tax payable for each tonne of waste sent to landfill
Last increase to £80 per tonne is set for 1st April 2014 and will stay until 2019/2020
2003: Waste and Emissions Trading Act (WET Act)
States requirements for the land filling of biodegradable waste and sets limits for Waste Disposal Authorities on
biodegradable municipal waste
2010: Environmental Permitting (England and Wales) Regulations
Implement the Landfill Directive and Council Decision (2003/33/EC) and the EU Waste Incineration Directive
(2000/76/EC)
Establish criteria and procedures for the acceptance of waste at landfills
2005: Landfill Allowance Trading Scheme (LATS)
Implemented to meet the Landfill Directive targets by reducing the amount of biodegradable municipal waste sent to
landfill
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6.1.1.3. Producer Reponsibility Legislation
EU producer responsibility legislation is implemented in the UK through three key pieces of legislation. The
End-of-life Vehicles Regulations 2005 and the Waste Electrical and Electronic Equipment
(WEEE) Regulations 2006 require manufacturers to adhere to design and environmental standards for
recycling and disposal and for treatment and recycling costs respectively. Recovery and recycling targets
regarding packaging waste are set out in the Producer Responsibility (packaging waste) Regulations
(2007). These feed into national UK targets.
Table 1: UK Transposition of Producer Responsibility Legislation
UK TRANSPOSITION OF PRODUCER RESPONSIBILITY LEGISLATION
2007: Producer Responsibility (Packaging Waste) Regulations
Implements the EU Packaging and Packaging Waste Directive (94/62/EEC and 2004/12/EC)
Businesses placing products on the market have a responsibility for the waste management of a product when it
reaches the end of its life
2006: Waste Electrical and Electronic Equipment Regulations
Implements the EU Waste Electrical and Electronic Equipment (WEEE) directive (2002/96/EC)
Requires manufacturers to meet the treatment and recycling costs for WEEE items
2005: End-of-life vehicles (Producer Responsibility) Regulations
Implements the EU End of Life Vehicles Directive (2000/53/EC)
Introduces design standards for vehicle manufacturers and environmental standards for the dismantling, recycling
and disposal of End-of-Life vehicles (ELVs) by authorised treatment facilities to process vehicles at no cost to last
owners
6.2. EXAMPLES OF SWISS COMPANIES WORKING IN THE UK
In Switzerland, protecting the environment and taking great care of natural resources is a well-established
tradition. This is why Switzerland has developed such excellence in the field of Cleantech technologies and
services, and this can help to overcome the global challenges we all face.
Caring for the environment has become part of everyday life, and thanks to the support of the general
population, politicians were able to define and implement the necessary processes and regulations.
Energy Production
Swiss Cleantech businesses have expertise in the following areas:
Photovoltaic
Technologies to harness solar power
Fermentation technology
Heat pumps and turbines
Biomass energy
Power generation and energy recovery
Run-of-river power stations
Swiss industrial companies are key suppliers in the fields of renewable energy and energy efficiency.
Fermentation Technology – Biogas from Organic Waste
With fermentation technology, bio gas can be produced from municipal and commercial organic waste in a
safe and sustainable manner. The bio gas is then used as green electricity/heat or as fuel. Depending on the
type of organic waste, between 600 and 1,000 kilowatt-hours (kWh) of energy (fuel value) can be generated.
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Example Swiss Companies in this field:
Axpo Kompogas www.Axpo-Kompogas.ch
Biomass Energy
Swiss companies offer good technology regarding furnaces producing power from biomass.
Example Swiss Companies in this field:
Schmid www.holzfeuerung.ch
Energy Efficiency
Swiss Cleantech businesses have expertise in the following areas:
Energy efficient building standards
Heating, ventilation, air conditioning
Building shell technologies and insulation
Smart grid
Example Swiss Companies in this field:
MINERGIE www.minergie.ch
Heating, Ventilation, Air Conditioning (HVAC)
Heating, cooling, fresh and clean air: Swiss companies excel in products offering a comfortable, healthy, and
energy-efficient indoor climate. The product ranges cover new buildings to renovations, from private homes to
commercial and industrial premises.
Heating solutions: from radiant ceiling panels to heat pumps with integrated ventilation devices
Indoor cooling: from cooling ceiling systems to comfortable indoor ventilation with a supply of pre-
cooled fresh air
Fresh air: indoor ventilation solutions with heat recovery
Clean air: for buildings that are particularly prone to dust; home solutions which filter pollutants out
of the air
High efficiency heat exchangers
Example Swiss Companies in this field:
Zehnder Group www.zehndergroup.com
Building Shell Technologies and Insulation
Swiss construction technologies and components for commercial buildings as well as dwellings can be
considered to be ―best in class.
Given that Swiss building standards (see 4.2.1) are some of the toughest in the world, local companies have
developed products to match those high performance standards and have turned them into world-beaters in
terms of efficient housing materials such as:
Vapour open building shells
Façade systems for high-end architecture
Insulation materials
Windows
Doors (automated and non-automated)
Example Swiss Companies in this field:
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Swisspearl www.swisspearl.com
Smart Grid
Intelligent power grids are a key requirement for being able to use increasingly decentralized electricity
production which is generated from wind, photovoltaic, small scale hydro-electric plants, and so-called ―plus
energy homes‖ (which produce more energy than the owners need). Swiss companies are among the world‘s
leading suppliers of such smart grids, which are often combined with smart metering.
Example Swiss Companies in this field:
ABB www.abb.com
Landis+Gyr www.landisgyr.com
Recycling and Waste Treatment
Swiss Cleantech businesses have expertise in the following areas:
Electronic waste recycling
Thermal waste treatment
Disposal site planning, eng., monitoring, remediation
Composting
Treatment of hazardous waste
Treatment of infectious and hospital waste
Plastics recycling
Disposal of household waste
Recovery of valuable materials
Engineering and construction of recycling plants
Thermal gasification, pyrolysis
Fermentation, methanation
The amount of waste produced in Switzerland has tripled in the past 25 years. The authorities have had
notable success both in reducing the volume of waste and increasing the proportion of waste recycled as a
result of collection methods and processes to recover valuable raw materials. In 1984, less than 20% of garbage
was recycled; in 2010 about 51% was recycled. The Swiss are world leaders in recycling a range of goods such
as glass, aluminium cans, PET bottles, paper and organic waste. Even electrical and electronic appliances are
separated for waste disposal, collected, and recycled. Recycling rates for glass bottles, PET bottles, and
aluminium cans are particularly high and in 2009 equated to over 90%.
Example Swiss Companies in this field:
SID SA www.sidsa.ch
I.C.E AG www.iceag.com
Hydromethan AG www.hydromethan.ch
Nencki AG www.nencki.ch/anlagentechnik
STAG AG www.stag.net
Xylopower AG www.xylopower.com/ Pyroforce Energietechnologie AG www.pyroforce.ch
Electronic Waste Recycling
Another area of expertise is in the recycling of electronic appliances in information technology, entertainment
electronics, offices, telecommunications, the graphic arts industry, measuring and medical technique devices,
and industrial electronics such as control systems and laboratory appliances.
Example Swiss Companies in this field:
SwissRTec www.swissrtec.ch
UK WASTE SECTOR REPORT
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Thermal Waste Treatment
The expertise of Swiss firms covers waste and sludge treatment plants, from conceptual planning to
realization:
Waste management plans for an entire region
Plant location and selection of appropriate technology
Environmental impact studies
Operation, fault and risk analysis
Compliance-supervision of quality, cost, schedule and warranty
Operation optimization
Example Swiss Companies in this field:
Hitachi Zosen Inova www.hz-inova.com
ExportHelp www.s-ge.com/exporthelp
T 0844 811 812
Switzerland Global Enterprise
Stampfenbachstrasse 85
CH-8006 Zürich
T +41 44 365 51 51
Switzerland Global Enterprise
Corso Elvezia 16 – CP 5399
CH-6901 Lugano
T +41 91 911 51 35
Switzerland Global Enterprise
Avenue d’Ouchy 47 – CP 315
CH-1001 Lausanne
T +41 21 613 35 70
www.s-ge.com