Coveris films president: Incoming EPR alleviates plastic tax concerns by boosting recyclate supply

12 Jul 2022 --- The UK Plastic Packaging Tax is driving industry demand for recycled plastic film products and will be boosted by the implementation of Extended Producer Responsibility (EPR) legislation, according to Coveris’ president of films business, Martin Davis.

Speaking to PackagingInsights, Davis addresses concerns that the recent tax, which came into effect on April 1 this year, is unfairly punishing many industry players that do not have access to Britain’s short supply of post-consumer recyclate (PCR). Where films are concerned, the tax presents an opportunity for Coveris, claims Davis. 

“The introduction of the UK Plastic Packaging Tax this year has further incentivized the use of films with recycled content, driving behavior change in the industry and increased engagement throughout the supply chain from procurement, product development and manufacturing to retail, waste and recycling infrastructure.”

“Coveris’ extrusion facilities have been at the forefront of innovative material development for over 25 years. Far in advance of the tax’s introduction, Coveris has used film science technology and investment in forward-thinking on-site recycling capabilities to offer next-generation, sustainable, co-extruded PE films incorporating recycled content aligned with our vision for ‘No Waste,’” he continues. 

The tax places a £200 (US$252) per metric ton levy on producers or importers of plastic packaging not containing 30% recycled plastic content. The legislation is estimated to impact 20,000 businesses.

An example of Coveris Duralite R shrink film.EPR to boost PCR shortages? 
One of the major worries for industry players is that the PCR supply shortage makes certain companies’ products practically impossible to achieve within the tax’s stipulations. This concern led Camvac even to suggest that for many companies, the tax would be worth paying.  

However, Davis says that new legislation in the UK will bolster PCR supplies in the next few years. 

“The UK Plastics Packaging Tax will be even more effective when supported by upcoming EPR legislation due in 2023 that we anticipate will change the landscape of consumer soft plastic recycling. Improved curbside collections, reprocessing and recycling infrastructure will drive the availability of recycled material and future film innovation compliant with the tax.” 

“Legislation to support the use of food-safe recycled content in compliance with the UK Plastic Packaging Tax is also an opportunity to make the tax more successful. Four Coveris sites within the UK are ISCC PLUS-certified, enabling the use of food-safe chemically recycled content,” he continues. 

According to Veolia-commissioned YouGov research, 77% of British retail and manufacturing businesses were unaware of the UK Plastic Packaging Tax when it launched in April. 

Mass balance approach
Despite these promises for legislative advance in the UK by 2023, Davis also says that the UK must implement better legislation for chemical recycling to help boost the flow of PCR onto the market.  

“The mass balance model recognized in various global markets is currently not recognized within the UK and presents a limitation of the tax for direct food contact applications.” Currently, the UK Plastic Packaging Tax is worth paying for many companies because PCR prices are so high.

“A new regulatory mass balance approach to chemically recycled content for food-safe applications, where it plays a significant role in the safety, protection and shelf life of products, would create new opportunities for the UK Plastic Packaging Tax to be more successful and drive further change,” he says. 

In May, Lindum Packaging warned one in five companies using plastic packaging in the UK has seen their costs increase by more than 75% due to the tax. 

Coveris’ advances 
As the UK’s largest extruder of recyclable PE films, a fully accredited plastics reprocessor since 2007 and with dedicated film science laboratories, Coveris is “uniquely positioned” to drive the development of recycled, recyclable and downgauged films through technical advancement, says Davis.

“Our recent innovations include the award-winning Duralite R printed collation shrink film is a robust, recycled and recyclable solution. The fully recyclable Duralite R contains multiple recycled content options, including 30%, 50% and Duralite R MAX, our maximum recycled material option with built-in features to maintain functional performance and support the growing demand for recycled plastic solutions.” 

“Coveris has also most recently launched a range of lightweight, high-performance stretch films containing a minimum of 30% recycled content. Offering both hand and pre-stretch solutions, the new films are the thinnest recycled stretch films currently available made from a blend of recycled polythene,” he says. 

“Proving our capabilities in lightweight innovation, our new recycled tissue overwrap uses Coveris’ post-industrial recyclate and expert downgauging capabilities to enable the switch from a 30 mu virgin film to a 25 mu 30% recycled version compliant with the UK Plastics Packaging Tax.” 

By Louis Gore-Langton