Select Committee on Environment, Transport and Regional Affairs Memoranda


MEMORANDUM BY CLEANAWAY LIMITED (DSW 71)

INTRODUCTION

  Cleanaway, as one of the largest waste management companies in the UK, is involved in the management of all categories of industrial, commercial and municipal waste. Cleanaway has a sister company operating in Germany giving a combined turnover equivalent to over £500 million per annum. The UK operation benefits from the significant experience gained in Germany of waste and waste paper recycling.

  Cleanaway submitted a memorandum to the previous Inquiry in 1998 and also provided witnesses for examination. We are grateful for the opportunity to submit further comments to the new Inquiry.

GENERAL

  The statements made by Cleanaway to the previous inquiry of the sub-committee generally still obtain. Hence, in this Memorandum, we have attempted to provide new views and information to address the themes that the sub-committee wish to examine, with particular regard to the Government's Waste Strategy for England and Wales.

  An emphasis is placed throughout the waste strategy on sustainable development and sustainable waste management. Cleanaway was questioned at the last inquiry on the definition of "sustainable waste management". Our pragmatic suggestion was "sustainable waste management practices are those which minimise environmental impact and the use of non-renewable resources whilst utilising the best practicable environmental option for each waste type being managed, having regard to local conditions. We feel that what is needed in terms of understanding sustainable waste management is for an agreed protocol for whole life cycle analyses to be produced on an international basis".

  Whilst we continue to see this as the best workable approach, the terms "sustainable" and "waste management" are clearly contradictory and we have some sympathy for views propounded by others at the previous inquiry that there is no scope for waste in a truly sustainable system. However, the point we would make here is that everyone recognises this apparent contradiction and thus, the term "sustainable waste management" may, in itself, be a barrier to change and progress by setting an unattainable target. We would, therefore, recommend the use of a term that is demonstrably more attainable, such as "environmentally responsible waste management".

  The aspirations and targets of the strategy are clearly stated and welcomed. However, it is our view that Government has to be far more positive and instrumental in eliciting change. It seems essential that a large scale education campaign must be launched to make the general public aware of the mounting problems and to obtain their very strong support in providing solutions. Beyond that, legislation may be required to prevent the misuse of resources either by avoiding the generation of waste or by ensuring it is recycled.

DETAILED COMMENTS

  We now explore the main topics of emphasis of the inquiry.

1.  MORE EFFICIENT USE OF RESOURCES AND A CONSEQUENT REDUCTION IN THE AMOUNT OF MATERIAL ENTERING THE WASTE STREAM

  The strategy serves to perpetuate inappropriate attitudes that have developed towards the generation and disposal of waste. Recycling is strongly promoted but this gives a tacit acceptance of the generation of waste, provided a component is recycled. The term "reduce" seems weak and may have been brought into use because of its alliterative link to other terms in the Waste Hierarchy. A stronger signal to avoid waste generation is needed. Though the strategy suggests that the public should avoid "over shopping" and choose "products that will create less waste" (Pt.1, 2.11), this is not a compelling dictate for change. Greater efforts towards waste avoidance would release finance to promote recycling. The term "minimisation" is also unhelpful because it is generally applied synonymously with reduction rather than in the true sense of the word.

  The strategy recognises that re-use formerly played a more prominent role both commercially and in the household: deposit—refund schemes and doorstep delivery of products in refillable containers used to be widespread. However, this implies that such containers are waste, being brought back into use. Such refillable containers were never previously considered to be waste or part of the waste stream. They are examples of waste avoidance not re-use. They were designed for refilling and their intrinsic value was maintained by the deposit. It follows that the intrinsic value of a product will determine when it enters the waste stream.

  It is recognised that establishing the most efficient use of resources is highly complex but it is this complex analysis that Government should be carrying out. This could then, for example, determine whether refillable drinks containers are the best use of resources or whether a particular type of one trip container associated with a high percentage of recycling would be more efficient. The life-cycle assessment tool developed by the Agency would have to be developed further to assess individual items rather than groupings.

  Having established the best option, its use should be supported by legislation. It might be argued that this would be restricting the freedom of an individual to choose, but individuals do not have unrestricted freedoms in a civilised society and this should be emphasised when the aims are ultimately the protection of the environment. This approach could also be used to limit the quantities and types of materials used in packaging so that the resultant reduced quantities produced could be more easily recycled. This should extend into the domestic environment and not be restricted to the commercial application of the Packaging Regulations. The strategy makes mention of the "bags for life" approach promoted by supermarkets.

There is no reason why this should not be made mandatory. There could be no logical argument against it and supermarkets might even gain by reduction in costs or increased customer loyalty.

2.  AN INCREASE IN THE RECYCLING OF WASTE, PARTICULARLY BY GREATER DEVELOPMENT OF MARKETS FOR RECYCLED MATERIAL (INCLUDING COMPOST) AND THE USE OF PRODUCER RESPONSIBILITY MEASURES

  There are only two types of measures that can guarantee an increase in the recycling of waste: legislative (as touched on in section 1), and fiscal. The strategy has included a series of targets but without accompanying fiscal measures, no progress is guaranteed.

  A target has been established for industrial and commercial waste:

    —  by 2005, to reduce the amount of industrial and commercial waste sent to landfill, to 85 per cent of that landfilled in 1998.

  This target is intended to "encourage businesses to reduce waste and to put any waste that is produced to better use" (Pt 1, 2.32).

  This is beset with problems. There appears to be nobody charged with the responsibility to implement the target and there is no fiscal measure to ensure that the target is met. It is intended to reduce the amount of waste from these sources but the target relates only to a reduction in the amount sent to landfill. So there is no actual requirement to reduce the production of this type of waste. It is also surprising that the target for industrial and commercial waste is quite modest compared with those for municipal and household wastes. Commercial waste tends to be much more consistent in quality and, therefore, lends itself more to recycling than household waste. The same would apply to many industrial wastes that are often generated in relatively large quantities and again are consistent in quality. This is illustrated in an example from Germany described below.

  With regard to municipal waste, the Government will set statutory performance standards for local authority recycling in England. Again, there is no indication of legal or fiscal penalties for failure to comply, only a vague reference that "sanctions will be applied" (Pt 1, 3.47). Whilst the strategy includes initiatives such as "WRAP" to promote markets for recycled materials, the linkage of supply and demand is so strong that the two have to grow together though this might be facilitated by financial encouragements in the market place. True hypothecation of some of the landfill tax collected could be a valuable use of such tax revenues.

  To assist local authorities in meeting their targets and standards for recycling, the Government should be channelling back information obtained from those countries where waste recycling is much better established. Through our sister company in Germany, we have obtained statistics for recycling of MSW and industrial/commercial waste in the City of Hamburg as follows:
Tonnes MSW

Commercial/ Industrial

Total
Separately Collected Recyclables264,700 439,150703,850
Rejects41,10014,150 55,250
RECYCLED MATERIAL223,600 425,000648,600
Waste Stream to Disposal431,500 379,100810,600
TOTAL RECYCLABLES AND DISPOSAL655,100 804,1001,459,200
Recycled %34.152.9 44.4

  MSW comprises 44.9 per cent of the combined MSW and commercial/industrial waste stream.

  These statistics were derived in 1997 but the 1998 figures are very similar. They show that excluding inert waste, MSW comprised 44.9 per cent of the total of MSW and commercial and industrial waste generated. Whilst 44 per cent of the total waste generated in these categories was recycled, only 34.1 per cent of MSW was recycled compared with 52.9 per cent of commercial and industrial waste. This indicates the difficulty in recycling MSW and the relative ease with which commercial and industrial waste can be recycled.

  The achievements in Hamburg in developing recycling of MSW depended very heavily on source segregation of the recyclable materials and a high quality education programme. This shows that even with significant regulatory support and a comparatively high recycling base of 18 per cent in 1989, some seven or eight years was required to achieve the recycling rate of 34 per cent. This suggests that the Government's recycling targets for household waste in England and Wales set for 2005, 2010 and 2015 are very ambitious.

  Extensive networks of facilities will have to be provided in order to achieve the recycling and composting targets. Planning applications for these facilities are proving to be as unpopular as for other waste management processes, with both the public and planning committees. Planning authorities may have to be more realistic in their approach to proposals to ensure the necessary infrastructure becomes available without the cost implications to the applicants of many aborted or appealed applications.

  As markets are promoted and developed for recyclable materials, care must be taken to curb natural enthusiasm to ensure that the markets use the resources appropriately. For example, the recycling of glass for use in aggregates for road metalling may seem quite appropriate, displacing the use of virgin materials supplied by the extraction industries. However, this would lose the value of the energy already consumed in the manufacture of the glass, some of which would be recovered if the glass were properly recycled into new glass. Again, a fully established life cycle assessment model would enable the correct decision to be taken. The same assessment approach would also have to be adopted if markets were to be stimulated by mandatory minimum proportions of recycled materials in appropriate new products.

3.  INCREASED USE OF INCINERATION AS A WASTE DISPOSAL/RECOVERY OPTION

  The introduction of the Landfill Directive will mean a progressive reduction in the amount of bio-degradable waste going to landfill by 2020 to 35 per cent of the total amount by weight produced in 1995. If the recent 3 per cent growth rate in production of municipal waste is maintained, the percentage reduction required in the total bio-degradable municipal waste being produced will be significantly higher.

  If the more easily recyclable materials such as paper, card and green waste are removed to achieve the recycling or composting targets of the strategy, then the remaining components will contain a high proportion of putrescible waste. Using the breakdown of household waste given in Part 2, para 4.41, if half of the putrescible fraction were removed (as green waste) and three-quarters of the paper and card, 65 per cent of the waste would remain and some form of disposal such as incineration with energy recovery will be needed. The strategy targets indicate that by 2015, up to 34 per cent of the value of municipal waste could be recovered by incineration (Pt 1, 2.35-2.38). Indeed, the strategy document recognises that up to 166 incinerators may be required for the diversion of waste from landfill (Annex C, Appendix C).

  In recent times, there has been a growing adverse public reaction to the concept of incineration of waste. This has been founded on fears related to atmospheric emissions which have been compounded by suggested risks associated with dioxin emissions based on American research. To this is added the assertion that incineration discourages recycling because of the financial necessity to keep a consistent supply to incinerators to ensure power is generated and a revenue stream is maintained.

  We believe that incineration with energy recovery will form part of an integrated approach to waste management. The technologies are demonstrably available to ensure that atmospheric emissions are to a very high standard and that the environment will be protected. Closely linked to recycling processes, incineration will very significantly lessen the reliance on landfill. The residuals can largely be used in the construction industry or if necessary, disposed of to landfill with a very reduced potential for harming the environment. It is unclear why Government has decided that re-use of residuals should not count as part of the total quantity of waste materials recycled. Incinerators (and treatment processes) have a finite capacity and cannot readily be extended. Hence, to accommodate growth in waste and occasional breakdowns, landfill with its more elastic capacity is still required, albeit with reduced importance, as part of the integrated approach.

  The energy recovered in incineration makes an important contribution to avoiding the use of non-renewable resources. It also helps secure the substantial financial support needed for these projects. It will be unfortunate, therefore, if Government is forced to exclude energy from waste from the Renewable Energy Obligation (REO). Further value can be added by supplying the low grade heat to district heating systems, though this needs major advance planning as retro-fitting such systems is very difficult and expensive.

  If the strategy targets are to be met using incineration with energy recovery, central and local government departments have to accept that incineration plants are very capital intensive and, therefore, demand guaranteed waste inputs. In addition, there are significant cost and environmental benefits gained through scale. Larger plants can offer more emission controls with a greater element of redundancy supported by more specialist staff. Planning authorities, who are most often the same authorities as those charged with the responsibility for disposing of MSW, have to recognise that relatively large areas of land are required for such plants in locations close to the source of the waste and the existing transport infrastructure.

  Government can do much to smooth the process of gaining the necessary planning permissions and permits to operate such plants by ensuring sites are identified in waste local plans. Government might also usefully take a lead on publicising its views on the environmental issues so that repeated public inquiries into the same issues though at different locations can be avoided. The inquiry procedures add another lengthy delay to an urgent need for change in waste management methods and the huge element of uncertainty of success in making planning applications for such facilities does not help to procure the necessary backing for such major new investment. The costs of public inquiries to Government and to the public and private sectors are enormous and such funds would perhaps be better spent on financing additional recycling initiatives.

4.  A REDUCTION IN THE AMOUNT OF WASTE SENT TO LANDFILL

  The targets for the reduction in the use of landfill are relatively long term and are far from complete bans. Consequently, it must be appreciated that landfill will remain a fundamental part of the waste management strategy for England and Wales for the foreseeable future. So far, few alternative facilities have been put in place. Additional facilities and associated recycling schemes involve a high initial capital outlay and have long lead-in times. There will inevitably be a significant lag before large reductions in waste streams going to landfill are achieved or significant revenues are derived from the recycled materials.

  This is one of the reasons why the imposition of the landfill tax has been slow to influence the diversion of municipal waste from landfill. Excepting inert and construction and demolition waste, there does not appear to have been a great impact on the industrial sector either. This is not surprising since waste producers in both cases may have little ability or incentive to reduce the waste they produce. Indeed, the provision of "wheelie bins" for many households seems to have encouraged household waste production, making it easier to dispose of large quantities and removing the incentive to recycle or compost.

  The Landfill Directive requires a reduction of biodegradable waste going to landfill by 2020 to 35 per cent of the 1995 amount. As already indicated, only financial or legislative incentives are likely to reduce the amount of wastes going to landfill. The effect of the legislative controls will also depend on the level of the sanctions. This will apply both to the statutory performance standards and to the tradable permits for the limits on bio-degradable waste permitted to go to landfill. It is impossible to conceive of a situation where waste is piling up in the streets because targets have not been met or permit limits have been reached. The imposition of fines or financial capping would lead either to a reduction in the availability of funding for recycling initiatives or the passing of costs directly to the public through council tax.

  The Landfill Tax Credit Scheme has been useful in addressing the perceived detrimental effect of landfills to the local environment but its impact on encouraging recycling has, so far, been quite limited. This is related to the restrictions imposed by regulations in the use of such funding for research or education purposes only. Unless direct use of tax credits for recycling initiatives is permitted or there is hypothecation for this purpose, the tax will continue to appear to be a very blunt instrument for achieving recycling targets. Perhaps rebates of tax paid by local authorities could be made in relation to achievements in recycling.

5.  A REDUCTION IN, AND BETTER MANAGEMENT OF, HAZARDOUS WASTE

  Government has been slow in making provision by 16 July 2001 for the transposition of the Landfill Directive. With well under a year left, consultation documents on the fundamental changes to the arrangements for managing hazardous wastes have yet to appear. It seems unlikely that legislation and guidance will be in place in time. Industry still has no confirmed interpretation of the implications of the Directive and so cannot plan and commit expenditure to provide the facilities necessary to ensure compliance. It is already extremely difficult to obtain permissions and permits for non-hazardous waste landfills or treatment facilities. Even if companies are prepared to commit the required capital, the prospects for providing the necessary hazardous waste treatment and disposal facilities within the Directive timetable seem very bleak.

6.  SIGNIFICANT ACTION TO IMPROVE THE EXAMPLE SET BY GOVERNMENT IN EXERCISING `GREEN' PROCUREMENT POLICIES

  In addition to expanding green procurement policies, Government should ensure that recycled materials are not precluded from being used, eg the specification for road building materials should refer to the properties of the materials rather than to the material types.

  Central and local government should make every effort to use the products of recycling and composting initiatives. We can site examples of where local authorities have employed recycling officers yet their parks departments have not been required to use compost produced from green waste.

7.  SUFFICIENT ACTION TO EDUCATE THE PUBLIC ABOUT THE IMPORTANCE OF SUSTAINABLE WASTE MANAGEMENT

  It is suggested that part of the extra finance to help authorities meet the recycling targets announced in the Government's comprehensive spending review should be used to fund a national education campaign aimed at raising public awareness of the issues and obtaining support in providing the solutions. This is likely to be a long-term process and so an essential starting point would be repeated reinforcement at schools.

CONCLUSIONS AND RECOMMENDATIONS

  The Waste Strategy sets clear targets for waste recycling and composting, recovery and reductions of the amounts going to landfill. However, these are not supported by legislative, or perhaps more importantly, financial incentives.

  By comparison with the German experience where recycling is much more advanced, these targets may prove to be very ambitious without financial incentives and significant regulatory support.

  There is insufficient attention paid to the avoidance of waste generation and the provision of a motivating influence.

  Even after the achievement of all the targets, alternative methods of disposal will still be required.

  Energy from waste (including incineration) will form part of an integrated approach to waste management with landfill as a necessary but flexible adjunct.

  The provision of facilities to replace landfill is progressing very slowly partly because of the initial high capital outlay and long lead in times.

  The landfill tax is proving to be a rather blunt instrument in this diversion process and the more direct use of the tax collected to encourage change would appear to be necessary.

  Both central and local Government need to recognise the important roles they can play in accelerating the planning process to ensure that all the necessary new waste management facilities can be put in place.

  Even greater difficulties may be encountered in providing new facilities to treat hazardous waste in order to comply with the Landfill Directive. Progress has been slow and no guidance has yet been given to industry from which they may plan the necessary facilities and obtain the necessary finances.

  If the aims of the strategy are to be fulfilled, the full support of the general public will be required. A major long term education campaign for all groups will be needed, probably starting at a young age in schools.

September 2000


 
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