Memorandum submitted by the Chemical Industries
Association (X26)
INTRODUCTION
The UK Chemical Industries Association (CIA)
welcomes the chance to comment on this important issue, following
the Committee's press notice of 28 June 2004. We strongly support
the adoption of transparent, efficient and practicable regulation
for the control of chemical industry waste and are committed directly
through our own voluntary programmes to the reduction in the generation
of waste by the industry. Waste management is a challenging area
for the sector at present as we are currently in a shifting regulatory
framework, particularly as the Landfill Directive is implemented.
INDUSTRIAL WASTE:
THE CHEMICAL
INDUSTRY'S
KEY MESSAGES
AND AIMS
1. Implementation of the Landfill Directive
is challenging manufacturing companies, particularly in the area
of hazardous waste production. Prior to the 16 July 2004 deadline
for the cessation of co-disposal, brought about by the Landfill
Directive, we briefed our members on the likely implications of
the Directive. To date, feedback from our members is that whilst
there are certainly many remaining difficult local issues to tackle,
implementation of the Directive is progressing relatively smoothly
for the sector as a whole.
2. We are concerned and disappointed at
the "just in time" approach of implementation adopted
by Defra for the Directive. This led to considerable uncertainties
for our sector in the run up to implementation and remaining uncertainties
exist, particularly with regard to the longer-term sustainability
of all waste disposal routes and their associated costs.
3. We remain concerned that the Government
is not adequately addressing a number of higher-level, strategic
issues. For example, we remain to be convinced that the existing
land use planning system in the UK will deliver adequate waste
treatment and recycling facilities for all classes of waste. Further,
UK business needs a satisfactory definition or a better/more consistent
interpretation of the existing definition waste. We wish to see
the UK Government showing leadership in the EU on this issue.
HAZARDOUS WASTE
Resource use efficiency and recycling
1. The chemical industry accounts for around
12% of all "Special" (hazardous) waste generated in
the UK and is working hard to reduce its production of waste through
recycling and minimisation. The sector has already made large
reductions in the amounts of waste sent for landfill for a number
of reasons, including the improvement of overall performance under
the industry's Responsible Care Programme and IP(P)C controls.
Since 2002, our members have reduced hazardous waste production
by 13% and have achieved a similar reduction in overall amounts
of waste produced.
2. It is common good practice in the industry
to have waste management strategies. The industry takes its Product
Stewardship responsibilities seriously and we are working with
our members to ensure that customers and those down the supply
chain are aware of their waste responsibilities within this rapidly
evolving policy area.
3. Moreover, the CIA has recently published,
and the industry has embraced, a set of long-term sectoral performance/sustainable
development goals for our membership to work towards. In particular,
our members aim, collectively, to reduce hazardous waste production
by 25% during the period 2000-10.
4. This has been a difficult aim to define
given that the additional amount of such waste will increase as
the UK adopts a new definition of "Hazardous Waste"
in line with the Hazardous Waste Directive. It is also an ambitious
target. We will monitor our progress against our goals closely
and share that progress with all interested stakeholders.
5. To both highlight the recent changes
in the law on waste and assist our Members in meeting the requirements
of the Landfill Directive and to contribute to the sectoral goals
set out in our sustainability strategy, we have issued a number
of briefing notes, which offer practical guidance to companies,
case studies and signpost them to other sources of advice.
The cost of waste disposal
6. The only certainty that faced the chemical
industry during the implementation of the ban on co-disposal (the
landfilling of hazardous and non-hazardous waste in the same landfill
cell) was that the cost of landfilling was set to rise. Our members
report landfill gate cost (the amount per tonne that waste producers
are charged by landfill operators—this doesn't include in-house
costs of waste management prior to sending to landfill) increases
of around 100-150% (sic) since April this year.
7. Whilst we acknowledge that UK waste producers
have enjoyed relatively low landfill gate-costs in comparison
to the rest of Europe, certainty of unit costs is important for
business planning. Any price rises in operational costs for chemical
manufacturers affects the "bottom-line" for companies
as global competition for chemical industry products tends to
prohibit companies from passing costs to their customers. Sudden,
unquantified price-rises are unwelcome and quantification of the
costs of the ban on co-disposal might have been easier had landfill
operator had more certainty and clarity over the UK implementation
plans for the Directive at an earlier stage.
LACK OF
CLARITY AND
DELAYS IN
DECISION MAKING
8. There are a large number of European
directives and regulations on waste that create a comprehensive
legal framework for the management and disposal of waste. The
debate seeking a clear definition of the terms "waste"
and "product", however has been going on for years in
Europe, including the UK. Yet there is still no satisfactory definition
of the point at which recovered waste once more becomes a product.
We also lack clear criteria to distinguish between activities
carried out to recover waste—and activities carried out
to dispose of waste. This creates enormous barriers for waste
producers wishing to recover, reuse or recycle waste or even operators
merely wishing to manage their waste in the most sustainable way,
as often operators become caught by expensive and burdensome waste
regulation that would not apply to similar substances defined
as "product"—putting UK business at a competitive
disadvantage and possibly making less environmentally sustainable
disposal routes more attractive.
9. With regards to landfilling of waste,
the chemical industry, and other waste producers, has been operating
in a period of uncertainty with regard to waste management since
the Landfill Directive was first adopted in 1999. The development
of Waste Acceptance Criteria for the various classes of landfill
were seriously delayed in the UK leading to landfill operators
being unable to clarify exactly which classes of landfill they
would operate in future and in turn, waste producers not knowing
if there was to be capacity for waste in future or what the cost
of waste disposal would be (the assumption being that the more
competition for landfill void, the higher the cost to waste producers).
10. There has also been a lack of adequate
guidance on the implications of the Landfill Directive for waste
producers. The "just in time" approach to transposing
legislation into UK law has meant that there has been little or
no time at all between drafting and enactment of legislation for
appropriate guidance to be developed. We acknowledge that Trade
Associations do have a role to play in providing practical guidance
to their members and CIA has consistently offered advice to our
members. The Government and environment agencies have a role to
play however in providing early counsel to those affected by new
legislation. Government interpretative text to meting the requirements
of the Directive has only just appeared on the Defra website (ie
in September 2004).
11. Our underlying message is that uncertainties
in the area of waste policy make it difficult for waste producers
to develop coherent medium to long-term strategies. Whilst this
situation persists, it is difficult to envisage that, in the short-term
at least, waste producers will truly be able to take responsibility
for planning the final destination of their waste.
LANDFILL: GENERAL
ISSUES
Long-term capacity and flexibility in hazardous
waste disposal
12. In order to provide the increased capacity
for waste testing, treatment and final disposal that the Landfill
Directive is driving, the Environment Agency have estimated that
2,000 additional waste management facilities will be needed to
meet the requirements of the EU landfill directive alone. In order
to facilitate this, the land-use planning process (controlled
by the ODPM) will need to provide the conditions within which
the private sector can take investment decisions, obtain a waste
management licence or a Pollution Prevention and Control permit
from the Environment Agency and construct a site. The present
planning regime is unlikely to deliver the required infrastructure
and we would urge the Government to consider how to streamline
and focus the present system, in order to deliver.
13. We support the concept of the waste
hierarchy as set out in the Government's Waste Strategy 2000 for
England and Wales. This suggests that the most effective environmental
solution is to reduce the generation of waste. However, where
further reduction is not practicable, products and materials can
sometimes be re-used. Failing that, value should be recovered
from waste through recycling or composting, or where that is inappropriate,
other options further down the hierarchy should be considered.
We believe that all disposal options should remain open and "Best
Practicable Environmental Option" (BPEO) for waste streams
should be taken into account. As best-practice and waste legislation
pushes waste up the hierarchy, pressure is inevitably placed on
disposal outlets higher up the hierarchy. It is important that
strategic planning for all waste disposal options is high on the
agenda of the Government and waste industry, in discussion with
waste producers and local authorities to ensure adequate future
provision of a variety of waste disposal outlets. We are concerned
that Government is not seriously addressing these broader strategic
issues of waste planning in a coherent way.
14. Certain chemical industry wastes require
high temperature incineration due to their nature (ie are difficult
to dispose of as they have hazardous/flammable/corrosive properties).
Incineration remains an important final disposal option for our
sector where recovery or recycling of wastes is just not practically
or economically feasible. We note that Defra's own research ("Review
of Health and Environmental Effects of Waste Management"
published on 6 May 2004) acknowledges that properly managed modern
incineration is safe and a viable option for waste management.
15. We are concerned that as landfill capacity
for hazardous waste becomes limited, waste producers might become
increasingly reliant on incineration. Whilst there is some capacity
in the merchant high temperature incineration sector, careful
consideration must be given to the impacts that other legislative
changes in the waste arena, such as amendments to the Substitute
Fuels Protocol, are having on the availability of a range of wastes
for incineration. We would hope that the Government and Environment
Agency are working together at a strategic level to secure a variety
of disposal/recovery options for waste producers without inadvertently
damaging the commercial viability of any option. We have no evidence
that this "joined up" and strategic thinking is taking
place.
16. As an industry that sends some waste
for energy to cement kilns, we have welcomed the Environment Agency's
draft proposals to amend the scope of the "Substitute Fuels
Protocol". The retention of cement kilns as an alternative
combustion option for our sector allows for flexibility of final
disposal route for many wastes that have to be burned because
of their nature. Chemical manufacturers have immediate commercial
considerations with respect to disposal options for waste, particularly
post 16 July Landfill Directive cessation of co-disposal. Cement
kilns offer an economical outlet, which in many cases represents
the Best Practicable Environmental Option (BPEO) for the circumstances.
We would expect that the Government and Environment Agency, in
their consideration of legislative requirements for burning of
wastes as fuels or for disposal, offer a level-playing field for
all players in the combustion market and that high environmental
standards would apply.
17. We wish to see Government provide clarity
on the role that it sees incineration playing in future as if
it is to play an important role, the long lead-in time for incineration
facilities to be provided points to the fact that planning for
future capacity needs to be undertaken now, within a clear government
strategy.
ADDENDUM: THE
UK CHEMICAL INDUSTRY
Waste Production in the Chemical Industry: The
Chemical Industry produces 1.75 million tonnes of waste per year,
around 35% or 607 000 tonnes of which is Hazardous. This represents
a reduction in total waste arisings of around 13% since 2002 and
a reduction in Hazardous Waste produced of around 13%.
Chemicals' Contribution to Society: the industry's
products form the basis for every manufacturing activity, underpinning
transport, healthcare, food and drink, construction, textiles,
IT—and indeed all other sectors of the economy. It is impossible
to divorce a successful and responsible chemical industry from
the colourful, diverse, clean and safe environment and high standard
of living that we have come to take for granted.
In particular, industrial chemicals can proudly
claim a major role in increasing human longevity and the quality
of life—life expectancy at birth doubled in the 20th century.
Not only can this be attributed to such recognisably chemically
derived products as drugs and antibiotics but improved water treatment,
detergents and pesticides have all played their part.
Key Contribution to the British Economy and
Employment: the chemical industry in the UK employs 230,000 directly
nationwide, and accounts for 2% of UK GDP and 11% of manufacturing
industry's gross value added. (Within the EU as a whole, the chemical
sector employs 1.7 million people).
It invests over £2 billion annually (plus
£3.5 billion on R&D) and is the UK's top manufacturing
export earner, with an annual trade surplus of nearly £5
billion on a gross output of £46 billion. It also provides
a tax and national insurance contribution of nearly £5 billion
a year to the UK national government and local authorities. The
sector also invests approximately £400 million a year on
training and, on average, full-time employee hourly earnings are
29% higher than in manufacturing generally.
Industry and the Environment: in 2001, the chemical
sector spent more money on environmental protection than any other
comparable British sector. An independent report for Defra estimates
that the UK chemical industry spent a massive £713 million
on environmental protection during 2001 or 18% of the £3.9
billion spent by the whole of UK industry.
This level of expenditure is indicative of the
importance that the chemical sector places on protection of the
UK's air, water and soil environments and, as such, is also a
tribute to the success of the CIA's part in the global "Responsible
Care" programme that commits all its members to continual
improvement in all aspects of health, safety and environmental
performance.
This expenditure has delivered impressive reductions
in emissions from the chemical industry. For example, between
1998 and 2001 emissions of solvents, in the form of Volatile Organic
Compounds, from CIA member companies reduced by a third—from
61,000 to 41,600 tonnes.
The Chemical Industries Association (CIA) &
Sustainable Development: the CIA itself comprises 175 operating
companies, based at 280 manufacturing sites nationwide. It is
the predominant trade association and employers' federation for
the industry, and embraces all trade sectors, product types and
business activities. Based in Westminster, the Association employs
50 staff headed by the Director General, Judith Hackitt. The CIA's
mission statement is:
"To represent the UK chemical and allied
industries to all external stakeholders and to support our members
in achieving economic, social and environmental sustainability".
In September 2003, CIA's governing Council adopted
a new vision for the sector, based on "a competitive and
economically sustainable industry, adopting innovative business
solutions that help satisfy society's needs while:
— optimising the use of resources;
— ensuring that we have taken all reasonable
steps to prevent harm to human health and the environment;
— demonstrating good practice in ethical
behaviour;
— respecting the culture and rights
of individuals; and
— adopting the highest standards of
corporate governance and accountability", summarised as "meeting
needs and expectations".
This followed the launched of a "Leadership
Statement" on Sustainable Development in November 2000 and
the setting of its first Responsible Care Performance Goals in
January 2003. 2004 will see the publication of a full set of guiding
principles and comprehensive sustainable development goals for
CIA's members.
13 October 2004
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