Synthetic plastics are generally not biodegradable and hence cause considerable cost to recycle or dispose. The share of recycled plastics however is low - in the UK, the share of plastic material recovered from household waste is only about 2% - and plastics generally have a poor public image in terms of their environmental impact. By contrast, biopolymers could provide a significant part of the solution, by combining the benefits and convenience of plastics with their environmental benefits of biodegradability and renewability.
There are no direct legislative measures mandating the increased use of biopolymers, unlike, for instance, with the increased use of renewable energy in many countries. However, the industry should begin to benefit indirectly from a number of laws that promote increased environmental responsibility. In this respect, one of the more important drivers for the shift towards biopolymers is likely to be the introduction of the EU landfill directive in the UK.
Households in England and Wales produce around 25 million tonnes of municipal solid waste (MSW) per year, with waste growing at around 3% to 4% per year. Around 78% (19.5 million tonnes) of the household waste in England and Wales is buried at landfill sites each year. Only 13% is recycled or composted. Around 9% of the waste is burnt in incinerators. The amount of waste sent to landfill is much higher than in other European countries. Landfilling is an unsustainable method of waste disposal and European legislation requires national governments and their local authorities to seek alternative means of waste management. The EU Landfill Directive stipulates that by 2010, the volume of biodegradable municipal waste sent to landfill in the UK must be reduced to 75% of 1995 levels. By 2013, this must be reduced to 50% and by 2020 to 35% of 1995 levels. The graph below illustrates the reducing tonnage of household waste that will be permitted to be sent to landfill, against an increasing volume of the waste being produced, forecast at 1% and 3% growth levels.
Non-compliance with the EU directive carries the potential sanction of a fine which is estimated could be up to £180 million per year if the UK does not comply with the Landfill Directive targets.
In order to meet the 2010 target, the UK government must take action now and look to new technologies to either recycle an increasing proportion of waste or to use thermal technologies such as incineration. However, incineration is an unpopular means of disposal in the UK and planning permission for new incinerators is subject to significant public resistance.
In March 2007, two major developments arose in waste policy in the UK. First, the long-awaited Lyons report on local government finance contained recommendations regarding the financing of local authorities' waste businesses and recommended a charge, based on weight, for each kg of non-recycled waste that is collected. Secondly, The Department for Environment, Food and Rural Affairs (DEFRA) put forward its proposals on the waste industry. DEFRA will need to address the impact on local authorities of the EU directive on landfill which requires substantial reductions in the disposal of waste to landfill as by 2010, as described above.
The increased use of biopolymers would help to reduce the amount of biodegradable plastic going to landfill and thus provide a viable short term solution to a growing problem in the UK.
The Growing Cost of Waste
With limited technology choices and lengthy approval processes it is likely that the UK will miss its obligations under the EU directive and will be liable to substantial fines. Such fines will be passed on to local authorities and, in the end, to consumers in the form of higher waste charges. These should, however, also lead to increased efforts in recycling and reuse of materials as well as stimulating demand for biodegradable products.
Elsewhere, German legislation regarding packaging waste allows exemption from the 'Grüner Punkt' for users of biodegradable plastics that are certified as compostable. The 'Green Dot' is a registered trade mark of the Duales System Deutschland GmbH (DSD) marking packaging that can be recycled in Germany and some 23 other European countries. Packaging manufacturers typically pay a levy, entitling them to use the symbol, which finances the recycling of end-of-use packaging and the recovery of their constituent raw materials (aluminium, steel, plastics) by the DSD. The exemption was granted for a transitory phase until 31 December 2012 for plastic packaging and its components that is made from biodegradable substances which are deemed compostable according to producer-independent certification conducted using recognised standards. Producers and distributors are obliged to ensure that the highest possible share of packaging is recovered.
The exemption from the levy should help stimulate demand for appropriately qualified bioplastics. The packaging market is believed to be the largest area of application for plastics based on renewable resources and the German legislator believes the exemption will make a significant contribution towards the promotion of this new material class.
The recently published and widely discussed Stern report on global warming calls for three essential elements of policy to tackle this threat: carbon pricing through taxation, emission trading schemes or regulation so that industry and consumers pay the full cost of their actions; technology to drive low-carbon, high-efficiency products on a large scale; and informing, education and persuading individuals about actions they can take to support energy efficiency.
Whether politicians will translate and implement these recommendations into concrete laws to promote greater environmental protection remains to be seen, but any move along the lines to charge for carbon emissions, perhaps in a new global post-Kyoto agreement, would most likely be very supportive for the more rapid adoption of technologies like biopolymers.
However, even in the absence of greater legislative support, and apart from the environmental arguments in favour of biopolymers, the economic case for their increased adoption is growing while that of synthetic materials is weakening. High/rising oil prices reduce the competitive cost advantage of synthetics versus biopolymers. Potential moves to internalise the environmental cost via a carbon-content related charge would additionally burden synthetics and further strengthen the economic case for biopolymers. However, even without such politically motivated moves and the currently still existing price differential between synthetic plastics and biopolymers there is an emerging and rapidly growing market for biopolymers as early adopters seek to benefit from their environmental advantages.
The Pressure for Change
In response to greater environmental awareness amongst consumers generally, no doubt increasingly driven by heightened perceptions of global warming, many companies are adopting strategies to reduce their carbon footprint. Amongst these Wal-Mart's plans to 'go green' could conceivably have the greatest and most far-reaching impact on numerous markets, including packaging in general and hence plastics. In late 2005, Wal-Mart announced extensive plans to reduce its carbon emissions through a multitude of measures including the reduction of solid waste from its US stores by 25% over three years. In order to achieve these targets, the company is working with its suppliers to explore the best ways to redesign packaging, products and logistics. As part of these plans to become more environmentally friendly, in November 2006, Wal-Mart has started to introduce a 'sustainable scorecard' rating scheme for its suppliers according to environmental criteria. The system is designed to encourage the thousands of its suppliers worldwide to reduce the amount of packaging they use by 5%, increase the use of renewable materials and lower the consumption of energy. Suppliers will need to score highly to become preferred suppliers while low scorers face the risk of losing business. This marks a significant departure for Wal-Mart from its previous policy of choosing suppliers solely on price. Beginning in 2008, Wal-Mart will measure its worldwide supply base to gauge the progress made in meeting the target and the use of more environmentally friendly materials in packaging. The company believes it can save some $3.4bn in costs annually by reducing packaging by 5%.
In the UK, the country's leading grocery retailers are also progressing towards new policies regarding packaging and waste. They have formed a group, Waste & Resources Action Programme (WRAP) that sets out to reduce the amount of packaging and waste from supermarkets. In a recent progress meeting with the UK government's minister for local environment (November 2006), the group proposed three core areas of action to reduce waste and manage resources more effectively. These focus areas are measures to reduce and manage food waste, the increased use of biopolymers and compostable packaging and the use of consistent on-pack recycling information to aid consumers in the recycling of materials.
Further evidence of the increasing importance for companies to adopt a more environmentally conscientious attitude can be found almost daily in the press. For instance, a recent article in the Financial Times titled 'Wave of eco-marketing predicted' suggested that 'environmental branding' is becoming more important, moving up on management board agenda's and increasingly seen as becoming vital for business survival. The article quotes Lee Daley, chairman and CEO of Saatchi & Saatchi UK as follows: "Brands will not be able to opt out of this. Companies which do not live by a green protocol will be financially damaged because consumers will punish them. In the longer term, I do not think they will survive." (Financial Times, February 12 2007, page 3)
The increasing importance of not only talking but doing something about the environment is also enshrined in the UK's Companies Act 2006. Passed into law in November 2007, the wide-ranging act requires that from 2008 listed companies report, as part of their business review and to the extent necessary for an understanding of the business, information on environmental matters including information on their policies relating to this and their effectiveness. This suggests that management of many high-profile companies will be under increasing scrutiny not only to report but also to substantiate on what it is they do to tackle environmental problems in their day-to-day operations.
One substantial contribution related to packaging could come from the increased incorporation of biopolymers in the packaging of goods. Plantic is a solution provider for companies to meet some of the environmental claims they increasingly have to make.
