Following the launch of the
Confederation of European Paper Industries (CEPI) Annual Statistics for 2008,
the Confederation of Paper Industries (CPI) can confirm that the UK has
cemented the position of its recovered paper collection to well above the CEPI
average when calculated using their methodology. However a degree of caution is
required as the UK is in a rather unique position in terms of its trade balance
in finished paper and board products and packaged goods.
Using CPI UK mill returns and HM
Revenue and Customs data, the UK recovered 8.77 million tonnes (77%) of the
11.44 million tonnes of unconverted paper and board products (papers for
printing and conversion to finished products) consumed in the UK in 2008, well
above the reported CEPI average of 67%. However the calculation method used by
CEPI for the above figures does not take into account the UK’s net balance of
trade between imports and exports in finished paper and board products (printed
books, printed magazines, printed greetings cards etc) or the net balance of
trade in packaging around finished goods (corrugated boxes around imported
electricals and food etc). At a European level, this net trade in finished
paper and board products and packaged goods is taken to be in balance.
However in the case of the UK, CPI estimates that for 2008, UK imports of this
type of material exceeded exports by some 1.7 million tonnes. Incorporating
this additional tonnage into the calculation increases the amount available for
recovery from the UK waste stream to 13.14 million tonnes and reduces the UK’s
recycling rate to 67%, the same as the CEPI average.
The CEPI statistics also clearly
show major differences between the UK and the rest of CEPI in terms of reliance
on the export market for paper and board recycling. Of the material collected
by CEPI countries, excluding the UK, 89% was recycled within Europe in
2008. For the UK, only 46% of the material collected in the UK was
recycled in the UK; with this figure likely to fall further through 2009. UK
paper mills continue to lead the way in Europe in terms of recovered paper
usage against domestic production with a recovered paper utilisation rate of
80% against a CEPI average of just 49%.
There are numerous UK drivers
that should continue to push paper and board recovery from the UK residual
waste stream (including the new packaging strategy, the landfill tax escalator
and voluntary initiatives like the “Recycle on the Go” campaign) however the
actual volume recovered may decline in 2009 as the consumption of paper and
board products slows in the current economic climate. These drivers however
should ensure that, even with the import of many finished paper and board
products into the UK, we continue to report at around the European average
level.
Commenting on the figures Peter
Seggie, CPI’s Recovered Paper Sector Manager, said, “These figures confirm the
continued development of recovered paper collection in the UK in comparison to
our European neighbours; however they need to be taken in context. The UK is in
a rather unique position in Europe with increasing collections of recovered
paper but a shrinking domestic recycling capacity; this means domestically we
only recycle 35% of what we consume against a CEPI average of 55%. This is
mainly due to the huge imbalance between UK paper and board consumption and UK
production. The UK paper and board industry supplies just 35% of UK domestic
paper and board consumption; even with a very high utilisation rate of
recovered paper in domestic UK mills, they only use just under 46% of the total
amount of material collected.”
He went on to say, “Because of
growing recovery levels, 2008 saw the UK export over 54% of what it collected
and this will be the norm until the UK increases its domestic paper recycling
capacity. This current position is sustainable as long as there are expanding
overseas markets (as seen with China through most of 2008). However, with
poorer performing European neighbours increasing waste material recovery rates
in line with EU legislation, there will be strong competition on the global
market going forward. Should any issues arise with overseas demand, such as
those seen through the later part of 2008, the UK will suffer severely because
of our low domestic recycling level. There have been further UK papermaking
capacity closures announced in 2009 but their use of recovered paper should be
balanced in part by new production capacity coming on stream in 2009. In the
short to medium term, the UK will continue to rely on the export market to
absorb the majority of material collected from the UK waste stream.”