* Mark Milner, industrial editor
* guardian.co.uk, Tuesday November 11 2008 00.01 GMT
* The Guardian, Tuesday November 11 2008

Paper being recycled

Britain’s paper recycling strategy is under increasing strain after a collapse in waste prices in recent weeks, according to a leading industry organisation.

Britain lacks the capacity to handle the rising amount of paper being recovered for recycling, and its dependence on exports has left it vulnerable to a rapid price collapse, the Confederation of Paper Industries said yesterday.

Far Eastern buyers had been snapping up about three-quarters of Britain’s exports of paper for recycling, but demand from the region has almost disappeared recently, the CPI said.

“With no obvious signs of Far East buyers returning to the market soon there is a serious possibility that storage of recyclables may end up being a high-risk strategy with huge costs to those requiring storage, including the taxpayers through local authorities,” the CPI said in a statement.

“The worst-case scenario is that some material collected for recycling could go to incineration or landfill,” CPI recovered paper sector manager, Peter Seggie, said.

The UK collects about 8.6m tonnes of paper and board for recycling every year but UK paper makers can only handle 4m tonnes, resulting in dependence on export markets, primarily the Far East and Europe, to take the remainder. More …

Waste facilities in Leicestershire and the South West will see major improvements thanks to a combined £181.6 million in funding announced by Defra today.

In Leicestershire, the Private Finance Initiative (PFI) project is expecting to divert 98,000 tonnes of Biodegradable Municipal Waste from landfill in 2020. In the South West the PFI project will divert 293,000 tonnes from landfill in 2020 – making an important contribution to the UK’s landfill directive targets.

Leicestershire plans to build on its already successful recycling and composting record. Not only does the county expect to reach the Government’s 2020 recycling target of 50 per cent 10 years early, but with further plans it aims to reach 58 per cent by 2017. In the South West, 92 per cent of the biodegradable waste in the area will be diverted from landfill.

The schemes could also deliver estimated total net carbon savings of 53,260 tonnes in 2019/20, compared to the current situation. The potential for combined heat and power (CHP) could increase this further to 121,500 tonnes of savings over both projects.

Waste Minister Joan Ruddock said:

“Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by Leicestershire and three authorities in the South West.

“PFI agreements like this create a real incentive for local authorities and industry to work together to cut waste and make better use of the waste we do create, as well as reducing our impact on the environment.”