New UK laws open up recycling’s commercial potential

The Waste Electrical and Electronic Equipment (WEEE) Directive, which comes into force this year, makes manufacturers responsible for taking back and recycling electrical and electronic equipment at the end of its (first) useful life.

While this could be seen as an imposition, the UK Government is shifting opinion so that, instead, it is viewed as a commercial opportunity.

The new laws are providing an incentive for manufacturers to think about the life-cycle of a product at the design stage, and also creating the opportunity for ethical and technology-driven waste management companies to invest in this field.

While recycling may present challenges, the support and incentives available in the UK are providing commercial opportunities and driving the development of new recycling technologies.

A recycling partnership

A good example is the relationship established between the WEEE recycling company environCom and London Remade, a not-for-profit company funded by the London Development Agency.

We will establish a world-class e-waste solution in London, for London.

Joseph Quigley

Chief executive

environCom

Together, in a £25 million investment, they will deal with the 170,000 tonnes of waste electrical and electronic devices generated by the capital each year.

Joseph Quigley, chief executive of environCom says, “We will establish a world-class e-waste solution in London, for London.”

This investment is expected to create 500 jobs.

A supporting role

Earlier this year London Remade published ‘Leave no Footprint’, a document that outlines how it will expand recycling capacity and bring £200 million of investment into the waste and recycling industry in London.

Daniel Silverstone, chief executive of London Remade, says, “Our partnership with environCom sees us well on the way to developing at least ten projects over the next five years.”

Silverstone says the city – like others in the UK – is moving to a resource-management economy, with recycling at the heart of a new generation of reprocessing facilities.

“‘Leave no Footprint’ will develop a state-of-the-art recycling infrastructure capable of reprocessing both municipal and commercial waste,” he says.

London attracts private investors

London’s commitment to recycling is attracting private investment, as exemplified by the announcement of a £12 million plant to recycle drinks bottles made from plastic polyethylene terephthalate (PET) back into new food packaging.

Leave no Footprint’ will develop a state-of-the-art recycling infrastructure capable of reprocessing both municipal and commercial waste.

Danny Silverstone

Chief executive

London Remade

The plant, due to open in December 2007, is backed by Foresight Venture Partners and Allied Irish Bank, and has public funding from the London Development Agency and the Waste & Resources Action Programme.

Martin Brown, manager of corporate banking at Allied Irish Bank, says, “Waste and recycling infrastructure is an increasingly attractive investment proposition, underpinned by potentially strong cash flows from local authorities and blue-chip companies. We are keen to increase our exposure to this sector.”

Government gives a helping hand

Government policy is shifting the mindset, too.

Rather than focusing on waste management, new policies are looking at the value inherent in the materials generated through recycling, and are shifting sentiment towards resource recovery and reuse.

In parallel, the Government has launched a new strategy for cutting waste, which puts a strong emphasis on helping businesses and households to reduce the amount of waste they produce.

This includes encouraging the use of recycling bins in all public areas and increasing the amount of energy produced by using waste that can’t be reused or recycled.

It is expected that from 2020 a quarter of municipal waste, mainly from households, will be used to produce energy, compared to 10 per cent today.