Darren Robinson Photography
Duo, Manchester.
Newly published HMRC figures show businesses have declared around 5.8million tonnes of plastic packaging containing 30% or more recycled content since the Plastic Packaging Tax (PPT) was introduced in April 2022. While this is helping save carbon emissions, compared to using virgin plastic, the overall environmental impact could be carbon negative if bio-based plastics were not subject to the same £228.82 per tonne PPT charge as virgin plastics.
Analysis by Duo Packaging found that 5.8million tonnes of packaging containing a minimum of 30% recycled plastic has an estimated carbon footprint of 13.90million tonnes CO₂e/t, which is around 3.26 million tonnes less than the same amount of virgin plastic packaging.
Carbon savings during the first four years of the PPT could have been -12.30million tonnes of CO₂e, if companies had opted for bio-based, low-carbon alternatives, such as I’m greenTM bio-based, a plant-based plastic solution made from sugarcane.
Zoe Brimelow, a director at Duo, commented: “Prior to the introduction of the PPT, our GreenPE mailing bags, made from I’m greenTM bio-based, were one of our most innovative, low-impact packaging solutions. We were seeing year-on-year growth, but demand declined sharply in 2022 and has coincided with an increase in sales of our recycled-content plastic packaging.
“We’ve seen customers switch from the bio-based mailing bags to packaging that complies with the plastic packaging tax, simply because they can’t afford to absorb the tax as another overhead. Many brands and retailers have been reluctant to make this switch, but have little choice in highly competitive, price-sensitive markets.”
Duo’s GreenPE mailing bags are made from I’m greenTM bio-based, a bio-based polyethylene (PE) that is chemically identical to fossil-based PE but is produced from a renewable source of sugarcane ethanol. During growth, sugarcane absorbs CO2 from the atmosphere and through the production process creates a carbon-capturing bio-solution, which even has a negative carbon footprint from cradle to gate[1], and can be used in standard manufacturing processes and recycling infrastructures.
Zoe added: “One of the great advantages of bio-based plastics like I’m green TM bio-based, is that they can be recycled with other polythene products. However, there’s not a significant amount of recycled bio-based plastic in the market, because there isn’t the demand or volume of material to recycle bio-based plastics in closed-loop processes. This is needed to guarantee the minimum 30% threshold to comply with the plastic packaging tax and avoid paying the levy. This is deterring investment and innovation in carbon-negative packaging solutions, which could otherwise support the UK’s move to net zero.
“The plastic packaging tax has to change. Currently, it’s an own goal for net zero strategies. If tax allowances were made for bio-based plastics, it could encourage uptake of low carbon packaging and reduce demand for virgin fossil-derived plastic.
“Allowance could also enable current packaging formats, which are unable to use recycled plastic, to use a better, less carbon intensive option. Another option is to look at the £1 billion plus of revenue that has been generated by the PPT, using these funds to develop recycling infrastructure and support advances in bio-based packaging materials.”
About the data contained in this press release:
- 5.8 million tonnes of ‘Plastic Packaging Tax relieved or exempt packaging’ (i.e. 30% or more recycled content) for years 2022-23, 2023-24, 2024-25 and 2025-26. Source - HMRC (table 3)
- I’m Green TM bio-based polythene by Braskem has a carbon footprint of -2.12 t CO₂e per tonne. Source – Braskem.
- Calculating average carbon footprints:
- According to the Association of Plastic Recyclers (APR), the production of virgin plastics (PET, HDPE, PP) requires 1.7–3.0× more expended energy than mechanically recycled resin. Source – The Association of Plastic Recyclers
- UK government data, ‘Greenhouse gas reporting: conversion factors 2024’ shows the primary material production across ‘LDPE and LLDPE (incl. forming) plastics’ is 2.959 t CO₂e/t. LDPE and LLDPE (incl. Forming from a closed-loop source shows 1.088 t CO2eq).
- Weighted-average calculation for plastic packaging containing a minimum of 30% recycled content:
- Virgin plastic: assumed 2.959 t CO₂e/t
- LDPE and LLDPE plastic from a closed-loop source: 1.088 t CO₂e/t
- Formula applied: 0.70 x 2.959 + 0.30 x 1.088 = 2.397 CO₂e/t