Written evidence from Resources and Waste UK (ISG 174)
Resources and Waste UK (R&WUK) is the recently created partnership between the Chartered Institution of Wastes Management (CIWM) and Environmental Services Association (ESA). Bringing together the professional institution and trade association at the heart of the sustainable resources and waste management industry in the UK, it has been created to form a single voice in the interests of championing the future of resource management.
R&WUK has been pleased to note the Government’s intention to develop an industry strategy for the UK and this Committee’s call for written submissions for its enquiry into the development of that strategy. We believe that wastes must now be managed as vital industrial raw materials (“feedstock”) for future industries turning what has been viewed as a negative value nuisance into a commercial advantage for this country’s businesses. This industry itself employs around 150,000 people in the UK with an annual value of approximately £20B. It manages a very broad range of materials including construction and demolition wastes, metals, plastics, paper and increasingly rare and valuable materials including those in waste electrical and electronic equipment.
Forecasts of industrial demand globally between now and 2050 are based on assumptions of a rapid growth in overall population to at least 9 billion people by 2050 and an even faster growth in urban and “middle class” consuming population – growing by an extra 3 billion people also by 2050. Such forecasts by governments world-wide show a likely resource-constrained future with high competition for energy, water, food, land and materials. UK Government, the EU and the United States of America Government have all identified wide range of “strategically important” materials which will be subject to scarcity and escalating price over this period – see for example EU Commission “Science for Environment Policy (15.09.16): estimates for growth in demand for copper: “Demand for copper could increase by 213% to 341% by 2050, and account for up to 2.4% of global energy demand”. Clearly resource or feedstock constraint could be a major limiting factor in UK business success over this period. The need for a more “circular” materials economy has been recognised by governments and businesses across the world but its development is at an early stage and unpredictable and often perverse market forces suggest that some form of market planning or intervention may be needed to help secondary materials markets develop over the shorter term.
The Committee’s call for submissions includes:
4. What tensions exist between the objectives of an industrial strategy and the objectives of other policies…..?
R&WUK believes there is an important synergy between industrial strategy and resource efficiency / waste management policy. There is a clear need to link the two at a national strategy and preferably regional business development level, using waste-derived materials as an important economic development advantage. The UK currently has a strong reliance on export demand for secondary material outputs from this industry, representing an continued loss of potentially valuable materials. The UK Industry Strategy should seek to maximise the value of these materials realised in this country
5……if not a sectoral approach should the industrial strategy have a broader objective, such as improving productivity?
Whilst the likely need for a sectoral approach is recognised by R&WUK, we believe that feedstock security will become a business continuity / commercial priority. As such, maximising the value of secondary materials as industrial feedstock in the UK should be recognised as a cross-cutting priority in the strategy as it will affect all sectors in the future.
6. Should the strategy have a geographical emphasis?
Waste and resource management policy is a devolved issue in the 4 national governments of the UK. The strategy will have to take account of differences in resource policy which have already developed between the 4 countries including publication of a circular economy strategy “Making Things Last” in Scotland (February 2016) and similar work underway through Welsh Government for instance. Whilst policy continuity in this industry across internal national borders in the UK is generally favoured by this industry, the development of policies and strategy across the UK has had the advantage of allowing different approaches to future resource management to be explored. This Committee should carefully consider the differences between the 4 countries and identify best practice for adoption across the UK.
Resources and Waste UK would appreciate an opportunity to explore the importance of secondary materials as a feedstock security and commercial advantage issue with this Committee through submission of further evidence – either in writing or verbally. We believe this is an opportunity and a potential future threat which needs to be recognised in this Industry Strategy
S.Lee
CEO, Resources and Waste UK