Clean Energy, Waste and Sustainability
Legislation: Waste and sustainability
There is plenty of change on the near horizon for all business because of forthcoming changes to every business’ obligations in terms of how it deals with its waste.
We have set out below a summary of the legislation together with and overview of timescales for implementation and our view on likely challenges, steps to be taken by businesses to prepare for the changes and opportunities they may present.
Kirstin Roberts FCIWM
Director
New obligations: Simpler recycling reforms
Overview
The Simpler Recycling reforms aim to standardise recycling across England, making it easier for people to recycle the same materials at home, work, or school. Therefore, while at first glance you may think that this is only relevant for local authority waste collectors and householders, in fact, it will affect all businesses that create waste—aka all businesses.
The Regulations confirming the final policy positions were laid on 3 December 2024 and will come into force by 31 March 2025.
Additional guidance to support local authorities, waste collectors and workplaces has also been published:
- Paper and card guidance (written assessments).
- Household waste services guidance.
- Workplace recycling guidance.
- All businesses (including micro-firms i.e. businesses with fewer than 10 FTE employees).
- Relevant non-domestic premises (residential homes, premises forming part of a university or school or other educational establishment, premises forming part of a hospital or nursing home, and premises of a description specified in regulations made by the Secretary of State).
- Local Authorities.
England only – Northern Ireland, Republic of Ireland, Wales, and Scotland have their own recycling regimes.
- 31 March 2025 – Businesses (excluding micro-firms) and relevant non-domestic premises will need to arrange for collection of the core recyclable waste streams excluding garden waste, i.e. glass, metal, plastic, paper and card, and food waste
- 31 March 2026 – Local authorities will be required to collect the core recyclable waste streams from all households in England
- 31 March 2027 – Micro-firms will need to arrange for collection of the core recyclable waste streams
- 31 March 2027 – Kerbside plastic film collections from businesses, households and relevant non-domestic premises will be introduced.
- Firstly, the reforms could lead to increased operational costs for businesses, relevant non-domestic premises and Local Authorities. They may need to invest in new waste management systems and infrastructure to comply with the new recycling guidelines. For example, waste collectors have an additional obligation to prepare a written assessment to explain circumstances when they cannot collect paper and card separately from plastic, metal and glass, which will take additional time and incur further costs. You can access further guidance for waste collectors here.
- Another major challenge will be preventing material cross-contamination by employees, customers or the general public where a person disposes of waste in the incorrect bin—for example, a milkshake in the paper recycling bin. This will be difficult to monitor and prevent and may necessitate the adoption of deterrents
- Finally, the reforms could place additional pressure on already overstretched trading standards teams, which will be required to enforce the new regulations. You can access further guidance for workplaces here
- DEFRA has also launched a Simpler Recycling Communications toolkit which will be continually updated and contains helpful resources for affected organisations to use and understand the regime.
All businesses should prepare by understanding the new regulations, ensuring they have the necessary infrastructure for collection, and educating their staff and, in the case of retail businesses, also their customers, about the changes.
How Can Retail Businesses Effectively Communicate the Changes Brought About by the Simpler Recycling Reforms to Their Customers?
We would suggest retail businesses adopt a multi-faceted approach to communicate the changes brought about by the Simpler Recycling reforms to their customers.
- Firstly, in-store signage can be an effective way to inform customers about the new recycling rules. This could include posters, leaflets, and stickers placed near relevant products or recycling points
- Secondly, businesses could use their online platforms such as websites, social media, and email newsletters to reach a wider audience. These platforms can provide more detailed information, including the reasons behind the changes and the benefits of recycling
- Thirdly, staff training is crucial. Well-informed staff can answer customer queries and provide clear guidance on the new recycling rules.
Remember, the key to effective communication is consistency and clarity. Make sure all messages are clear, concise, and aligned with the new recycling guidelines. This will not only help customers adapt.
What Infrastructure Changes Might All Businesses Need to Implement to Comply with the Simpler Recycling Reforms?
We would recommend several infrastructure changes that retail businesses might need to implement to comply with the Simpler Recycling reforms.
- Firstly, businesses may need to update their waste management systems to accommodate the new recycling categories. This could involve purchasing new bins or modifying existing ones to separate different types of recyclable materials
- Secondly, businesses should consider improving their storage facilities for recyclable materials. This could involve creating designated areas for storing different types of recyclables before they are collected
- Thirdly, businesses may need to invest in training and equipment for their staff. This could include training staff on the new recycling guidelines and providing them with the necessary equipment to handle recyclable materials safely and efficiently. Additionally, small businesses may wish to consider asking their employees to take their waste home with them rather than depositing it in office bins
- Lastly, businesses should consider working with waste management companies that can handle the increased volume and variety of recyclable materials. This could involve renegotiating contracts or seeking new service providers.
These changes may require upfront investment, but they can lead to long-term cost savings, improved environmental performance, and enhanced reputation among customers and stakeholders. It’s important for businesses to view these changes not as a burden, but as an opportunity to contribute to a more sustainable future.
DEFRA’s October 2024 update included a statement that it has removed the provisions from the draft regulations that relate to the introduction of mandatory labelling/provision of recycling information, which means that it will not be a mandatory requirement to label packaging to indicate recyclability when these regulations come into force—which remains on track for January 2025.
Local Authorities have expressed disappointment as this was to be one of the key changes to be introduced via the Simpler Recycling Reforms—to make it easier for consumers to know what waste to recycle—and without the labelling, this key aim is not being achieved.
However, in a statement emailed to industry stakeholders, DEFRA added that it will include mandatory labelling across the UK, likely via an amendment to the forthcoming legislation in 2025.
New obligation: Extended producer responsibility for packaging
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- All businesses (including micro-firms i.e. businesses with fewer than 10 FTE employees).
- Relevant non-domestic premises (residential homes, premises forming part of a university or school or other educational establishment, premises forming part of a hospital or nursing home, and premises of a description specified in regulations made by the Secretary of State).
- Local Authorities.
England only – Northern Ireland, Republic of Ireland, Wales, and Scotland have their own recycling regimes.
- 31 March 2025 – Businesses (excluding micro-firms) and relevant non-domestic premises will need to arrange for collection of the core recyclable waste streams excluding garden waste, i.e. glass, metal, plastic, paper and card, and food waste
- 31 March 2026 – Local authorities will be required to collect the core recyclable waste streams from all households in England
- 31 March 2027 – Micro-firms will need to arrange for collection of the core recyclable waste streams
- 31 March 2027 – Kerbside plastic film collections from businesses, households and relevant non-domestic premises will be introduced.
- Firstly, the reforms could lead to increased operational costs for businesses, relevant non-domestic premises and Local Authorities. They may need to invest in new waste management systems and infrastructure to comply with the new recycling guidelines. For example, waste collectors have an additional obligation to prepare a written assessment to explain circumstances when they cannot collect paper and card separately from plastic, metal and glass, which will take additional time and incur further costs. You can access further guidance for waste collectors here.
- Another major challenge will be preventing material cross-contamination by employees, customers or the general public where a person disposes of waste in the incorrect bin—for example, a milkshake in the paper recycling bin. This will be difficult to monitor and prevent and may necessitate the adoption of deterrents
- Finally, the reforms could place additional pressure on already overstretched trading standards teams, which will be required to enforce the new regulations. You can access further guidance for workplaces here
- DEFRA has also launched a Simpler Recycling Communications toolkit which will be continually updated and contains helpful resources for affected organisations to use and understand the regime.
All businesses should prepare by understanding the new regulations, ensuring they have the necessary infrastructure for collection, and educating their staff and, in the case of retail businesses, also their customers, about the changes.
How Can Retail Businesses Effectively Communicate the Changes Brought About by the Simpler Recycling Reforms to Their Customers?
We would suggest retail businesses adopt a multi-faceted approach to communicate the changes brought about by the Simpler Recycling reforms to their customers.
- Firstly, in-store signage can be an effective way to inform customers about the new recycling rules. This could include posters, leaflets, and stickers placed near relevant products or recycling points
- Secondly, businesses could use their online platforms such as websites, social media, and email newsletters to reach a wider audience. These platforms can provide more detailed information, including the reasons behind the changes and the benefits of recycling
- Thirdly, staff training is crucial. Well-informed staff can answer customer queries and provide clear guidance on the new recycling rules.
Remember, the key to effective communication is consistency and clarity. Make sure all messages are clear, concise, and aligned with the new recycling guidelines. This will not only help customers adapt.
What Infrastructure Changes Might All Businesses Need to Implement to Comply with the Simpler Recycling Reforms?
We would recommend several infrastructure changes that retail businesses might need to implement to comply with the Simpler Recycling reforms.
- Firstly, businesses may need to update their waste management systems to accommodate the new recycling categories. This could involve purchasing new bins or modifying existing ones to separate different types of recyclable materials
- Secondly, businesses should consider improving their storage facilities for recyclable materials. This could involve creating designated areas for storing different types of recyclables before they are collected
- Thirdly, businesses may need to invest in training and equipment for their staff. This could include training staff on the new recycling guidelines and providing them with the necessary equipment to handle recyclable materials safely and efficiently. Additionally, small businesses may wish to consider asking their employees to take their waste home with them rather than depositing it in office bins
- Lastly, businesses should consider working with waste management companies that can handle the increased volume and variety of recyclable materials. This could involve renegotiating contracts or seeking new service providers.
These changes may require upfront investment, but they can lead to long-term cost savings, improved environmental performance, and enhanced reputation among customers and stakeholders. It’s important for businesses to view these changes not as a burden, but as an opportunity to contribute to a more sustainable future.
DEFRA’s October 2024 update included a statement that it has removed the provisions from the draft regulations that relate to the introduction of mandatory labelling/provision of recycling information, which means that it will not be a mandatory requirement to label packaging to indicate recyclability when these regulations come into force—which remains on track for January 2025.
Local Authorities have expressed disappointment as this was to be one of the key changes to be introduced via the Simpler Recycling Reforms—to make it easier for consumers to know what waste to recycle—and without the labelling, this key aim is not being achieved.
However, in a statement emailed to industry stakeholders, DEFRA added that it will include mandatory labelling across the UK, likely via an amendment to the forthcoming legislation in 2025.
Key dates
Jan-25
Mar-25
Apr-25
Oct-25
Jan-25
Mar-25
Apr-25
Oct-25
Jan-25
January 2025
Large organisations to report EPR packaging data for 1 July to December 2024
Mar-25
31 March 2025
Simpler Recycling Reforms come in to effect and businesses (excluding micro-firms) and relevant non-domestic premises will need to arrange for collection of the core recyclable waste streams excluding garden waste i.e. glass, metal, plastic, paper and card, and food waste
Apr-25
1 April 2025
- Small organisations to report EPR packaging data by this date
- The rate of Plastic Packaging Tax increases to £223.69 per tonne
Oct-25
October 2025
pEPR for packaging fees due to start
News
The Government has recently promised ‘a UK solar rooftop revolution’ and reactivated the Solar Taskforce to accelerate the UK’s solar energy rollout as part of an ambitious roadmap to a clean power system by 2030. We expect this will translate to initiatives that look to further unlock residential rooftop solar but also, crucially, rooftop solar on commercial and industrial premises.
A combination of factors including an imperative to reduce carbon emissions in line with net zero commitments, a volatile energy market and lengthy delays to connect to the grid have meant on-site energy solutions are on the rise—with the energy closest to businesses typically being both the greenest and the cheapest.
We generally see two types of structures deployed for commercial rooftop solar:
Landlord to generator
This is where the business as the landlord leases the roof space directly to the generator (this entity will usually be an SPV owned by the developer of the rooftop solar PV system). In this scenario, the landlord will also often be the purchaser of power or ‘offtaker’ who will buy the electricity produced by the solar PV system from the generator through a power purchase agreement (PPA).
Landlord to offtaker to generator
This is where the landlord as freehold owner of the property grants a lease to or has an existing lease in place with the business as an occupying tenant. The business then sub-leases the roof space to the generator i.e. the rooftop solar developer. The business and the generator then enter into a PPA for the electricity produced by the solar PV system.
The different ways to structure rooftop solar arrangements will depend on the existing contractual arrangements in place, business needs and site challenges. Our Clean Energy, Waste & Sustainability team frequently advise on rooftop solar arrangements. We’ve seen a range of businesses exploring rooftop solar, including all types of landlords, warehouse operators, logistics companies, international retailers, manufacturing businesses and public sector bodies.
Circular economy taskforce formed
As of November 2024, an independent expert advisory group has been created to support the government with creating a circular economy strategy in England. The group is made up of experts across government, industry, NGOs and academia.
The taskforce will focus on devising strategies which will: drive economic growth, create green jobs, increase resource efficiency/productivity, and
make Britain a clean energy superpower by accelerating a transition to net zero and supporting the delivery of the UK government’s Industrial Strategy and refreshed Carbon Budget Delivery Plan.
Key contacts
Kirstin Roberts FCIWM
Director
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