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Market Development
Overall Aim
The Scottish Executive will monitor the state of the markets for recycled materials and ensure business opportunities are highlighted
As the recycling of both municipal and business waste increases, more recyclate is taken out of the waste stream and, as a result, markets are required. In some circumstances, Government intervention may be needed to stimulate markets for recycled materials.
Before Government intervenes in any market it is important that there is a rationale for doing so. Broadly this means that there is either a market failure or a need to accelerate existing trends.
The Executive provides financial support to both WRAP and Remade Scotland to develop markets for recycled products. Their work includes:
- WRAP runs capital competitions to increase the amount of infrastructure available to process recyclate and compost.
- WRAP runs a Business Development Service for recycling companies, which can include advice on sources of finance.
- WRAP and Remade Scotland both carry out research on uses for recycled products.
- Remade Scotland produces an annual report on the state of recycling markets in Scotland. Remade Scotland works closely with WRAP's economic team when carrying out this analysis.
- Remade Scotland produces data showing the amount of recyclate available in the waste stream.
- WRAP, working with Remade Scotland, SEPA and the Environment Agency, has produced standards and protocols for certain recycled products (e.g. PAS 100 for compost).
- Remade Scotland, working with WRAP and SWAG, is analysing local authority collection systems to see what improvements could be made to increase public participation and reduce contamination.
- Remade Scotland is analysing the markets for less mainstream products.
The WRAP capital grant schemes have supported infrastructure with a processing capacity of just over 2 million tonnes a year. WRAP commissioned an independent study into the environmental benefits of recycling. This identified that recycling saves between 10-15 million tonnes of CO2 equivalents per year compared to the current mix of alternative waste management options.
The Executive is developing a paper detailing business opportunities from the National Waste Plan. This will be aimed at business advisors who are non-waste experts, so they can signpost to appropriate sources of advice.
The Minister for Environment and Rural Development has written to public bodies requesting that they specify the use of recycled content in paper and construction applications.
The Executive has also consulted on a market development plan for recyclate. The aim of this proposed plan is to ensure that there is a good economic and environmental rationale for interventions and to ensure that when interventions are planned it is clear which body should undertake the work.
What is currently happening:
6.1 The Executive supports WRAP and Remade Scotland to develop markets for recycled products.
6.2 The Executive has asked public bodies to specify the use of recycled materials in construction projects and when procuring paper.
What will happen:
6.3 Remade Scotland, working with WRAP, will produce an annual report on the state of recycling markets in Scotland. The first such report will be produced by April 2007.
6.4 The Executive, with support from SEPA, WRAP, Remade Scotland and Scottish Enterprise, will issue a paper on business opportunities arising from the National Waste Plan (for Business Advisors) by end May 2007.
6.5 The Executive will publish a Market Development Plan to develop better economic rationale for intervention in the recycling market by the end of May 2007.
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