£9 billion investment in UK facilities not enough
Research that revealed the UK needs to spend £9 billion on recycling and incineration to meet 2020 EU Landfill directive targets has been criticised for “not revealing anything new.”
In a report published at the start of the New Year, finance advisory firm Catalyst Corporate Finance forecast that the level of investment in recycling and incineration infrastructure needed to divert waste from landfill is expected to exceed £9 billion over the course of the next 10 years.
Industry specialists have not expressed surprise at this conclusion.
Joe Schwager, managing director of waste management, environment and renewable energy sector consultancy Juniper, told RWW: “I would certainly agree that a significant amount of money needs to be spent in the recycling and waste industry.
“However, the point raised that £9 billion needs to be spent is not a shocking revelation, but will hopefully galvanise the industry onto the fact that a lot of work needs to be done.
“In general terms, for the industry, local authorities and banks, investment needs to be made quickly to divert waste from landfill and get the UK on track for the 2020 targets.”
Other industry figures have questioned where the £9 billion figure has come from and suggested that the predicted sum is too low.
Speaking to RWW, Michael Grimes, partner and head of waste at Eversheds, said: “A figure of £9 billion is in line with other industry estimates, but recently the government did suggest an even higher figure of £10 billion in the remit for the Waste Infrastructure Delivery Programme - the new cross cutting team to help local authorities manage waste procurement.
“The last 12 months has seen increasing deal flow in completed waste projects and applications for PFI credits as councils grasp the challenge of sustainable waste management. While government expresses confidence that the 2012/13 landfill targets will be met they remain concerned about the longer term targets of 2019/20.
“Government is continuing to increase the pressure on local authorities to deal with waste effectively, but is also giving massive extra help financially with spending set to rise from £280 million in 2007/8 to £600 million in 2008/09, £700 million in 2009/10 and £700 million in 2010/11.”
Mark Wilson, research director at Catalyst, said: “Conservative estimates suggest that in order to meet the Landfill targets and government objectives, as laid out in the Waste Strategy 2007 paper, the level of incinerated municipal waste will have to increase from three million tonnes per year today to 11.5 million tonnes by 2020.
“This will require investment of £5 billion in some 50 plants.”
In a report published at the start of the New Year, finance advisory firm Catalyst Corporate Finance forecast that the level of investment in recycling and incineration infrastructure needed to divert waste from landfill is expected to exceed £9 billion over the course of the next 10 years.
Industry specialists have not expressed surprise at this conclusion.
Joe Schwager, managing director of waste management, environment and renewable energy sector consultancy Juniper, told RWW: “I would certainly agree that a significant amount of money needs to be spent in the recycling and waste industry.
“However, the point raised that £9 billion needs to be spent is not a shocking revelation, but will hopefully galvanise the industry onto the fact that a lot of work needs to be done.
“In general terms, for the industry, local authorities and banks, investment needs to be made quickly to divert waste from landfill and get the UK on track for the 2020 targets.”
Other industry figures have questioned where the £9 billion figure has come from and suggested that the predicted sum is too low.
Speaking to RWW, Michael Grimes, partner and head of waste at Eversheds, said: “A figure of £9 billion is in line with other industry estimates, but recently the government did suggest an even higher figure of £10 billion in the remit for the Waste Infrastructure Delivery Programme - the new cross cutting team to help local authorities manage waste procurement.
“The last 12 months has seen increasing deal flow in completed waste projects and applications for PFI credits as councils grasp the challenge of sustainable waste management. While government expresses confidence that the 2012/13 landfill targets will be met they remain concerned about the longer term targets of 2019/20.
“Government is continuing to increase the pressure on local authorities to deal with waste effectively, but is also giving massive extra help financially with spending set to rise from £280 million in 2007/8 to £600 million in 2008/09, £700 million in 2009/10 and £700 million in 2010/11.”
Mark Wilson, research director at Catalyst, said: “Conservative estimates suggest that in order to meet the Landfill targets and government objectives, as laid out in the Waste Strategy 2007 paper, the level of incinerated municipal waste will have to increase from three million tonnes per year today to 11.5 million tonnes by 2020.
“This will require investment of £5 billion in some 50 plants.”
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