Municipal waste accounts for 9% or 29,734 tons of all waste generated in the United Kingdom (330 million tons). Approximately 89% of the municipal waste segment consists of household waste with the remainder being “community” waste from sites such as parks. Based on a total UK waste management market of $9.7 billion in 2005, municipal waste was estimated to have a market value of approximately $870 million.

Increasing regulations, social trends and new technologies support a forecast of robust new investment in the municipal waste segment of the waste management market. Equipment utilized in the municipal waste segment includes compactors, balers, shredders, refuse collection vehicles, data logging equipment and all types of recycling and incineration equipment.

Although there is strong local and international competition, foreign waste management companies can find a variety of opportunities in the UK.

Unlike the rest of Europe, landfills remain the most common means of waste management in the United Kingdom. However, European Union (EU) regulations are encouraging other waste management methods, such as recycling and Energy-for-Waste (EfW) technology.

Landfill use remains much higher in the United Kingdom than in the other European countries. The United Kingdom also falls behind other European countries in its use of recycling and EfW technology. These data indicate export opportunities in these two market segments.

The fundamental objectives of the United Kingdom’s environmental policies are as follows:

• Reduce waste;
  
• Develop alternative waste management technologies;
  
• Encourage producers and the public to become more aware, accountable and financially;
  
• Responsible for their waste production and disposal.
  

EU legislation, UK government initiatives, and increasing public concerns about environmental pollution and health threats have ensured that waste management will remain high on the political and social agenda.

Trends in Municipal Waste Management

The United Kingdom currently produces approximately 1,113 lb of waste per household annually. However, while the population is forecast to increase 0.5% per year, household waste is expected to grow over 1.5% annually. The UK government has realized that more aggressive and innovative strategies for waste management will be necessary to control this explosive growth. In an effort to propel this strategic shift, the government has created a “waste hierarchy:”

Reduction & Re-use

It is fairly certain the UK will see a move to more corporate and individual accountability, as well as more extensive waste management services, in an effort to reduce the amount of waste produced. EU legislation, such as the Packaging and WEEE directives, continues the drive to increase producer responsibility and accountability. In addition, many producers are becoming more aware of the growing waste problem and are implementing their own schemes such as reusable bags or containers.

Domestically, households are being encouraged to donate items such as furniture or appliances to charities. The government is considering proposals to charge households for the amount of rubbish they generate and there has been recent controversy over the introduction of “micro-chip” bins to monitor domestic trash and recycling habits.

Recycling & Composting

The UK can expect the recycling and composting drive to continue, thus creating many new product sales opportunities for U.S. companies. The percentage of recycled or composted waste remains small but is increasing dramatically. Figures produced by the Department for the Environment show that households are recycling approximately one fifth of their waste, double the amount recycled four years ago. In 2004, 6,982 tons, or 23%, of municipal waste was recycled or composted, an increase of 53% from 2002/03.
Subject to government targets, local authorities are implementing schemes to make recycling easier and more convenient.

Energy Recovery (Energy from Waste - EfW)

A report by the Institution of Civil Engineers and the Renewable Power Association in 2005 states half of the country’s municipal waste currently going into landfills could be used to generate power. There are approximately 15 EfW plants in the UK that incinerate a combined total of 2,818 tons or 9% of municipal waste in 2004/05. Experts are calling for an increase in the use of this type of technology. But while plants are highly regulated, there are a number of concerns about controlling power plant emissions. Despite these worries, the government has stated it is positive regarding EfW technology and has outlined plans to invest in additional research and plant facilities.

Landfill

Despite their many possible negative environmental and heath implications, landfills remain the most prevalent method of waste management in the UK. EU regulations and government initiatives are changing this situation, however. For example, in 1996 a landfill tax was imposed on each ton of waste sent to landfills and the government has proposed progressively increasing this levy. Rules for operating landfill sites are tighter, following the implementation of the EU Landfill Directive (99/31/EC) in 2002, which introduced targets to reduce the amount of biodegradable wastes sent to landfills. Stricter measures include pre-treatment of waste and the prohibition of hazardous waste. Local authorities face fines if they fail to meet targets outlined in the directive. Although the UK uses landfills more than the rest of Europe, it is actively seeking alternative methods of waste management. It is fairly certain that the country will see a slow but gradual reduction in landfill use.

Legislation

The EU is now driving the whole of UK environmental law, and thus its waste management legislation. Companies wishing to enter the market should to be aware of the vast number of EU directives, and consequently UK legislation, pertaining to the sector. EU law aims to:

• Set regulations and standards designed to regulate the waste management industry. For example, the Incineration of Waste Directive (2000/76/EC) lists guidelines for new and existing incineration plants.
  
• Legislate specific types of waste management with the ultimate aim of eradicating harmful waste management methods. The Landfill Directive (99/31/EC) outlines measures to reduce the amount of waste sent to landfill, with a concurrent move to use more environmentally friendly technologies such as recycling.

Two important EU directives currently incorporated into UK law include:

• The Waste Electrical and Electronic Equipment Directive (WEEE) 2002/96/EC. This allows customers to return used goods to retailers. At the time of this report, WEEE regulations are scheduled to enter into force on January 1, 2007, but implementation is planned for July 1, 2007.
  
• Use of Certain Hazardous Substances Directive (RoHS) 2002/96/EC. This aims to reduce the amount of six hazardous substances - lead, mercury, cadium, hexavalent chromium, polybrominated biphenyls and polyrominated diphenyl - in the manufacture of electrical goods on sale from July 1, 2006.
  

BEST PROSPECT

Recycling

In its Waste Strategy Review the government has set targets to recycle 40% of all municipal waste by 2010 and 50% by 2020. It also established recycling and composting objectives for local authorities. The UK government urgently needs to improve its recycling record in order to meet these goals. There are significant opportunities for companies that can offer innovative products, technologies, facilities, and services to increase the recycling or composting process.

EfW

The UK lags behind other European countries in the development and use of EfW technology. Government research in this field predicts that approximately 27% of waste will be managed by EfW technology in 2020. These technologies range from the incineration of non-recyclable materials for energy recovery to newer technologies such as Pyrolysis or waste gasification. There is much interest in new and more efficient ways to convert EfW. Opportunities also exist to bid for government waste contracts, such as providing waste management or consulting services.

Prospective Buyers

Prospective buyers are principally government agencies, such as local authorities. There is extensive use of the Public Financial Initiative (PFI) within the industry. In 1988, the Local Government Act extended compulsory tendering to the waste management sector. Government departments and public sector purchasing organizations are now subject to EU procurement directives. For projects or supplies over a certain financial threshold, agencies are required to publish a Contract Award Notice on the Supplement of the European Union (Tenders Electronic Daily – TED web site).

There are also opportunities with the private sector; for example, companies that may require specific types of equipment such as waste containers or landfill equipment.

Market Entry

Companies should consider the following ways to enter the UK market:

• Explore a partnering with a local distributor. Partners provide valuable local knowledge about the market and ease the entry and import process.
  
• Exhibit at a UK environmental or waste management trade show. Additional information about forthcoming environmental sector trade events is noted below. Exhibiting your product or service at a local trade show gives it much needed exposure to industry specifiers. Companies need to ensure that they choose the most beneficial trade show for their product.

For more information on the waste crisis in the UK please download and watch the following videos:

BBC - Real Story - UK WASTE Video 1.

BBC - Real Story - UK WASTE Video 2.

BBC - Real Story - UK WASTE Video 3.

BBC - Real Story - UK WASTE Video 4.