Changes in the waste and recycling industry mean that the price of your Mixed Recycling and General Waste may be affected.
The two main reasons for this are:
1. The value of recycled commodities (such as paper and cardboard) has significantly decreased since 2018
2. A new residual waste incineration tax is being introduced that will increase the cost of general waste disposal
Unfortunately this means that we are unavoidably having to increase the cost of our General Waste and Mixed Recycling services. However, there's lots your business can do to reduce or avoid the impact of the price change, as we are guaranteeing a 2020 price freeze on many of our other recycling services. Find out more.
We're sure you have questions, so we've provided some more info below.
What happens if commodities markets improve?
If the demand for recycled materials reverts back to its January 2019 level, we will pass on the benefit back to our customers.
What is the likelihood of the commodities markets improving?
We are hopeful that in time, the demand for recycled materials will increase as companies become increasingly sustainable, and governments step in to mandate recycled content, as is currently being discussed for plastics.
Why does a Dutch tax affect waste pricing in the UK?
In November 2019, The Netherlands passed through a vote of a new 30% tax on waste imports from other countries from January 1st 2020. The UK as a whole exports around 15% of its waste, much of which goes to the Netherlands. This is because the UK generates more waste than it can process each year, meaning the entire market is reliant on this capacity overseas. Despite this, First Mile responsibly incinerates a large proportion of waste in the UK at a facility inside the M25, feeding renewable energy back into the national grid. However, UK incineration costs track with European costs, so the increase is still expected. It is also expected that Sweden will implement a similar tax as well.
Wouldn't it be cheaper to send residual waste to landfill?
Demand and subsequently price for landfill is also increasing. Additionally landfill contributes much higher to greenhouse gases, therefore we are committed to our zero to landfill policy. Additionally through filtered incineration, renewable energy is produced.
How can I avoid a price increase?
We have introduced a number of new Zero Waste Recycling services which are cheaper than Mixed Recycling and General Waste. And we guarantee to freeze the price of these services throughout 2020. The more materials you divert from your Mixed Recycling and General Waste bins into our other services, the more money you'll save over time. Find out more here.
How much will the cost of my General Waste and Mixed Recycling increase by?
Please get in touch with our Customer Success team who can discuss any price changes with you, as well as recommend how you can offset the increase. Click here to get in touch
What happens to my waste and recycling?
That's a good question, and we have a handy online tool to answer it! Click here
If you still have questions, please get in touch with our Customer Success team.