Due to come into effect in April 2022, the tax will apply to plastic packaging made in the UK or imported into the UK that does not contain at least 30% recycled plastic, excluding packaging that is not predominantly plastic.
The new measure is estimated to affect up to 20,000 plastic packaging manufacturers and importers and is expected to have the highest impact on the waste and recycling sector since the landfill tax was introduced.
Craig Turner, General Manager of Southgate Packaging said, “This new legislation is going to have a huge impact. It’s a change that we at Southgate welcome as it aligns with our broader strategy to increase our volume of sustainable packaging solutions.
“Recycled plastic has a carbon footprint that can be up to four times lower than that of virgin plastic. So if we want to achieve the Global Climate G7 goals of becoming climate neutral in the near future, the plastic packaging tax is the first big step. ”
Turner added that the company is determined to develop a number of alternative products and expand its range to reduce plastic content.
“For example, our climate-neutral air cushions already use 53% of the recycled content. We plan to continue expanding our range in line with the new tax to reduce plastic content while increasing user productivity and profitability. “