Maximising the opportunities for re-use of resources. Carl Nichols Head of Business & Markets

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1 Maximising the opportunities for re-use of resources Carl Nichols Head of Business & Markets

2 ABOUT WRAP WRAP s vision is a world without waste, where resources are used sustainably. We help businesses, individuals and communities reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way.

3 What will be covered What is EPOW Feasibility study (2011) Conditions for a commodity market for end-of-waste materials (2012) Creating a waste exchange Lessons learned

4 European Pathway to Zero Waste EPOW is a partnership between The Environment Agency and WRAP. It is a LIFE+ project, part funded by the EU Commission and will run to the end of March EPOW will collaborate with industry and the public sector in the South East to meet its goals.

5 About EPOW Eight steams of work: Developing quality protocols Tackling waste crime Creating demand for sustainable materials Creating a trading platform for sustainable products Waste sector infrastructure Innovative electronic tools Supporting best practice New data management techniques

6 Creating a trading platform for sustainable products EPOW Commissioned the following studies: A. Feasibility of a commodity market in waste materials for the South East B. Conditions for a commodity market for end-of-waste materials C. Creation and promotion of a waste exchange

7 Commodity Market Feasibility Study Eight end-of-waste materials were considered: waste wood; non-packaging plastics; aggregates; tyres bales; paper sludge ash (PSA); plasterboard (PLA), pulverised fuel ash (PFA); and furnace bottom ash (FBA).

8 Commodity Market Feasibility Study Recommendations from the report: A commodity market in waste wood is viable There should be an on going programme, addressing the ways public and private sectors can work together within the waste wood market Waste exchange services should be promoted and developed Public sector support for a commodity market in waste wood should be investigated

9 Conditions for a commodity market for end-of-waste materials EPOW commissioned a study in 2011 to investigate the conditions required for a commodity market for endof-waste materials

10 Conditions for a commodity market for end-of-waste materials First steps, assessed Existing waste wood market Conditions for a commodity exchange commoditisation financial feasibility of an exchange Landfill diversion - what would happen anyway Incremental impact of waste wood commodity exchange

11 Conditions for a commodity market for end-of-waste materials Landfill diversion: Important to distinguish between what may happen in the future anyway what would happen as a result of a waste wood commodity exchange Anticipated growth in demand for waste wood for biomass generation, driven by renewables policies - likely that price of untreated waste wood will rise It may lead to investment in WID-compliant plants which can burn treated waste wood, thus leading to landfill diversion

12 Conditions for a commodity market Impacts: for end-of-waste materials Set up and operating costs of an exchange Benefit from a more liquid market, reducing cost of finding partners Only a small incremental impact on landfill diversion is expected An exchange is potentially viable and the developments may include the commercial establishment of an exchange for wood waste Closer contact of the producers and users of wood potentially facilitate the internationalisation of standards for wood waste

13 Conditions for a commodity market for end-of-waste materials Recommendations: Wood standards need to be tightened for a wood commodity market to take place Government subsidy for such an exchange is not justified due to its limited impact on landfill diversion Policy makers should monitor market developments over the coming years

14 Creation and promotion of a waste exchange

15 Creation and promotion of a waste Facts about the site exchange Launched 21 May 2012, Fully automated on-line portal, designed to buy and sell waste materials Initial focus - construction & demolition; commercial & industrial sectors Comprehensive marketing campaign Project duration 6 months to 5 October 2012 Training workshops across the South East England Free site visits and waste audits

16 Creation and promotion of a waste How it works: Free membership exchange Free uploading/posting of waste Once registered, can communicate with other members You can set a minimum price for your materials and accept the offers you want Reverse vending, allowing you to pay for waste collections at more competitive rates

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18 Taking photographs is too much effort We have limited storage facilities The site looks too complicated and busy 7 Day listings are too short We don t want to change the collection process Feedback on the portal It s hard to see the quality of material from a photo Need to be able to see how many miles from me the waste is Portal needs to be simpler to use I can t afford the time to learn this I already use forums to sell my waste

19 Lessons learned Further government subsidy for commodity exchanges is not justified at this time, although policy makers should monitor market developments over the coming years Waste is being exchanged using different methods and these include online forums and business networking sites Any online portal needs to be easy and intuitive to use Behavioural change is required for the way businesses see and store their waste

20 Thank you YOU CAN HEAR MORE ABOUT THE EPOW PROGRAMME AT 1PM ON WEDNESDAY IN THE COMMERCE & INDUSTRY THEATRE OR VISIT US AT WRAP STAND 19W25 EPOW ALSO IN THE PROFESSIONAL SERVICES HUB