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Waste Transition Limited
1. The UK Waste Industry
2. Investing in the UK Waste Industry
3. Waste Transition Limited
The UK Waste Industry
The drive towards a greener economy is impacting many industries, however the waste transition is particularly far reaching, touching not only the waste management industry but also householders, commercial/industrial waste producers and users of the materials and energy from wastes which would historically have been landfilled.
Looking backwards, the paradigm was very much one of "truck and dump" - mixed waste would be collected and deposited in whichever landfill site was nearer or cheaper. Recycling was unstructured and limited to scrap cars, the rag and bone trade etc. The waste transition that we are seeing now was driven by a number of regulatory, fiscal, technological, economic and attitudinal factors:
EU legislation
Landfill diversion and recycling targets for municipal waste [MSW]
Green agenda and environmental reporting by major companies
Climate change concerns
Landfill Tax
Energy security and incentives
Spare capacity and demand for RDF from EfW plants in Europe
Resouce scarcity and increasing raw material prices
Producer Responsibility
The result has been a substantial reduction in the number of active landfills, comprehensive household recycling collections by local authorities, the procurement of new MSW infrastructure through PFI contracts and a focus on recycling and carbon footprint by major commercial/industrial waste producers. We have already seen interest in the sector from new entrants bringing finance or technology and from companies interested in reprocessing the recycled materials or in the generation or use of energy (electricity, gas, heat, biofuels etc.) generated from residual waste materials.
So, we have new regulation, new political attitudes, new technologies, new business models and new players. Investment in the sector has the potentrial to be very rewarding but many investments in projects or acquisitions will be unsuccessful due to a failure to distinguish between good and bad opportunities and/or due to not recognising all the elements needed for success in a complex and fast changing sector
Investing in the UK Waste Industry
Those entering or investing in the waste sector will need to consider legislative, market, technology and operational issues and be aware that economics and technology can be in conflict with legislative or environmental objectives.
The recycling and energy recovery markets were largely created by legislation but some of this legislation no longer meets the needs of the market or investors and calls for change are becoming louder and more widespread e.g:
MRF code of practice has been introduced to address poor quality sorting of recyclates
Greater enforcement of existing regulations is required to stop illegal exports from undermining legitimate UK operators
PRN reform - flaws in the regulations mean that illegal exporters are given incentives and those manufacturers adopting the use of recycled content are treated the same as those using virgin materials
Landfill tax modernisation was introduced as the detailed regulations were drafted before recycling plants were developed and they did not accommodate the trommel fines produced during the recycling process. Revised guidance has recently been issued.
Devolution - the different targets and waste policies adopted in Scotland and Wales create uncertainty regarding the longer term position in England.
The EU Waste Framework Directive requirements re separate collection became effective in January 2015 will impact collection and recycling operators but details remain unclear as enforcement is patchy.
Brexit impact.
Waste Transition Limited
Waste Transition Limited (WTL) was established in early 2011 to provide advisory services to those investing in, or financing projects in the rapidly growing waste management and recycling sector. Fees can be tailored to individual circumstances and can include contingency fees and/or equity for strategic business development projects.
WTL currently provides independent input to the advisory board of Powerday and advises several other investors, funders and businesses on key investments, strategic planning and business development.
WTL's director is Paul Levett who has a total of more than 30 years experience in the waste management industry having held a number of board level positions including, Deputy CEO of Veolia Environmental Services UK until 2011. Prior to joining Veolia, Paul was Director - Recycling, Disposal and Municipal Services at Cleanaway. From 1999 to 2004 Paul was based in the USA, latterly as President and General Manager of the CHEP businesses in Asia Pacific, Africa, Latin America and Canada. Paul joined the waste industry in the late ‘70s and following a range of different executive positions; he was appointed FD of Cleanaway UK in 1990 and served in this role until 1995 when he moved to CHEP.
Paul has experience of numerous acquisitions in the waste sector as well as, major contracts and business development projects. Paul has led a number of strategic planning reviews and has experience of managing business interfaces with politics and the media.
Paul is a former board member of the Environmental Services Association and completed a two-year term as a member of the CBI's London Regional Council. Paul is actively involved in Policy Connect, London First and the Aldersgate Group.
WTL also has access to associates with expertise in specific aspects of the sector.
Recent media articles by Paul Levett:
What does BREXIT mean for the RDF industry
https://www.uroc.uk/search?q=Waste
Looking ahead ; The Waste Industry in 2022
https://www.letsrecycle.com/news/latest-news/uk-waste-industry-2022/
Paul Levett: This email address is being protected from spambots. You need JavaScript enabled to view it.
Waste Transition Limited is registered in England - Company No: 7590556