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The Impact of Levies on Single
Use Carrier Bags – A UK
Perspective
Dr Nia Owen
Principal Consultant
2© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• A personal welcome
• Single use carrier bags and their use across the globe
• Approaches used in the UK to reduce single use carrier bag usage and
their performance:
– UK Voluntary Agreement on Carrier Bags
– Legislation in Wales, Northern Ireland, Scotland & England
• Conclusions
Overview
3© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Principal Consultant
• 11 years experience in the waste sector
• Member of the Chartered Institution of Wastes Management
• Knowledge Leader for Waste Auditing
• PhD in material recovery facility design and performance
• Expertise in recycling scheme monitoring, data analysis and options
appraisal
• Acknowledgements
– Brian Mayne, Jamie Warmington and Adam Read
A personal welcome
7© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Over a trillion plastic SUCBs used globally each year.
• Environmental impacts of carrier bags
– Use of non-renewable resources
– Litter: over 8 billion SUCBs became litter in 2010!
• Range of measures used across the globe to reduce the consumption of
SUCBs:
– Bangladesh: complete ban since 2002
– Denmark: bag tax of 22 DDK/kg paid by retailers since 1994
• EU plans to introduce measures:
– Target in draft document - ‘to reduce plastic bags by 80% by 2019,
against 2010 baseline’
– Recommend taxes, levies, marketing restrictions or bans to reduce
their use
Background
8© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• The major supermarkets in the UK
distributed over 8 billion SUCBs across
the UK
• Marine Conservation Society reported
38 plastic bags per km of Britain’s
coastline in 2011.
• Plastic bags contribute 0.1-1.0% of
visible litter in the UK
• Hoarding of bags by consumers is also
an issue....
Carrier bag use in the UK
Source:
http://www.dailymail.co.uk/news/article-
477495/Meet-wacky-woman-collected-23-
000-plastic-bags.html
9© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Number of towns and communities have
become plastic bag free
– 17 towns already plastic bag free
– Further towns in the planning stages to be
plastic bag free
• UK has taken action to reduce SUCB use:
– Voluntary retailer commitment to reduce
SUCB usage since 2006
– Devolved administrations have introduced
regulations to reduce SUCB usage in recent
times.
• This may result in changes to fancy dress
costumes...
Carrier bag use in the UK
Source:
http://www.anorak.co.uk/375819/celebrities/
epic-puns-the-lidle-wain-costume.html/
10© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Initiated between Defra, the devolved governments, the British Retail
Consortium (trade association for the retail sector) and its supermarket
members to reduce SUCB use by 50% by 2009 based on a 2006 baseline
• 7 supermarkets signed up:
– Tesco; Asda; Marks & Spencer; Co-operative Group; Somerfield;
Sainsbury’s Supermarkets; and Waitrose
• Results show that the target of 50% reduction was narrowly missed.
• Retailers agreed to continue monitoring usage
– Since 2009, the number of SUCBs used has been increasing yearly
• Results also show that bag for life usage has been increasing year on
year from 2006 to 2013
– Positive trend, provided that they are reused!
UK Voluntary agreement
11© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• First country in the UK to introduce a charge on SUCBs
• Single Use Carrier Bags Charge (Wales) Regulations 2010.
– Came into force in October 2011
– Shoppers in Wales have to pay a minimum of 5p for each SUCB used
at point of sale
• Aims of charge:
– Decrease the number of SUCBs used in Wales and encourage shift to
reusable bags
– Reducing resource use
– Preventing waste
– Improving local environmental quality – reducing visible litter
Wales
12© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• What to retailers need to do?
– Charge for single use carrier bags made of paper, plastic, part plastic
(including recycled and degradable plastic) at point of sale unless an
exemption is in place
– There is no charge for bags designed to be reused
– Exemptions in place for prescription medication, bags required for food
hygiene, items sold on board ships, trains, or in airports after you pass
through security
– Retailers are responsible for the distribution of the proceeds
• Regulations do not specify where the proceeds should be distributed. But
Welsh Government has developed a voluntary agreement on their use:
– Net proceeds should be donated to good causes
– Retailers should keep a record of bag use
Wales
13© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Ricardo has been evaluating the impact of the charge for Welsh Government.
• Economic evaluation estimated average benefits to the Welsh economy of
£8.8m per annum.
• SUCB use declined by 71% between October 2011 and December 2014
– BUT, data for supermarkets suggest that SUCB is increasing which may
impact on the benefits of the charge in the longer term
– Welsh Government may wish to consider an increase in the charge
• Consumers:
– Consumer support for the 5p charge increased from 61% prior to the
introduction of the charge to 74% in February 2015
– SUCB use varied depending on the type of shopping:
• SUCB use was higher in takeaways and non-food shops compared to food
shopping activities
Wales – impact of the charge
14© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Retailers:
– 87% of retailers reported that the charge made either a positive or
neutral impact on their business
– 74% agreed that they are happy for the charge to continue as it is
– Total administrative cost of SUCB charge to retailers across wales
estimated at £180,000
– Donations to good causes:
• 78% retailers reported donating all of the net proceeds and a further
9% reported donating a portion of the net proceeds
• Donation to good causes estimated at £17 million - £22 million
• Litter:
– 59% of retailers agreed that ‘the charge has helped to reduce litter
– 66% of consumers agreed that ‘the charge has helped to reduce littering
in my local authority’
Wales – impact of the charge
15© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• SUCB levy came into force in April 2013
• Retailers to charge a minimum of 5p on SUCBs made from plastic,
paper, starch etc. @ point of sale
• Exemptions in place
– including bags used for takeaway hot food and drinks
• Net proceeds of the levy payable to the Dept of the Environment
– who distribute the charge to good causes
Northern Ireland
16© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• In 2013/14:
– 84.5 million SUCBs were issued by retailers in Northern Ireland
– Estimated that 300 million bags were issued 2012/13
– 72% reduction in SUCB use
– Levy raised £4.17 million and £3.4 million allocated to over 250
environmental projects
• Changes to the levy introduced in January 2015
– 5p levy extended to all carrier bags with a retail price of 20p or less
regardless of whether they are SUCBs or reusable bags
– Aims to encourage consumers to actively reuse bags including
reusable bags rather than using them in the same way as a SUCB
Northern Ireland – Impact of the levy
17© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• SUCB charge introduced in October 2014
• Retailers must charge a minimum 5p charge for each new SUCB at the
point of sale
– Applies to all SUCBs – paper, plastic and plant based materials
• Regulations do not specify how the net proceeds of the charge should
be used by retailers
– Encouraging businesses to donate the charge to good causes
• To support the regulations, the Carrier Bag Commitment has been
developed. Signatories agree to:
– Donate the net proceeds from the charge to good causes;
– Submit an annual report on the number of carrier bags issued, and
how the net proceeds were distributed
Scotland
18© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Significant increase in SUCB use @ supermarkets
in 2013 before the introduction of the charge
• No reporting data available as yet…
• We are analyzing the data on behalf of Scottish
Government NOW!
Scotland
19© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Retailers in England must charge a minimum of 5p on plastic SUCBs
from 5th October 2015
• Two key differences to the charges used elsewhere in the UK:
– Charge will only apply to plastic bags
– Business with less than 250 employees will be exempt.
– This does mean that for franchises – some will need to charge and
others won’t depending on their size….
• An exemption for biodegradable bags is proposed as a future change to
the Regulations
– Government will provide further information this month on this
proposal
England
20© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• Voluntary and regulatory approach used in the UK and both have proven
to be effective
• Voluntary Agreement only narrowly missed its target
• Results of the regulations implemented in Wales and Northern Ireland
have also proven to be effective:
– 72% and 71% decline in SUCB use in Northern Ireland and Wales
respectively
• Key change in Northern Ireland with the levy being applied to bags for life
as well as SUCBs – interesting to see what impact this has on bag use?
• The charge just implemented in England will also be interesting given its
difference to charges elsewhere in the UK
– with potential inconsistencies in terms of charging across big name
stores like Subway due to the rules for franchises …..
Conclusions
21© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
• For other countries considering introducing a policy to reduce the
consumption of SUCBs:
– A regulatory approach may not be necessary
– Consider the administrative requirements so that it is not a burden for
retailers
– Introducing charges has proven to be a popular policy with consumers
due to the littering aspects as well as the donation of proceeds to good
causes.......
• Learn from others ....
Conclusion
22© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
22
Good Morning!
23© Ricardo-AEA LtdRicardo Energy & Environment in Confidence
Good Morning!
© Ricardo-AEA Ltd
www.ricardo-aea.com
T:
E:
W:
Ricardo Energy & Environment
The Gemini Building
Fermi Avenue
Harwell, Didcot,
OX11 0QR
Nia Owen
01235 75 3688
Nia.Owen@ricardo.com
www.ricardo.com

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The Impact of Levies on Single Use Carrier Bags – A UK Perspective

  • 1. The Impact of Levies on Single Use Carrier Bags – A UK Perspective Dr Nia Owen Principal Consultant
  • 2. 2© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • A personal welcome • Single use carrier bags and their use across the globe • Approaches used in the UK to reduce single use carrier bag usage and their performance: – UK Voluntary Agreement on Carrier Bags – Legislation in Wales, Northern Ireland, Scotland & England • Conclusions Overview
  • 3. 3© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Principal Consultant • 11 years experience in the waste sector • Member of the Chartered Institution of Wastes Management • Knowledge Leader for Waste Auditing • PhD in material recovery facility design and performance • Expertise in recycling scheme monitoring, data analysis and options appraisal • Acknowledgements – Brian Mayne, Jamie Warmington and Adam Read A personal welcome
  • 4. 7© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Over a trillion plastic SUCBs used globally each year. • Environmental impacts of carrier bags – Use of non-renewable resources – Litter: over 8 billion SUCBs became litter in 2010! • Range of measures used across the globe to reduce the consumption of SUCBs: – Bangladesh: complete ban since 2002 – Denmark: bag tax of 22 DDK/kg paid by retailers since 1994 • EU plans to introduce measures: – Target in draft document - ‘to reduce plastic bags by 80% by 2019, against 2010 baseline’ – Recommend taxes, levies, marketing restrictions or bans to reduce their use Background
  • 5. 8© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • The major supermarkets in the UK distributed over 8 billion SUCBs across the UK • Marine Conservation Society reported 38 plastic bags per km of Britain’s coastline in 2011. • Plastic bags contribute 0.1-1.0% of visible litter in the UK • Hoarding of bags by consumers is also an issue.... Carrier bag use in the UK Source: http://www.dailymail.co.uk/news/article- 477495/Meet-wacky-woman-collected-23- 000-plastic-bags.html
  • 6. 9© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Number of towns and communities have become plastic bag free – 17 towns already plastic bag free – Further towns in the planning stages to be plastic bag free • UK has taken action to reduce SUCB use: – Voluntary retailer commitment to reduce SUCB usage since 2006 – Devolved administrations have introduced regulations to reduce SUCB usage in recent times. • This may result in changes to fancy dress costumes... Carrier bag use in the UK Source: http://www.anorak.co.uk/375819/celebrities/ epic-puns-the-lidle-wain-costume.html/
  • 7. 10© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Initiated between Defra, the devolved governments, the British Retail Consortium (trade association for the retail sector) and its supermarket members to reduce SUCB use by 50% by 2009 based on a 2006 baseline • 7 supermarkets signed up: – Tesco; Asda; Marks & Spencer; Co-operative Group; Somerfield; Sainsbury’s Supermarkets; and Waitrose • Results show that the target of 50% reduction was narrowly missed. • Retailers agreed to continue monitoring usage – Since 2009, the number of SUCBs used has been increasing yearly • Results also show that bag for life usage has been increasing year on year from 2006 to 2013 – Positive trend, provided that they are reused! UK Voluntary agreement
  • 8. 11© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • First country in the UK to introduce a charge on SUCBs • Single Use Carrier Bags Charge (Wales) Regulations 2010. – Came into force in October 2011 – Shoppers in Wales have to pay a minimum of 5p for each SUCB used at point of sale • Aims of charge: – Decrease the number of SUCBs used in Wales and encourage shift to reusable bags – Reducing resource use – Preventing waste – Improving local environmental quality – reducing visible litter Wales
  • 9. 12© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • What to retailers need to do? – Charge for single use carrier bags made of paper, plastic, part plastic (including recycled and degradable plastic) at point of sale unless an exemption is in place – There is no charge for bags designed to be reused – Exemptions in place for prescription medication, bags required for food hygiene, items sold on board ships, trains, or in airports after you pass through security – Retailers are responsible for the distribution of the proceeds • Regulations do not specify where the proceeds should be distributed. But Welsh Government has developed a voluntary agreement on their use: – Net proceeds should be donated to good causes – Retailers should keep a record of bag use Wales
  • 10. 13© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Ricardo has been evaluating the impact of the charge for Welsh Government. • Economic evaluation estimated average benefits to the Welsh economy of £8.8m per annum. • SUCB use declined by 71% between October 2011 and December 2014 – BUT, data for supermarkets suggest that SUCB is increasing which may impact on the benefits of the charge in the longer term – Welsh Government may wish to consider an increase in the charge • Consumers: – Consumer support for the 5p charge increased from 61% prior to the introduction of the charge to 74% in February 2015 – SUCB use varied depending on the type of shopping: • SUCB use was higher in takeaways and non-food shops compared to food shopping activities Wales – impact of the charge
  • 11. 14© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Retailers: – 87% of retailers reported that the charge made either a positive or neutral impact on their business – 74% agreed that they are happy for the charge to continue as it is – Total administrative cost of SUCB charge to retailers across wales estimated at £180,000 – Donations to good causes: • 78% retailers reported donating all of the net proceeds and a further 9% reported donating a portion of the net proceeds • Donation to good causes estimated at £17 million - £22 million • Litter: – 59% of retailers agreed that ‘the charge has helped to reduce litter – 66% of consumers agreed that ‘the charge has helped to reduce littering in my local authority’ Wales – impact of the charge
  • 12. 15© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • SUCB levy came into force in April 2013 • Retailers to charge a minimum of 5p on SUCBs made from plastic, paper, starch etc. @ point of sale • Exemptions in place – including bags used for takeaway hot food and drinks • Net proceeds of the levy payable to the Dept of the Environment – who distribute the charge to good causes Northern Ireland
  • 13. 16© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • In 2013/14: – 84.5 million SUCBs were issued by retailers in Northern Ireland – Estimated that 300 million bags were issued 2012/13 – 72% reduction in SUCB use – Levy raised £4.17 million and £3.4 million allocated to over 250 environmental projects • Changes to the levy introduced in January 2015 – 5p levy extended to all carrier bags with a retail price of 20p or less regardless of whether they are SUCBs or reusable bags – Aims to encourage consumers to actively reuse bags including reusable bags rather than using them in the same way as a SUCB Northern Ireland – Impact of the levy
  • 14. 17© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • SUCB charge introduced in October 2014 • Retailers must charge a minimum 5p charge for each new SUCB at the point of sale – Applies to all SUCBs – paper, plastic and plant based materials • Regulations do not specify how the net proceeds of the charge should be used by retailers – Encouraging businesses to donate the charge to good causes • To support the regulations, the Carrier Bag Commitment has been developed. Signatories agree to: – Donate the net proceeds from the charge to good causes; – Submit an annual report on the number of carrier bags issued, and how the net proceeds were distributed Scotland
  • 15. 18© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Significant increase in SUCB use @ supermarkets in 2013 before the introduction of the charge • No reporting data available as yet… • We are analyzing the data on behalf of Scottish Government NOW! Scotland
  • 16. 19© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Retailers in England must charge a minimum of 5p on plastic SUCBs from 5th October 2015 • Two key differences to the charges used elsewhere in the UK: – Charge will only apply to plastic bags – Business with less than 250 employees will be exempt. – This does mean that for franchises – some will need to charge and others won’t depending on their size…. • An exemption for biodegradable bags is proposed as a future change to the Regulations – Government will provide further information this month on this proposal England
  • 17. 20© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • Voluntary and regulatory approach used in the UK and both have proven to be effective • Voluntary Agreement only narrowly missed its target • Results of the regulations implemented in Wales and Northern Ireland have also proven to be effective: – 72% and 71% decline in SUCB use in Northern Ireland and Wales respectively • Key change in Northern Ireland with the levy being applied to bags for life as well as SUCBs – interesting to see what impact this has on bag use? • The charge just implemented in England will also be interesting given its difference to charges elsewhere in the UK – with potential inconsistencies in terms of charging across big name stores like Subway due to the rules for franchises ….. Conclusions
  • 18. 21© Ricardo-AEA LtdRicardo Energy & Environment in Confidence • For other countries considering introducing a policy to reduce the consumption of SUCBs: – A regulatory approach may not be necessary – Consider the administrative requirements so that it is not a burden for retailers – Introducing charges has proven to be a popular policy with consumers due to the littering aspects as well as the donation of proceeds to good causes....... • Learn from others .... Conclusion
  • 19. 22© Ricardo-AEA LtdRicardo Energy & Environment in Confidence 22 Good Morning!
  • 20. 23© Ricardo-AEA LtdRicardo Energy & Environment in Confidence Good Morning!
  • 21. © Ricardo-AEA Ltd www.ricardo-aea.com T: E: W: Ricardo Energy & Environment The Gemini Building Fermi Avenue Harwell, Didcot, OX11 0QR Nia Owen 01235 75 3688 Nia.Owen@ricardo.com www.ricardo.com