Eunomia ARCADIS Belgium N.V. 1 Kings Court Veldekens, Roderveldlaan 3 Little King Street 2600 Antwerpen Bristol BS1 4HW – U.K. Belgium Tel: +44 (0)117 9450100 Tel: +32 3 3286 286 Fax: +44 (0)8717 142942 Fax: +32 3 3286 287 URL: www.eunomia.co.uk URL: http://www.arcadisbelgium.be/ Optimising Markets for Recycling Final report (approved version) The European Commission – DG Environment 07/13105/LF 19 November 2008 Laurent Franckx (ARCADIS) Mike Van Acoleyen (ARCADIS) Dieter Vandenbroucke (ARCADIS) Dominic Hogg (Eunomia Research & Consulting) Alison Holmes (Eunomia Research & Consulting) Hannah Montag (Eunomia Research & Consulting) Sam Taylor (Eunomia Research & Consulting) Andrew Coulthurst (Eunomia Research & Consulting) I II ARCADIS Belgium 07/13102/LF - Optimising markets for recycling - final report CONTENT CONTENT................................................................................................................................................................... 3 LIST OF FIGURES.................................................................................................................................................... 7 LIST OF TABLES.................................................................................................................................................... 10 LIST OF ABBREVIATIONS .................................................................................................................................. 14 EXECUTIVE SUMMARY ...................................................................................................................................... 21 1. OBJECTIVES, BACKGROUND, METHODOLOGY AND STRUCTURE .............................................. 35 1.1. OBJECTIVES ............................................................................................................................................... 35 1.2. BACKGROUND: MARKET FAILURES IN RECYCLING MARKETS .............................................. 35 1.3. METHODOLOGY ....................................................................................................................................... 39 1.4. STRUCTURE................................................................................................................................................ 43 2. THE ECONOMICS OF WASTE MANAGEMENT ..................................................................................... 45 2.1. OVERVIEW OF THIS CHAPTER ............................................................................................................ 45 2.2. GENERAL THEORETICAL BACKGROUND........................................................................................ 45 2.3. ENVIRONMENTAL EXTERNALITIES OF RESOURCE USE ............................................................ 52 2.4. MARKET ORGANISATION IN THE COLLECTION PHASE............................................................. 58 2.5. MARKET ORGANISATION IN THE DISPOSAL PHASE .................................................................... 61 2.6. COMPETITION IN EPR............................................................................................................................. 62 2.7. MARKET FAILURES IN TECHNOLOGY ADOPTION........................................................................ 64 3. EU POLICY CONTEXT.................................................................................................................................. 71 3.1. EU WASTE POLICY: GENERAL ............................................................................................................. 71 3.2. SPECIFIC PROVISIONS FOR COLLECTION....................................................................................... 73 3.3. SPECIFIC PROVISIONS FOR PVC.......................................................................................................... 81 3.4. SPECIFIC PROVISIONS FOR BATTERIES........................................................................................... 87 3.5. SPECIFIC PROVISIONS FOR FOOD WASTE....................................................................................... 91 3.6. SPECIFIC PROVISIONS FOR CARDBOARD...................................................................................... 106 3.7. COMMUNITY INITIATIVES IN THE FIELD OF ENVIRONMENTAL TECHNOLOGY............. 110 4. GENERAL FACTS AND FIGURES ............................................................................................................ 119 3 ARCADIS Belgium 07/13102/LF - Optimising markets for recycling - final report 4.1. WASTE COLLECTION ............................................................................................................................ 119 4.2. PVC .............................................................................................................................................................. 121 4.3. BATTERIES................................................................................................................................................ 136 4.4. FOOD WASTE............................................................................................................................................ 147 4.5. CARDBOARD............................................................................................................................................. 153 5. RECYCLING TECHNOLOGIES................................................................................................................. 167 5.1. TECHNOLOGY FOR WASTE COLLECTION: STATE OF THE ART ............................................ 167 5.2. TECHNOLOGIES FOR PVC RECYCLING .......................................................................................... 173 5.3. TECHNOLOGIES FOR BATTERY RECYCLING ............................................................................... 186 5.4. TECHNOLOGY FOR FOOD RECYCLING .......................................................................................... 194 5.5. TECHNOLOGY FOR CARDBOARD RECYCLING............................................................................ 201 6. PRELIMINARY ASSESSMENT OF THE MARKET SITUATION AT THE EUROPEAN LEVEL... 207 6.1. THE WASTE MANAGEMENT SECTOR .............................................................................................. 207 6.2. PVC .............................................................................................................................................................. 209 6.3. BATTERIES................................................................................................................................................ 211 6.4. FOOD WASTE............................................................................................................................................ 217 6.5. CARDBOARD............................................................................................................................................. 224 7. CASE STUDY: FLANDERS.......................................................................................................................... 237 7.1. STRUCTURE OF THIS CHAPTER ........................................................................................................ 237 7.2. GENERAL INFORMATION .................................................................................................................... 237 7.3. GENERAL REGULATORY CONTEXT................................................................................................. 237 7.4. SOME BASIC STATISTICS ..................................................................................................................... 239 7.5. EXTENDED PRODUCER RESPONSIBILITY IN FLANDERS .......................................................... 240 7.6. BELGIAN POLICY WITH RESPECT TO PACKAGING WASTE .................................................... 241 7.7. PVC .............................................................................................................................................................. 258 7.8. BATTERIES................................................................................................................................................ 259 7.9. FOOD........................................................................................................................................................... 267 7.10. CARDBOARD......................................................................................................................................... 292 7.11. SOME PROVISIONAL CONCLUSIONS............................................................................................ 299 4 ARCADIS Belgium 07/13102/LF - Optimising markets for recycling - final report 8. CASE STUDY: UNITED KINGDOM .......................................................................................................... 303 8.1. BATTERY RECYCLING MARKET IN THE UK ................................................................................. 303 8.2. FOOD WASTE RECYCLING MARKET IN THE UK.......................................................................... 321 8.3. PVC RECYCLING MARKET IN THE UK ............................................................................................ 345 8.4. CARDBOARD RECYCLING MARKET IN THE UK........................................................................... 357 9. CASE STUDY: FRANCE .............................................................................................................................