The UK is missing out on potential carbon savings because the Plastic Packaging Tax (PPT) treats bio-based plastics in the same way as virgin plastic, according to packaging firm Duo.
New HMRC figures show businesses have declared around 5.8 million tonnes of plastic packaging containing at least 30 per cent recycled content since the tax was introduced in April 2022.
Duo estimates this packaging has a carbon footprint of 13.9 million tonnes of CO₂e, or around 3.26 million tonnes lower than the equivalent amount of virgin plastic.
However, it claims the carbon impact could have been significantly lower if companies had instead used bio-based alternatives.
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Duo estimates that using its I’m green bio-based plastic for the same volume could have resulted in a net carbon-negative impact of 12.3 million tonnes of CO₂e.
Duo director Zoe Brimelow said: “Prior to the introduction of the PPT, our GreenPE mailing bags, made from I’m greenTM bio-based, were one of our most innovative, low-impact packaging solutions. We were seeing year-on-year growth, but demand declined sharply in 2022 and has coincided with an increase in sales of our recycled-content plastic packaging.
“We’ve seen customers switch from the bio-based mailing bags to packaging that complies with the plastic packaging tax, simply because they can’t afford to absorb the tax as another overhead. Many brands and retailers have been reluctant to make this switch, but have little choice in highly competitive, price-sensitive markets.”
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