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by Munro Research

Renewable Content Obligation Bill


Official Summary

A Bill to make provision for the establishment of minimum levels of recyclates in designated products and classes of product; to establish a scheme for the certification of designated products; and for connected purposes.

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Overview

This bill aims to increase the use of recycled materials in designated products by establishing minimum levels of recycled content and a certification scheme. It empowers the Secretary of State to set obligations for manufacturers and importers, and establishes a system of penalties for non-compliance.

Description

Renewable Content Obligations

The Secretary of State can mandate minimum levels of recycled content ("renewable content") in specific products or product categories through an order ("RC order"). Manufacturers and importers must provide evidence to an appointed "Administrator" demonstrating compliance within set deadlines and formats. The Secretary of State must consult relevant stakeholders before issuing an RC order.

The Administrator

An RC order appoints an Administrator, a body or individual responsible for overseeing the scheme. This Administrator will have powers to collect information, impose charges, and issue certificates confirming compliance. The Administrator can be a pre-existing body or a new one created by the RC order.

Determining Content Amounts

The bill details how the amount of recycled content will be measured and verified. It allows for various approaches, such as specifying minimum percentages, types of recycled materials, and methods of calculation.

Renewable Content Obligation Certificates

The Administrator will issue certificates verifying the amount of recycled content in a product. These certificates can be transferred between parties and used as evidence of compliance. The bill outlines the conditions for issuing and transferring these certificates.

Payment for Non-Compliance

If manufacturers/importers don't meet the renewable content obligation, they must pay a specified sum to the Administrator. This sum can increase over time if payment is late. The Administrator may redistribute excess funds received to compliant manufacturers/importers.

Civil Penalties

The bill allows for civil penalties for non-compliance. The Administrator can issue notices imposing penalties up to a specified amount or 10% of the business turnover. Objections can be made, and appeals are possible through the High Court.

Government Spending

The bill doesn't specify exact figures for government spending. However, it anticipates costs for the Administrator's operations and potential grants to the Administrator from the Secretary of State. Additionally, there is potential revenue generation through penalties for non-compliance, which will be paid into the Consolidated Fund.

Groups Affected

The bill will primarily affect:
Manufacturers and importers of designated products: They will be subject to the renewable content obligations and potential penalties for non-compliance.
Consumers: They may see changes in product pricing and availability depending on the chosen products and their associated costs.
Recycling industry: This industry is likely to experience increased demand and potential economic benefits.
The Administrator: This body will have significant responsibilities for scheme administration and enforcement.

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