What are Packaging Recovery Notes (PRNs)?

The UK generates millions of tonnes of packaging waste each year. This waste is either collected for recycling in the UK or exported overseas for recycling. 

The UK Packaging Waste regulations mandate that businesses that handle (manufacture, pack, convert, sell or fill) a certain amount of packaging materials should prove that they are contributing to the UK's efforts towards recycling targets.

That's where packaging recovery notes come into the picture. But what are they and how exactly do they work? Let's take a deep dive.

What are Packaging Recovery Notes (PRNs)?

Packaging Recovery Notes or PRNs are documents that prove that packaging waste has been recovered or recycled. They act as a substitute for a business meeting its obligation through its own recycling efforts.

Businesses that handle more than 50 tonnes of packaging material in a financial year and have a turnover of over £2m are known as obligated producers. All obligated producers are required to recover and recycle a proportion of the packaging they handled in a full compliance year.

The PRN system allows these obligated producers to meet their recycling targets through the purchase of PRNs and PERNs (packaging waste export recovery notes).

How do Packaging Recovery Notes (PRNs) Work?

PRNs generate income for reprocessors, which is reinvested into recycling projects. This ensures that the UK's recovery and recycling industry thrives while enabling the UK to meet its recycling goals.

The income generated from PERNs helps finance the transportation of recyclable materials to overseas reprocessors.

PRNs can be purchased and sold on an open market, which means that demand and supply dictate the prices. If there's a perceived shortage, then prices are likely to go up, but a perceived excess of PRNs can send the prices crashing.

A PRN is generated when an accredited UK recycler reprocesses 1 tonne of UK-sourced packaging waste. Similarly, a PERN is generated when 1 tonne of UK packaging is exported and recycled in the target country.

Obligated businesses who meet the threshold should meet their packaging recycling and recovery obligations by buying the required number of PRNs from accredited exporters or reprocessors.

How to Calculate Your Obligation?

To calculate your obligation, you will need the following details:

·         A detailed list of your packaging activities in the previous financial year.

·         Categorise the materials under different groups: glass, aluminium, steel, plastic, paper, wood and other (textiles, cork, wax, etc), and weight of the packaging in tonnes.

·         Your targets for the current compliance year.

The number of PRNs you need depends on the activity you carried out on the material that you qualify for. There are four main activities that have been identified in the packaging chain:

·         Raw material – As the manufacturer of raw material, your obligation is 6% of the total tonnage you've handled.

·         Converter – If you turn the raw material into packaging, your obligation is 9% of the total tonnage you've handled.

·         Packer or filler – If your role is placing goods into or filling packaging, then you must contribute the equivalent of 37% of the weight you handled.

·         Seller – Suppliers of packaging materials are obligated to recycle 48% of the weight they handled.

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