Section 105 | Chemical recycling: mass balance approach

(1)Part 2 of FA 2021 (plastic packaging tax) is amended as follows.

(2)In section 47(1)(a) (chargeable plastic packaging components)—

(a)before “proportion” insert “combined”;

(b)after “recycled plastic” insert “and attributed recycled plastic”.

(3)In section 49 (meaning of “plastic” and “recycled plastic”)—

(a)in the heading, for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;

(b)after subsection (2) insert—

(2A)“Attributed recycled plastic” is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.

;

(c)after subsection (7) insert—

(7A)Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.

;

(d)in subsection (8), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;

(e)in subsection (10), after “recycled plastic” insert “or attributed recycled plastic”.

(4)After section 49 insert—

49AMeaning of “chemical recycling certification scheme”

(1)For the purposes of this Part, a scheme is a “chemical recycling certification scheme” if—

(a)it is a scheme under which a certified person produces plastic from recovered material and other material by means of one or more mass balance processes,

(b)that process or (as the case may be) at least one of those processes alters the chemical structure of the recovered material, and

(c)the scheme meets such conditions as may be specified in regulations made by the Commissioners.

(2)A “mass balance process” is a process under which—

(a)qualifying input material is added to other material to form a mixture (“the mixture”),

(b)the mixture is processed, and

(c)a certified person attributes recovered material to—

(i)material withdrawn from the mixture after the processing, and

(ii)any waste material.

(3)The certified person may attribute recovered material under subsection (2)(c) in any way, provided that—

(a)the quantity of recovered material so attributed does not exceed the quantity of qualifying input material added to the mixture under subsection (2)(a),

(b)the proportion of withdrawn fuel to which recovered material is attributed is the same as the proportion of the mixture (before it is processed) that is qualifying input material, and

(c)the attribution meets such conditions as may be specified in regulations made by the Commissioners.

(4)In subsections (2) and (3) “qualifying input material” means—

(a)recovered material, or

(b)material to which recovered material has been attributed under subsection (2)(c) in connection with an earlier mass balance process.

(5)In this section—

“certified person” means a person certified under a chemical recycling certification scheme;

“consumed fuel” means fuel added to the mixture that is consumed to provide energy for the processing of the mixture;

“process losses” means material, other than consumed fuel, added to the mixture which is converted to waste products as part of the processing (and which is not withdrawn from the mixture);

“waste material” means any consumed fuel and process losses;

“withdrawn fuel” means material withdrawn from the mixture after processing that—

is fuel, or

might reasonably be expected to be reprocessed (otherwise than as part of a mass balance process) into fuel.

(6)The Commissioners may by regulations—

(a)make provision about cases in which the chemical structure of recovered material is to be regarded as having been altered, or not altered, for the purposes of subsection (1)(b);

(b)make provision about materials which are, or are not, to be regarded as withdrawn fuel for the purposes of this section.

49BChemical recycling certification schemes: further conditions

(a)the assessment of the scheme by an accreditation body specified, or of a description specified, in the regulations;

(b)the types of material that may be used in a mass balance process under the scheme;

(c)when, and the circumstances in which, materials may be mixed together as part of a mass balance process under the scheme;

(d)the methodology that may be used as part of a mass balance process under the scheme in connection with the calculation of amounts of waste material (within the meaning of section 49A);

(e)the measurement of materials under a mass balance process under the scheme;

(f)the operation of a mass balance process under the scheme by reference to accounting periods or other periods of time;

(g)which persons are required to be certified under the scheme;

(h)the accreditation of certification bodies recognised by the scheme;

(i)the keeping and retention of records by persons under the scheme;

(j)the auditing of scheme members by certification bodies under the scheme;

(k)compliance with, and enforcement of, the scheme rules;

(l)the provision of information to HMRC and others regarding compliance by scheme members with the scheme rules.

(5)In section 83 (interpretation), at the appropriate places insert—;.

(6)In section 84(5)(b) (regulations), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””.