Without a higher target, the trade bodies warn that there will be no incentive to segregate and recycle wooden packaging and drive it up the waste hierarchy.

The two associations had urged the government to increase the target to 55% from 2026, citing inaccuracies in the baseline data used to set targets for 2025–2030.

These inaccuracies have lowered the recycling obligation and reduced demand for wood Packaging Waste Recovery Notes (PRNs), a situation compounded by the removal of the general recycling target.

Despite these concerns, Defra told the WRA last week that the target will remain at 46% for 2026 and that the targets for 2027 onwards would be reviewed later next year as planned.

This decision comes even as recent data (published November 21) shows a 15% drop in wood packaging reported as reprocessed or exported in the first three quarters of 2025 compared to 2024.

“We need a minimum 55% packaging recycling target from 2026 onwards,” said Mark Hayton, chair of the WRA.

Without higher targets, there will be no incentive to segregate and recycle clean packaging waste wood – a trend which is already evident in the latest packaging figures.

“Delaying until 2027 means another year lost and even less wooden packaging recycled, undermining both the waste hierarchy and the circular economy.”

Under the UK’s producer responsibility system, packaging producers must contribute to recycling costs by purchasing PRNs from accredited reprocessors and exporters. Targets determine how much evidence they need to buy. Historically, wood recycling targets have been low, though WRA and WPIF successfully pushed for increases in 2024 and beyond, with targets set to reach 50% by 2030. However, inaccurate baseline data has weakened these obligations.

Wood PRN values have avoided administrative values this year only because supply has fallen due to challenging market conditions.

WRA and WPIF have been lobbying since early 2025 for the targets to be increased to 55% from 2026 and subsequent years to 2030.

“In the panel board sector we have seen the volumes of wood packaging coming through for recycling reduce significantly over the past decade and without stronger targets, this trend will continue,” said Alastair Kerr, director-general of WPIF.

“We need a clear driver to ensure material is segregated and moved up the waste hierarchy.”