New regulations, increased competition and the rising cost of waste disposal are forcing companies to cut the amount of waste they throw away every year according to a report published by the Environment Agency.

The report, which looks at the impact of the introduction of the Integrated Pollution, Prevention and Control (IPPC) Directive in England and Wales, identifies industry sectors that have reduced the amount of waste they produce, those that have done less and highlights opportunities for further improvement. It particularly considers how efficiently resources such as water are being used by companies.

The IPPC Directive encourages business and industry to reduce the impact their activities have on the environment by preventing or reducing pollution. It is intended to help industrial operators move towards greater environmental sustainability. By 2007, more than 4,500 installations in England and Wales will be covered by PPC Regulations. These include not only major industries such as cement manufacture and chemical plants but also smaller businesses in sectors such as the treatment of metals and food and drink production.

The report found that for regulated companies between 1998 and 2002 in England and Wales:

waste going for final disposal has fallen by 25 per cent - the equivalent of 10 per cent of the total amount of waste produced by households in the UK each year; the amount of waste being recovered increased by more than 50 per cent; the amount of special (hazardous) waste disposed of was reduced by 191,000 tonnes - the equivalent of more than 12,500 truck loads.

Dr Martin Bigg, Head of Process Industries Regulation at the Environment Agency said: "We are pleased to see that IPPC is helping to encourage business and industry to think about and cut the amount of waste they produce and recycle. The findings of today‘‘s report show that this message is getting through and companies are seizing the opportunity to reduce waste and save money.

For example, the cement and lime industries recovered almost three times as much waste in 2002 as they did in 1998. By cutting the amount of waste companies produce and improving their resource efficiency processes, they can save a considerable amount of money and gain an important edge on their competitors."

The report highlights a number of key areas for further work that will help regulators persuade more companies to use their resources more efficiently:

improved data and information on waste consumption and minimisation will make it easier to target the poorer performing sectors and companies additional training of Environment Agency officers and industry on resource efficiency issues will improve awareness and commitment improved guidance to industry on making resource efficiency improvements and focus more on best practice

The Environment Agency will now look carefully at the recommendations and consider how best to take them on forward over the next few months. It aims to look at progress in this area again when PPC is fully implemented