Digital Waste Tracking: business regulatory impact assessment

12. Competition Assessment

178. The key impact on competition will be encouraging a more level playing field within the waste industry and supporting legitimate businesses. We expect that the Waste Tracking system will move a significant proportion of illegally handled waste to being handled legally. This shift will offer opportunities to legitimate businesses, in terms of increased access to waste from which businesses can profit, and in turn improved opportunities to invest in their business through increased labour force or capital investments as a result of having greater scope for profit. A more level playing field should also improve efficiency within the sector.

179. Only operators who can afford to comply with Digital Waste Tracking will stay in the market. As such, increased investment and running costs may be an economic barrier to entry to some. However, this intervention has been carefully designed to prevent illegal and non-compliant waste operators from entering or staying in the waste sector, whilst still enabling compliant businesses to operate by ensuring costs of compliance are set at a reasonable level.

180. By addressing underlying information and coordination failures in the waste sector, Digital Waste Tracking will create a shared, reliable data source across the waste chain. This transparency will help legitimate businesses better understand waste flows, identify cost-saving or recycling opportunities, and compete fairly. It will also improve coordination between regulators and industry, reducing duplication and inefficiencies. Together, these effects should support a more efficient and competitive market, where compliant operators can thrive and investment is directed toward legitimate activity.