The concept of producer responsibility has been around for many years and means simply that those responsible for putting certain products or packaging onto the marketplace are also responsible for paying towards it being recovered and recycled. Since initial implementation in the UK in 1997, the system of producer responsibility for packaging has helped to increase recycling of packaging waste from 25% to 63.9% twenty years on.
There have been criticisms of these schemes over the years but the principle is sound: the producer’s responsibility no longer ends at the point of sale.
The new EPR regulations will build on and replace the current Packaging Waste Regulations, creating a more stringent compliance regime for producers and increasing the range of goods that it covers.
The Extended Producer Responsibility (EPR) scheme was meant to launch in October 2024, having first been promised in late 2018. This has been delayed and now will not launch until October 2025. Despite EPR packaging fees having been deferred for a year, you must still follow the guidance and report on your packaging data for 2023 and will be required to pay any related fees in 2025 based on 2024 data.
What is Extended Producer Responsibility (EPR)?
The EPR scheme is an environmental policy that requires packaging producers to pay the total cost of dealing with the household packaging they place on the market from when it is placed onto the market to the end of its life.
Why has EPR been implemented?
It is hoped that the implementation of the EPR regulations will reduce the environmental impact of packaging. The idea is similar to other environmental legislation in the principle of ‘Producer Pays’.
Being introduced globally, the main impact of the EPR in general will be that producers will bear whole lifecycle costs depending on the product they make and this can include collection, transportation, treatment and disposal of products. The changed needed can take many forms and may include product take back requirements and can be supported by eco design requirements and targets or measures to incentivise reuse.
Ultimate aim is that EPR laws will encourage producers to embrace environmental considerations when designing new products and implementing recycling programmes.
Who needs to comply with EPR?
If you are a producer placing packaging on the UK market, whether UK-sourced, it is likely you will be affected by the EPR.
This refers to individual businesses, subsidiaries or groups (excluding charities) that:
- Supply packaged goods to the UK market under your own brand
- Place goods into packaging
- Import packaging (filled/unfilled)
- Own an online marketplace (allowing companies outside the UK to sell goods/packaging e.g. Amazon)
- Hire or loan out reusable packaging
- Supply empty packaging
Then what happens following on from that depends on whether your business is classed as a large or small organisation.
What are the requirements for EPR?
The regulations require companies to collect and report on packaging data for a given a year. The exact requirements vary depending on the size of your business.
An organisation is classed as large if both of the following apply:
- You have an annual turnover of £2 million or more
- You’re responsible for supplying or importing more than 50 tonnes of packaging in the UK
An organisation is classed as small if either of the following apply:
- Your annual turnover is between £1 million and £2 million an you’re responsible for supplying or importing more than 25 tonnes of packaging in the UK
- Your annual turnover is over £1 million and you’re responsible for supplying or importing between 25 tonnes and 50 tonnes of packaging in the UK
A large producer is required to submit packaging data reports every 6 months, pay an EPR registration fee and EPR waste management costs, and buy Packaging Waste Recycling Notes (PRNs).
Small producers are required to collect 2023 packaging data but not report it. They will have to submit a data report every year. Small producers will also have to pay an annual registration fee to the EPR Scheme Administrator but will not have to purchase PRNs nor pay EPR waste management fees.
What data needs to be collected for EPR compliance?
In order to be in compliance with the EPR legislation, companies will need to start collecting packaging data. Required information covers the following:
- Packaging activity – this is how you supplied the packaging
- Packaging type – for example, if the packaging is household or non-household
- Packaging class – whether the packaging is primary, secondary, shipment or tertiary
- Packaging material and weight
A company may also need to collect nation data. Nation data is information about where your packaging has been sold, hired, loaned, gifted or discarded in the UK.
What happens next?
Once the data above is supplied, it will then be used to work out your waste management fee and your recycling obligations.
The UK government has published illustrative based fees for EPR. Fees depend on the material and weight.
In the future, the waste management fee will also vary depending on how easily the packaging can be recycled. Fees will be lower if packaging is easier to recycle.
What can you do to reduce your EPR fees?
- Review your packaging designs – Consider how much packaging is used and how to minimise waste. This could be through the lifecycle of the packaging materials or an overall reduction in its physical design.
- Consider reusable packaging – Reusable packaging can offer advantages in terms of fees and benefits. Providing customers with a lifelong container and refills in less packaging.
- Consider switching materials – Consider packaging materials that attract lower EPR fees, including more easily recycled materials.
- Prepare for “take-back” systems – Prepare plans to take back products at the end of their life cycle for recycling or proper disposal. Offer incentives to customers for their role in this process which can also nurture brand loyalty.
- Prepare for source reductions – Consider eliminating packaging materials and components, and using post-consumer recycled content.
How we can support you
We are working with our clients on their packaging strategies, this may involve investigating alternative packaging options, conducting LCAs and trialling reuse schemes. There are often co benefits that come with reviewing packaging design such as reduced carbon emissions, reduced pollution impact and greater customer engagement. In any case it is important to consider the whole life cycle and full range of impacts beyond carbon.
If you’d like more information about how to prepare for new EPR legislation in your business, email contact@greenheartbusiness.com
