Extended Producer Responsibility (EPR) UK Insight Guide

THE EXTENDED PRODUCER RESPONSIBILITY (EPR) – IN 30 SECONDS

1. The Extended Producer Responsibility (EPR) is a reform of UK packaging waste regulations.
2. EPR requires businesses placing material on the market to pay the entire net costs of collecting, sorting, recycling, and disposing of waste.
3. It aims to incentivise producers to place more recyclable products on the market and reduce unnecessary packaging material.

WHY EPR IS BEING INTRODUCED

EPR is being introduced to:

1. Avoid unnecessary packaging, reducing packaging and packaging waste.
2. Replace single-use packaging with reusable or refillable packaging.
3. Encourage packaging design to be recyclable.
4. Increase packaging waste recycling.
5. Increase the quality of materials presented for recycling.
6. Increase the amount of packaging that is recycled into high-value and closed-loop applications.
7. Lead to a reduction of packaging being littered.
8. Turn a linear economy into one that is more circular.

DOES EPR APPLY TO YOU?

The EPR applies to all producers who place packaging on the market. This includes:

• Brand owners – who package goods and sell them under their brand name. When a brand is not identifiable, the obligation falls on the organisation carrying out the packaging or filling.
• Importers – who import filled packaging.
• Service providers – who hire out or lend reusable packaging.
• Distributors – who manufacture or import empty packaging and sell that packaging to anyone who is not an obligated producer.
• Online marketplaces – who operate a marketplace whereby non-UK sellers can sell filled or empty packaging to UK consumers.
• Sellers – who sell filled packaging to the end-consumer.

If your company has a turnover of more than £1m and handles more than 25 tonnes of packaging, you must report the packaging placed on the market but not contribute financially.

If your company has a turnover of more than £2m and handles more than 50 tonnes of packaging, you must pay for EPR.

AT-A-GLANCE EPR TIMELINE

• 2022 - Regulations in place.
• 2023 - Start collecting correct packaging data from January 1. Recyclability assessments are completed, and producers start reporting their packaging data. A public-sector Scheme Administrator was appointed.
• 2024 - EPR was introduced, with the first payments due in April 2024, based on recyclability assessments completed in 2023.
• 2025 - Modulated fees become fully operational.
• 2026 - Mandatory labelling is introduced for packaging except for films and flexibles.
• 2027 - Films and flexibles are to be collected by local authorities and are obligated to be under the labelling system.

EPR ACTION LIST FOR PRODUCERS

Under the new regulations, obligated producers will need to:

1. Register for the EPR for packaging online service.
2. Collect and submit data on the packaging that's handled and supplied.
3. Pay a waste management fee.
4. Buy packaging waste recycling notes (PRNs) or packaging waste export recycling notes (PERNs) to meet recycling obligations.
5. Clearly and consistently label packaging as to whether it can be recycled.

There may be penalty charges if you miss the deadline for submitting data. Large organisations will need to submit data every six months.

PAYING THE PRICE OF EPR

1. The UK Government estimates that producers' costs will be around £2.7bn in the first full year of implementation.
2. The fees that producers pay will initially be calculated in 2024.
3. At first, fees will depend on the material disposal costs.
4. After that, fees will be based on comprehensive recyclability assessments.
5. Producers who use unrecyclable packaging will be required to pay higher fees.
6. Fees will be modulated to deliver funding to support additional collection and upgrading of the recycling infrastructure.
7. As part of total net cost payments, producers of commonly littered packaging, such as fast food packaging and single-use cups, will be responsible for its management costs.

EXPECTED EPR FEE MODULATION METHODOLOGY

The methodology is still to be confirmed by the UK Government (DEFRA), so the details surrounding the processes are not yet known. However, we anticipate the following factors will be included:  

1. The type of material you are placing on the market.
2. Whether it is recyclable or not.
3. Does it include post-consumer recycled (PCR) content and promote circularity?
4. Place of consumption, e.g. at home, on-the-go, and correct labelling.

EPR MANDATORY LABELLING

• All packaging types except plastic films and flexibles are to be labelled Recycle / Do Not Recycle by March 31 2026.
• Products will require the "Recycle Now"' logo.
• Producers (brand owners) can choose the labelling scheme.
• Plastic films and flexibles are to be labelled by March 31 2027.
• Biodegradable / compostable materials are to be labelled as "Do Not Recycle".
• The pack will require communication on how to recycle – What, How, and Where.

EPR ADOPTION AROUND THE WORLD

EPR is being implemented around the world. Adopters include:

• Europe – Plastic waste and e-waste management is mandatory under the extended producer responsibility in the European Union.
• Australia – With provisions similar to the European EPR standards, Australia aims to shift to 100% recyclable packaging by 2025.
• USA – There are 115 EPR policies across 33 states covering hard-to-recycle or bulky materials.
• New Zealand – The concepts of EPR have been introduced in New Zealand, and producers must implement take-back and recyclability programmes across plastic packaging and e-waste.
• South Africa – EPR has been mandatory since 2021 for packaging companies in South Africa.

KM'S VIEWPOINT ON EPR

"Extended Producer Responsibility will be a key, if not the principle, driver in packaging development in the foreseeable future." ­
–  Alan Lockhart, Business Unit Director, KM Packaging.

FURTHER READING ON EPR

• Preparing for EPR, UK Gov website.
• Overview of EPR and Consistent Collections, BPF website.