Mpact Plastics leads the way for EPR

Mpact Plastics LEADS THE WAY

The introduction of the Extended Producer Responsibility (EPR) Regulations in South Africa has been a major step towards a circular economy. Many businesses are now having to adjust their day-to-day operations to meet these new regulations.

for EPR

ReSource speaks to Neelin Naidoo, MD at Mpact Plastics – a leading local plastic packaging supplier – about the how the business has prepared for this new era of waste management in South Africa.

What are the EPR Regulations?

The EPR Regulations are a policy instrument for the sustainable organisation and financing of specific waste streams, including discarded packaging and single-use items. These regulations require ‘producers’ to assume responsibility for the entire product life cycle of ‘identified products’ – from production, through its useful life, up to and including the end-of-life stage – and aim to reduce waste to landfill and waste leakage into the environment.

How does this differ from how these products were dealt with previously at the end-of-life stage?

Previously, the management of identified products at the end-of-life stage was handled by local government, who assumed responsibility for the waste in terms of where waste would be collected from, using either a one- or two-bag system. Waste collected in a one-bag system is disposed of at landfill sites, where waste pickers would retrieve recyclable materials. Waste separated at source using a two-bag system would go to a materials recovery facility, where valuable recyclable materials are separated and sent for recycling. These systems will continue under the new EPR Regulations; however, the producer will be required to meet set collection and recycling targets for different classes of identified products.

Who is included in the EPR Regulations as producers, and what must these businesses do to be compliant?

There are three considerations that determine whether the regulations apply to your business. First, your business must fall within the definition of ‘producer’; second, it must place identified products into the local market; and, third, the volumes of the identified products must exceed 10 t/annum per category specified. It is suggested that businesses consult the legislation for detailed definitions of ‘identified products’ and ‘producer’, or contact the relevant producer responsibility organisation (PRO) to verify their legal obligations. Should you be classified as a producer, you are required to either develop your own EPR scheme, or join a PRO that will develop and manage an EPR scheme on your behalf.

What is a PRO, and what is their role in the context of the EPR Regulations?

A PRO is a non-profit organisation established by producers of one or more classes of identified products and is managed by a board of directors comprising representatives from the producers. PROs assume responsibility on behalf of the

individual member companies or producers for the collection and recycling responsibilities as stipulated in the EPR Regulations.

What does the South African PRO landscape look like?

Until recently, seven PROs represented the paper and packaging industries of South Africa. Considering the EPR Regulations, two of the PROs engaged in plastic packaging – namely Petco and Polyco – have broadened their scope of identified products, allowing them to provide a broader service to their members. A new addition to the PRO landscape, Copco, acts as a compostable packaging PRO.

Who will be paying the EPR levies, and how will double payment be prevented?

One of the producers, as defined, must pay the levy to the PRO. The levy is then passed on in the value chain by the relevant producer. To ensure that levies are not paid twice to the PRO, we encourage our customers to obtain verification from their suppliers that they belong to a PRO for the identified products supplied to them, and that prices include the levy. Levy payments can then be verified with the PRO.

How do your customers know you are meeting your EPR obligations?

Mpact has been a voluntary, levy-paying member of various PROs long before it was legislated. We are currently registered with Fibre Circle, Petco and Polyco, and have also registered with the Department of Forestry, Fisheries and the Environment, as required by the EPR Regulations. We are active participants in the PROs and regularly engage with our customers on the topic of EPR, using different platforms, including webinars and our EPR hotline: EPR@mpact.co.za.

Can Mpact assist its customers in designing products aligned with EPR requirements?

Yes. Our Innovation and Design Centre focuses on the conceptualisation and development of products that drive recycling and innovation. We adopt a phased life-cycle approach for all projects. This means that we begin with a consultative concept and feasibility stage that considers design requirements, brand positioning, the value chain and on-shelf presence. EPR requirements are considered at the feasibility and concept generation stage, where we continually evaluate and consider the balance between customer requirements and reduction, reuse and recycling.

Is the recycling of packing materials a feasible option to consider for South Africa?

Most definitely. South Africans are often described as entrepreneurial and creative, and the recycling landscape definitely mirrors that. Extensive collection and materials handling networks – across all packaging material types – exist in South Africa, as can be seen in the annual South African Plastics Recycling Survey published by Plastics SA. The EPR Regulations create an opportunity for further growth in the sector by placing an active focus on new recycling infrastructure and systems, as well as on improvements to existing ones.