No time to waste with EPR

Extended Producer Responsibility (EPR) is part of the UK government and devolved administrations’ commitment to protecting the environment by reforming existing Packaging Waste Regulations. It’s a policy initiative that seeks to build upon existing laws, to encourage the expansion of more circular resource patterns for products that hold significant value, even after their first life-cycle. And we are currently in the midst of a review of producer responsibility regimes, for what is already a complex topic.

EPR is incredibly important, as it mandates entire business sectors to be responsible for the costs associated with managing their products at end-of-life, without penalising those that have proactively sought to place sustainability and environmental consciousness at the heart of their business strategies. Any operation that handles over 25 tonnes of packaging a year will be affected by EPR legislation.

Experts In The Field

One man who understands this bureaucratic maze better than most is George Atkinson, head of policy at Valpak – a Reconomy Group company offering a wide range of services to those affected by EPR, both in the UK and overseas. They assist over 2,000 businesses in complying with regulations, accumulating the UK’s most substantial database of packaging data, covering over 44 million products.

“I came to Valpak straight off the back of a master’s degree in environmental policy – however, producer responsibility was not something I’d had exposure to. As a result of Valpak’s position as the UK’s largest compliance scheme operator, with many looking to the company to help them navigate EPR, that has really necessitated becoming as knowledgeable about it as I can be. However, even after three-and-a-half years, I’m still learning new things, as it’s such a wide and varied topic.”

Valpak has had a place at the top table for a while now, helping to provide valuable insight. “We have long called for practical and well-designed policy interventions in the recycling sector, and have been a trusted government advisor since discussions around introducing producer responsibility for packaging in the UK began in the early 1990s. Since then, we have held a seat on the Advisory Committee for Packaging that helps guide and scrutinise government policy. Our consulting team also undertakes ‘Packflow’ projects that determine the volumes of packaging coming on and off the UK market. As EPR gathers pace, we’ve been regularly engaging with government re compliance delivery for many affected businesses.”

A Hot Topic

So, why is it so important right now? “Packaging waste is currently having its time in the EPR spotlight, with new regulations that build upon those first passed in 1997 having been recently passed by Parliament,” said Atkinson. “Across the remainder of 2023, it is hoped that the government will publish its plans for reforming similar laws in place for waste electricals and batteries. In time, the government intends to look into legislating for EPR across other wastes for which no laws currently exist; textiles, tyres and industrial fishing equipment to name a few. As a result, we’re set for a real wave of legislative action in the UK, as well as internationally –where similar ambitions are held by the governments of many developed nations.”

With those that are non-compliant liable to receive maximum penalties of an unlimited fine, and directors even facing imprisonment for intentional delay or obstruction of environment agencies, these developments are of huge importance.

Atkinson continued: “A civil sanctions process also exists, where businesses can complete an enforcement undertaking – often a donation to an environmentbased charity – to remedy any wrongdoing if they have been non-compliant. Currently, the monetary penalties involved in such undertakings depends on the average cost of compliance across the year(s) a business did not meet its obligations, as well as a penalty charge dependent on whether the business has proactively or reactively identified its non-compliance.”

Legislation In Limbo

Getting ahead of the curve on EPR is crucial while these high-level talks take place – with the fallout still to be determined. “In respect of packaging EPR, brand owners are becoming solely responsible for the costs of not only recycling packaging, but also local council collections, with some set to see their compliance bills increase by over 10 times,” Atkinson said. “Packaging data declarations to regulators are becoming more regular too. Given the sheer costs associated, I’d like to see the government be more transparent about how much businesses can expect compliance costs to increase, as thus far individual businesses or compliance schemes have been left to estimate financial impacts.”

Whatever happens next, we need to be paying close attention. “ While EPR isn’t a fix-all solution and may not initially deliver a complete shift towards perfectly circular resource usage, it signals a real shift in the government’s attitude and should be considered the norm regulatory environment for sectors that have embraced a linear make-use-dispose psyche for too long.

“I would be lying if I said producer responsibility legislation and working out what a business supplying packaging or packaged goods must do to comply is straightforward – hence why so many work with compliance schemes, such as Valpak, to ensure they are compliant! EPR legislation is going to be more challenging from both financial and administrative perspectives,” Atkinson concluded.

EPR progression

1994: OECD begins its work on EPR.

1997: System of producer responsibility for packaging in the UK comes into place.

2001: EPR Guidance Manual for Govts is published.

2002: Workshop on the Economics of EPR is established.

2014: European Commission publishes a proposal to review EU recycling and waste-related targets.

2019: UK govt sets out case for significant packaging producer responsibility reform.

2024: EPR being introduced into the UK.