ASEAN advances harmonized packaging EPR as mandatory systems and circular investment scale

Southeast Asian countries are witnessing a shift toward mandatory, harmonized EPR frameworks for packaging, says Liviana Zorzi, Asia regional specialist at the World Economic Forum’s Global Plastic Action Partnership (GPAP).

One year after the release of the Association of South-East Asian Nations (ASEAN) Declaration on Plastic Circularity, which emphasises the need to curb plastic packaging waste generation at the source, local governments have introduced different targeted policies.

“Vietnam and the Philippines are regional front-runners, with legally enforced packaging EPR. Malaysia, Thailand, Singapore, and Indonesia have voluntary or partial frameworks in place and are designing or phasing in full EPR systems. Brunei Darussalam, Cambodia, Lao PDR, and Myanmar are building policy foundations and piloting early approaches,” Zorzi tells Packaging Insights.

“Despite these differences, ASEAN is moving toward greater regulatory alignment. Vietnam and the Philippines set the regional benchmark, with Indonesia, Malaysia, and Thailand close behind. Initiatives such as the GPAP and its national chapters (NPAPs) offer an important platform to shape EPR implementation.”

“Greater alignment of EPR policies in ASEAN will reduce regulatory fragmentation, simplify compliance for industry, support consistent circular design standards, and improve social and economic outcomes across the region.”

“EPR will increasingly become central to how FMCG companies access safe, food-grade recycled packaging options, manage regulatory expectations, and deliver on ESG commitments. Food-grade recyclate regulation is an area where ASEAN countries can concretely cooperate, as harmonization will help reach economic scale.”

Infrastructure investments

The most effective financing models in developing ASEAN economies are those that create predictable revenue streams and lower investment risks, according to Zorzi.

“Liviana Zorzi, Asia regional specialist at the World Economic Forum’s Global Plastic Action Partnership.Across the five NPAPs countries in ASEAN — Cambodia, Indonesia, Lao PDR, the Philippines, and Vietnam — system modelling shows that billions of dollars in new capital are required to improve waste collection, sorting, recycling, and reuse infrastructure — far beyond what public budgets alone can fund,” she explains.

“Blended finance, where concessional capital from development partners helps de-risk private investment, is already enabling early projects in Indonesia, Vietnam, and the Philippines.”

“This strengthens the pipeline of investable recycling infrastructure and gives FMCG companies access to more reliable supply chains for recycled materials.”

Accelerating waste management

Apart from blended finance, results-based financing and plastic credit are also emerging as viable.

“Outcome-linked financing, where investors are repaid only when verified collection or recycling outcomes are achieved, ensures capital flows toward measurable impact. Plastic crediting platforms complement EPR by enabling voluntary corporate investment in verified recovery projects, particularly in underserved or remote areas,” says Zorzi.

She says that EPR fee collection provides a stable, long-term funding mechanism for waste management systems. “When well designed, EPR systems can improve environmental outcomes, drive innovation, and support market growth.”

“For example, eco-modulated fees, which reward more recyclable and reusable packaging, create clear design incentives for producers and enhance predictability for industry.” 

Fueling regional growth

Zorzi highlights that the shift toward plastic circularity can enhance competitiveness in ASEAN.

“Companies adopting circular packaging early will be better positioned to meet emerging global recycled content and sustainability requirements. Strong domestic recycling ecosystems also reduce exposure to volatile virgin plastic prices and global supply disruptions.”

“Predictable policy frameworks, such as EPR and recycled content mandates, will draw regional and international investment into high-quality recycled PET, recycled high-density PE, and reuse systems, strengthening ASEAN’s position as a manufacturing hub for sustainable packaging.”

Zorzi expects the transition to create high-value jobs and enhance economic resilience.

“Expanding collection, sorting, and recycling systems will generate thousands of roles in logistics, plant operations, quality control, design, and testing.” 

“Many waste workers, particularly women and vulnerable groups, operate informally. As circular systems and EPR expand, ASEAN countries can formalize these workers, improving wages, safety, and social protection.”