UK government announces extended producer responsibility policies after consultation closes

30 Mar 2022 --- The UK’s Department of Environmental, Food and Rural Affairs (Defra) has released the findings of its long-awaited extended producer responsibility (EPR) consultation, along with the policy decisions it has drawn.

Defra received 1,241 responses to the second consultation and held additional workshops and meetings following its publication; 28% of responses came from local government, 24% from packaging designers/manufacturers/converters and distributors, and 24% from product manufacturers, brands and retailers.

The resulting changes that the UK government has announced following these responses have been met with mixed responses from local industry. Delays to implementation and “watering down” of some of the original proposals have drawn concern from some organizations. Still, others are expressing relief at assurances given that recycling collection will continue.

Main policy changes
Among the main changes announced in Defra’s report are that EPR implementation will now commence in a phased manner from 2024, rather than 2023, and focus on payments for household packaging waste and packaging in street bins managed by local authorities.

Producers will begin to shoulder the costs of the waste they produce in the UK.“This [phasing in] will simplify and de-risk delivery,” reads the report. The payments for household packaging will support improved recycling collections for households, provide for the collection of additional packaging materials for recycling, such as plastic films, while providing flexibility, it says.

Modulated fees based on recyclability will be introduced for products from 2025 rather than 2024. In England and Northern Ireland, Defra will not introduce payments for littered packaging waste. Meanwhile, Scotland and Wales are considering steps to obligate producers for these costs and will come forward with their proposals in due course.

The current arrangements known as the Packaging Waste Recycling Note (PRN) are set to continue as usual “to demonstrate recycling obligations have been met.” PRN is a pricing system designed to incentivize producers to recycle as much material as possible.

Further analysis
Defra says it will continue to explore payments for commercially collected packaging waste from businesses and other organizations that pay to collect their waste, establishing a task force with cross-sector representation to develop the evidence, undertake analysis and identify options.

A decision was also made to maintain the threshold for producer recycling obligations and disposal cost payments at £2 million (US$2.63 million) turnover and 50 metric tons of packaging handled each year rather than to lower it.

However, a lower threshold of £1 million (US$1.32) turnover and 25 metric tons of packaging handled each year will be introduced for producers to report packaging placed on the market.

All compostable and biodegradable packaging will be required to be given the “do not recycle” label, allowing time to build the evidence that it can be safely collected and composted separately.

Scheme administration
A scheme administrator (SA) for EPR will be appointed. The SA is designed to start mobilizing in 2023 and will be fully operational in 2024.

The government is considering options to establish the SA within the public sector but still maintain significant industry involvement in the delivery of its functions. The four governments (England, Wales, Scotland and Northern Ireland) will make the final decision on the SA.

The EPR scheme will be reviewed after two years of its operation to consider the proposals of the task force and progress in reducing the volumes of packaging in street bins and litter on the ground.

Industry has issued various responses to the report, which PackagingInsights will analyze in further detail in the coming weeks. In particular, however, the Chartered Institute of Waste Management has expressed “surprise” at how watered-down” it is.

By Louis Gore-Langton

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