PEPR

Extended Producer Responsibility (Packaging) Regulations

Summary

The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 introduce the UK's revised Extended Producer Responsibility (EPR) for packaging regime. The regulations are designed to move the costs of managing household packaging waste from taxpayers and local authorities to the businesses that place packaging on the UK market. The principle behind the scheme is that those who produce, import or supply packaging should bear the financial responsibility for its collection, recycling and disposal.

The regulations also aim to encourage businesses to reduce unnecessary packaging, improve recyclability and support a more circular economy.

Who It Applies To

The regulations apply to businesses that undertake packaging-related activities in the UK, including:

• Brand owners supplying packaged goods under their own brand.
• Businesses that pack or fill products into packaging.
• Importers of packaged goods.
• Manufacturers or importers of unfilled packaging.
• Businesses that hire or loan reusable packaging.
• Online marketplace operators facilitating packaging supplied into the UK.
• Sellers supplying packaged goods to end users.

What Qualifies a Company to Have to Comply

A business becomes an obligated producer if it:

1. Carries out one or more qualifying packaging activities.
2. Is established in the UK.
3. Supplied or imported more than 25 tonnes of packaging in the previous calendar year.
4. Had an annual worldwide turnover of £1 million or more.

Businesses meeting these thresholds are further categorised as either large producers or small producers, with different compliance obligations.

What a Company Needs to Do to Comply Immediately

To comply immediately, companies should take the following steps:

Companies that meet the qualification criteria should:

1. Assess whether they are an obligated producer under the regulations.
2. Identify and record packaging data relating to the packaging they place on the market.
3. Submit packaging data reports to the relevant environmental regulator in accordance with the reporting requirements.
4. Register with the appropriate regulator if they are a large producer, either directly or through a compliance scheme.
5. Put in place internal systems to maintain the required records and evidence. The regulations require packaging records to be retained for specified periods.

What a Company Will Need to Do to Comply in the Future

As the EPR regime continues to develop, companies will need to:

1. Continue reporting packaging data at the required intervals.
2. Pay EPR fees relating to household packaging placed on the market, with costs linked to the amount and type of packaging supplied.
3. Obtain sufficient Packaging Recovery Notes (PRNs) and/or Packaging Export Recovery Notes (PERNs) to meet annual recycling obligations where applicable.
4. Submit annual certificates of compliance demonstrating that recycling obligations have been met.
5. Carry out recyclability assessments and prepare for future fee structures that increasingly reward packaging that is easier to recycle and penalise packaging that is difficult to recycle.
6. Regularly review packaging design, materials and supply chains to reduce future compliance costs and improve environmental performance.

In summary, companies should already be collecting and reporting packaging data and, where applicable, registering under the scheme. Over time, the primary compliance burden will shift towards paying EPR fees, meeting recycling obligations and demonstrating the recyclability of packaging placed on the market.