Extended Producer Responsibility in UK packaging
Overview
Extended producer responsibility (EPR) for packaging is key to tackling waste in the UK. It holds producers accountable for the entire lifecycle of their products, promoting sustainable practices and reducing environmental impact. EPR fees fund essential tasks like collecting and sorting household packaging waste, disposing of non-recycled packaging, and managing packaging from street bins. Extended Producer Responsibility also supports national recycling campaigns to raise public awareness and strengthens enforcement by regulators to ensure compliance with waste management laws.
Who is affected:
In 2025, Extended Producer Responsibility will shift recycling costs from collective funding to individual producers in the UK. Businesses with an annual turnover of £1 million or more and over 25 tonnes of packaging will be required to comply with EPR. This means they must report the amount of packaging they place on the market, pay recycling costs, and adhere to EPR regulations.
Companies near these thresholds should evaluate their packaging practices to anticipate impacts and adjust their strategies. EPR aims to drive more sustainable packaging practices and ensure that producers contribute fairly to recycling and waste management.
The pEPR base fee announcements of 15 August
On 15 August Defra announced the packaging EPR base fees estimate.
The Scheme Administrator will calculate each producer’s fees using the Fees and Payments Calculator (FPC). The fee formula determines the costs.
These fees estimate the potential pEPR costs for large producers during the 2025/26 financial year. The table below details the projected costs per tonne of packaging placed on the market.
The August 15 update from Defra provides a preview of potential EPR fees for 2025, with costs per tonne outlined in low, middle, and high scenarios. Defra has noted that these preliminary figures are based on 2019 data and several assumptions, so they are not final. This early insight from Defra helps producers estimate future financial impacts, but it’s important to remember that these are initial estimates. The ranges provided by Defra should not be viewed as definitive best or worst-case scenarios due to existing uncertainties.
Understanding the Difference Between EPR and PRN Fees
EPR (Extended Producer Responsibility) fees and PRN (Packaging Recovery Note) fees serve different purposes. EPR fees apply to producers reporting household packaging waste. They cover the net costs for managing waste, including collection and recycling.
PRN fees apply to all packaging placed on the market and fund its reprocessing and recycling. PRN fees ensure recycling targets are met. Starting in 2025, most producers under EPR will pay both EPR and PRN fees. This dual fee structure supports comprehensive waste management and recycling efforts.
Conclusion
In conclusion, the introduction of EPR marks a major shift in the UK’s packaging waste management. It moves from collective to individual producer responsibility. Defra’s initial estimates of EPR fees are now available. Producers get an early look at potential financial impacts starting in 2025.
However, it is essential to recognize that these estimates are based on historical data and are subject to change. As the implementation of EPR progresses, producers should stay informed and prepare for the dual obligation of EPR and PRN fees, which together will drive more sustainable packaging practices and contribute to reducing the environmental impact of packaging waste.
RLG can support you in navigating these changes, ensuring compliance, and optimizing your packaging strategies. If you have any questions at all, please do not hesitate to contact our team of environmental compliance advisors.
