Extended Producer Responsibility reforms delayed for UK packaging industry

Extended Producer Responsibility (EPR) reforms, which would require producers to take responsibility for the full net cost recovery of packaging they place on the market, have been delayed. In its initial timeline first published in the Resources and Waste Strategy, the Department for Environment, Food and Rural Affairs (Defra) said the new EPR system was to be phased in from 2023. While plans for the Extended Producer Responsibility reforms are still underway, no new date indication has been given, and a new timeline is expected to be announced. As a result, the current Packaging Recovery Note (PRN) system will remain in place throughout next year and a statutory instrument will be introduced to set recycling targets for the 2023 compliance period. The Government’s consultation responses on the subject were expected at the end of 2021, but remain delayed, and Defra has said many stakeholders warned the proposals for the initial phased roll-out gave insufficient time for businesses to prepare for new data reporting requirements. The government’s EPR responses are anticipated in “early 2022” and are going through final approval at Defra, which says it will publish them as soon as possible. Defra also raised concerns that if the scheme administrator could not be operational in time, this could lead to poor data, which would risk undermining the scheme. Following the news of the delay, the National Infrastructure Commission (NIC) has warned “urgent action” is needed to increase recycling rates. The NIC has urged for the finalising of policies on EPR, deposit return schemes, recycling consistency and bans on certain types of plastics. Extended Producer Responsibility delay reaction In alignment with the government’s original timeline, our members have delayed new procurements and instead implemented interim contracts and extensions in order that they can go to the market with confidence and a strong offer, once the guidance on consistent collections, EPR and DRS has been fully clarified. “These options are however, becoming more unfeasible, and updated service contracts for collections and processing will end up being procured within in a vacuum of uncertainty, leading to increased costs for local taxpayers. Alternatively, Local Authorities will have to award contracts with no provision for EPR until the next contract cycle, which could be a minimum of seven years.” Statement by Cathy Cook, chair of the Local Authority Recycling Advisory Committee (LARAC) Background to Extended Producer Responsibility The UK Government first announced its intention to introduce EPR for packaging in the Resources and Waste Strategy published in 2018. The new system will replace the current Packaging Waste Regulations and it is anticipated that the data reporting requirements will be more demanding and detailed. Extended Producer Responsibility and the Plastic Packaging Tax While the EPR is still being debated, the UK’s Plastic Packaging Tax is due to come into effect from April 1, 2022. It will affect importers and manufacturers of plastic packaging that does not meet the minimum recycled content of 30% by weight. You can find more information about the tax and read our free whitepaper here.

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