Thoughts on the EPR Scheme
The Extended Producer Responsibility scheme was first announced by DEFRA in 2018 and was originally due to come into force in 2023. The first EPR fees, based on data supplied by companies, were due to be paid this month. However, this has been delayed until October 2025. Is this a good thing?
How Is EPR Beneficial?
As a packing manufacturer, you might think that we are in favour of the delayed introduction of EPR fees. However, we see the necessary environmental benefits of the scheme.
The volume of waste being produced every month is more than the UK has the capacity to process. This means packaging waste is polluting the planet. Therefore, significant changes are needed to avoid further environmental destruction.
Firstly, significant investment is required to better equip and expand the UK’s recycling facilities. EPR aims to shift the net cost of packaging waste collection and recycling from taxpayers to the companies manufacturing, supplying or importing packaging. It is estimated that it will generate £10 billion over a decade, which will be invested in improving household waste collection and processing.
Secondly, where the packaging waste is hard to separate or difficult to recycle, the EPR fees are higher. This incentivises qualifying businesses to shift towards circular thinking and the use of recycled and recyclable packaging materials.
What Qualifies a UK Organisation for ERP?
EPR regulations apply to UK organisations that fulfil the following criteria:
- Is an individual business, subsidiary or group (but not charity)
- Has an annual turnover of £1 million or more, based on most recent accounts
- Has imported or supplied more than 25 tonnes of packaging to the UK market in the previous calendar year
- Undertakes packaging activities (which include sending e-commerce orders)
Qualifying businesses have been asked to record data on the packaging volume and types used since July 2023. This was to be used to calculate the fees to be paid from October 2024, however, this has been delayed for another year.
Paying an annual fee encourages qualifying manufacturers to consider the entire life cycle of their packaging. It pushes them to reduce volumes and switch to widely recycled options.
Why the Delay in EPR?
It’s been revealed that several major British brands have persuaded the Government to shift the timeline. They report that the financial burden of the current economy makes it challenging for them to afford the EPR fees. Therefore, they will be forced to pass costs onto customers.
However, many recycling centres have factored in a share of what was said to be around £10 billion over the coming decade to their investment plans. Therefore, they need this income to upgrade facilities. This is necessary to optimise the recycling of packaging waste and avoid items being sent to landfill or overseas.
What’s more, having gathered several years of data on the costs of managing household waste, DEFRA has already reduced the fees. And, if companies had started to address this when EPR was first announced, switching to easily recyclable packaging materials would have also cut costs.
Is it Right to Delay the EPR Scheme?
We are actively working towards Net Zero goals and view EPR as part of our agenda to minimise our environmental impact. We believe that our local recycling facilities and waste management companies provide excellent, environmentally-focused services. However, we know that these aren’t matched across the country. Therefore, investment is needed and it is fair that businesses supplying packaging contribute.
What are your thoughts on the EPR scheme and the delay in collecting fees?
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