Extended Producer Responsibility for Packaging - New UK Timeline
On 26 March 2022, the Department for Environment, Food and Rural Affairs (Defra) published its response to the second consultation on Extended Producer Responsibility (EPR) for packaging, which concluded on 4 June 2021 and focused on specific policy proposals to make producers responsible for the cost of packaging in the UK.
The consultation’s main focus was on the introduction of a new EPR packaging system, which aims to reform and replace the UK’s current Packaging Recovery Note (PRN) system, and introduce provisions placing legal obligations on online retailers and digital marketplaces to comply in relation to the packaging of imported products sold over their platforms. The changes are expected to cost UK producers around £1.7 billion each year, creating a strong incentive to reduce packaging and increase recyclability.
Defra’s response to the consultation
As a first step towards implementing the above framework, Defra has announced that the new UK EPR system in relation to packaging will be implemented from 2024 (rather than the original implementation date of 2023).
However, the government intends to develop a statutory instrument covering data collection and reporting obligations for producers which will come into force on 1 January 2023 and be in force until 2024. This means producers will have to prepare for a more detailed reporting system from January 2023. This will include collating and reporting data on specific packaging component materials, which waste stream their packaging is likely to appear in, and the use of any ‘recycling disruptors’ such as metal components. This data will provide the basis for establishing the packaging waste management fees producers will pay in 2024.
The response to consultation document also clarifies that:
The delay from 2023 to 2024 announced by Defra may come as a relief to some producers and those in the re-processing sector who are rushing to prepare for EPR implementation. However it has also caused concern that previously robust provisions, covering the management of business waste, have been watered down. The direction of EPR travel, however, remains the same. The ultimate aim of the EPR system in relation to packaging is still to make producers responsible for the full net cost of managing packaging at the end of its life, and this shift of responsibility is expected to trigger an increase in producer compliance costs of anything between 6 to 20 times, with the costs to industry as a whole set to inflate from the £200-300m a year currently incurred under the PRN system, to nearly £3bn per year.
Because of this, preparations for EPR implementation in the UK, including making sure data collection and processing systems are ready for EPR reporting, remain as crucial as ever.
How can PwC help?
With the expansion of EPR regulation coming into force across Europe, and now the UK, our legal specialists can help our clients to:
Understand the updates to existing EPR frameworks, new EPR schemes and their application to your product lines in countries where you are selling products;
Assess data collection and reporting requirements and the relevant timelines;
Consider and respond to any questions that may arise as a result of preparation for the expanded regulations;
Liaise with regulatory authorities and scheme operators;
Produce bespoke guidance to assist internal teams, as well as supply chain partners where relevant;
Structure and optimise compliance costs and potential pass through to others in the supply chain.
We can work with our clients across all sectors to help prepare them for the changes to the EPR requirements and the increased demands on online marketplaces and retailers.
If you would like to discuss the above please contact our specialists.
Contact us
Senior Manager, UK Environmental Regulatory Legal Lead, PwC United Kingdom
Tel: +44 (0)7483 326978
