Many UK businesses will face changes to how they manage packaging waste, with new packaging Extended Producer Responsibility (EPR) laws being phased in for the UK. Waste experts from Business Waste detail what this will mean for companies…
The new regulation aims to shift the financial and environmental responsibility of managing packaging waste from local authorities to businesses. There’s a delay in paying EPR packaging fees by a year, so it will now come into force in 2025.
What is the packaging EPR law?
The packaging EPR law holds businesses accountable for the full lifecycle of the packaging materials they use – from production to disposal. Businesses that generate, use or import packaging materials will be required to cover the costs of collecting, sorting and recycling their packaging waste, as well as managing the residual waste that goes to landfill. This includes manufacturers, retailers, importers and online sellers.
Which businesses will it affect?
The EPR law will apply to any UK business that uses packaging in their operations, manufactures packaging or sells products in packaging to consumers or other companies.
Even small businesses and online sellers will be impacted as they must account for their packaging usage and manage the associated costs.
How will this impact businesses?
The first way it will affect businesses is through increased costs, based on how much packaging they use and the type of materials. For example, the first preliminary Department for Environment, Food & Rural Affairs (DEFRA) discussions suggested the charge per tonne of glass packaging would be between £130 and £330.
This received a big backlash from businesses whose profits it would hugely affect. After more discussions, DEFRA has decided to lower the base fees on all materials, bringing the lowest cost per glass tonne to £110.
Another implication for businesses is data collection and reporting. Businesses will need to track and report the amount and type of packaging they place on the market. This data will be used to determine the financial contribution each business must make toward managing waste.
Even though the fees have been deferred for a year, businesses should record and report their packaging data now to be ready for when the charges are introduced in 2025.
How can businesses prepare?
Firstly, businesses should run an internal packaging audit. This will identify areas for cutting packaging waste and opportunities where more sustainable materials can be used. To reduce future EPR costs, businesses should partner with sustainable suppliers so the recycling process can be as cost-effective as possible.
Following this, introduce a system for accurate recording and reporting of packaging data. Clear business plans should cover all waste management strategies accurately to avoid any non-compliance penalty fees.
Finally, keeping all staff and stakeholders informed on the new changes will create a culture of shared responsibility.
Mark Hall, waste expert and co-founder of Business Waste, said: “The packaging EPR law marks a major step forward in the UK’s efforts to reduce packaging waste and promote sustainability.
“While it will bring new responsibilities and costs for businesses, it also presents an opportunity to innovate, adopt greener practices and align with consumer demand for environmentally friendly solutions.
“Businesses that prepare early, adopt sustainable packaging practices and stay compliant with the new regulations will be better positioned to thrive.”
