It’s been almost 2 months since the Extended Producer Responsibility (EPR) Consultation on reforming the packaging regulations closed and we’re now into the next stages in the development of new EPR proposals which will see the biggest evolution to the packaging regulations in over 20 years.
Defra are assessing all consultation responses and at this time there has been no further updates. However, it has been suggested that approximately 690 individual businesses responded to the consultation, and we hope to see a detailed response in the autumn.
Behind the scenes
Wastepack’s EPR are working alongside the Government and other industry experts on several projects. This includes developing a structure for modulated fees which will see reduced compliance costs for producers who place more recyclable packaging onto the market.
Industry is also considering the data reporting requirements with in-depth discussions taking place with Defra’s data team. There is particular focus on the complexities of reporting packaging placed on the market individually in England, Northern Ireland, Scotland and Wales.
So far, nothing has been agreed and Defra are in the very early stages of developing systems. The consultation responses will be eagerly awaited by industry and producers alike to shed more light on EPR proposals in practise.
Compliance Costs
It is apparent that these proposals are expected to have an impact on the cost of compliance. The Government wants to place the full net cost of collecting, treating and recycling packaging onto the obligated producer. This cost will be borne by just one business in the supply chain, the brand owner or importer, rather than shared throughout the supply chain as per the current packaging regulations.
This will lead to inevitable increases in the cost of compliance. The Governments impact assessment suggests that the total cost of EPR will be around £2.7bn per annum. This represents a rise of around 8-10 times the current cost of PRNs.
The Government has stated that the new system must provide value to all stakeholders, it must be sustainable for all stakeholders and above all it must be cost effective. We will continue to work with Government to ensure that the interests and concerns of producers are firmly in the forefront of decisions throughout the development of EPR systems.
Our team is working with members to ensure they’re prepared and confident in what lies ahead for their packaging compliance. As soon as we have more information from Defra, we will be providing scheme members with further updates and webinars. For more information, and to understand exactly how we can help you, please contact our team.
