EPR Guide - Flipbook - Page 9
What is EPR & Why Has the UK Introduced It?
Extended Producer Responsibility (EPR) is an environmental policy approach under which producers
bear full responsibility – 昀椀nancially and logistically – for the post-consumer phase of their products’
packaging. In practice, if your business supplies packaged goods in the UK, you must fund the
collection, sorting, and recycling of that packaging once consumers discard it. This marks a
fundamental change from the old system (where producers covered only ~10% of waste costs) to a
“full net cost” model.
Key reasons for introducing packaging EPR in the UK include:
• Shifting Waste Costs to Producers: Historically, local authorities (and thus taxpayers) paid most
of the bill for household packaging waste disposal. The new scheme (pEPR) aims to re-channel
~£1.2 billion per year to councils, funded by packaging producers instead. This creates a direct
昀椀nancial incentive for companies to reduce packaging waste and improve recyclability.
• Encouraging Eco-Design: Under EPR, producers pay modulated fees household packaging
based on how recyclable their packaging is. Highly recyclable (“Green”) packaging will incur
lower fees, whereas hard-to-recycle (“Red”) packaging will face higher charges. This fee
modulation, using a recyclability rating, rewards sustainable packaging design and nudges
companies to eliminate unnecessary or non-recyclable packaging.
• Improving Recycling Outcomes & Transparency: The old Producer Responsibility Obligations
system was criticized for low producer contributions, lack of transparency, and reliance on
exporting waste. EPR reforms were driven by the need to boost UK recycling infrastructure,
ensure producers 昀椀nance improvements (e.g. consistent household collections), and make
packaging waste data more transparent. Each UK nation will review the scheme’s impact (昀椀rst
review by 2028) to ensure it meets goals.
• Circular Economy Goals: Ultimately, EPR supports a transition to a circular economy where
packaging is designed with its end-of-life in mind. By holding producers accountable “beyond
the point of sale,” it encourages less material use, more reuse, and easier recyclability –
reducing pollution and litter and saving resources.
For UK businesses, EPR for packaging is not a discretionary initiative, it’s law. The current scheme
began in 2025 (under the Producer Responsibility Obligations (Packaging Waste) Regulations
2024) and applies UK-wide (England, Scotland, Wales, NI). Non-compliance can result in
substantial 昀椀nes (detailed later), so affected companies must understand their obligations and gear
up accordingly.
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