How Will New Extended Producer Responsibility Legislation Impact Your Business?

As the world faces unprecedented environmental issues governments find themselves in a rush to take action. Most agree that a circular economy is the best way to help the planet and ensure that we have a green and great future. 

This has led to numerous strategies to reduce levels of waste and minimise costs for the consumer including extended producer responsibility for packaging. 

In this article, we'll break down the new extended producer responsibility legislation from the UK government and the impact this will have on the packaging industry.

What Is Extended Producer Responsibility?

Extended producer responsibility (EPR) is a strategy used by the government to add all environmental costs associated with a product through its lifecycle to the market price.

In theory, EPR should focus on the end-of-use treatment of consumer products like packaging to maximise recovery and minimise environmental impact of different waste materials. 

The concept was first introduced in Sweden by Thomas Lindhqvist and defined as follows: 

"EPR is an environmental protection strategy to reach an environmental objective of a decreased total environmental impact of a product, by making the manufacturer of the product responsible for the entire life-cycle of the product and especially for the take-back, recycling and final disposal."

In the UK a producer responsibility system has been in place since 1997, however, it has never covered the complete cost of packaging waste disposal. 

New EPR fees slated to come into place before the end of 2025 aim to tackle the recyclability costs of packaging such as plastic, glass, and tin. The current producer responsibility system only covers an estimated 7% of recycling costs. 

By increasing the costs for businesses, the government is hoping to encourage businesses, suppliers and consumers to make greener choices. 

However, according to industry experts, the new fees may not have the desired impact and could instead move the UK away from a greener future. It will also put more pressure on business owners and lead to additional costs as they strive to remain compliant. 

EPR Concerns 

According to the government, as well as covering the costs of packaging, the EPR is intended to push businesses and individuals towards greener choices. 

However, under the proposed fees plastic packaging will become a more cost-effective option compared to tin packaging because the new system is based on weight. While it's true that plastic weighs less, potentially reducing emissions during transportation, in terms of recyclability, it doesn't measure up to other alternatives. 

Metal packaging has a significantly higher recycled rate - 74.5% for aluminium and 82.5% for steel packaging - compared to plastic at 44.2% in the UK. Furthermore, the latest statistics suggest that metal packaging is far more cost-effective to recycle at £140 to £180 per ton, compared to plastic at £225 per ton. 

A high percentage of metal packaging also never ends up as waste and thus is not recycled. Instead, the collectors and decorative tins that we sell are often repurposed and re-used by customers. They could remain in a home for years and might even be passed down from generation to generation due to appreciation in value. 

The Extended Impact Of The EPR

Under the new EPR legislation, sustainable packaging choices such as tin will become more expensive and a less desirable choice for both businesses and individual consumers. 

Despite being a green choice, there is a strong possibility that metal and aluminium will be pushed aside in favour of less sustainable choices like plastic.

That’s a concern because even if plastic is recycled, it can only be reused a limited number of times. Eventually, it still ends up as waste, unlike metal packaging which can be reused an infinite amount without ever losing its quality. Thus, the EPR could move governments and society further from the desired goal of a true circular economy. 

Then there’s the cost of the EPR. Under the new EPR regulations even SME suppliers could be hit with thousands in fees, but that’s not all. Businesses using sustainable packaging like tin could also be hit with new costs. Eventually, these fees will always be passed onto the consumer with bigger prices on their favourite products. 

So, while the goals of the new EPR are admirable, there is a real concern that the outcome will be far from desirable. 

Indeed, it will result in rising costs for everyone from suppliers to consumers while pushing options like tin packaging - a true sustainable choice - further down the list for business workings to remain cost effective. 

For more information on the impact of the EPR and the importance of tin packaging for the circular economy read our white paper.