Extended Producer Responsibility draft regulations

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BHETA
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Extended Producer Responsibility draft regulations

The UK Government is planning to introduce new legislation called Extended Producer Responsibility (EPR) which will totally overhaul the current PRN system and involve the most significant change to Packaging Regulations for a generation.EPR is currently set to be charged in the UK from 2024 based on levels of 2023 packaging and will have a significant impact on BHETA members.The Government published draft legislation on 23rd November which is planned to come into force from 28 February 2023.What changes will EPR bring?

  • Producers Pay - Shift in financial responsibility for the treatment of waste packaging, with PRODUCERS picking up 100% of the bill.
  • Modulated Fee system - is expected to be introduced in 2025 to weight the fees depending on the environmental impact of the packaging placed on the market, to incentivise producers to use more sustainable materials.
  • Reporting – in 2023 there will be minimal changes to reporting but reporting will get more detailed – probably in 2024 - to enable Modulated Fees
  • Labelling – in 2025/26 new labels will be required
  • Halving of the thresholds for having to join a scheme for "SMALL" companies, who must Report but do not yet have to pay any fees

Branded ProductsIn 2022, the costs for kerbside recycling/disposable of packaging from branded products is about £1,700 million and is split roughly as follows:

  • 10% by producers through PRNs
  • 10% by retailers
  • 80% by the taxpayer through Council taxes.

Under EPR in 2023, for payment in 2024, this will change to:

  • 100% of the cost of collection and disposal will be met by Producers through modified PRNs.

This is forecast to increase branded packaging PRN costs for BHETA members by between five to ten times compared to 2021 costs, although no-one knows for sure as the detail is not available from Government:Retailers’ Own Brand Products

  • Suppliers of Own Brand packaging into retailers should in theory benefit. Retailers will be defined as PRODUCERS for 100% of the costs for kerbside recycling/disposable of packaging from own branded product.

Modulated fee system

  • In 2025, a “modulated fee system” is expected to be introduced to provide discounts depending on the environmental impact of the packaging placed on the market.
  • Packaging that can be easily recycled will attract lower EPR fees compared to hard to recycle packaging.
  • This will provide financial incentives for producers to use more sustainable materials.

ReportingIn 2023, it is expected that there will be minimal changes to reporting:

  • All eligible suppliers will report PRN returns as normal in April 2023 on calendar year 2022.
  • The first EPR report is likely to be required in July 2023 reporting from January to June, but no charges will be payable until 2024.
  • The 2023 reporting is likely to be very similar to PRN reporting with a few small changes.
  • We will advise when more information is available through a Wastepack webinar and follow up communication.

LabellingIn 2025/2026 new recycling labels will be coming out.What would BHETA advise members to do?1. Review all your packaging

  • carefully consider every bag, box and item in your packaging
  • is there is a way to remove, reduce or make it from more recycled and recyclable material?
  • If so, you will very likely reduce your EPR charges in the future but will also reduce the impact of your products on the planet, which will appeal to consumers.

2. Reporting

  • We advise you to let your suppliers know that you will at some point be legally required to get a more detailed breakdown of the materials used in your packaging, potentially in 2024.
  • We advise you to wait for detailed Government advice ahead of making changes so that you only do it once.
  • We advise you to listen carefully to all communications from your Compliance Scheme owner who are the experts in this field.
  • Wastepack will hold a webinar for BHETA members in the near future

3. Not part of a compliance scheme?

  • We urge you to calculate the volume of packaging your business currently deals with, as the minimum threshold for being required to pay under EPR is likely to half to 25 tonnes.
  • We recommend you contact Wastepack for more information about joining a Compliance Scheme: paul.vandanzig@wastepack.co.uk

4. Tell your MP what you think of the legislation and in particular the huge changes in financial responsibility for meeting the cost of UK kerbside recycling.BHETA actionsWill Jones of BHETA has written to the following politicians outlining the reasons why we believe moving the financial burden to Producers:

  • Secretary of State for Environment, Food and Rural Affairs, The Rt Hon Thérèse Coffey MP
  • Minister for Environment, Trudy Harrison MP
  • Secretary of State for Business, Energy and Industrial Strategy, The Rt Hon Grant Shapps MP
  • Shadow Secretary of State for Environment, Food and Rural Affairs (Labour) Jim McMahon
  • LibDem Spokesperson for Environment, Food & Rural Affairs, Tim Farron

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