The Retailer Spring Edition 2021

THE RE TA I L ER

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PACKAGING REGULATION – LESSONS FROM EUROPE

Laura Rimmer International Compliance Manager Valpak

T he UK’s new packaging regulations what to expect.

What this means is that packaging producers will fund household collections and recycling. With the latest, and final consultation, the full costs have become available. In 2019 – the most expensive year in the history of the packaging recovery note (PRN) system to date – the cost to producers came to £355 million. With the full implementation of EPR in 2024, this will rise to £2.7 billion. The cost will most likely be borne by brand owners and importers, but the effect will be felt throughout the supply chain. Across Europe, some countries have already started preparing. Patterns are emerging, and it is clear that data collection andmanagement is critical. In Spain for example, producers are required to include polymer types in their submissions for plastics. As well as listing the volume of plastic as we currently do in the UK, polymers are split into nine different types. The fees are more expensive for polymer types which are less easily recyclable, and lower for those that that can be recycled efficiently. This type of modulated fee system has already been outlined for the UK. In December 2020, partners including the British Retail Consortium and government launched a joint project to co-design a modulated system where costs are linked to the complexity of different types of packaging. The aim would be to financially incentivise greater use of recyclable packaging, and explore ways that higher charges could apply to those producers using more problematic products.

are bringing major change, but existing European systems give an indication of

The long-awaited public consultation on Extended Producer Responsibility for Packaging Waste is upon us. We have known for some time that costs will rise substantially but, as we move closer to actual policy, the scale of the challenge ahead becomes clearer. While this is a daunting prospect for many, forewarned is fore-armed. With the right prepara - tions, a great deal can be done to mitigate costs and participate in the move to a more sustainable future. Many of our European neighbours are already on the path to EPR-ready; we can learn a great deal from their experience. When the UK adopted the latest Circular Economy Package, we com - mitted to a change in extended producer responsibility (EPR). Instead of the packaging producers – retailers and brands – funding part of the cost of recycling, they would now be responsible for 100 per cent of the net cost of recovery and recycling.

As plastics come under greater scrutiny, brands which already collect information on polymer types will benefit from lower fees.