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Updated Dec 20, 2024

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New packaging waste Extended Producer Responsibility in force from January

The long awaited Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations SI 2024/1332 have been published. They come into force on 1 January 2025 though due to transitional provisions they do not replace the previous producer responsibility obligations regime fully until 1 January 2026.

These Regulations implement Extended Producer Responsibility, as introduced by the Environment Act 2021 and they place an obligation on certain packaging producers to pay the costs of dealing with household packaging waste.

The provisions in these Regulations are very detailed, so we've broken down the main points in this document.

Background

The UK has had a system of packaging producer responsibility obligations since 1997. Producer responsibility was controlled under the:

  • Producer Responsibility Obligations (Packaging Waste) Regulations SI 2007/871, in England, Scotland and Wales;
  • Producer Responsibility Obligations (Packaging Waste) Regulations (Northern Ireland) SR 2007/198, in Northern Ireland.

Whilst that system did increase recycling rates across the UK, it did not incentivise producers to use less packaging which is easily recycled. In addition, it could not ensure the recovery of all costs associated with the management of packaging waste.

The Government wants to better implement the producer pays principle and to make sure producers take more responsibility for the environmental impact of the materials and products they place on the market over their entire life cycle (design, manufacture, use and disposal). They also want to move the UK towards a more circular economy to increase material reuse and reduce waste.

As a result, it introduced extended producer responsibility, which is implemented by the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations SI 2024/1332. It places financial responsibility on businesses for the cost of managing their products once they reach end-of-life. This should incentivise businesses to make sure their products are easier to reuse or recycle. It should also encourage the use of fewer materials. Under these Regulations, the producer becomes responsible for the environmental impact of the packaging they supply and use and financially responsible for the costs of collecting and managing household packaging waste.

In addition, legislation was introduced across the UK back in 2023 requiring large and small producers to collect and report data on packaging. The new Regulations take over data reporting requirements subject to transitional provisions mentioned below and therefore revoked the following on 1 January 2025:

  • Packaging Waste (Data Reporting) (England) Regulations SI 2023/219;
  • Packaging Waste (Data Collection and Reporting) (Wales) Regulations SI 2023/798;
  • Packaging Waste (Data Reporting) (Scotland) Regulations SSI 2023/7; or
  • Packaging Waste (Data Reporting) (No. 2) Regulations (Northern Ireland) SR 2023/25;

Who do they apply to?

The new Regulations apply to:

  • large producers with a turnover of more than £2 million and who supplies in aggregate more than 50 tonnes or packaging a year;
  • small producers with a turnover of more than £1 million and who supplies in aggregate more than 25 tonnes of packaging a year.

In terms of who counts as a "producer", the Regulations specify that it is anyone:

  • established in the UK;
  • who is a brand owner, an importer or first UK owner, a distributor, an online marketplace operator, a service provider or a seller (all of these producer classes are defined in the Regulations);
  • who operates as a producer:
    • in the UK,
    • in the course of a business; and
    • either themselves or through an agent acting on their behalf.

When do they apply?

The Regulations themselves are fully in force on 1 January 2025. However, they do not revoke the Producer Responsibility Obligations (Packaging Waste) Regulations SI 2007/871 or the Producer Responsibility Obligations (Packaging Waste) Regulations (Northern Ireland) SR 2007/198 until 1 January 2026.

Transitional provisions exist which require producers obligated under those 2007 Regulations to keep records, to continue to keep those records.

Producers must also report the data for 2024 which they would have been required to report under the Data Reporting regulations listed above instead of under the new Regulations.

What are the main requirements?

These Regulations are all about holding the producer responsible for the environmental impact of the packaging they supply and use. On that basis, all large and small producers must:

  • be registered with the appropriate agency (the Environment Agency in England, the Scottish Environment Protection Agency (SEPA) in Scotland, Natural Resources Wales (NRW) in Wales and the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland);
  • keep certain records regarding packaging - the records required differ depending on whether the producer is a large or small producer. They also differ between producer classes;
  • report data to the appropriate agency. For:
    • large producers, the first report under the new Regulations is due by 1 April 2025, covering the period 1 January 2024 to 31 December 2024, or 1 July 2024 to 31 December 2024, whichever is applicable (subject to detailed transitional provisions contained in Schedule 15),
    • small producers, the first report under the new Regulations is due by 1 April 2025, covering the calendar year 2024 (subject to detailed transitional provisions contained in Schedule 15).

Large producers must also:

  • recycle packaging waste in each packaging category of packaging they supply;
  • keep evidence of the amount of packaging waste they have collected from consumers and sent for recycling and evidence that that waste has actually been recycled;
  • provide a certificate of compliance to the appropriate agency regarding their recycling obligations.

Whilst producers can take on these obligations themselves, it is also possible for them to join a registered compliance scheme for a fee. The compliance scheme is allowed, under the Regulations, to take on responsibility for  registration obligations, certain reporting obligations and recycling obligations on behalf of the producer, but only if that compliance scheme is approved and registered by the appropriate agency.

New to these Regulations is the requirement that any producer liable to pay annual disposal and administration fees (large producers who supply household packaging) must assess the recyclability of any household packaging they supply. The recyclability assessment can be done by the producer themselves or by a third party, but must always be done using the methodology and guidance published by the Scheme Administrator appointed by the Government. The results of the assessment must be submitted to the appropriate agency every six months, on or before:

  • 1 October each year, covering the period 1 January to 30 June in that year; and
  • 1 April each year, covering the period 1 July to 31 December of the previous year.

Large producers must continue to comply with their recycling obligations and demonsrate compliance through the acquisition of Packaging Waste Recycling Notes (PRNs) or Packaging Waste Export Recycling Note (PERNs) if waste was recycled overseas. They must then submit a certificate of compliance on or before 31 January each year to state they have complied with their recycling obligations.

In addition, large producers are required to pay disposal cost fees for any household packaging they supply. The disposal fee is based on the costs incurred by local authorities in collecting and managing household packaging waste streams and the amount of the fee depends on how much packaging is supplied, the type of materials supplied and whether the packaging is recyclable or not. The fees will be paid to a Scheme Administrator established by the Government, which will then make payments to local authorities for waste services.

Anyone who recycles packaging waste at reprocessing sites across the UK and anyone who exports packaging waste to be recycled abroad, must be registered by 1 January 2026 with the appropriate agency. Exiting reprocessors and exporters must apply for registration by 1 October 2025.

From 1 January 2026, nobody is allowed to issue a PRN unless:

  • it relates to packaging waste received at a reprocessing site they own;
  • when the packaging waste is received the person is accredited to issue PRNs for the applicable category of packaging waste ; and
  • the PRN is issued in the same year the waste is received at the reprocessing site, or by 31 January the following year.

How are they different to the previous Regulations?

The Producer Responsibility Obligations (Packaging Waste) Regulations SI 2007/871 or the Producer Responsibility Obligations (Packaging Waste) Regulations (Northern Ireland) SR 2007/198 required producers to obtain evidence to demonstrate that tonnages equivalent to their recycling obligations were recycled during a year. This was done through PRNs or PERNs if waste was recycled overseas. The cost of these notes was determined by the market and the revenues raised by reprocessors in supplying the evidence would support the recycling of packaging waste and investment in reprocessing.

A producer’s contribution was based on their role in the supply chain, the amount of packaging (by material) they used or supplied in the preceding year and the recycling targets set by government in any year. They met their recycling obligations by obtaining evidence of recycling and providing this to the regulator.

The new Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations SI 2024/1332 still require producers to recycle a proportion of packaging they supply and obtain PRNs or PERNs to show they have met their recycling obligations. However, where they differ is:

  • reprocessors who recycle packaging waste at reprocessing sites in the UK, and exporters who export packaging waste to be recycled, must register with the appropriate UK regulator and submit data on a regular basis;
  • new obligations are introduced which place the responsibility for the costs of managing household packaging on the producers who use and supply the packaging;
  • large producers must assess packaging to determine its recyclability, as described above;
  • the producers and the classes of producer with obligations have changed. Small producers will have to collect and report data annually. In addition, the brand owner, first UK owner and online marketplace operator producer classes are new (although the people within these producer classes were required by the Data Reporting regulations across the UK to gather packaging data in preparation for the new Regulations);
  • the principle of shared responsibility, where costs were shared throughout the supply chain, no longer apply, meaning the obligations in relation to a single item of packaging falls on the single producer (usually whoever makes the packaging available for the first time on the UK market);
  • large producers will have to pay disposal cost fees, as described above;
  • small producers must report the amount of packaging they supply each year by packaging material. This data is intended to provide a better picture of packaging placed on the UK market and inform future decisions.

For more information, see the:

  • Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations SI 2024/1332.

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