‘Packaging rules are changing and the bill is likely to be substantial’

Retailers must prepare for new rules requiring you to cover the full costs of packaging management and recycling...........we're asking government to pause the current plans until they get the right system in place or phase in the charges to align with the development of more recycling.....but as we stand today that isn't the trajectory we are on.. They are coming so are you ready....?

Retail sells a lot of stuff and all that stuff requires a lot of packaging.?

Pretty much everyone selling packaged goods to UK consumers needs to be aware of new regulations coming down the line.

Packaging Extended Producer Responsibility (EPR) will require businesses to cover the full costs of the management and recycling of packaging material, which either ends up in household and street bins or is littered.?

“These new rules bring a significant financial and administrative burden, which could increase your packaging recycling costs by maybe 10 times”

But say ‘EPR’ and people’s eyes glaze over – why? Because it’s new, it’s complicated and the answers we need to all the questions we have about making changes are not yet clear. So "maybe I’ll just worry about it when they are…"

The problem with that approach is that these new rules bring a significant financial and administrative burden, which will vary from retailer to retailer but ultimately increase your packaging recycling costs by maybe 10 times what they are currently.

We think the government’s proposals aren’t well thought through and lack the ambition to deliver increased recycling rates and the availability of more recycled materials in the future, which means that you, the retailer, will end up with all the increased costs and none of the benefits.

The environment loses out, too. That’s bad as it means it’ll become just another tax. A tax that ultimately will end up being passed on to customers at a time when everyone is trying to bring down inflation.?

So we are lobbying to change all that and our experts are working through the details with our members.

Momentum is building on the need to address the issues but, irrespective of that, as things stand this change is coming into effect from next April and you need to be ready.?

Many retailers aren’t. In a recent British Retail Consortium survey, only 5% of retailers said they felt confident and ready, 51% ‘somewhat ready’ and 44% ‘not sufficiently ready’.

So, if you’re among the 95% of retailers that aren’t confident and ready, here are the three things you need to know to prepare for EPR.

Firstly, be in control of your packaging data. Businesses face increased reporting obligations from October of this year, so you’ll need to provide detailed information on your packaging twice a year.

“The government is yet to share the full costs and it will depend on the volume and type of packaging you use, but the bill is likely to be substantial”

It will be incredibly challenging and time-consuming to capture all that granular data, but it’s crucial to have a full and accurate picture of your packaging as it will inform your EPR fees.

Secondly, anticipate a huge increase in how much you’ll pay for packaging compliance. In addition to your existing obligations from Packaging Waste Recovery Notes (PRNs), many businesses will have to pay EPR fees from Q2/Q3 2024 to cover the management of packaging waste in households, street bins and littered packaging.

The government is yet to share the full costs and it will depend on the volume and type of packaging you use, but the bill is likely to be substantial.

This new financial requirement needs to be budgeted for 2024 as soon as possible.

Luckily, there should be a silver lining. From 2025, businesses will hopefully see some of their fees decreasing if their packaging is more recyclable.?

Finally, expect recycling labelling to change. All consumer-facing and shipment packaging will have to be clearly labelled as ‘Recycle’ or ‘Do not recycle’ and will have to have a specific logo by March 2026.

Plastic films and flexible packaging will have a year’s extension until March 2027. This is a positive step forward and you will need to start getting ready to introduce these new labels.

So, ready or not, EPR is coming. Don’t let your eyes glaze over!?

More info here https://brc.org.uk/news/csr/packaging-extended-producer-responsibility-epr-january-2023-requirements/

#retail #climateaction #sustainability