How to Prepare for Evolving EPR Regulations in Plastics
The world produces about 400 million tonnes of plastic waste each year, according to the United Nations Environment Programme. Plastics manufacturers are not traditionally involved in waste management, but Extended Producer Responsibility (EPR) regulations could change that.
EPR policies encourage more responsible product design by holding manufacturers accountable for the entire product life cycle. EPR regulations require manufacturers to invest in or directly manage their products’ end-of-life disposal, fundamentally shifting how the plastics industry operates. So, what are some of the potential impacts of EPR regulations, and how can plastics manufacturers prepare?
EPR Shifts Waste Management Responsibility to Manufacturers, Retailers and Importers
Historically, municipalities and waste management companies have led plastic waste collection, recycling and disposal. However, EPR policies will transfer these responsibilities to manufacturers. Retailers, brands and importers also share responsibilities in some jurisdictions.
EPR laws seek to reduce waste by making companies physically and financially accountable for a product’s environmental impact. These policies also incentivize companies to produce products that are easier to recycle or dispose of while investing in new recycling infrastructure.
Various regions around the world have already enacted EPR regulations, including the EU’s Packaging and Packaging Waste Directive, South Korea’s EPR mandates and Blue Box Regulation in Ontario, Canada. Research from Iowa State University shows increased recycling rates in areas with active EPR policies. As of early 2024, five U.S. states — California, Colorado, Maine, Minnesota and Oregon — have approved EPR packaging laws, with many others in the process of proposing and passing EPR-related legislation.
Manufacturers and retailers operating in states with pending EPR regulations should collaborate with policymakers, waste management companies and industry peers to prepare.
EPR Encourages Sustainable Product Design and Recycling
As legislators continue to propose EPR regulations, plastics manufacturers should carefully consider their response to common elements:
1. Investment in Recycling Infrastructure
EPR requires manufacturers to invest in improving waste management to ensure proper disposal and recycling. All active U.S. EPR legislation requires manufacturers to join a producer responsibility organization (PRO) and pay annual fees to cover recycling efforts and infrastructure.
One infrastructure example is a take-back program where consumers can return products to the manufacturer at designated collection points. Other investments include advanced sorting technologies, chemical recycling and, ultimately, the development of a closed-loop supply chain where recycled products are directly reintegrated into the production process.
However, companies won’t have to bear all the responsibilities of EPR regulations. In the U.S., federal legislation like the Realizing the Economic Opportunities and Values of Expanding Recycling (RECOVER) Act has been introduced, authorizing the Environmental Protection Agency to award financial assistance to local governments to expand recycling infrastructure and help alleviate some of the responsibility placed on individual companies.
To prepare for future EPR regulation, plastics manufacturers should first focus on further educating consumers on proper recycling adoption. Then, manufacturers can turn their attention to enhancing recycling infrastructure to handle an increased volume of recycled materials.
2. Adapting Product Design and Material Selection
By placing the responsibility of end-of-life disposal on manufacturers, policymakers hope to increase the number of sustainable and recyclable products on the market. Some EPR regulations mandate a minimum amount of recycled plastic content for certain products, which will likely increase demand for alternative plastics and feedstock. Plastics manufacturers exploring sustainable materials like post-consumer recycled plastics and bioplastics are on the right track to tackle EPR compliance and meet environmental goals. Material qualification and testing can take anywhere from six months to three years, depending on the market vertical and government regulations, so anytime is the right time to begin.
With the rollout of EPR regulations, manufacturers should also consider how they can reduce the number of materials in their products to increase recyclability. Other product design considerations include clear labeling of the type of plastic used and designing for durability so products can be used longer.
3. Compliance and Financial Impact
Beyond funding waste management programs, plastics manufacturers must be prepared to undertake the large financial impact of EPR legislation. Companies could face fees based on the volume and recyclability of plastics they produce. Manufacturers making products that can be reused or repurposed will incur fewer fees. There are also administrative costs associated with compliance and reporting requirements.
To properly comply with EPR, manufacturers should also begin tracing the flow of materials from production to disposal to ensure all stakeholder responsibilities are met. Proactive manufacturers can begin by implementing material identification and labeling systems, supply chain management systems, and data analytics tools to track and monitor product flows. It is important to remember that regulations are changing monthly in some cases. Ensuring that your regulatory and compliance department maintains up-to-date information is key.
Start Preparing for Evolving EPR Regulations
In 2023, lawmakers across 14 U.S. states introduced 43 bills related to plastics and packaging EPR. With international impact and growing adoption in the U.S., EPR regulations are here to stay, but plastics manufacturers will continue to face challenges around implementation, logistics and costs. Plastics manufacturers can take several proactive steps to position themselves for long-term success, including preemptively investing in recycling infrastructure and sustainable product research and development. It’s also important to prepare the business financially and operationally for the effects of the EPR regulations.
M. Holland’s Sustainability and Packaging experts are equipped to provide consultative guidance on regulations and pending legislation, including EPR. For more on our environmental responsibility efforts and related products, visit our Sustainability page.