Extended producer responsibility, or EPR, policies will potentially have a major impact on the packaging industry.
EPR policies shift the responsibility of the cost of handling end-of-life product waste from government agencies, taxpayers, and nonprofits to the companies that produce and sell targeted products. Under EPR laws, these companies are responsible for the proper end-of-life disposal or recycling of their products.
EPR policies are intended to reduce waste and pollution and cut taxpayer costs by making producers responsible for disposing of their products after they are used. Some of these policies also promote the development of circular economies by encouraging companies to design and offer environmentally friendly products that are easier to recycle or are biodegradable.
EPR policies aren’t new. Several European countries began implementing them in the early 1990s. They focused on several product categories, including packaging. Today, most European countries have introduced EPR rules and legislation that cover the end-of-life disposal of a wide range of products.
EPR policies gained traction in the U.S. in the early 2000s, focusing on paints, consumer electronics, batteries, tires, and pharmaceuticals. Today, over 30 states have enacted EPR laws. Packaging-focused EPR laws first appeared in the U.S. in 2021, and a handful of initiatives have passed since then. In Canada, several provinces now have EPR legislation on the books as well.
So far, the U.S. federal government has not introduced any EPR laws, leaving it to the states to handle EPR issues individually.
EPR policies pose a number of risks for the packaging industry. These include:
Companies can take proactive steps to address current and future EPR issues. These include auditing current packaging to assess its environmental impact, using recycled, biodegradable, or easy-to-recycle materials when possible, and redesigning packaging to reduce size and waste.
Companies should also develop communications channels with all stakeholders involved in the product life cycle and explain how to properly dispose of and recycle used packaging. It’s also crucial to track compliance, as monitoring of waste and recycling efforts is a requirement of many EPR policies.
Some companies are turning to producer responsibility organizations, or PROs, to help meet their EPR requirements. For a fee, PROs develop and oversee waste management plans for clients. Services can include ensuring companies meet EPR legislation requirements, managing compliance reporting, conducting education and outreach, and managing the collection and recycling of end-of-life products.
Staying on top of EPR laws presents a challenge for many companies. Laws can vary widely from state to state, which creates a complex legal environment of differing rules and regulations.
Many companies lack the resources and legal expertise to track new laws and changes to existing regulations. Yet it’s crucial for companies to comply with these laws or risk possible legal and financial consequences.
Industry Intelligence Inc offers a host of targeted market intelligence solutions that provide actionable news, information and insights to help companies stay ahead of EPR initiatives, including our Legislation Monitor. Legislation Monitor offers weekly updates on all state and federal legislation in the United States that affects your industry, including EPR legislation. It helps business leaders bridge the gap between complex legislative mandates and proactive solutions.
Every week, Legislation Monitor delivers comprehensive insights into bills, bill histories, and sponsor tracking information, along with AI-powered legislative summaries and connections to related news, expert analysis, and discussions.
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