The UK government will begin a phased implementation of its action of Extended Producer Responsibility [EPR] legislation from 2024 but has taken strides forward by introducing a Plastic Packaging Tax [PPT], which entered force from April 1, 2022.
In November 2021, following the COP26 Climate Conference held in Glasgow, the UK government set out its plans to improve air and water quality, reduce waste and improve biodiversity in its ‘Environment Act’. In March 2022, as a response to the latest Extended Producer Responsibility [EPR] schemes coming into force across Europe, the UK government have set out their own EPR plans addressing one of their critical aims to ‘tackle waste.’
The Plastic Packaging Tax [PPT] applies to any plastic packaging manufactured in or imported into the UK, which does not contain a minimum of 30 per cent recycled plastic.
However, manufacturers and importers who produce less than 10 tonnes of plastic packaging within a 12-month period will not be subject to the tax.
Meanwhile, the UK government has confirmed that plans to roll out new EPR legislation in 2023 have been delayed until 2024.
EPR affects the way in which businesses take responsibility for the environmental impact of their operations. These changes were first proposed by the Department for Environment, Food & Rural Affairs [DEFRA] in 2018, introduced as an incentive for businesses to increase the use of sustainable packaging. This was enforced through charges being administered to producers, requiring them to pay the net cost of managing materials once they become a waste product.
Reflecting on the announcement to delay the UK’s EPR roll out to 2024, Dr Angelos Katsaris, professional services director and partner at AVASK commented: “Extended Producer Responsibility schemes will play a vital role as we move towards a more circular economy in the UK and beyond. It is vital that the e-commerce industry does all it can to reduce the impact of material extraction and use on the environment.
“The announcement from the UK government, on their plans to move forward with new legislation for packaging, is welcome news. However, there is still much to be done for this scheme to be effective. Despite the delays to 2024, we have no time to waste when it comes to acting in the interest of our climate.”
Of course, all of this begs the question: what do these changes mean for business?
Extended Producer requires a producer to take responsibility for the entire lifecycle for the products that they put into the market, including their disposal. The changes to EPR, which came into force from the January 1, 2022, have shifted the cost of collecting household waste from the taxpayer to the producer. As of the start of this year, businesses that sell in Germany and/or France, are now responsible for ensuring that they fully comply with the EPR legislation in these countries.
AVASK Accounting & Business Consultants has produced a helpful guide on how to remain compliant with EPR, which can be found via the website here.
Dr Katsaris added: “Business leaders should bear in mind that PPT guidance is subject to change until all legislation is approved by Parliament. So, we will endeavour to keep the business community updated on this. It is also worth remembering that PPT in the UK is separate from the requirements introduced in parts of Europe, and although we are on track to fully introduce EPR here from 2024, this is subject to alteration until all consultation has been carried out by the UK government.”
If you have any questions about the new PPT legislation or EPR requirements in Europe, you can contact AVASK for advice via telephone on +44 (0)23 8060 0120 or by email using enquiries@avaskgroup.com.
Photo by Nick Fewings on Unsplash
