Extended Producer Responsibility (EPR) is transforming the packaging landscape, and businesses across the entire supply chain must adapt to these new standards. As regulations take effect, understanding how EPR works, who it impacts, and how your business can adapt is more important than ever.
Extended Producer Responsibility (EPR)
Extended Producer Responsibility (EPR) is a regulatory framework that shifts the financial responsibility for packaging waste management to the companies that place packaged products on the market.
Who's responsible?
Under EPR programs, financial responsibility falls on entities defined as “producers,” typically brand owners or companies that choose the packaging and sell the packaged product in regulated states. Producers are required to pay fees to fund the recycling of their packaging materials.
Why Is EPR Needed?
EPR regulations are designed to:
- Finance investments for recycling infrastructure and consumer education
- Incentivize packaging choices that are compatible with existing recycling systems
How Does EPR Work?
Producers, companies that sell packaged goods into EPR states, pay fees to the Producer Responsibility Organization (PRO). The PRO collects and manages these funds, which are then used to support the collection, sorting, recycling and education related to packaging materials within each state.
What Packaging Is Affected?
All packaging materials, including paper, plastic, metal and glass, are subject to EPR fees. Fees are typically assessed on a perpound basis and vary by material, reflecting the cost and complexity of recycling each packaging type.
