EPR. New UK regulatory framework for cosmetic packaging.

March 25, 2025

Extended Producer Responsibility (EPR) for packaging is a UK regulatory framework that shifts the financial burden of packaging waste management from local authorities to producers. This initiative aligns with the “polluter pays” principle, holding producers accountable for the environmental impact of their packaging throughout its lifecycle. The Department for Environment, Food & Rural Affairs (DEFRA) and the Environment Agency oversee the implementation of EPR in the UK.

Summary of intended outcomes

In the delivery of its functions under the Packaging Regulations 2024, the Scheme Administrator must act following the need to facilitate the achievement of the environmental effects set out in this policy statement. These environmental effects are three:

the use of environmentally sustainable packaging,
the prevention of packaging from becoming waste,
and an increase in the reuse of packaging, the quantity and quality of packaging materials recycled, and a reduction in the packaging material placed on the market.

Applicability Criteria

Organizations must comply with EPR obligations if they meet the following criteria:

Business Type: The entity is an individual business, subsidiary, or group, excluding charities.
Annual Turnover: Based on the most recent annual accounts up to the 7^th of April, the organization has an annual turnover of £1 million or more.
Packaging Volume: The entity was responsible for importing or supplying more than 25 tonnes of packaging to the UK market in the previous calendar year.
Packaging Activities: The organization engages in specified packaging-related activities, such as manufacturing, importing, or supplying packaged goods.

If these conditions apply, the organization must collect and report packaging data and subsequently pay fees based on this data.

Definition of Packaging

Understanding the categories is vital for accurate data reporting. Packaging encompasses any material used to contain, protect, handle, deliver, or present goods. This includes items designed to be filled at the point of sale, such as coffee cups. Packaging is categorized into:

Primary Packaging: Direct contact packaging, like a perfume bottle.
Secondary Packaging: Grouping packaging, such as a box containing multiple perfume bottles.
Tertiary Packaging: Bulk transport packaging, like pallets used for shipping multiple boxes.

Obligations for Producers

Affected organizations are required to:

Data Collection and Reporting: Gather detailed information on the amount and type of packaging handled and submit this data within specified deadlines.
Fee Payment: Pay fees that reflect the costs of collecting and managing packaging waste, with amounts determined by the type and volume of packaging reported.
Nation Data Reporting: If operating across multiple UK nations, report data for each nation separately to support localized waste management strategies.

These obligations aim to incentivize producers to minimize packaging use and enhance recyclability.

EPR Implementation Timeline

Key dates in the EPR rollout include that in 2023, organizations begin collecting packaging data, and in April 2025, the deadline for registration and fee payment. Producers must adhere to these timelines to ensure compliance.

The UK’s Extended Producer Responsibility (EPR) scheme for packaging is set to introduce mandatory recycling labelling requirements. Initially, all packaging materials, except flexible films, were required to display a binary “recycle” or “do not recycle” label by the 1^st of April 2026. However, the Department for Environment, Food & Rural Affairs (Defra) has postponed this deadline to the 31^st of March 2027, for all packaging materials.

While the mandatory labelling provision has been temporarily removed from the current EPR legislation, the UK government remains committed to implementing it as part of the EPR framework. Businesses should stay informed about future developments regarding these requirements.

Financial Implications

The EPR framework introduces fees based on the environmental impact of packaging. These fees are designed to cover the costs of waste collection, treatment, and recycling, thereby encouraging producers to adopt more sustainable packaging solutions. For example, Marks and Spencer anticipates an annual sustainability tax bill of £40 million due to these new packaging levies.

Compliance Steps

To comply with EPR regulations, organizations should:

Assess Applicability: Determine if the organization meets the criteria for EPR obligations.
Register with Regulators: Create a ‘report packaging data’ account and register the organization with the appropriate environmental regulators.
Data Submission: Collect and submit accurate packaging data within the specified reporting periods and deadlines.
Fee Payment: Calculate and pay the required fees based on the reported data.
Record Keeping: Maintain detailed records of packaging data and compliance activities for auditing purposes.

Engaging with compliance schemes or third-party experts can assist in navigating the complexities of EPR compliance.

The UK expect the first policy statement to be published alongside the Scheme Administrator’s Strategy, no later than June 2025. The first statement of policy on modulation should seek to:

Drive producers to use household packaging that is easier to recycle or reuse.
Apportion fees to material groups in a way which supports the delivery of the intended outcomes of the scheme, factoring in disposal costs and improved environmental outcomes, including, where feasible, carbon impact.
Articulate how modulation, in particular, will encourage the use of easier-to-recycle packaging and a move to reusable alternatives, and
In addition, articulate how fees will support recycling at scale.

Conclusion

The introduction of EPR for packaging in the UK represents a significant shift in waste management responsibility, emphasizing producer accountability.

Cosmeservice is your expert partner in cosmetic regulatory compliance across the UK Regulations applied to cosmetic products, and we can help you to proactively assess your obligations. Implement robust data collection systems and adapt your packaging strategies to align with sustainability goals and regulatory requirements will be a must. By doing so, you’ll contribute to a more sustainable and environmentally responsible packaging ecosystem.