Yet another delay to the launch of the Extended Producer Responsibility (EPR) scheme – now scheduled for October 2025 – might come as a relief to some UK producers of packaging waste.
The new scheme shifts additional costs and reporting requirements onto businesses that were previously shouldered by councils. It aims to make producers pay for the full net costs of managing and recycling their packaging. The idea is to discourage ‘excessive’ packaging, incentivise the adoption of more recyclable packaging, and drive up the overall rate of recycling.
But fears that the scheme would push up prices and increase red tape in the middle of a cost of living crisis led to a temporary reprieve. Which is good news for the sector’s bottom line – right? Might this unlucky scheme never even see the light of day?
I’d answer these questions with a ‘not really’ and a ‘no’.
EPR won’t be cancelled
First off, the likelihood of the scheme being cancelled is very low. The government’s credibility is on the line and this is by no means its toughest challenge in the push towards Net Zero. In some form or another, EPR is going to happen.
Whether EPR is bad for the industry’s bottom line is a bit more complicated. In the short term, yes, packaging producers and traders are going to be spared additional costs that the reform would have introduced in 2024 (having been pushed back before from 2018).
But if the delay is used by traders as an excuse not to digitalise their back office operations, then they will find themselves less competitive and less compliant in the coming years. This will lead to higher costs, poorer performance, and ultimately a loss of market share.
For slow digital adopters, this short term reprieve could be anything but good news in the longer term.
Transparency and verification is set to rise globally
The fact that EPR, packaging recovery notes (PRN) and packaging export recovery notes (PERN) are likely to be around for another year or three might tempt busy traders to ignore the way the digital wind is blowing.
Compliance requirements are rising across the globe. Live data sharing is set to become the norm, and legislation such as the UK Electronic Trade Documents Act is putting digital documents such as electronic bills of lading (EBOL) on the same legal footing as their paper equivalents.
Concerns over waste trafficking and increased consumer demand for products that are properly certified as reclaimed or recycled are going to drive further changes.
Exporters of secondary raw materials and recyclables such as waste paper, OCC, scrap metal and plastics should expect greater scrutiny and transparency requirements for their international shipments in the years ahead. These challenges will require innovative digital solutions such as chain of custody platforms that can mitigate risk and build trust along the supply chain.
Only digitalisation can handle rising compliance
Clearly, businesses already struggling with chaotic, paper-based back-offices aren’t going to cope with these new data-intensive demands.
Document errors and an absence of organised risk management processes are eating away at many waste paper traders’ margins. Without a modern single source of truth software they can’t generate accurate and automated documentation. Without APIs they can’t exchange live info with shipping lines. Without optimised digital workflows, staff are often stressed out and looking to exit. Reluctance to invest in technology is seeing these businesses struggle to grow and stay compliant.
Beware a false sense of security
Continual delays to legislation can breed a false sense of security among busy waste paper traders. But when inflationary pressures ease and the government moves into catch-up mode, regulatory change across packaging waste is likely to accelerate.
The good news is that the benefits of embracing data-driven processes and a modern single-source-of-truth software tend to far outweigh the costs. Traders can focus on trading instead of back office. Staff are happier and more productive. And in uncertain times for the global economy, you’ll have your compliance risks under far better management.