Defra has today (24 March) published its long-awaited consultation into its reforms of the Extended Producer Responsibility (EPR) system.
The Extended Producer Responsibility for Packaging consultation was released today, 24 March
The department said its revised estimates indicate that the annual packaging waste management costs that producers will be required to pay will be in the region of a huge £2.7bn in the first full year of implementation. The EPR regime will apply to household packaging waste and similar waste from businesses.
The 213 page document will be out for consultation for a ten-and-a-half weeks, and includes information on the scope and management of fees to producers, and how the costs will be calculated.
Defra plans to plan to provide final details for each reform later this year.
Interpretations are still to be made of the full document but there is an expectation that some businesses such as shopkeepers could have recyclables collected for free with waste companies claiming back the costs of collection from the EPR administrator.
Phases
Defra pledged in the consultation for the “first phase” of the consultation to be established in 2023, enabling initial payments for household packaging to local authorities from October 2023.
However, this will depend on the ability of the scheme administrator to mobilise and establish the necessary systems and processes to commence roll-out.
Government will undertake an open procurement exercise starting in late 2021 and would aim to appoint the successful Scheme Administrator in early 2023.
Further elements of EPR, including modulation of fees based on recyclability of packaging, payments for the management of litter and payments to businesses for the cost of managing packaging waste would be introduced in Phase 2, from 2024.
EPR will be rolled out in phases under the consultation’s proposals
Costs
Councils will be able to claim necessary costs of direct vehicle, staff and container costs under the proposed system
One of the most standout aspects of today’s consultation is a breakdown of how costs will be paid by producers to local authorities.
Defra has said costs paid by producers should support a cost-effective and efficient system for managing packaging waste, including the collection of a common set of packaging materials for recycling.
These costs can be broadly split up into two sections:
- Operational costs to collect, manage and dispose of packaging waste. This includes any investment in capital infrastructure or innovation, where it can be shown to increase performance
- Support costs in achieving scheme outcomes and targets, including communications and provision of public information on waste prevention and recycling, efficiency reviews, data gathering and reporting, performance incentives, and supporting local authorities in contract negotiations
Other examples given by Defra include direct vehicle, staff and container costs, costs associated with establishing, maintaining and operating vehicle depots, transfer stations and other facilities.
Other examples include transportation of packaging waste and marketing costs for selling reused items.
Defra proposed that payments should be based on both the tonnages and quality of packaging waste collected and recycled, with these requirements being phased in and a Scheme Administrator encouraged to support local authorities to improve and meet performance benchmarks, to obtain their full payments.
Targets
In the consultation, minimum recycling targets for the six packaging materials have also been put forward.
These equate to an overall recycling rate for Extended Producer Responsibility packaging of 70% by 2030, Defra said.
This analysis assumes the introduction of an England, Wales and Northern Ireland deposit return scheme, Extended Producer Responsibility and Consistency (in England)
Net costs
Following strong support in the 2019 consultation, subsequent evidence development and stakeholder engagement, Defra says it intends to progress with the broad scope of full net costs of managing packaging waste.
Defra says it intends to progress with the broad scope of full net costs of managing packaging waste, including litter
Its revised estimates indicate that the annual packaging waste management costs that producers will be required to pay will be in the region of £2.7bn in the first full year of implementation.
This is made up of £1bn of packaging waste collected from households, £1.5bn for packaging waste collected from businesses, and £200m for the management of bin and ground packaging litter.
“This cost transfer, from the public purse and those who dispose of packaging waste, will incentivise producers to question whether the packaging they use is necessary, could be reduced or not used at all,” Defra explained.
Administrator
Two options have been put forward on how the system will be monitored.
“This cost transfer, from the public purse and those who dispose of packaging waste, will incentivise producers”
Defra says the administration and governance arrangements for Extended Producer Responsibility will need to support producers in complying with their obligations.
They will need to be robust and financial flows and outcomes transparent whilst providing flexibility for producers to decide how best to meet their obligations.
The consultation seeks views on two broad approaches.
One would be a single administrator / management organisation responsible for administering and managing delivery of the packaging waste management cost requirements and producer compliance with packaging waste recycling targets.
The other would see multiple compliance schemes with certain functions undertaken by a Scheme
Administrator.
The post Defra consultation gives breakdown of EPR costs appeared first on letsrecycle.com.
Source: letsrecycle.com Packaging
