pEPR Fee Modulation

Description

The new UK Packaging Extended Producer Responsibility Scheme for Packaging ("pEPR") extends packaging producers' responsibility for packaging to the post-use stage so that they bear the costs of the end-of-life management of packaging materials by local authorities across the UK. In line with the 'polluter pays' principle, producers pay a 'disposal fee' per tonne of packaging material that they place on the market. This policy promotes the reduction in total amount and weight of packaging material generated and helps support shifts to more sustainable packaging materials. The four nations have agreed that a key objective of the scheme is to incentivise shifts to more sustainable packaging. pEPR regulations enable the pEPR Scheme Administrator (PackUK) to adjust packaging fees based on a wide range of environmental sustainability criteria, subject to the agreement of the 4 nations. From year 2 of pEPR (2026 invoices charged to producers for packaging placed on the market in calendar year 2025) fees charged will be "modulated" to incentivise recyclable packaging. This will be based on the Recyclability Assessment Methodology (RAM) which PackUK published the first draft of in December 2024. Modulation based on recyclability was only designed to be an initial policy, and the intention was always to build a stronger evidence base to modulate based on other sustainability factors. This project commissioned on behalf of the 4 Nations and PackUK will deliver vital research to deliver modulation based on these further factors.