Supermarkets and Wrap are calling on the government to make major changes to the fees model for its controversial extended producer responsibility (EPR) tax, The Grocer can reveal.
A new white paper to be published today calls on Defra and PackUK to revamp the system so that companies that are shown to be investing in genuine recycling initiatives are rewarded with lower fees.
Meanwhile companies that continue to send thousands of tonnes of plastic and other packaging to landfill or incinerators should face more draconian fees, says the paper.
The document, which is backed by Waitrose, M&S, and Ocado, as well as compliance agencies Ecosurety and Valpak, claims EPR is “critically flawed” because two companies producing the same volume of packaging would pay similar fees – even if one achieved a much higher recycling rate.
It calls on the government to take into account the work of companies that invest in technology such as data-powered insights which optimise recycling flows, advanced plastic sorting, end-to-end tracking using barcode data and invisible UV tags and lifecycle impact reporting.
“The system doesn’t currently reward businesses that actively drive recycling performance,” said Alice Rackley, CEO of Polytag, the tech company which is also backing the call.
“The sad reality today under the EPR system is that you can have a company doing absolutely f*** all and a company that does everything to make sure your product is recycled, and they get charged the same.”
Whilst the second year of EPR reporting saw companies use a new recyclability assessment methodology (RAM), a traffic light system which charges types of materials based on their levels of recyclability, the coalition of companies and environmental bodies says this is a “blunt tool” which does not go far enough.
They have called on government to introduce a so-called “green plus” framework which they say would have much more impact in driving a circular economy.
Valpak CEO Steve Gough said: “As EPR evolves, there is an opportunity to go beyond minimum compliance and actively recognise brands that invest in measurable circular solutions.
“A ‘Green Plus’ framework ensures that innovation, transparency and real-world recycling outcomes are recognised and incentivised, creating a system where doing the right thing also makes business sense.”
Polytag’s Rackley, who will announce the launch of the white paper at the Recoup Summit in Leeds today, added: “Emerging innovations are changing the way we see, report and act across the packaging value chain. Beyond recyclability, these innovations form the foundation for circular economy intelligence.”
Wrap CEO Catherine David added: “Digital technologies can play a transformative role advancing the circularity of packaging and informing eco-modulation under EPR.
“The UK Packaging Pact launches in April, uniting businesses, governments and sector partners in the drive towards a circular packaging system. Innovation in data and tracking will play an important role delivering this, and we welcome the innovative thinking this white paper shows towards this goal, and hope it inspires more work in data capture.”
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