British Glass says Defra to revise EPR fee calculation method

 

Glass EPR

British Glass told Circular Online that the Department for Environment, Food and Rural Affairs has pledged to revise the extended producer responsibility fee calculation methodology for glass.

Last month, the Department for Environment, Food and Rural Affairs (Defra) released initial illustrative base fees for year one of extended producer responsibility for packaging (pEPR).

Glass fees were provided separately to all other packaging materials as they were estimated using a different methodology to establish local authority packaging waste management costs being developed by Defra.

British Glass told Circular Online that Defra pledged to revise the fee calculation methodology and consider volume during a roundtable between the UK Government and the glass industry.

In their initial response to the fees, British Glass said in their current form the fees were likely to have a severe detrimental impact on the glass industry and called for an alternative units-based approach.

The representative body also told Circular Online that Defra would publish revised versions of the base fees before the end of September.

In the announcement of the base fees, Defra specified it intended to publish refined figures in September 2024 once more data had been reported and checked by regulators.

Defra responds

DefraIn response, a Defra spokesperson told Circular Online: “Extended producer responsibility for packaging is a vital first step in cracking down on waste as we move towards a circular economy, and we have always been clear these fees are our initial estimates.

“In line with our collaborative approach to deliver pEPR, we are continuing to meet with the glass industry to discuss more workable approaches, including for how we calculate the cost of glass.”

Defra said it engaged with industry, including the glass sector, throughout the process of developing the fees and will continue to as the final fees are developed.

In the announcement of the base fees, Defra specified that the methodology for calculating the fees for glass was still “under development”.

Defra said the estimates for glass were included to provide as much information as possible to producers and to form the basis for ongoing engagement with industry.

The danger of “market distortion”

British Glass has also called for the introduction of EPR to be pushed back to coincide with the launch of the UK’s deposit return scheme (DRS) to avoid “market distortion”.

The Minister with responsibility for circular economy Mary Creagh said Defra plans to launch a deposit return scheme (DRS) for drinks containers before October 2027 – the deadline set by the previous government.

Speaking during a parliamentary debate on fly-tipping, Creagh, the MP Coventry East, said she hoped to see DRS legislation “very soon”.

Metal industry criticism

CansThe Metal Packaging Manufacturers Association (MPMA) said the densities of the different packaging materials have not been adequately considered in setting the illustrative packaging EPR fees.

The Association warned that this would drive commercial and consumer behaviour towards the use of less recyclable materials.

Jason Galley, MPMA Director and Chief Executive, said: “The difference in fees attracted by the different materials is high enough to drive brand and retailer purchasing behaviour towards less circular products.

“This will lead to steel cans being replaced by higher volumes of less circular materials which will need to be processed, while fee revenue is reduced. It would be a complete nonsense in direct opposition to the intention of EPR and is a perverse market distortion that threatens our sector.

“When you consider that metal packaging is the most recycled packaging material in the UK, the Defra policy is completely counter-productive to its own aims.”

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