EPR compliance, made easy

The Philippine EPR Act of 2022 mandates Obligated Enterprises to recover their plastic packaging waste responsibly. This involves redesigning plastic packaging to enhance reusability, recovery, or recyclability. Additionally, it includes measures such as offsetting, redemption, or buy-back of plastic waste, as well as contributing to the collection and transportation of recovered plastic waste to appropriate recycling sites. By holding manufacturers accountable, the law aims to reduce plastic pollution and promote a circular economy. 

These are its key objectives:

• Institutionalize Extended Producer Responsibility (EPR) mechanisms to minimize plastic waste through improving waste management focusing on recovery and recycling and extending the life cycle of a product for full circularity 
• Encourage public-private cooperation in waste management at national and local levels
• Promote education and awareness on sustainable practices and ecological responsibility

The Philippine EPR Act of 2022 mandates producers to recover their product plastic packaging waste, promoting eco-friendly practices such as recycling to facilitate plastic recovery and foster a circular economy. It aims to minimize environmental harm by holding Obliged Enterprises responsible for the entire lifecycle of their goods, from production to disposal. 

Obliged Enterprises must comply with the following:

• Submit EPR Program: Each OE must design and register an EPR program with the DENR. This should include plans to reduce, phase out, or offset plastic packaging, enhance recyclability, or achieve plastic neutrality.
• Undergo Third-Party Audit: Programs must be audited annually and submitted to the DENR.
• Ensure Traceability: The system must trace plastics from collection point (junk shops or LGUs) to final products (e.g., plastic furniture or packaging). Intermediate products like flakes or pellets are not considered compliant.
• Offset plastic based on these targets:

A. Product Redesign and Reduction:

• Minimize the use of non-environmentally friendly materials through redesign.
• Incorporate recycled content into products.
• Reduce overall plastic use.
• Implement information, education, and communication (IEC) campaigns.
• Improve product labeling for better consumer awareness.

B. Waste Recovery Programs designed to prevent plastic waste from leaking into the environment. These may include:

• Buy-back, redemption, or offsetting schemes to recover post-consumer plastic waste.
• Reintegration of recovered waste into value chains through recycling or other sustainable methods.
• Clean-up activities targeting coastal areas, public roads, waterways, and other affected locations.
• Collaborations with LGUs, communities, and the informal waste sector to enhance plastic recovery efforts.
• Proper transport of recovered waste to certified recycling, composting, or disposal facilities within the country.
• Development of waste diversion infrastructure, including recycling, composting, thermal treatment, and other environmentally sound facilities.

Plastic Bank supports companies in EPR compliance by empowering communities to collect and transport plastic to a recycling facility to be safe for audit purposes. Each plastic collection is recorded using its blockchain-supported platform, ensuring a verified plastic collection journey from collection branches to processors and providing incentives for communities. This innovative system promotes a sustainable approach to waste management, addressing environmental issues while advancing social welfare and economic growth. 

Obligated enterprises (OEs) violating the EPR Act of 2022 would be fined P5 million to P20 million (USD 90,000 – 181,000) and face the automatic suspension of their business permits on the third offense.

Obliged Enterprises are large enterprises that generate plastic packaging waste involved in manufacturing, importing, selling, distributing, and using products covered by EPR laws must comply in the Philippines.

Micro, Small, and Medium Enterprises (MSMEs) are not mandated, but encouraged to participate voluntarily.

By the end of 2023, companies need to demonstrate recovery and diversion of 20 percent of their 2022 plastic packaging footprint; 40 percent by 2024, with 10 percent annual increase up to 80 percent by 2028 and onwards. 

• Verified plastic collection and recycling solution
  Its blockchain platform allows tracking the plastic collection and recycling journey from collection branches to processors, ensuring verified data for audits and reports.
• Social impact for informal waste collection communities who collect plastic for recycling.
• Large, consistent collection capacity
  With a monthly collection capacity of 800 tons, it can ensure the fulfillment of large plastic recovery requirements.

As a Producer Responsibility Organization (PRO), Plastic Bank supports Obliged Enterprises in achieving EPR Compliance through an Ecosystem Activation (ESA) program.

Using blockchain-supported technology, Plastic Bank enables Obligated Enterprises to track the volume of plastic recovered and/or collected. Plastic Bank collaborates with and supports the informal waste sector by incentivizing and enhancing plastic waste collection. As PRO, Plastic Bank’s ESA facilitates sustainable waste management, report development, and DENR submission assistance. 

Under the law, OEs may receive awards (monetary or otherwise) for outstanding initiatives in reuse, recycling, or reduction. OEs and MSMEs may apply for tax an fiscal incentives under the National Internal Revenue Code, pending alignment with the Strategic Investment Priority Plan. Final guidelines are under development by the DENR and Department of Finance.

EPR compliance drives business growth by bolstering brand reputation, cutting waste management expenses, spurring product innovation, and ensuring legal adherence. This attracts eco-conscious consumers and investors, while mitigating environmental liabilities, fostering resource efficiency, and maintaining compliance, thereby nurturing sustainable business expansion.