How EPR is transforming the packaging industry

EPR initiatives are encouraging packaging firms to rethink their operations, incorporate greater volumes of recycled materials and closely manage their product life cycles.

As sustainability regulations continue to reshape industries around the world, the packaging sector stands at the vanguard of the circular economy transition. Initiatives such as extended producer responsibility (EPR)—which has been enacted in five U.S. states to date, Maine, Colorado, California, Oregon and Minnesota, and is awaiting the governor’s signature in Maryland—are encouraging firms in the space to rethink their operations, incorporate greater volumes of recycled materials and closely manage their product life cycles. Ultimately, the guiding principle should be to reduce the corporate sphere’s environmental impact, through—among other means—packaging innovation.

While regulations in this area aim to standardize practices, implementation can vary wildly across regions, creating significant challenges for global companies.

The sustainability regulation puzzle

According to a 2023 meta-analysis by Roland Berger and the Alliance to End Plastic Waste, 60 percent of the 192 countries surveyed had underdeveloped or incipient waste systems, where less than 8 percent of the plastic produced was recycled. These broken loops are detrimental to the environment and challenge the United Nation (UN)’s broader sustainable development project.

To address some of these issues, regulation in the packaging industry is a growing trend. While undoubtedly necessary and constructive, its side effect creates a complex compliance landscape—not least because of discrepancies between jurisdictional requirements and measures.

To help demystify the state of play in the U.S. and the likely impact on the packaging industry, we will focus on EPR.

The EPR policy approach

As a policy approach that holds producers responsible for managing their end-of-life products, EPR encourages sustainable innovation in product design to uphold the circular economy. Over the past two decades, U.S. lawmakers have shown growing interest in EPR, with recent efforts focused on reducing plastic waste from packaging. Earth Action predicts this waste will reach 220 million tons in 2024.

Maine became the first U.S. state to enact an EPR program for packaging, signing the bill into law in July 2021. More recently, in May 2024, Minnesota passed EPR legislation. Both initiatives aim to reduce waste volume and toxicity while improving packaging recycling rates.

To drive this change, Minnesota’s legislation sets ambitious targets for 2032, requiring all packaging to be either refillable with a supporting refill system, reusable within a managed reuse system or recyclable through curbside collection or an alternative system. These measures reflect a growing national commitment to sustainable packaging and circular economy principles.

To comply with EPR regulations, packaging producers must contribute to a fund based on the net amount and recyclability of their packaging materials. These funds will be used to reimburse participating municipalities for eligible recycling and waste management costs, invest in state recycling infrastructure to improve efficiency and capacity and support educational initiatives to help citizens better understand recycling and contribute to a circular economy. This system incentivizes sustainable packaging choices while strengthening local recycling programs.

A horizon of green potential

As we approach several climate tipping points that could see the irreversible devastation of our planet, sustainability is today more than a corporate-speak buzzword—it is an existential and regulatory imperative.

While firms have taken major leaps forward in relation to sustainable packaging use and the circular economy, plenty of work remains to be done. Materials’ life cycles can be further streamlined, ever-richer ESG, or environmental, social and governance, data can be sourced, and the industry as a whole can help to demystify the intricacies of compliance and how it should respond to climate shifts. Packaging does not—and should not—need to wait for regulators to force its hand.

The good news is that despite all this noise, a vast raft of solutions is available to the market. This demonstrates a strong, productive direction for the packaging sector, which, powered by EPR, is committed to reducing its footprint on the planet.

According to recyclingtoday.