EPR Fees: What converters need to know and how to prepare

The Packaging and Packaging Waste Regulation (PPWR) is on the horizon. One of the changes that the PPWR will bring forward is the harmonization of Extended Producer Responsibility (EPR) schemes across the EU. This change will require significant adaptation and innovation across the entire packaging value chain, from design and production to recycling and waste management.

With the introduction of stricter EPR regulations, which include harmonized eco-modulation fees and mandatory labeling requirements, how will these changes impact your role and operations as a converter?

At Avery Dennison, we understand that choosing the right label is important, as it directly influences EPR fees, and we are here to help. In this article, we will guide you through the key steps you need to take to prepare your business and educate brands about these upcoming changes. This will help you offer label solutions that enhance recyclability and minimize EPR fees for your customers.

EPR Fees: What converters need to know and how to prepare

Preparing for EPR fees

Although converters are not directly responsible for EPR fees for household packaging, it is important to prepare your business and customers for the regulatory changes ahead. Brands will inevitably increase their demand for sustainable label materials that include recycled content or are thinner, and will rely on you to provide solutions that lower EPR fees. Additionally, they will rely on your expertise to provide information on solutions that comply with the evolving Design for Recycling guidelines.

While the PPWR aims to harmonize EPR schemes, understanding the connection between EcoDesign principles and the fees they will incur is key to knowing what sustainable solutions you can offer your customers.

The EcoDesign approach

EcoDesign principles for packaging prioritize reducing waste and environmental impact throughout the packaging lifecycle. This involves packaging design that minimizes material use, choosing recyclable materials, designing for reuse and using compostable or biodegradable materials where appropriate.

EcoDesign is an approach to product design that factors
in the environmental impact of a product over its entire
lifecycle.

EPR schemes incentivize producers to create EcoDesign packaging through eco-modulation fees. Eco-modulation adjusts EPR fees based on the environmental impact of packaging, rewarding packaging design that is more sustainable EcoDesign further lowers EPR fees by reducing the amount of packaging material used. This approach improves recycling rates and contributes to a circular economy.

Understanding that EcoDesign principles are a significant factor that can affect EPR fees and there are more steps you can take.

How can you prepare your business and support brands for the impact of EPR fees on household packaging?

Understand and explain EPR regulations: Thoroughly research EPR regulations specific to the countries and markets in which your brands operate. Identify the types of household packaging covered, fee structures, reporting requirements, and timelines for compliance. Recognize that different markets may have varying EPR or eco-modulation fees; knowing these differences will enable you to advise brands on choosing the right label. For example, in the Netherlands, this EPR scheme lists various fees based on the type of packaging used.

Offer sustainable alternatives: Proactively suggest and develop sustainable label solutions designed for each packaging substrate. Converters who are well-informed about sustainable solutions for their customers will have a competitive advantage in the market. Examples of sustainable solutions include:
- AD RDX ™ is a high-performing label portfolio that significantly reduces the usage of natural resources and is compatible with HDPE, PP and cardboard substrates
- AD CleanFlake™ adhesive technology enables the recycling of PET and HDPE packaging
- Our rRange portfolio uses materials from post-consumer waste streams and renewable agricultural byproducts

Discover our Sustainable Advantage portfolio, which
offers solutions for HDPE and PP , paper and cardboard,
glass and more.

Support Compliance and Reporting: EPR compliance requires tracking and reporting on the types and quantities of packaging you supply to brands. Inform your customers that they are responsible for paying EPR fees for packaging – including labels – and providing documentation to the authorities. As a converter, you are responsible for supplying the necessary supporting evidence to your customers for accurate fee calculation.

Stay informed and communicate: You will have a crucial role in helping your customers navigate the complexities of EPR fees for household packaging. Engage with industry associations and other stakeholders to stay updated on the latest developments in EPR regulations and guidelines. By doing so, you can properly educate and empower your customers to choose sustainable label solutions that ultimately reduce EPR fees and support their transition to more sustainable packaging practices. Discuss the potential impact of EPR fees, including potential price adjustments and strategies to optimize costs.

By taking these steps, you are not only supporting your customers in their EPR fee journey but you are also contributing to a more circular and sustainable packaging industry.

Our sustainability experts are here to help you make informed labeling decisions that ensure your customers’ packaging aligns with the complex requirements of the PPWR. Additionally, they can also offer label solutions for brands that will lead to higher recyclability scores and lower EPR fees.

Learn more

Visit our PPWR page for more information on the legislation and its requirements.

Find more information on our sustainable labeling solutions for different packaging substrates. Discover our resources for HDPE and PP, Paper and cardboard and Glass packaging, or contact us for more information.

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EPR Fees: What converters need to know and how to prepare