Extension of packaging responsibilities for producers

On 1 January 2025, The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 (“2024 Regulations”) came into force. New reporting and payment obligations have been imposed on businesses responsible for producing packaging.

This development is part of an ESG trend aimed at delivering carbon savings: “Collectively, the packaging reforms are estimated to deliver carbon savings of more than 46 million tonnes of carbon dioxide-equivalent by 2035, which is valued at more than £10 billion in carbon benefit” (Baroness Hayman of Ullock).

In this article, we explain the 2024 Regulations and how they will impact businesses.

Who is caught by the legislation?

The 2024 Regulations differentiate between “small producers” and “large producers”.

“Small producers” are businesses that produce more than 25 tonnes of packaging per year and have an annual turnover of at least £1 million. Those businesses must be registered with the environmental regulator, for instance the Environment Agency (“EA”) or the Scottish Environment Protection Agency (“SEPA”), record and report on their packaging volumes, and comply with certain recycling obligations.

In addition to those obligations, “large producers” (businesses that produce more than 50 tonnes of packaging per year and have an annual turnover of at least £2 million), are liable for packaging related fees such as disposal and administration fees.

At the time of writing, only illustrative fees have been published. Those illustrative fees include plastic at £485 p/tonne, glass at £240 p/tonne and paper or board at £215 p/tonne.

What is “packaging”?

The guidance on the 2024 Regulations confirms that packaging is “any material that is used to cover or protect goods that are supplied. It makes handling and delivering goods easier and safer. It includes anything that’s designed to be filled at the point of sale, such as a coffee cup. Packaging also makes goods look appealing for sale and may display a company’s logo or brand. ‘Goods’ could include raw materials or manufactured items.”

The definition is therefore broad and businesses that produce packaging should be clear on the volumes they produce to understand if they are “small producers” or “large producers”.

The 2024 Regulations distinguish between, and impose obligations on, producers, suppliers, importers, brand owners and businesses with an online marketplace. Again, businesses should take steps now to understand which, if any, category they fall into and to be clear on the related legal obligations.

Reporting deadlines

1 April 2025 is the deadline to report on packaging volumes.

It is important to report accurately because regulators such as the EA and SEPA have extensive powers of investigation in the event they identify a potential failure to comply. They can audit businesses via the service of notices in addition to seizing evidence and carrying out interviews.

Where a breach of the 2024 Regulations is identified, criminal prosecutions can be raised with potentially unlimited fines imposed on businesses. Where a breach is committed with the consent or connivance, or is attributable to the neglect, of a senior manager, that individual can be prosecuted in addition to the business.

As an alternative to criminal prosecution, civil sanctions such as monetary penalties can be imposed by the EA and SEPA. In August 2024, Budweiser Budvar agreed to pay £414,003.54 following the entering of an enforcement undertaking for failing to register as a producer of packaging under the previous regime. Civil sanctions of this nature are published and so lead to damage to reputation.

How will the 2024 Regulations be administered?

PackUK, part of the Department for Environment Food and Rural Affairs, has been identified as the scheme administrator. Its role includes setting fee levels. We can expect clarity on fee levels in the coming weeks.

Invoices for packaging related fees are expected to be issued in October 2025 based on packaging volumes for the 2024 calendar year.

What should businesses do now?

The 2024 Regulations impose extensive obligations for businesses producing packaging.

There is a strong political desire for the legislation to be effective in contributing to the ESG movement: “It is therefore critical that we create the foundations to transition to a circular economy for packaging, ensure resources are kept in use for longer and secure vital carbon savings.” (Mary Creagh, MP).

Senior management, operations, compliance and in-house legal functions should be clear on how the new legislation impacts their business and should implement a plan to ensure compliance.

If you require legal advice on how the 2024 Regulations impact your business, please contact Ramsay Hall.