The introduction of Extended Producer Responsibility (EPR) has rattled many industries, with companies concerned about potential cost increases. However, EPR may also present an opportunity to reduce disposal costs or even cash in on some commercial waste. Recycling rebate experts at BusinessWaste.co.uk are advising business owners to re-evaluate their waste to discover if they could reap the rewards. The following article explores the opportunity
What is EPR and how is it being rolled out?
EPR is a new UK regulation aiming to increase the responsibility of businesses that supply or import packaging. It’s a reform to the current Packaging Waste Regulations that will change the management and funding of packaging waste. The costs of managing packaging once it becomes waste will shift to the producers rather than the consumers.
EPR is being rolled out in stages. In 2023, producers began submitting data about the types and volumes of packaging they place on the market. The next phase, which should come into effect at some point in 2025, will introduce fees based on what waste is produced.
Why has EPR been controversial so far?
EPR has seen rounds of delays in implementing the various stages, causing frustration for businesses that need to budget for the implementation of fees.
Alongside this, many have complained of a constant change of guidance and a lack of clear communication.
Many producers are also worried about the financial impact of EPR, with fears that the scheme will lead to increased costs. This, alongside a perceived unfairness of the rules determining which businesses are liable for the fees, has led to concerns about reduced competitiveness.
What opportunities could EPR data provide?
Businesses affected by EPR are primarily collecting data for compliance purposes. However, this data can also reveal some key insights into the waste you produce, which may help to save costs or increase revenue.
The data may be key to understanding what high-value materials you dispose of and if any of these qualify for rebates. You’ll also be able to ascertain the quantity of each material you dispose of, a key element when qualifying for rebates.
Cardboard, plastic, paper, and metals are all materials commonly open to rebate opportunities. However, most schemes require relevant recycling materials to be stored in a clean and dry condition, and have a minimum weight requirement. This means that currently, rebate schemes are usually better suited to large businesses that produce high volumes of such waste materials. For those with very large quantities, it’s even worth considering if purchasing a baler may be a worthwhile investment for easy storage, removal, and recycling.
Analysing your waste data will also allow you to better segregate any materials into different waste streams. This could help with rebates and reduce disposal costs, as recycling often proves to be cheaper.
Lastly, the data can be used to negotiate better rates with waste contractors or help you introduce on-site changes that cut disposal costs. It’s worth taking this data to your supplier and asking them if there’s anything that can be done differently. Brokers are well-positioned to use this data to unlock new opportunities for your waste and negotiate with contractors for the best solution at the best price.
What are waste rebates and who can qualify?
Recycling rebates are programs where customers get money back from waste management companies for providing recyclable rubbish. These schemes offer a financial incentive to encourage businesses to increase their recycling. The amount of money offered depends on the waste type, amount, and terms of the specific recycling rebate program:
There are various types of recycling rebates:
- Deposit refunds – businesses pay an amount for a container upfront, which is returned when the container is given back (full of recycling waste). It helps organisations separate and store recycling waste while lowering waste management costs at the same time.
- Buy-back programs – for certain types of recycling, some waste management companies offer a buy-back price for the items.
- Cash incentives – many waste management firms offer financial incentives such as a reduction in waste collection and disposal costs or cashback based on the type and weight of recycling provided.
Why do rebate prices fluctuate?
Rebate prices fluctuate due to supply and demand. If the volume of materials is high but demand is low, rebate prices will drop. When demand for certain materials is high or supply is short, then rebate prices tend to rise. Fluctuations in the price of global commodities can also impact the value of recycling materials.
Graham Matthews, recycling rebate expert at BusinessWaste.co.uk, comments: “EPR has caused a lot of controversy in the industry so far, with much of the focus on the new regulations being negative. However, it’s important that with any regulation change, businesses also consider the opportunities these can present.
“Having data that tells you exactly what you throw away and in what quantity can actually be a cost-saving tool, not just a regulatory requirement. You can use this to turn your waste into opportunities for better rebates, improved segregation, or even as a contract negotiation tool.”
