Unlocking EPR Policy in Asia

Over decades, waste management has been under government's responsibility but showed limited effects as the resolution of environmental  problems relies on the engagement of various parties. As per OECD¹, the Extended Producer Responsibility (EPR) brings an ecological policy approach，which extends the producer’s responsibility for products to the post-consumer stage of a product’s life cycle. EPR shifts the responsibility upstream toward the producer, pushing enterprises to take environmental considerations into account during product design.

Therefore, understanding the EPR policy in the target markets became an essential compliance issue for enterprises, especially for those whose business layout cover a variety of countries.

ChemLinked compiles the main EPR requirements in South Korea, Japan, Vietnam, Philippines, Indonesia, Singapore, Malaysia, and Thailand, to help enterprises better understand the EPR compliance status in Asia.

South Korea

In South Korea, the EPR scheme assigns a certain recycling mount to product manufacturers, importers, and sellers who use packaging materials for their products. It requires enterprises to recycle the waste generated from their products and packaging materials. For any failure in compliance, they will face high recycling fees that exceed the cost of recycling. These manufacturers, importers, and sellers of packaging materials and products are referred to as "producers obligated to recycle packaging (포장재의 재활용의무생산자)”.

The Ministry of Environment (MOE)² has specified items subject to EPR, including paper packs, glass bottles, iron/aluminium cans, synthetic resin, film/sheet packaging materials, and foamed synthetic resin buffer materials, etc. MOE establishes a long-term recycling target every five years, and set the annual recycling obligation rate to accelerate the collection and recycling of products and packaging materials. The recycling rate of each packaging material in 2023 is set in the Annual Recycling Rates of Products and Packaging Materials for 2023³.

The obligated recycling amount  is calculated by multiplying the quantity of products/packaging materials manufactured or imported in the current year (obligation fulfilment year) by the recycling obligation rate. The computational formula is as follows:

“Producers obligated to recycle packaging” should pay a sharing fee（분담금） to the Recycling Business Mutual Aid Cooperatives (재활용사업공제조합) for collectively fulfilling the recycling obligations. Recycling Business Mutual Aid Cooperatives will delegate waste disposal institutes to collect and recycle the packaging materials following the recycling methods and standards stipulated in the Attached Table 6 of Enforcement Rule of Resources Recycling Act⁴.

Additionally, the producer obligated to recycle packaging and Recycling Business Mutual Aid Cooperatives must jointly submit a plan for fulfilling the packaging collection and recycling obligation to the Korea Environment Corporation (KECO) every January. After confirmed by KECO, the relevant party can begin to collect and recycle the packaging materials following the plan.

Japan

Japan is the first to introduce the EPR policy in Asia, by enacting the Act on the Promotion of Sorted Collection and Recycling of Containers and Packaging (Packaging Recycling Act)⁵ in 1995.

According to the act, the enterprises that use, manufacture, or import glass bottles, PET bottles, other plastic packaging, and other paper packaging in their businesses, are obligated to recycle the relevant packaging materials. These enterprises are referred to as “designated producers”, who should recycle a specified amount of waste packaging materials following the regulation. 

In order to fulfil the recycling obligation, the designated producers can either collect and recycle waste packaging by themselves, or outsource the recycling to a producer responsibility organization (PRO), the Japan Containers and Packaging Recycling Association⁶.

Vietnam

Vietnam is the first country to enact the EPR policy in Southeast Asia (SEA). On January 10, 2022, Vietnam’s EPR requirements became effective as introduced in the Decree No. 08/2022/ND-CP Detailing a Number of Articles of the Law on Environmental Protection.⁷

The producers, importers, brand owners, and plastic waste processors are obliged to waste treatment and recycling. They should either organize the recycling of products and packages, or make a financial contribution to the Vietnam Environment Protection Fund (VEPF) to support the recycling of products and packages. Vietnam specifies six product groups under the EPR scheme, including packages, batteries and accumulators, electric and electronic devices, tires, lubricants, and transportation vehicles. 

Vietnam is committed to optimizing its EPR policy. After several changes, Vietnam’s Ministry of Natural Resources and Environment (MONRE)⁸ released a consultation amendmentof Decree No. 08/2022/ND-CP Detailing a Number of Articles of the Law on Environmental Protection⁹ on October 20, 2023, to streamline the administrative procedures and delegate power.¹⁰

The Draft gives the definition of “manufacturer” and “importer”, as these two parties are responsible to recycle the products and packaging. When it comes to the package for certain products, the Draft excludes gum from food products; and pesticides from “Detergents and preparations for domestic, agricultural and medical use” as these products/packaging subject to their own requirements for recycling/waste treatment responsibilities. Besides, the waste treatment exemption is revised. The Draft raises the same exemption threshold for packaging manufacturer and importer as applied for recycling responsibilities.

Philippines

It’s only recently that  EPR policy has been introduced to the Philippines. On August 12, 2022, the Philippines’ Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) announced the enactment of the Extended Producer Responsibility (EPR) Act of 2022, or Republic Act 11898¹¹. This act places the responsibility for the entire life cycle of plastic waste on the producers through the development and implementation of  EPR programs, which focuses on waste reduction, recovery, and diversion.

Soon after, in January 2023, the DENR Secretary signed the Implementing Rules and Regulations of the EPR Act of 2022 (EPR IRR)¹², prescribing the procedures and guidelines for implementing the EPR.

The Republic Act 11898 requires large-scale companies to establish their own EPR programs for plastic waste reduction. Large-scale producers (including brand owners), manufacturers, and importers who are required to implement the EPR program are referred to as the Obliged Enterprises (OEs). The OEs can authorize the Producer Responsibility Organizations (PROs) to conduct required EPR activities on their behalf. Micro, medium, and small enterprises are not covered by the EPR program but are encouraged to practice EPR voluntarily.

In the Philippines, OEs must establish an EPR program to control plastic waste reduction. The OEs or PROs should submit and register their EPR programs to National Solid Waste Management Commission (NSWMC) for approval. By December 31, 2023, companies must meet the first target recovery rate of 10%, then increase by 10% in each of the following years (i.e., 20% by December 31, 2024, 30% by December31, 2025, etc.).

The products subject to EPR cover:

• Rigid packaging (e.g., containers of food, beverages, detergent, other cleaning or household products, cosmetics, personal care, etc.);

• Flexible plastic packaging (e.g., sachets and labels), either single or multilayered;

• Polymer plastic bags, including single-use plastic bags used for carrying or transporting goods;

• Other plastic products used in business-to-business transactions and otherwise not intended for sale to the general public (e.g., polystyrene).

Indonesia

The legal framework of the Indonesian EPR is established under the ministerial Regulation 75/2019, also called the Waste Reduction Roadmap¹³. The act specifies targets for the consumer goods industry, the retail sector, and the hotel and restaurant industry. Materials subject to mandatory recycling. include packaging made of plastic, aluminium (cans), glass and paper.

As for enterprises’ obligation, producers of food, cosmetics and other consumer goods must reduce the waste generated by their products by 30% by 2029, in particular through the recycling and reuse of resources. In the retail sector, single-use plastic bags are banned. For hotels and restaurants, the Roadmap sets savings and recycling targets comparable to the hotel and restaurant industry industry's. Besides, according to the regulation, from 2030 onwards, there will be a complete ban on plastic straws, plastic bags and single-use polystyrene packaging.  

Although Indonesia released the EPR regulatory framework¹⁴, the mechanisms are imperfect. The EPR responsibility system has not been defined clearly. Besides, no PRO is introduced under the current provision. To fully implement the EPR system, more supporting rules and regulations are expected to be introduced.

Singapore

Currently, Singapore adopts the EPR policies on electrical and electronic waste (E-waste) and beverage containers.

In July 2021, Singapore implemented the first EPR framework for electrical and electronic waste (E-waste)¹⁵, a relatively complete management mechanism. Producers bear the responsibility for the collection and treatment of their products when they reach end-of-life. The EPR Scheme for E-waste is implemented through the Resource Sustainability Act (RSA) ¹⁶, administered by the National Environment Agency (NEA). In addition, ALBA E-waste Smart Recycling Pte Ltd¹⁷ has been appointed as the Producer Responsibility Scheme (PRS) Operator for five years, from July 1, 2021, to June 30, 2026, to collect designated consumer electrical and electronic waste across Singapore for proper treatment and recycling on behalf of producers.

Singapore is now moving to the first phase of EPR for packaging, namely the Beverage Container Return Scheme¹⁸. Under this scheme, a small deposit is applied to pre-packaged beverages at the time of purchase, which will be refunded when the consumer returns the empty beverage containers at designated points. The scheme aims to encourage the return of clean and high-quality recyclables, which can reduce waste and extend resource usage.

All producers, including manufacturers and importers, of pre-packaged beverages that supply beverages in Singapore should fulfil their EPR obligations. They need to register their beverage products and pay fees to the Scheme Operator to collect and recycle empty beverage containers on their behalf. The Scheme Operator will manage the operations of the Scheme, including the management of empty beverage containers, and the collection and refund of deposits. The Beverage Container Return Scheme will be effective in 2025 and is expected to cover all packaging materials.

Malaysia

The development of the Malaysia EPR framework is underway and expected to be released in the near future. The Malaysia Plastics Sustainability Roadmap 2021-2030¹⁹ provides an essential foundation for EPR. Malaysia’s EPR framework aims to include the EPR target, responsibilities of each stakeholder, eco-modulated fee structure, product improvement mechanism, and various critical aspects. Under the framework, the EPR scheme for plastics is voluntary till 2025 and will be mandatory in 2026.

Thailand

Thailand’s EPR regulation is also in the consultation stage. According to the draft of Sustainable Packaging Management Act B.E. ²⁰, the first government plan to promote sustainable packaging management will include at least five types of packaging, namely glass, metal, paper, plastic and composite materials used as packaging materials for food, beverages, cosmetics and transport. The EPR regulation is expected to be enacted by 2026 and will cover all packaging materials successively.