Sustainability Insights #15
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As sustainability becomes a priority for governments, businesses, and consumers, Extended Producer Responsibility (EPR) laws are gaining momentum worldwide. These regulations hold producers accountable for the entire lifecycle of their packaging waste, from production to disposal or recycling.
With new EPR policies emerging across the U.S. and Asia-Pacific, businesses must adapt to evolving compliance requirements. Here’s a look at the latest developments and their implications.
United States: A State-Driven Approach to EPR
Unlike other countries with national EPR policies, the U.S. operates under a state-by-state model, creating a complex regulatory landscape. Several states have already enacted packaging EPR laws:
| State | EPR Law | Year Passed | Key Highlights |
|---|---|---|---|
| Maine | LD 1541 – An Act To Support and Improve Municipal Recycling Programs and Save Taxpayer Money | 2021 | First U.S. state with the stewardship program for packaging material |
| Oregon | SB 582 – Plastic Pollution and Recycling Modernization Act | 2021 | Ensures the collected recyclables are sent to Responsible End Markets for turning them into new raw materials |
| California | SB 54 – Plastic Pollution Prevention and Packaging Producer Responsibility Act | 2022 | Targets 100% recyclable or compostable packaging by 2032. |
| Colorado | HB 22-1355 – Producer Responsibility Program for Statewide Recycling Act | 2022 | Establishes a statewide recycling system. |
| Minnesota | HF 3911 – Packaging Waste and Cost Reduction Act | 2024 | First major packaging EPR law in the Midwest. |
Asia-Pacific: Expanding EPR to Strengthen Circular Economies
Across Asia-Pacific, governments are reinforcing EPR to tackle plastic pollution and waste management challenges:
- South Korea – The amended Enforcement Decree and Enforcement Rules of the Act on Promotion of Transition to Circular Economy and Society will be effective in 2025. The amendment introduces key requirements, such as increasing the use of recycled materials in products and promoting reusable packaging.
- Thailand – The Plastic Waste Management Roadmap (2018-2030) lays out national waste reduction goals, with the Sustainable Packaging Management Act (by 2027) set to introduce mandatory producer responsibilities.
- Singapore – The Resource Sustainability Act 2019 requires businesses to report packaging use and submit a 3R (Reduce, Reuse, Recycle) Plan. Applies to companies with an annual turnover exceeding S$10 million.
How Businesses Can Adapt & Stay Ahead
With EPR laws reshaping global packaging regulations, businesses must act now to mitigate risks and seize opportunities:
1. Ensure Compliance & Monitor Regulatory Changes
- Track state-level U.S. laws and Asia-Pacific mandates.
- Engage with industry groups and regulators to anticipate new requirements.
2. Transition to Sustainable Packaging
- Invest in recyclable, compostable, or reusable materials to align with EPR laws.
- Partner with eco-friendly suppliers and circular economy initiatives.
3. Strengthen Reporting & Waste Management Systems
- Implement internal tracking mechanisms for packaging materials.
- Develop EPR-compliant recycling and waste reduction strategies.
4. Plan for Financial & Operational Adjustments
- Assess the cost impact of compliance fees and producer responsibility programs.
- Invest in long-term sustainability initiatives to minimize future risks.
Preparing for the Future of EPR
EPR is reshaping packaging waste management as governments tighten regulations and expand compliance frameworks. Businesses that proactively adapt will not only stay compliant but also gain a competitive edge in sustainability.
In the coming years, more U.S. states will introduce EPR laws, requiring companies to develop multi-state compliance strategies, while Asia-Pacific nations will strengthen producer responsibility programs, increasing sustainability obligations. As regulations evolve, sustainability will become a key differentiator, favoring companies that invest in eco-friendly packaging and circular economy initiatives.
Source:
Sustainable Packaging Coalition
Key takeaways:
EPR laws are expanding globally, requiring producers to manage packaging waste. The U.S. follows a state-by-state approach, while Asia-Pacific nations are strengthening regulations. Businesses must track evolving policies, invest in sustainable packaging, enhance compliance systems, and prepare for financial impacts to stay competitive and environmentally responsible in a shifting regulatory landscape.
Eco-modulation is a game-changer in Extended Producer Responsibility (EPR), using financial incentives to reward eco-friendly design and penalize unsustainable packaging. Since a product’s environmental impact begins long before disposal, eco-modulation pushes producers to rethink materials, recyclability, and waste reduction at every stage of the lifecycle.
By holding producers accountable within a designated territory, this system drives innovation in sustainable packaging and encourages systemic change from design to disposal.
Let’s look from the approach of the state of Colorado on Eco-Modulation:
Required Eco-Modulation Incentives and Maluses of the covered materials in Colorado, US:
| Incentives | Maluses |
|---|---|
| Reductions in the amount of packaging materials used in products | Design and practices that increase the costs of recycling, reusing or composting covered materials |
| Innovations and practices to enhance the recyclability or commodity value of covered materials | Design and practices that disrupt the recycling of other materials |
| High levels of PCR material use | For producers using covered materials that are not on the minimum recycling list |
| Design for the reuse and refill of covered materials | |
| High recycling and refill rates of covered materials |
Source:
Colorado Department of Public Health and Environment
Key takeaways:
Eco-modulation encourages design changes that align with a reduction of environmental impact. By adopting sustainable materials or incorporating higher post-consumer waste content, businesses can significantly reduce environmental impact with lower fees in eco-modulation mechanism.
As part of our commitment to sustainable packaging, SML has completely eliminated Expanded Polyethylene (EPE) foam from our product packaging as of January 2025.
Due to its low recyclability and limited recycling infrastructure, EPE foam often ends up in landfills. To address this, we have adopted sustainable alternatives, including reusing sticker release liners and using bubble sheets made from post-consumer recycled plastics.
This milestone reinforces our dedication to reducing virgin material use and enhancing recyclability, ensuring more responsible packaging solutions.
Let’s Move Forward Together
As your partner in sustainability, we’re here to help you navigate changes, meet compliance requirements and stay ahead in a shifting regulatory landscape. From ensuring recycled content standards to optimizing packaging design, we’ve got the expertise to support your business.
Reach out to our team today to discuss how we can help you align with the latest regulations and achieve your sustainability goals.
