EPR anxiety: CPGs and regulators prepare for generational policy shift

Costs, policy divergence and relationships were a big focus at recent events hosted by GreenBlue and NERC. CalRecycle, Oregon DEQ, Circular Action Alliance and others weighed in about what’s next.

Stress levels are high for CPG companies and packaging groups as extended producer responsibility programs unfold in multiple states.

This was on display at three recent Boston events hosted by the Sustainable Packaging Coalition, How2Recycle and the Northeast Recycling Council, with questions flying about costs, policy harmonization and relationships with regulators.

While CPGs are familiar with EPR costs from programs in other countries, the complexity and scale of the U.S. rollout in seven states is presenting its own unique challenges.

Oregon is the only state that’s begun collecting fees, and already the costs are high. Circular Action Alliance, the producer responsibility organization selected for the majority of state programs to date, estimates a budget of $188 million in the program’s first year, with that figure growing in the years ahead. 

Charlie Schwarze, board chair for CAA and senior director of packaging stewardship at Keurig Dr Pepper, said the costs are starting to resonate with major companies. KDP, for example, has been working to sort out different aspects of its packaging in terms of licensing arrangements, private label manufacturing partnerships and other factors.

EPR anxiety: CPGs and regulators prepare for generational policy shift | Packaging Dive