Packaging Waste Recovery Note: Difference between revisions

(11 intermediate revisions by 2 users not shown)

Line 1:

[[Category:Legislation & Policy]][[Category:Economics]]

~~The~~ tradable evidence that demonstrates that an obligated company has met its responsibilities under [[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended ~~which~~ introduces obligations on producers ~~in this area~~ - a direct application of the [[Polluter Pays Principle]]. ~~PRNs~~ can be delivered by producing evidence ~~of recycling~~ by an ~~[[Obligated Company]]~~ or can be purchased from a [[Reprocessor]] of [[Packaging Waste]] to deliver against the producer’s obligations. ~~Value fluctuates~~ with the targets set for [[Packaging Waste]] recycling annually ~~and~~ the volume of material available in the market at any ~~time~~ that can ~~have PRN’s issued~~.

A [[Packaging Waste Recovery Note]] ([[PRN]]) or [[Packaging Waste Export Recovery Note]] ([[PERN]]) is the tradable evidence that demonstrates that an 'obligated company' (i.e. a company, business or organisation that falls within the remit and/or threshold of the [[Packaging and Packaging Waste Directive]]) has met its responsibilities under [[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended.

==Background==

[[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended, introduces obligations on producers to provide financial incentives to the packaging recycling industry to collect and reprocess (or export for reprocessing elsewhere) sufficient material to meet the targets set by the Government <ref name="Pack">https://app.croneri.co.uk/feature-articles/packaging-recovery-how-it-works-and-why-it-needs-improving</ref> - a direct application of the [[Polluter Pays Principle]]. Targets are set annually for [[Packaging Waste]] [[recycling]] and these are listed on the [[Packaging Waste]] page.

[[PRN]]s can be delivered by producing evidence by an 'obligated company' or can be purchased from a [[Reprocessor]] of [[Packaging Waste]] (issued as evidenced with the [[Regulator]]) to deliver against the producer’s obligations whereas [[PERN]]s are issued at the point of export to a [[Reprocesser]] outside the UK. The values of [[PRN]]s and [[PERN]]s fluctuate with the targets set for [[Packaging Waste]] recycling annually, the volume of material available in the market and other factors such as oil prices, secondary raw material prices and exchange rates.<ref name="Pack" />

===Review===

The 'Packaging Producer Responsibility System' was under review, with first stage consultations having completed in July 2019<ref>https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819467/epr-consult-sum-resp.pdf</ref> and was to be replaced by an [[Extended Producer Responsibility]] system - originally planned for final consultation in 2021 for implementation from 2021 to 2025 - as captured in the most recent [[DEFRA]] Waste Management Plan for England<ref>[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955897/waste-management-plan-for-england-2021.pdf Waste Management Plan for England 2021]</ref>.

However, following publication of the [[EPR]] consultation in March 2021, it was indicated that the [[PRN]]/[[PERN]] system would be retained as an 'interim solution' until a wider [[EPR]] could be implemented.

In March 2022 a further consultation was launched<ref>https://consult.defra.gov.uk/packaging-extended-producer-responsibility/reforms-to-the-prn-and-pern-systems/</ref> to modify the [[PRN]]/[[PERN]] system to align with the published consultation output in March 2022<ref>https://www.gov.uk/government/consultations/packaging-and-packaging-waste-introducing-extended-producer-responsibility#full-publication-update-history</ref> on the review of the [[EPR]] system. This anticipates extending the [[PRN]]/[[PERN]] to 2026 to 2027 with some changes designed to improve the way it runs.

==Obligated Companies==

Businesses that handle packaging are called “producers” and are “obligated” under the regulations if<ref name="Pack" />:

* they handle over 50 tonnes of packaging material annually

* their turnover exceeds £2 million.

Those involved include importers, brand owners, packaging material manufacturers, packers/fillers as well as distributors and retailers, regardless of whether the material supplied is for household or business consumption<ref name="Pack" />.

Smaller producers below either of these thresholds do not have any obligations under the regulations. Small and medium-sized enterprises (SMEs) with a turnover of £2 million–£5 million currently have a 30-t recycling allocation threshold. This means that the targets on larger obligated businesses are slightly higher in order for the UK as a whole to meet its requirements under EU rules<ref name="Pack" />.

==How the [[PRN]] System operates<ref name="Pack" />==

Obligated producers can either join a compliance scheme or register themselves in the National Packaging Waste Database (NPWD)<ref>https://npwd.environment-agency.gov.uk/</ref>.

A compliance scheme registers businesses with the appropriate environmental regulator, obtains evidence of your compliance and submits the certificate of compliance (CoC) each year. Businesses that register themselves are responsible for registering, getting evidence of compliance and submitting the CoC.

[[PRN]]s are certificates that show a company has met its obligations to fund the recycling and recovery of packaging waste as required by the UK regulations. The system works as follows.

*Packaging is created and sold to customer or consumer.

*[[Packaging Waste]] is collected, recovered and/or recycled by an accredited reprocessor.

*[[PRN]] is generated as evidence of compliance.

*Compliance company buys [[PRN]]s to meet their members’ obligations.

*Packaging data and [[PRN]]s are submitted to the Environment Agency, demonstrating compliance with packaging waste regulations.

Businesses do not need to recycle their own packaging. Purchasing [[PRN]] certificates from accredited reprocessors demonstrates that an equivalent amount of [[Packaging Waste]] has been recovered and recycled on their behalf, to meet their obligation.

==References==

@@ Line 1: / Line 1: @@
 [[Category:Legislation & Policy]][[Category:Economics]]
-The tradable evidence that demonstrates that an obligated company has met its responsibilities under [[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended which introduces obligations on producers in this area - a direct application of the [[Polluter Pays Principle]]. PRNs can be delivered by producing evidence of recycling by an [[Obligated Company]] or can be purchased from a [[Reprocessor]] of [[Packaging Waste]] to deliver against the producer’s obligations. Value fluctuates with the targets set for [[Packaging Waste]] recycling annually and the volume of material available in the market at any time that can have PRN’s issued.
+A [[Packaging Waste Recovery Note]] ([[PRN]]) or [[Packaging Waste Export Recovery Note]] ([[PERN]]) is the tradable evidence that demonstrates that an 'obligated company' (i.e. a company, business or organisation that falls within the remit and/or threshold of the [[Packaging and Packaging Waste Directive]]) has met its responsibilities under [[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended.
+==Background==
+[[The Producer Responsibility Obligations (Packaging Waste) Regulations 1997]], as amended, introduces obligations on producers to provide financial incentives to the packaging recycling industry to collect and reprocess (or export for reprocessing elsewhere) sufficient material to meet the targets set by the Government <ref name="Pack">https://app.croneri.co.uk/feature-articles/packaging-recovery-how-it-works-and-why-it-needs-improving</ref> - a direct application of the [[Polluter Pays Principle]]. Targets are set annually for [[Packaging Waste]] [[recycling]] and these are listed on the [[Packaging Waste]] page.
+[[PRN]]s can be delivered by producing evidence by an 'obligated company' or can be purchased from a [[Reprocessor]] of [[Packaging Waste]] (issued as evidenced with the [[Regulator]]) to deliver against the producer’s obligations whereas [[PERN]]s are issued at the point of export to a [[Reprocesser]] outside the UK. The values of [[PRN]]s and [[PERN]]s fluctuate with the targets set for [[Packaging Waste]] recycling annually, the volume of material available in the market and other factors such as oil prices, secondary raw material prices and exchange rates.<ref name="Pack" />
+===Review===
+The 'Packaging Producer Responsibility System' was under review, with first stage consultations having completed in July 2019<ref>https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819467/epr-consult-sum-resp.pdf</ref> and was to be replaced by an [[Extended Producer Responsibility]] system - originally planned for final consultation in 2021 for implementation from 2021 to 2025 - as captured in the most recent [[DEFRA]] Waste Management Plan for England<ref>[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955897/waste-management-plan-for-england-2021.pdf Waste Management Plan for England 2021]</ref>.
+However, following publication of the [[EPR]] consultation in March 2021, it was indicated that the [[PRN]]/[[PERN]] system would be retained as an 'interim solution' until a wider [[EPR]] could be implemented.
+In March 2022 a further consultation was launched<ref>https://consult.defra.gov.uk/packaging-extended-producer-responsibility/reforms-to-the-prn-and-pern-systems/</ref> to modify the [[PRN]]/[[PERN]] system to align with the published consultation output in March 2022<ref>https://www.gov.uk/government/consultations/packaging-and-packaging-waste-introducing-extended-producer-responsibility#full-publication-update-history</ref> on the review of the [[EPR]] system. This anticipates extending the [[PRN]]/[[PERN]] to 2026 to 2027 with some changes designed to improve the way it runs.
+==Obligated Companies==
+Businesses that handle packaging are called “producers” and are “obligated” under the regulations if<ref name="Pack" />:
+* they handle over 50 tonnes of packaging material annually
+* their turnover exceeds £2 million.
+Those involved include importers, brand owners, packaging material manufacturers, packers/fillers as well as distributors and retailers, regardless of whether the material supplied is for household or business consumption<ref name="Pack" />.
+Smaller producers below either of these thresholds do not have any obligations under the regulations. Small and medium-sized enterprises (SMEs) with a turnover of £2 million–£5 million currently have a 30-t recycling allocation threshold. This means that the targets on larger obligated businesses are slightly higher in order for the UK as a whole to meet its requirements under EU rules<ref name="Pack" />.
+==How the [[PRN]] System operates<ref name="Pack" />==
+Obligated producers can either join a compliance scheme or register themselves in the National Packaging Waste Database (NPWD)<ref>https://npwd.environment-agency.gov.uk/</ref>.
+A compliance scheme registers businesses with the appropriate environmental regulator, obtains evidence of your compliance and submits the certificate of compliance (CoC) each year. Businesses that register themselves are responsible for registering, getting evidence of compliance and submitting the CoC.
+[[PRN]]s are certificates that show a company has met its obligations to fund the recycling and recovery of packaging waste as required by the UK regulations. The system works as follows.
+*Packaging is created and sold to customer or consumer.
+*[[Packaging Waste]] is collected, recovered and/or recycled by an accredited reprocessor.
+*[[PRN]] is generated as evidence of compliance.
+*Compliance company buys [[PRN]]s to meet their members’ obligations.
+*Packaging data and [[PRN]]s are submitted to the Environment Agency, demonstrating compliance with packaging waste regulations.
+Businesses do not need to recycle their own packaging. Purchasing [[PRN]] certificates from accredited reprocessors demonstrates that an equivalent amount of [[Packaging Waste]] has been recovered and recycled on their behalf, to meet their obligation.
+==References==
+<references />