Core Insights - The new packaging tax under the extended producer responsibility (EPR) scheme is expected to pass over 80% of its additional costs onto consumers, which will further strain the retail sector already facing financial pressures [1][2][3] Cost Implications - The EPR scheme mandates that firms pay fees based on the type and volume of packaging produced for households, with most costs being unabsorbed within existing margins [2] - Retailers faced approximately £5 billion in extra costs last year due to increases in employer National Insurance contributions and the National Living Wage [2] Inflationary Pressure - Analysts, including those from the Bank of England, predict that the new packaging tax could contribute an additional 0.5 percentage points to food inflation, exacerbating the financial strain on households [3] Compliance Burden - A significant 85% of retailers reported a notable increase in administrative workload since the EPR's introduction, requiring detailed data collection on packaging [4] - Recent regulatory guidance mandates businesses to report various aspects of packaging activity, although compliance enforcement for recyclability assessment data has been temporarily suspended for the first half of 2025 [5] Retailer Responses - In response to the cost burden, 85% of retailers plan to increase their use of sustainable packaging, while 78% intend to reduce total packaging volume [6] - The British Retail Consortium (BRC) is advocating for the government to legally ring-fence EPR funds for local authorities to enhance household recycling collection and system improvements [6] Industry Perspective - The BRC director for food & sustainability emphasized that while retailers accept the "polluter pays" principle, the timing of the levy during a cost-of-living crisis raises concerns about the value consumers receive for higher prices [7]

Core Viewpoint - UK retailers are expected to pass on the majority of costs from the new Extended Producer Responsibility (EPR) legislation to consumers, which is projected to cost the industry billions [1][2]. Group 1: Financial Impact - More than 80% of the costs from the EPR regulations are likely to be transferred to consumers [1]. - The EPR scheme is anticipated to add 0.5% to food inflation, which currently stands at around 5% [2]. - The retail industry faces an additional £5 billion ($6.73 billion) in employment costs due to higher national insurance and rising wages [3]. Group 2: Compliance and Administrative Burden - 85% of retailers reported a significant increase in the administrative and compliance burden due to EPR [3]. - Retailers are making efforts to use more recyclable materials and reduce packaging volume, with 85% intending to increase sustainable packaging and 78% aiming to decrease total packaging [4]. Group 3: Government and Regulatory Requests - The British Retail Consortium (BRC) is urging the UK government to clarify how consumers and the environment will benefit from the EPR [4]. - The BRC requests that the government implement legal restrictions to ensure EPR funds are used solely for local recycling operations and improvements [5]. - Concerns are raised about the transparency and effectiveness of EPR fund usage, as it could become an additional burden without tangible benefits for consumers or the environment [6].

Core Insights - The American Chemistry Council (ACC) emphasizes the need for a national standard for recycled plastics in the U.S. to enhance efficiency in plastic waste recycling and reduce costs, thereby improving competitiveness in a market with an oversupply of virgin resin [1] - The ACC's plan aims to simplify the process of recycling waste plastics into recycled plastics, addressing issues such as inconsistent quality, high costs, and production challenges faced by brands and processing companies [1] Summary by Categories National Standards and Recycling - The ACC highlights the urgent need for a national standard for recycled plastics to ensure participation from all American households in the recycling system, clarify definitions of "recycled plastic" and "recycled content," and expand and upgrade recycling infrastructure [1] - Currently, seven states have passed producer responsibility (EPR) related plastic packaging laws, and five states have independent laws requiring minimum recycled content in plastic products [1] Regulatory Challenges - The lack of a national policy has led to a patchwork regulatory system across states, increasing compliance costs for businesses [1] - There are 25 states that classify chemical recycling as a manufacturing process, but the inconsistent state-level regulations continue to raise compliance costs for companies [1] Global Engagement - The ACC has communicated the importance of U.S. participation in global plastic treaty negotiations to the new Trump administration, with encouraging responses received [2] - The U.S. has sent representatives to most preparatory meetings for the treaty and is expected to attend the fifth round of United Nations negotiations in Geneva from August 5 to 14, 2025 [2]