Packaging producers now only need to meet a minimum of 83pc of their 2026 plastic recycling obligations under UK Extended Producer Responsibility, the Environment Agency said.
The UK Environment Agency (EA) has released a regulatory position statement (RPS) setting minimum percentages for three packaging materials of recycling obligations that must be met by packaging producers in 2026 to comply with UK extended producer responsibility (EPR) obligations for the 2026 compliance year.
The minimum proportion of a producer's recycling obligation is lowest for plastics, at 83pc, while the EA also released minimum proportions for wood and steel at 90pc and 92pc, respectively, and stated that full obligations must continue to be met for other packaging materials.
An announcement from the government had been anticipated by many market participants following rumours that the ministry for environment, food and rural affairs (Defra) held a meeting at the start of September in which a revision of the obligations to purchase Packaging Recovery Notes or Packaging Export Recovery Notes (PRNs/PERNs) was discussed. This came about owing to a shortfall in the generation of PRN/PERNs compared with the expected annual obligation, partly because of stricter requirements placed on recyclers and exporters this year. PRN/PERN prices for plastic have traded at and above £600/t ($794/t) at times this year, a record high.
PRN/PERN prices for plastic had already started to fall in this morning's trading from an opening price of £575/t to around £500/t. The fall in PRN/PERN prices is likely to affect bale prices, which include a consideration for the value of the PRN/PERN that the buyer expects to generate from the material.
UK recyclers generate one PRN for every tonne of recyclate they produce from domestic packaging waste. Likewise, exporters generate one PERN for every tonne of plastic waste exported to accredited recyclers. Companies placing packaging onto the UK market have an obligation to purchase a certain number of credits each year.
