How Does Extended Producer Responsibility Work in the Philippines?

The Philippines is facing a waste crisis. In fact, it’s estimated that roughly 2.7 million tons of plastic waste are generated in the Philippines each year (World Bank, 2021). And according to the World Wide Fund for Nature (WWF), 35% of this waste is leaked into the open environment, 33% is sent to landfills and dumpsites, and only 9% is recycled.

That’s why the Philippine government has introduced the EPR Act of 2022, a new piece of legislation that shifts the responsibility of plastic waste onto local businesses — and here's everything you need to know about it.

If your business operates in the Philippines, you’re in luck — you can partner with CleanHub to collect plastic as part of your EPR program. All you need to do is get in touch with our in-house team of experts, who can help you choose the right plan to suit your business’s needs. 

What's on this page?

What is Extended Producer Responsibility (EPR)? 

Extended producer responsibility (EPR) is a regulatory system that requires producers (brands and other enterprises) to be responsible for the waste their products generate.

The framework aims to incentivize a more sustainable, circular economy by rethinking product design, re-usability of items, and recycling collection rates.

Producer responsibility can be addressed through financial payments or by carrying out plastic waste collections. 

EPR laws are becoming more popular around the world — with the UK also releasing its own legislation this year. But it’s worth bearing in mind that each country has its own set of specific EPR guidelines, so make sure your business is adhering to the rules set out in the country it's based in. 

You can learn more about this topic on our page: Extended Producer Responsibility: How it Works and Who it’s For.

The Philippines EPR Act of 2022 explained

In a bid to tackle the mammoth plastic waste problem in the Philippines, the Republic Act (RA) No. 11898 — otherwise known as the Extended Producer Responsibility Act of 2022 — lapsed into law on the 23rd July 2022. 

In a nutshell, the law holds companies accountable for the plastic packaging they produce throughout the lifecycle of their products. 

Before this law was introduced, manufacturers were only responsible for the impact of the production of their products, rather than the whole lifecycle. However, they now need to account for all packaging used to protect, transport, and sell the product. This means the legislation impacts both up and downstream business activities.

Unlike many EPR systems around the world, the Philippine law includes the recovery of flexible plastic, which has been historically difficult (and sometimes impossible) to sell. This is a game changer for the environment, as it incentivizes people to recover non-recyclable waste.

When did the EPR Act of 2022 come into force?

The EPR Act was introduced on 23rd July 2022. 

However, the law states that all obligated enterprises are required to either establish an EPR program, or begin phasing in plans for plastic packaging, within six months of the legislation coming into play.

That means businesses were officially held accountable from January 2023 onwards. 

Which businesses are affected by the EPR law in the Philippines?

Not all businesses in the Philippines will be required to implement an EPR program. For now, the EPR Act of 2022 only applies to large enterprises with assets of over ₱100 million ($1,765,210). Affected companies must also:

• Sell or supply any commodity under a brand, label, or identity, using either a product it produced or a material provided by another supplier
• Supply commodities for the use of the general consumer, or distribute the same product as a material for the brand owner

Small- and medium-sized enterprises (SMEs) with assets of between ₱3,000,000–₱100,000,000 ($52,956–$1.7 million) are not currently obliged to take part in the Philippines EPR Act. 

However, the government is strongly encouraging these smaller enterprises to create an EPR plan if they have the funds. 

What type of plastic is covered in the EPR Act?

The current guidelines will impact businesses that produce plastic packaging to either carry, protect, or pack goods for transportation, distribution, or sale. The types of plastic include:

• Rigid plastics – Such as containers for beverages, food, home goods, and personal care products
• Flexible plastics – Such as sachets, labels, and other single/multilayer plastics
• Plastic bags – Such as polymer bags
• Polystyrene – Such as foam packaging peanuts for shipping, food packaging, and meat/poultry trays

EPR requirements for businesses in the Philippines

There are a number of practices companies can include in their EPR program to make sure it’s compliant with the law, including:

1. Introducing recovery schemes – This can be in the form of buying back material/waste from consumers
2. Establishing a recycling system – This can also include composting, thermal treatment, and other waste diversion
3. Transporting plastic waste – Ensuring it goes to an appropriate processing or disposal site, rather than in an open environment
4. Carrying out cleanups – Waste can be collected from coastal areas, roads, and other public areas
5. Forming partnerships – Some enterprises benefit from partnering with local governments, communities, and the informal waste sector

The EPR plastic recovery schedule

Large enterprises are required to recover 80% of their plastic waste by 2028. Instead of going from 0 to 100, the legislation outlines a timeline of recovery targets, with incremental increases between December 2023 and December 2028. 

To give you a better idea of what to expect, we’ve outlined the EPR target recovery schedule below: 

How to make your business EPR-compliant

If you’re part of a large enterprise based in the Philippines, there are two ways you can make your business EPR-compliant.

1. Set up your own EPR program

This option means your enterprise will create and monitor its own EPR program, completing the registration and audit process without an external party’s support. 

Although this can cut out the middleman (the third party), it can be challenging as it demands a lot of resources to set up and gain the necessary knowledge. This is the prime reason why a lot of companies choose the second option.

2. Collaborate with Product Recovery Organizations (PRO)

Product Recovery Organizations are pretty self-explanatory – they collect unwanted products and waste to encourage a more circular economy. 

When partnering with enterprises, PROs collect waste to offset the company’s plastic footprint. Some of their other responsibilities include: 

• Coordinating stakeholders, such as municipalities, auditors, and waste management operators
• Maintaining data records of material through an in-house system, which involves measuring the collection, sorting, and recycling targets
• Reporting to the regulatory authorities on targets, as well as fulfillment of EPR obligations
• Creating public awareness by using a wide variety of communication campaigns. This encourages citizens to sort their waste and helps member companies improve the recyclability of their packaging

On top of this, transparent communications from the PRO will help you get the latest insights on your progress. Not only will this help your company’s legacy, but it’ll provide a clear overview of implementation, impact progress, and future goals – three key components for an effective EPR program. 

Partnering with a PRO also allows companies to scale up easily. This will be necessary to reach the 80% collection target by 2028.  

Registration

Obligated enterprises, or the PRO they’re partnering with, will need to register their EPR program with the National Solid Waste Commission (NSWC) through the Department of Environmental and Natural Resources (DENR). 

There are a number of things that the business will need to submit for the registration to be successful, including information on:

1. The enterprise or the PRO – Applications must include contact information of the person responsible for the EPR, and clarification of who carries the final responsibility (the company or the PRO)
2. The type of plastic packaging the company uses – As well as how much they typically use of each type
3. How the EPR program will be implemented – If a company owns multiple brands, it could be implemented individually for each brand or collectively across all brands
4. Volume/weight of plastic packaging brought into the market – This should be measured within a specific period, and all records should note the type of plastic
5. The target volume (or weight) of waste for recovery – This will be dependent on the amount of plastic the company produces, and how far along they are on the schedule between now and 2028
6. Any other EPR programs – This isn’t always necessary, but it can help some companies improve the reusability/recyclability of their plastic packaging
7. Labeling of packaging materials – This will facilitate recovery, reuse, recycling, and proper disposal of items
8. Status of implementation – Including proof of how the company has implemented its EPR programs so far
9. Status of compliance – Including an assessment of whether EPR guidelines are being followed correctly

Audit

Obligated enterprises (or their PROs) will need to implement an auditing system to monitor and assess their compliance performance. 

This is usually carried out through an independent third-party auditor, who will base their assessment on the uniform standards established by the DENR. 

EPR penalties 

If an enterprise’s EPR program fails the audit, or is found to be negligent of their plans, the DENR can impose fines. 

This could either be a payment twice the cost of recovery and diversion of the footprint, or another appropriate penalty – whichever is higher. 

Enterprises can also expect to pay for each additional offense:

• First offense – ₱5–10 million ($88,000–$176,000)
• Second offense – ₱10–15 million ($175,000–$264,000)
• Third offense – ₱15–20 million ($264,000–$352,000)
  

Are there any drawbacks to the ERP Act of 2022?

Many people are welcoming the new EPR law with open arms, thanks to the environmental sustainability benefits that come with it. However, there are a few critiques of the scheme — the main one being that it has a key focus on collecting plastic, rather than reducing it.

The way we see it: the plastic pollution crisis can only be solved with a multilayered approach. We need these incentives in place to reduce the amount of existing plastic littering the planet, but we also need to find ways to help each business reduce plastic consumption at the source. 

Want to shrink the environmental impact of your products? Talk to our packaging engineers to action a bespoke plan and reduce your plastic footprint.

Summary: How can CleanHub support you with the EPR legislation?

It can take a while to wrap your head around the ins and outs of EPR legislation, but hopefully this guide has helped you get started. 

If you have a business operating in the Philippines, and want to partner with a PRO for your EPR program, look no further — you can partner with CleanHub. All you need to do is get in touch with our in-house team of experts, who can help you choose the right plan to suit your business’s needs. 

FAQs

What is the extended responsibility of a producer?

Extended producer responsibility is a system that makes it mandatory for certain producers to be held accountable for the waste that their products generate.

The framework aims to incentivize companies and work towards a circular economy. This can be achieved by encouraging a shift in product design, re-usability of items, and recycling collection rates.

What are the benefits of extended producer responsibility?

There are plenty of benefits of introducing more stringent EPR laws around the world, including:

• Reduces plastic pollution – If implemented correctly, these laws can hold companies accountable for their waste, meaning we can clean up the plastic that’s already littering the planet, and prevent the buildup from continuing
• Can boost the economy – Introducing recycling and processing facilities in more areas, like the Philippines, is likely to create a lot of new job opportunities
• Promotes a circular economy – To reduce the amount of waste we create, we need to ditch single-use products and embrace the circular economy. And introducing EPR laws plays a crucial part in this transition. The World Economic Forum suggests that a circular economy could provide a $4.5 trillion growth opportunity by 2030 by avoiding waste, making businesses more efficient, and creating new employment avenues
• Helps to conserve natural resources – Resource extraction has more than tripled since 1970, according to the United Nations. However, with an effective EPR strategy in place, countries can conserve finite natural resources by promoting recycling, material recovery, and the creation of a circular economy

What is an example of extended producer responsibility (EPR)?

Enterprises can adhere to EPR guidelines in multiple ways, whether it’s by introducing plastic recovery schemes or carrying out cleanups in public spaces.