LARGE-scale companies will soon be mandated to establish a mechanism for the recovery of their plastic packaging.

This was learned after Department of Environment and Natural Resources (DENR) Secretary Antonia Loyzaga approved the Implementing Rules and Regulations (IRRs) of Republic Act (RA) 11898, also known as the Extended Producer Responsibility (EPR) Act of 2022.

Under the law, the companies “have the responsibility for the proper and effective recovery, treatment, recycling or disposal of their products after they have been sold and used by consumers” to reduce the volume of plastic wastes generation and extend the life of plastics by adding value or purpose through upcycling or recycling.

Within six months of the effectivity of the law, large-scale enterprises must initiate their efforts on plastic recovery and diversion schemes. The IRR also includes an online registry where producers and manufacturers must register their information.

Jonas Leones, Undersecretary for Policy, Planning, and International Affairs, disclosed that a series of public consultations in different regions from Luzon, Visayas, and Mindanao were conducted before the issuance of the IRR.

Leones said that the consultation solicited insights and contributions from the different sectors, including non-government organizations, academic institutions, local government units (LGUs), and the private sector.

Among the private sector representatives were sanitary landfill operators, manufacturing corporations, and recycling/upcycling companies.

Leones explained that the EPR law will help advance a circular economy that mitigates climate change and protects the country’s life-supporting ecosystems by avoiding or minimizing pollution while maximizing the use of materials.

“The success of the implementation of the EPR law heavily depends on the cooperation and compliance of the private sector. It is always important to recognize the voices of different sectors and the public consultations provided everyone the venue to share and exchange their ideas that contributed to the crafting of the IRR,” Leones said.

He added that implementing the EPR law is crucial in the Philippines’ transition to the circular economy.

In 2015, the Philippines was cited as the third largest contributor to ocean plastic, with approximately 0.75 million metric tons of plastic ending up in the seas and other waterways annually.

With the EPR law, Leones said that corporations with total assets of over P100 million will be required to recover a certain percentage of their plastic packaging waste or else pay a fine.

Companies shall be responsible for allocating resources to support the collection, recovery, transportation, processing, recycling, and disposal of plastic packaging wastes in environmentally-sound ways.

Since the passage of this law, the Philippines is now included in a select group of states that promulgate EPR, which includes countries such as the United States, Canada, Japan, Singapore, India, South Korea, Chile, Mexico, Columbia, Peru, and Brazil.

The EPR law sets incremental targets that should be fulfilled yearly until 2030. For 2023, obliged companies must recover 20% of their plastic footprint from the year before.

Under the EPR law, the producers, distributors, and retailers implementing initiatives will be eligible for tax incentives. However, fines ranging from P5 million to P20 million will be imposed for failure to comply with the provisions and meet the target recovery rates of the EPR.

Meanwhile, those not covered by the law are encouraged to practice voluntarily or be part of a network of obliged enterprises, collectives, or producer responsibility organizations that practice EPR.

The DENR further stressed that the law’s implementation will only succeed with sustained partnership and collaboration among all stakeholders, as well as local government cooperation.