EPR Withepaper

Download as pdf or txt
Download as pdf or txt
You are on page 1of 33

Extended Producer Responsibility

(EPR) Law of the Philippines:


A White Paper

November 2022
Table of Contents

Executive Summary ii
ABCs of EPR (Key Terms, Concepts, and Definitions) iv
Acronyms and Abbreviations vii
List of Stakeholder Participants viii
1.0 INTRODUCTION TO EPR 1
1.1 State of Global and National Plastic Pollution 1
1.2 State of Current Solid Waste Management of the Philippines
vs the Planned System from RA 9003 3
1.3 What EPR Is 4
2.0 ITEMS TO BE MONITORED IN YEAR 1 OF EPR IMPLEMENTATION 5
3.0 DISCUSSION 5
3.1 The PRO and Stakeholders 5
3.1.1 The Producer Responsibility Organization 6
3.1.2 The Stakeholders 6
3.1.3 Micro, Small, Medium Enterprises (MSME) 7
3.1.4 Informal Waste Sector 8
3.2 EPR Programs, Monitoring, and Reporting 8
3.3 Plastics and Other Waste Products 9
3.4 Plastic Packaging Waste Management 10
3.4.1 Target Plastic Footprint Recovery 10
3.4.2 Plastic Labelling 11
3.5 Collaboration with LGUs, Cooperatives, and Informal Waste Sector 11
3.6 Fees and Financing 11
3.7 Investment and Infrastructure 12
3.8 Research and Development, and Technology sharing 12
3.9 Registry and Information 13
4.0 CALL TO ACTION 13
5.0 WORLD-WIDE FUND FOR NATURE’S WORK ON PLASTIC POLLUTION 14
ANNEXES 15
Annex A: Plastic Packaging Waste Management 15
Annex B: Fees and Financing 25

List of Tables
Table 1. Status of Philippine SWM Targets and Actual Accomplishment 4

List of Figures
Figure 1. The flow of plastic materials in the Philippines in 2019 (WWF Philippines,
Inc., cyclos GmbH, & AMH Philippines, Inc., 2020) 2
Executive Summary
This White Paper aims to highlight the importance of implementing an Extended Producer Responsibility
(EPR) scheme that is inclusive, integrative, and impactful for reducing plastic pollution. In the Philippines, the
EPR law emerged as a supplement and amendment to the existing law, Republic Act (RA) 9003, or the
Ecological Solid Waste Management Act of 2000.

The EPR bill lapsed into law on 23 July 2022, now RA 11898, and after a series of nationwide public
consultations, the Department of Environment and Natural Resources (DENR) drafted its implementing rules
and regulations (IRR) as the lead agency for its implementation.

EPR is an environmental policy approach that encourages plastic waste reduction through (1) the elimination
of unnecessary plastic packaging of products; (2) the development of more environmentally friendly and
recyclable packaging design; and (3) the recovery of plastic packaging from the trash in order to reuse them
or recycle them back into the production process.

In line with this and as a complement to the DENR public consultations, the World Wide Fund for Nature
(WWF)-Philippines conducted workshops of its technical working group from among various sectors, i.e., large
enterprises; micro, small, and medium enterprises (MSMEs); recyclers; local government units (LGUs);
government agencies; academic institutions; social enterprises; non-government organizations (NGOs); and
the informal waste sector (IWS). The project was made possible with the support of UNEP, the SEA circular
Project funded by the Government of Sweden.

These workshops discussed what the various sectors hoped to see and monitored in the first year of
implementation of the EPR law, such as:

1. The role of Producer Responsibility Organization (PRO) and stakeholders in the EPR system
should be defined more to facilitate collaboration with and among obliged enterprises (OEs),
LGUs, cooperatives, social enterprises, recycling industry, civil society organizations, the informal
waste sector, academe (schools and universities), consumers, and the general public.

Under the EPR law, the OEs are given three (3) choices on how to comply: (1) submit their EPR
programs individually; (2) submit as a group of companies, i.e., as a Collective as when they carry the
same brands or trademarks; or (3) join a PRO that will take care of submitting their EPR Program.
After submission, then the real work begins. OEs are mandated to target a minimum of 20% recovery
rate for the Year 2023.

The law also mandates the adoption of viable reduction rates for using plastic, which will be issued by
the DENR.

2. A public registry and information data bank should be readily available for monitoring and
guidance.

The National Solid Waste Management Commission (NSWMC), together with the National Ecology
Center (NEC), and Environmental Management Bureau (EMB), may issue coordinating rules and
regulations with the other national government agencies (NGAs) to simplify the process for
registration and compliance, and to create a database of OEs and their submitted EPR programs,
baselines of plastic footprint, and yearly compliance.

This is important as the integrity of the EPR system rests on the reporting and audit. There should be
clear standards for both.

3. Eco-modulation of EPR fees should be emphasized, and this should ensure support for
improving the solid waste management system through eco-financing.

Eco-modulation of EPR fees can be made an incentive to improve plastic packaging design. The goal
is to eventually replace low-value plastic packaging with high-value plastic packaging, which has
potentially lower EPR fees due to higher recyclability.

ii
4. Investment should also include research and development, technology sharing, and reduction of
plastic waste.

The NSWMC, together with the Department of Science and Technology (DOST), Bureau of
Investments (BOI), Bureau of Internal Revenue (BIR), Bureau of Small and Medium Enterprises
(BSMED), Cooperative Development Authority (CDA), academe, OEs, and social enterprises, may also
issue coordinated plans of action to adopt fiscal and non-fiscal incentives, such as for research and
development on alternatives to plastic, and investments in recycling and materials recovery
technology and infrastructure.

There should be enough of these facilities located all over the Philippines to make them accessible
and affordable. OEs and other manufacturers can start introducing a portion of recycled plastic
material back into manufacturing and aim to use less virgin material and more recyclates, in addition
to making their designs more environmentally sustainable.

5. Labelling is an important aspect to facilitate re-use, recycling, return to the manufacturer, and
other means to circulate the material back into the system.

Together with the Department of Trade and Industry (DTI), Food and Drug Administration (FDA), and
the recycling industry, the NSWMC may issue standards for plastic labeling and recycling instructions
that are easy to see and follow by consumers, households, waste pickers, and recyclers.

6. EPR programs should be inclusive and be built on the existing solid waste management system.

The LGUs, through the Department of Interior and Local Government (DILG) and the Union of Local
Authorities of the Philippines (ULAP), must ensure that the EPR law implementation is not just
concentrated in urban areas or cities but all throughout the country. They can encourage their
barangays to join and oversee compliance with plastic waste collection, segregation, recovery,
transport, recycling, and proper disposal within their jurisdictions. They can continuously improve
their waste management to encourage their constituents to participate as well.

The LGUs are also key to the integration of the IWS workers into the EPR circular economy and ensure
that the benefits trickle down to the local communities. It is hoped that EPR is not only an
environmental policy approach but also a human rights-based approach that looks after the welfare
of the IWS and waste diverters, and also guards against gender discrimination, child labor, and other
forms of discrimination in the workplace.

The law also mandates that the EPR scheme be taught in both formal and informal education. The
academe, professionals (e.g., engineers, environmental planners, scientists, lawyers, etc.), NGOs, social
enterprises, and other civic organizations (e.g., Rotary Club, churches, etc.) are central in engaging the
general public to raise awareness about recycling and plastic segregation at source and in effecting
behavioral change to reuse, reduce, and recycle plastics.

In sum, we hope to see the EPR system at work to attain the circularity of operations to reduce plastic
pollution in the first year of implementation. We commend the authors of the law and the DENR for leading
the drafting of the IRR in close consultation with the other NGAs and relevant stakeholders in the plastic value
chain.

A Call to Action for All Stakeholders

The EPR scheme should be a balance of upstream and downstream solutions. We all have tasks to make
this system work, and we call on all to participate in this journey of finding an inclusive, integrative, and
impactful solution to reduce plastic waste pollution.

As the work on implementing the EPR system now begins, everyone is encouraged to join, because this is
just the beginning of a long but worthy endeavor for our shared future.

iii
ABCs of EPR (Key Terms, Concepts, and Definitions)

Alternative Delivery Systems (ADS)


A management system or mechanism where consumers are encouraged to buy products
A
using refillable containers or in other means without using SUPs and/or unnecessary
packaging.

Bonus
These are reduction in fees or discounts applied for packaging that has more recycled content
B
and less virgin material in its formulation, use less material overall, have designs that further
increases its viability for recycling, or have proof of compostability.

Collective
C Refers to a group of Obliged Enterprises that organized themselves, not as a PRO, to
implement a common platform for the implementation of their EPR program.

Eco-modulation
One of the means of encouraging OEs to transition into more sustainable and environmentally
E
friendly product development is incentivizing (like reduction of EPR tax/fees) the use of
recyclable packaging and penalizing those that do not (an increase of EPR tax or fees).

Fees
The EPR fees are an important component of the EPR. They shall be collected by the PRO from
F the obliged companies. The fees are paid to the PRO in return for carrying out the producers’
responsibilities. The rate of fees shall be determined with the PRO and will be eco-modulated
(considering the basic fee, bonus, and malus).

Government
G National Government Agencies (NGAs) are one of the important stakeholders in EPR
implementation. Their roles vary depending on the office that they represent.

High-value plastics and High recyclability


These plastics have high value for consumers and high recycling potential. High recyclability
refers to a condition wherein the value of recovery and reprocessing of a product is high, due to
its design, composition, content, and density, among other things.
H
Human rights-based approach (HRBA)
This approach focuses on those who are most marginalized, excluded, or discriminated against.
In the EPR law, it ensures that the IWS and waste diverters are properly included and involved
in the implementation process, and guard against gender discrimination, child labor, and other
forms of discrimination.

Informal Waste Sector


These are individuals engaged in services with the primary objective of generating
employment and income for the individual concerned, and who typically operate with a low
I
level of the organization without formal contractual arrangements. This may include
individuals who are formally employed but engage in sideline activities to supplement income
on top of formal employment.

Junk Shops
These shops usually belong to the informal waste sector and are considered vulnerable sectors
J in the waste recovery chain. Junk shops are considered one of the important actors in ERP
implementation because their contribution to recovery efforts is significant as long as there is
an economic motivation for them to do so.

iv
Kinds of Plastics
Plastics are categorized into seven kinds marked with triangles (and sometimes three arrows)
K with numbers inside to indicate their type. The categories of plastics are (1) PET, (2) HDPE, (3)
PVC, (4) LDPE, (5) PP, (6) PS, and (7) Others.

Low-Value Plastics
L These plastics have little to no value for consumers and little to no recycling potential. In the
EPR law, the collection of low-value plastics will be increased by proving it with higher value.

Materials Recovery Facilities (MRFs)


M These are solid waste management facilities that include a solid waste transfer station or
sorting station, a drop-off center, a composting facility, and a recycling facility.

National Solid Waste Management Commission (NSWMC)


The NSWMC is the main government agency created to implement RA 9003 and is directly
under the Office of the President. In the implementation of the EPR, together with the DENR,
NSWMC will supervise and oversee the effective implementation of the EPR scheme, receive
N and audit data sent by the PRO, and monitor and evaluate compliance of the obliged
companies and PROs with the registration of their EPR programs. The commission also
maintains an EPR Registry that contains the registered EPR programs submitted by the
obliged companies or PRO; and provides an assessment of the volume or footprint of other
generated wastes, for priority inclusion in the EPR scheme.

Obliged Enterprises
O These are product producers that are required to implement an EPR program based on RA
11898.

Producer Responsibility Organization (PRO)


This is the central element for the organization of all tasks associated with the EPR system. It
allows producers and importers to assume responsibility by combining their efforts and jointly
P
managing the arising waste through collective responsibility. The PRO is the most important
stakeholder (organization) and is responsible for setting up, developing, and maintaining the
system, as well as the take-back obligations of the OEs.

Quality recycling
An output is achieved after following a recycling standard and/or guideline usually set by the
Q government or an international organization. The presence of high-quality recycled plastic
resin could encourage brands to use recycled materials or increase recycled content in the
packaging.

Reduction
The practice of using less material and energy to minimize quantities of generated waste and
R
preserve natural resources. It includes ways to prevent materials from becoming waste before
they reach the recycling state. It also includes reusing products.

Segregation
A solid waste management practice of separating different materials found in solid waste
S
promotes the recycling and reuse of resources and reduces the volume of waste for collection
and disposal.

Targets
T These are the reasonable and measurable endpoints of the sorting, recycling, and recovery of
plastic wastes under the EPR implementation that needs to be met on a certain timeline.

v
Unnecessary Plastics
These plastics are those that are considered not necessary for product integrity which, once
eliminated, will not affect the use of the product. According to the South African Plastics Pact
(2021), these are items that can be avoided (or replaced by a reuse model) while maintaining
U
utility. They have limited social utility, for which no alternative is required and which can be
phased out without significant behavioral or infrastructural change.
In contrast, necessary plastics are otherwise considered to require alternatives before being
removed, as they may cause significant behavioral or infrastructural change.

Virgin material
These are materials that are sourced from new raw materials. A virgin plastic material means
V
that the plastic resin is newly created and does not have any recyclates. In the EPR law, it is
highly encouraged to use fewer virgin materials and more recyclates.

Waste management
This is the storage, collection, transportation, and disposal of solid wastes. It is also described as
W a practice by which several waste management techniques are used to manage and dispose of
specific components of solid waste. Waste management techniques include avoidance,
reduction, reuse, recycling, recovery, and disposal.

Local context
The EPR scheme varies from one country to another; hence, to increase the success rate of the
X new system, the EPR scheme for the Philippines was contextualized. This ensured that the EPR
scheme would complement and be mainstreamed with the current solid waste management
system in the country.

You (consumers are essential to EPR)


You and the rest of the stakeholders are important actors in the implementation of the EPR in
the Philippines. The general public, in particular, is encouraged to be educated about correct
Y
practices and benefits of proper waste management; practice waste minimization; segregate
at source; and participate in take-back schemes, deposit refund schemes, home composting,
and other practices.

Zero plastics in nature


Zero or No Plastics in Nature Initiative is a global initiative to stop the flow of plastics entering
nature by 2030 through the elimination of unnecessary plastics, doubling reuse, recycling, and
Z
recovery, and ensuring that the remaining plastic is sourced responsibly. Providing support to
develop EPR policy here in the Philippines is one of the key areas of activities of
WWF-Philippines.

Sources:

United Nations Environment Programme (n.d.) https://www.unep.org/environmentassembly/


WWF Philippines (2020). EPR Scheme Assessment for Plastic Packaging Waste in the Philippines
Government of the Philippines (2001). RA 9003

PEW Charitable Trusts. 2020. “Breaking the Plastic Wave – in Numbers.”

South African Plastics Pact. 2021.


https://www.saplasticspact.org.za/wp-content/uploads/2021/07/SAPlasticsPact_Publication_UnnecessaryItems.pdf

Yu, Jieqiong, Peter Hills, and Richard Welford. 2008. “Eco-Design Changes: Perspectives from China” 124 (October 2007): 111–24

PREVENT Waste Alliance. 2020. “Factsheet 04: How Can a Register of Obliged enterprises be
Established?” In: “EPR Toolbox.”

Sustainable Brands. 2022.


https://sustainablebrands.com/read/defining-the-next-economy/what-are-plastic-credits-a-4-minute-explainer
UNFPA (2014). The Human Rights-Based Approach. https://www.unfpa.org/human-rights-based-approach

vi
Acronyms and Abbreviations
BIR Bureau of Internal Revenue
BOI Bureau of Investments
BSMED Bureau of Small and Medium Enterprises Development
CDA Cooperative Development Authority
DA Department of Agriculture
DENR Department of Environment and Natural Resources
DepEd Department of Education
DILG Department of Interior and Local Government
DOH Department of Health
DOST Department of Science and Technology
DTI Department of Trade and Industry
EMB Environmental Management Bureau
EPR Extended Producer Responsibility
EPS Expanded Polystyrene
FDA Food and Drug Administration
FMCGs Fast-Moving Consumer Goods
GDP Gross Domestic Product
HDPE High-Density Polyethylene
IEC Information Education Communication (campaigns)
IWS Informal Waste Sector
LDPE Low-Density Polyethylene
LGU Local Government Unit
MMDA Metro Manila Development Authority
MRF Materials Recovery Facility
MSMEs Micro, Small, and Medium Enterprises
NEC National Ecology Center
NGA National Government Agency
NGO Non-Government Organization
NSWMC National Solid Waste Management Commission
OEs Obliged Enterprises
PET Polyethylene Terephthalate
PIA Philippine Information Agency
PP Polypropylene
PRO Producer Responsibility Organization
PS Polystyrene
PVC Polyvinyl Chloride
RA Republic Act
SUP Single Use Plastics
SWM Solid Waste Management
ULAP Union of Local Authorities of the Philippines
WACS Waste Analysis and Characterization Study
WWF World Wide Fund for Nature

vii
List of Stakeholder Participants

This White Paper is not possible without the support of the following stakeholders throughout our
series of dialogues and validation workshops:

● Alaska Milk Corporation


● Avon Products Manufacturing, Inc. / Avon Cosmetics, Inc.
● BizArchitecture Complex Systems Design
● Central Philippine University
● City Government of Makati
● City Government Parañaque
● Government of Quezon City
● Coca-Cola Beverages Philippines, Inc.
● Colgate-Palmolive Company Philippines, Inc.
● Dole Philippines, Inc.
● DENR-Environmental Management Bureau (EMB)
● DTI-Bureau of Small and Medium Enterprise Development (BSMED)
● Ecoloop
● Ecowaste Coalition
● Greenpeace–Philippines
● Metropolitan Manila Development Authority (MMDA)
● Mondelez International, Inc. Philippines
● Mother Earth Foundation (MEF)
● Nestlé Philippines, Inc.
● Oceana, Inc.
● Office of Senator Cynthia A. Villar
● Philippine Plastics Industry Association (PPIA)
● Philippine Reef and Rainforest Conservation Foundation, Inc. (PRRCFI)
● Plastic Bank Philippines
● Plastic Credit Exchange (PCX)
● Procter and Gamble Philippines, Inc.
● Pure Oceans
● Republic Cement & Building Materials, Inc.
● Sambayanan ng Muling Pagkabuhay Multi-Purpose Cooperative (SMP-MPC)
● San Jose Sico Landfill Multipurpose Cooperative, Batangas
● SYSU International Inc. / Javier, Santiago, Torres & Panghulan Law Offices
● The Plastic Flamingo Philippines, Inc. (PLAF)
● Unilever Philippines, Inc.
● UP Diliman Environmental Management Office (UP-DEMO)
● UP Diliman Institute for Small-Scale Industries (UP-ISSI)

viii
1.0 INTRODUCTION TO EPR

1.1 State of Global and National Plastic Pollution


Plastic pollution has reached gigantic dimensions worldwide. The current projected growth in plastic
pollution is said to cause significant ecological risks, with certain pollution hotspots like the
Mediterranean, the East China and Yellow Seas, and the Arctic Ocean ice already exceeding an
ecologically dangerous threshold of microplastic concentrations. The negative impacts of plastic
pollution are already detectable in most species’ groups while the productivity of several of the world’s
most important marine ecosystems, like coral reefs and mangroves, are under significant risk.1

The estimated global plastic use in 2019 is 459.75 million tonnes (Mt). Considering the population and
economic growth, and structural and technological change, the projected global plastic use by 2060 is
estimated to increase up to 1,230.63 Mt, where countries in Africa and Asia are seen to have the largest
contribution. More than 30% of global plastics are used for packaging. This is estimated to increase by
2.5 times in 2060.2

Based on the same report, about 76.84% (353.29Mt) of the plastic used in 2019 is estimated to become
waste. Among the plastic waste, about 40.18% (141.96Mt) is plastic packaging. Only about 9.26%
(32.83Mt) of the 2019 global plastic waste is recycled, while 22.44% (79.29Mt) is estimated to be
mismanaged. Considering these amounts, it is estimated that about 22.06Mt of plastics were leaked
into the environment in 2019, and it is estimated to double by 44.15Mt in 2060.

In the Philippines, it was found that the number of plastic items consumed by Filipinos was 2.15 million
tonnes per annum. Thirty-five percent (35%) of the consumed plastics leak into the open environment,
33% are disposed of in sanitary landfills and open dumpsites, and only 9% are recycled because of our
lack of capacity to recycle both high- and low-value plastics (Figure 1).3

Further, for every dollar that producers pay for plastic, governments, and society will pay at least 10
times as much to remedy its countless negative impacts, with the lifetime cost of ONLY THE plastic
produced in 2019 estimated at US$3.7 trillion (+/-US$1 trillion), 10 times the Gross Domestic Product
(GDP) of the Philippines.4

1
Tekman, M. B. , Walther, B. A. , Peter, C. , Gutow, L. and Bergmann, M. (2022): Impacts of Plastic Pollution in the Oceans on Marine
Species, Biodiversity and Ecosystems, 1–221, WWF Germany, Berlin. Doi: 10.5281/zenodo.5898684
2
Organisation for Economic Co-operation and Development (OECD) (2022).
https://www.oecd-ilibrary.org/sites/aa1edf33-en/1/3/2/index.html?itemId=/content/publication/aa1edf33-en&_csp_=ca738cf5d4f327be3b
6fec4af9ce5d12&itemIGO=oecd&itemContentType=book
3
WWF Philippines, Inc., cyclos GmbH, & AMH Philippines, Inc., 2020
4
https://wwfint.awsassets.panda.org/downloads/wwf_pctsee_report_english.pdf

1
Figure 1. The flow of plastic materials in the Philippines in 2019 (WWF Philippines, Inc., cyclos GmbH, & AMH
Philippines, Inc., 2020)

In 2020, the WWF-Philippines commissioned a comprehensive study to understand the plastic


materials flows, legal framework, and current solid waste management system as inputs for assessing
the applicability of the EPR scheme in the country. The study showed that there was a need to improve
the implementation of RA 9003, or the Ecological Solid Waste Management Act of 2000. Challenges
faced in its implementation include the following:

1. There are limited separation and recycling activities at the source (particularly household
level). Recovery is mostly applied to high-value plastics but is still largely informal-led (e.g., waste
pickers who go from house to house to collect recyclable wastes), leaving a sizeable volume of
high-value recyclable collected ending up in disposal sites or leaked into the environment.

2. Despite the large volume of high-value recyclable plastics, they often end up not being recycled
due to the limited number of recycling facilities which are mostly concentrated in the central
parts of the country. Coupled with the low recovery rate, some large recyclers and aggregators
end up importing plastics to process.

3. There is a high volume of low-value plastics and non-recyclables (e.g., flexible films, sachets,
composites) which require a lot of time and effort to collect, just to be bought by junkyards at
cheap prices per kilo. Recycling sachets also require new equipment for processing. These
scenarios make these sachets end up in disposal sites or be leaked into the environment.

These factors lead to identifying EPR as a policy tool in aiding the RA 9003 implementation and
improving the waste management system.

2
1.2 State of Current Solid Waste Management of the Philippines vs
the Planned System from RA 9003
The basic framework for regulations and operations on solid waste management is hinged upon RA
9003, or the Ecological Solid Waste Management Act of 2000. The National Solid Waste Management
Commission (NSWMC) is the main government entity in charge of solid waste management
policy-making and monitoring the implementation of laws and national and local SWM plans.

Under the Office of the President, the NSWMC’s main duty is to prescribe policies to attain the
objectives of RA 9003 and to oversee the overall implementation of the solid waste management plans
and programs. The NSWMC is led by the Department of Environment and Natural Resources (DENR)
and has fourteen government sectoral members and three private sectoral members. Representatives
from the private sector consist of one member each from a non-governmental organization, the
recycling industry, and the manufacturing and packaging industries.

LGUs, particularly cities and municipalities, are responsible for the RA 9003 implementation. They are
tasked to prepare local SWM plans, draft waste reduction policies, manage the collection and disposal
of various wastes within their jurisdiction, maintain materials recovery facilities (MRFs), and adopt
revenue-generating measures to support local SWM.

Waste segregation and its disposal at landfills are under the jurisdiction of the city or municipality.
Meanwhile, barangays are mandated to manage all waste segregation, sorting, recovery, recycling, and
composting activities within their area. Cities and municipalities coordinate the activities of barangays
within their jurisdiction. Provinces coordinate and integrate SWM plans and efforts of LGUs within the
provincial boundaries (except for highly-urbanized cities). Along with national-level offices, provinces
provide administration, legislation, and financial support.

The infrastructure and operationalization for solid waste management consist of segregation at source,
collection, and disposal, among others. Considering that RA 9003 is more than 20 years old already,
there are still challenges in meeting the targets set by the law and its frameworks.

Some LGUs have passed ordinances and started implementing plastics regulations since 2011.
According to the NSWMC, as of 2019, 489 cities and municipalities (30% of all cities and municipalities in
the country) have some form of policy to regulate the use of plastics, particularly plastic bags. However,
the effectiveness of these initiatives is not yet assessed. All regions in the country except in the
Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) have LGUs regulating plastics. 13 out
of 17 LGUs in Metro Manila have plastic ordinances.

Table 1 shows the status of the Philippines in meeting the SWM targets.

3
Table 1. Status of Philippine SWM Targets and Actual Accomplishment

Items per RA 9003 Details by law Target Actual

Segregation at source Waste should be segregated at source 100% 53-100% Nationwide5


before collection

Collection Collection efficiency from residential, 100% 40-85% Nationwide;6


commercial, industrial, and agricultural 85% Metro Manila7
sources

Use of SLF as the final Open dump sites should be closed, and 100% 403 open dumpsites and 108
disposal site use sanitary landfill (SLF) instead controlled dumpsites in
operation (2016)7
118 SLF with less than 15%
access to LGU7

Waste diversion rate and Activities which reduce or eliminate the 50% 48% Metro Manila;7
recovery amount of solid waste from waste 46% outside Metro Manila6
disposal facilities

MRFs One MRF per barangay or cluster of 100% 31.3% Nationwide7


barangays

10-Year SWMP Each LGU is required to prepare and 100% 1,592 plans submitted7
have a 10-year SWMP approved 72.05% approved8
27.7% under evaluation8
0.25% no submission8

Sources for the targets:

National Solid Waste Management Commission (2019).


https://emb.gov.ph/wp-content/uploads/2019/08/National-Solid-Waste-Management-Status-Report-2008-2018.pdf

Republic of the Philippines (2001). RA 9003

1.3 What EPR is


The EPR is an environmental policy approach that emerged in the 1990s and is now increasingly
recognized globally as a useful tool for accelerating the transition to sustainable waste management
and a circular economy. This scheme encourages waste reduction through the elimination of
unnecessary packaging of products and the development of more environmentally friendly packaging
design. EPR works alongside and complements general waste management systems typically run by
the government and its citizens.8

An EPR scheme is necessary to create a circular economy for packaging material. One of the most
critical steps in implementing an EPR scheme is to identify the obliged enterprises (OEs). These
industry players (that introduce packaging to the market) will fund the collection and processing of
post-consumer packaging. Through an EPR policy, collection and processing can be scaled and
effectively implemented throughout the country.

5
National Solid Waste Management Commission (2016).
https://nswmc.emb.gov.ph/wp-content/uploads/2016/07/NSWM-Strategy-2012-2016.pdf
6
Government of the Philippines – Senate Economic Planning Office (2017).
https://legacy.senate.gov.ph/publications/SEPO/AAG_Philippine%20Solid%20Wastes_Nov2017.pdf
7
National Solid Waste Management Commission (2022). Solid Waste Database.
https://app.powerbi.com/view?r=eyJrIjoiMTNiMmM0NWQtMjE4Yi00M2M2LWJiNjAtMGUxOTc0MjA1NTczIiwidCI6ImY2ZjRhNjkyLTQzYj
MtNDMzYi05MmIyLTY1YzRlNmNjZDkyMCIsImMiOjEwfQ%3D%3D&pageName=ReportSection
8
EPR Scheme Assessment for Plastic Packaging Waste in the Philippines, WWF Philippines, October 2020.
https://wwf.org.ph/wp-content/uploads/2020/12/WWF_REPORT_EPR_Philippines_2020.pdf

4
Producers and importers should be responsible for the reduction of the environmental impact of their
products. To ease the transition to a mandatory EPR scheme, producers and importers should devise
strategies to gradually lessen their consumption of packaging material. Producers can initiate five steps
in preparation for the implementation of RA 11898:

● Eliminate unnecessary packaging;


● Improve packaging design (eco-design);
● Improve product labels;
● Eliminate the need for packaging where possible by allowing reuse/refilling; and
● Manage post-consumer packaging.

2.0 ITEMS TO BE MONITORED IN YEAR 1 OF EPR IMPLEMENTATION


The EPR bill lapsed into law on 23 July 2022, now Republic Act 11898, and after a series of nationwide
public consultations, the DENR drafted its implementing rules and regulations (IRR) as the lead agency
for its implementation.

In line with this and as a complement to the DENR public consultations, WWF-Philippines conducted
workshops of its technical working group from among various sectors, i.e., large enterprises, micro, small
and medium enterprises (MSMEs), recyclers, local government units (LGUs), government agencies,
academic institutions, social enterprises, non-government organizations (NGOs), and the informal waste
sector (IWS).

These workshops discussed what the various sectors hoped to see and monitored in the first year of
implementation of the EPR law, such as:

1. The role of PRO and stakeholders in the EPR system should be defined more to facilitate
collaboration with and among OEs, LGUs, cooperatives, social enterprises, recycling industry,
civil society organizations, the informal waste sector, and the general public;
2. A public registry and information data bank should be readily available for monitoring and
guidance;
3. Eco-modulation of EPR fees should be emphasized, and this should ensure support for
improving the solid waste management system through eco-financing;
4. Investment should also include research and development, technology sharing, and reduction
of plastic waste;
5. Labeling is an important aspect to facilitate re-use, recycling, return to the manufacturer, and
other means to circulate the material in the system; and
6. EPR programs should be inclusive and build on the existing solid waste management system.

3.0 DISCUSSION
The following subsections provide the salient points of the EPR Law, it is the draft IRR, the draft National
Framework from the DENR, and a summary of recommendations from the workshops of the technical
working group from among the various sectors.

3.1 The PRO and Stakeholders


The role of the Producer Responsibility Organization (PRO) and stakeholders in the EPR system should
be defined more to facilitate collaboration with and among OEs, local government units (LGUs),
cooperatives, social enterprises, recycling industry, civil society organizations, the informal waste sector,
and the general public.

5
3.1.1 The Producer Responsibility Organization
The implementation of EPR Programs can be done by the OEs, the collective, or through the PRO. The
composition of a PRO is not yet clearly defined in the IRR. Still, ideally, it should comprise all EPR
stakeholders and hold the collective waste management responsibility of the member OEs. This
responsibility of the OEs (who opted to become a member of the PRO instead) is transferred to the PRO
through paying an EPR fee. In doing so, the PRO becomes responsible to register, implement, monitor,
and report the EPR Programs on their behalf. The PRO also organizes and finances all collection and
treatment of the waste. This concept makes the PRO different from the collective obliged enterprises.

The recommended responsibilities of the PRO for the EPR are not limited to: (1) determination and
calculation of EPR fees/eco-modulation of fees to be paid by all OEs; (2) collection and administration of
the EPR fees while ensuring fair costs and therefore not harming the competitiveness of a participant;
(3) providing support to LGUs in the operations of MRFs; (4) documentation of collection, sorting, and
recycling of packaging waste; (5) conducting solid waste management-related
information-education-communication (IEC) campaigns for the consumers; (6) register, monitor, and
implement EPR programs with NSWMC; (7) report data to central platform or registry that will be
developed by the NEC; and (8) being open to audits and having the reports open to the public for
transparency and accountability.

In general, the PRO shall be formed by various members/groups such as the OEs (that joined
voluntarily), NGOs and social enterprises, waste management organizations/sectors, recycling
companies, executive boards, and advisory boards.

3.1.2 The Stakeholders


Aside from the PRO, various stakeholders are needed to be identified and have clearly defined roles as
they are vital for the success of the EPR in the Philippines. These stakeholders are the National
Government, Government Agencies, Local Government Units (LGUs), OEs, waste collectors (including
formal and informal waste sectors), recyclers and consolidators, academe (schools and universities), civil
societies, and consumers.

The National Government is mainly responsible for EPR-related policies; support for stakeholders in the
EPR scheme through fiscal and non-fiscal incentives; and investment in necessary infrastructure and
research and development on plastics. The NSWMC, together with the Department of Science and
Technology (DOST), Bureau of Investments (BOI), Bureau of Internal Revenue (BIR), Bureau of Small and
Medium Enterprises (BSMED), Cooperative Development Authority (CDA), and other government
agencies, may issue coordinated plans of action to effect these policies.

The Government Agencies include, but are not limited to, the DENR, NSWMC, NEC, DTI, FDA, DepEd,
DOST, and the Philippine Information Agency (PIA). Together, they work with other stakeholders to
implement the EPR, such as the supervision, formulation of necessary standards (for pricing, labeling,
reporting, etc.), processes for registration, database creation, and IEC campaigns, among others. They
should also ensure that EPR programs are not concentrated in urban areas/cities but are implemented
throughout the country.

The LGUs (including the barangays and the Provincial Government) will oversee compliance with plastic
waste collection, segregation, recovery, transport, recycling, and disposal within their jurisdiction. They
can develop policies that will further improve the implementation of the EPR of the OEs within their
jurisdiction. They shall continuously improve their waste management and planning systems and make
means to encourage their constituents to participate in the EPR law.

The waste collectors can serve as the link and ensure that each component of the waste stream
reaches its intended recipient and does not leak into the environment. In the EPR, MRF operators buy
material from the informal sector but sell only to formal recycling companies. Meanwhile, the recyclers
and consolidators are expected to collect recyclables and recovered materials to be transformed into

6
new products; partner with the OEs, or collective; and must comply with government standards to
ensure high-quality recycling.

The role of the academe is to promote solid waste management education, and raise awareness and
continuous development of scientific, social, and economic research and approaches to addressing
plastic waste. Civil societies, on the other hand, can maintain an active role in plastic waste
management to supplement the efforts of the national and local governments and assist in the
integration of the informal waste sector.

Finally, the consumers are needed to be educated about the correct practices and benefits of proper
waste management, and how to practice waste minimization, segregate their wastes at source
(household), and participate in take-back schemes, deposit refund schemes, home composting, and
other practices.

3.1.3 Micro, Small, and Medium Enterprises (MSME)9


The MSMEs are voluntary EPR participation only, EXCEPT when they carry the same brands, labels, or
trademarks, and their cumulative assets are ₱100M and more, in which case they ALL are obliged
enterprises. This group accounts for 99.58% of the business establishments in the country10 which, if
they can participate in the program, can also be a factor in lessening and eventually eliminating the use
of plastic packaging that can lead to pollution, according to the DTI- Bureau of Small and Medium
Enterprise Development (BSMED).

The BSMED explained that despite being the backbone of the economy, the MSME sector is also most
vulnerable to both economic and environmental changes. Its contribution to plastic waste still becomes
significant when totaled. Although the law does not require most of the MSMEs to implement the EPR
Law, MSMEs are encouraged to take part by practicing EPR voluntarily (unless they have a cumulative
asset of ₱100M, as mentioned in the law) or be part of the network of OEs or organizations practicing
EPR. Since many MSMEs simply don’t have the operational budgets for such a shift, the EPR law will
need certain protections for MSMEs for them to stay competitive.

To address these challenges, it is important to start with the integration of principles and practices
within the MSMEs and understanding the emerging opportunities relevant to the business. The local
and national governments, together with international organizations, can also design policies and
strategies that will provide MSMEs with a clearer path to voluntarily implementing the EPR Law and
other sustainable business practices.

In the future, should the Government decide to mandate all the MSMEs to comply with the EPR Law,
the BSMED suggests that to effectively implement and ensure the MSMEs’ compliance with the EPR
Law, the following shall be considered:

● Implementing written policies and procedures;


● Establishing a Compliance Committee;
● Conducting effective training and education;
● Enforcing standards through guidelines;
● Provision of green financing; and
● Monitoring and evaluation.

In addition, the UP Institute of Small Scale Industries (UP ISSI) agrees that the EPR law is a step in the
right direction to manage and reduce plastic waste in the country. While the law only enjoins the
voluntary participation of the MSMEs, the law already recognizes their potential contribution,
considering their number and the manpower they employ. As it is, some of the MSMEs are already
taking action to reduce plastic waste, such as by shifting to alternative packaging.

9
WWF-Philippines (2022). Interview meeting with DTI-BSMED on 11 October 2022.
10
Philippine Statistics Authority (2021), as mentioned by DTI-BSMED during their interview meeting with WWF on 11 October 2022.

7
As part of the academe, UP ISSI recognizes its role in the implementation of the EPR law, particularly in
information and education campaigns (IECs) and research and development (R&D). They join in the
hope that the first year of implementation will have full IECs for MSMEs, and for the youth and adult
consumers, and that R&D will not only be limited to developing alternative packaging but also look into
consumer practices and industry best practices that can contribute to the rollout of the EPR law.

3.1.4 Informal Waste Sector


The informal waste sector (IWS) is small-scale, labor-intensive, unregulated, and unregistered.11 This
includes, but is not limited to, waste pickers and junk shops (usually small). The inclusion of IWS in an
EPR scheme is important as their contribution to recovery efforts is significant as long as there is an
economic motivation for them to do so. The IWS is skilled in plastic waste collection, sorting, and
recycling but is also the most vulnerable sector along the waste recovery chain.

The MRF operation is proposed to engage the informal sector through the contracting of waste pickers’
cooperatives instead of employing waste pickers individually. The IWS for their part may opt to join
established cooperatives or to carry on with their waste-picking efforts and selling of recovered items to
junk shops. The waste pickers can also form cooperatives with the assistance of social enterprises or
LGUs to build on their capacities. Waste pickers need to receive equitable income and with their health
and safety also safeguarded. In addition to forming a cooperative, an entrepreneur program and
aggregator formalization can also be considered to be a means to integrate the IWS.

Thus, the proposed EPR scheme gives the informal sector choices in which they can retrieve waste
materials suitably and comfortably, either through continuing their waste-picking activities or by being
integrated by social enterprises or cooperatives. They shall be given the opportunity to earn additional
income by earning revenue not just from high-value plastics but also from low-value plastics. They may
further be supported by providing them with the necessary equipment, such as karitons and trucks for
hauling, as well as by providing financial assistance that junk shop operators can use as capital. The
government should also provide training to waste collectors for them to better understand the different
types of plastic and how to segregate them and assist them in reportorial requirements as part of the
EPR. Consideration of the IWS in the EPR law is an important measure for the human rights-based
approach.

If economic incentives can also be made available to recycling companies and converters for them to
invest in technology that can recycle or recover value from these low-value plastics, not only will this
provide motivation to increase the collection of low-value plastics, but the informal waste pickers and
small junk shops who often come from low-income groups will have additional revenue.

3.2 EPR Programs, Monitoring, and Reporting


EPR programs should be inclusive and be built on the existing solid waste management system.

The formulation of the EPR Programs should consider the proposed EPR implementation
scheme/framework. In addition to this, the following are some of the suggested EPR Programs which
may be considered in the IRR and/or the OEs:

● Programs involving collaboration with the LGUs, communities, and these informal waste
sectors;
● Activities involving recovery schemes for plastic wastes;
● Transportation of recovered plastic wastes to the appropriate recycling, composting, and other
diversion or disposal sites;
● Clean up of plastic wastes leaked into coastal areas, public roads, and other sites;

11
Wilson, D., Whiteman, A., Tormin, A. (2001). Strategic Planning Guide for Municipal Solid Waste Management. Washington, DC:
World Bank.

8
● Establishment of recycling, composting, thermal treatment, and other waste diversions or
disposal facilities.;
● Promote the use of highly reusable, recyclable, and retrievable products in their establishments,
or make available for sale locally made products that are made of organic or compostable
materials;
● Charge customers a minimum fee of five pesos for every single-use plastic bag regardless of
whether it is compostable or for disposal;
● Establish an in-store recovery program to facilitate the return of used plastic products; and
● Take-back programs, deposit-refund schemes, plastics in exchange for currency or commodity,
and biodegradable waste converted to either biomass energy or compost.

To assist the OEs, PROs, and MSME (falling under the obliged enterprise definition and those that would
like to voluntarily join the EPR), a template for the EPR Program that will be submitted to the NSWMC
should be prepared to have a unified form of plan preparation.

In the case of MSMEs that want to participate voluntarily, they can reach out to the DTI-BSMED to be
eligible to receive assistance (e.g., through Negosyo Centers, DTI Regional and Provincial Offices). They
must first register the business name with DTI/SEC and secure the necessary permits from the
barangay, city/municipality, and BIR.12

In terms of ensuring that implementation of the EPR is enforced, a good database and monitoring
system should be put in place. Monitoring of the compliance of the OEs and their PROs to the
requirement set by the law is linked to the fines and penalties; however, one of the concerns right now
is how monitoring can be done.

Since OEs are generally large enterprises (falling in the definition of the law), a master list of all large
enterprises can be generated with the assistance of the DTI, SEC, and/or BIR. They can also gather the
master list of the MSME to check which among this group will be included in the OEs. Once finalized,
the master list can also form part of the registry of EPR, in addition to the registry of the EPR Programs,
and be a basis for the monitoring of their compliance. New enterprises that are registered and
considered OEs shall be notified to DENR to be included in the said master list.

The LGUs, through the Department of Interior and Local Government (DILG) and the Union of Local
Authorities of the Philippines (ULAP), can spearhead the spread of the EPR to reach every barangay, all
throughout the Philippines. The EPR law implementation should not just be concentrated in urban
areas or cities but also reach all the islands of the archipelago. They can perhaps start with prototypes
and replicate them nationwide, covering plastic waste collection, segregation, recovery, transport,
recycling, and proper disposal. They can continuously improve their waste management to encourage
their constituents to participate as well.

3.3 Plastics and Other Waste Products


The EPR Framework is trying to set a standard that can be applied to all products, not only plastics.

A representative of waste collectors/cooperatives shared that they see value in plastics and even tires,
hence the processing of these types of wastes. The textiles are usually donated to other organizations
where they are turned into other materials or products (e.g., rugs). However, some textiles are
considered for disposal already due to their materials or there being no other use yet (e.g., polyester,
jersey). Meanwhile, for used batteries, they do not usually recycle or manage them; but due to a
partnership with a university near their cooperative, they are now collecting them.

12
All discussions pertaining to MSME are from the WWF-Philippines (2022), Interview meeting with DTI-BSMED OIC Director Emma C.
Asusano on 11 October 2022.

9
The EPR Framework covers various types of waste products that can be included in the EPR law in the
future. There are no further suggestions on the type of waste products to be included in the EPR
framework.

3.4 Plastic Packaging Waste Management


In addressing plastic packaging wastes and pollution, it is vital that we level off with the understanding
of the types of plastics, whether they are recyclable or not, how they affect the environment, what
makes them pollutive, and which among them is the target for management.

A detailed discussion on the Categories of Plastics and Target Plastic Packaging are provided in Annex
A.

3.4.1 Target Plastic Footprint Recovery


The law only mentions plastic product footprint “recovery” and does not distinguish the difference
between reuse, recycling, and reduction. Waste recovery means the diversion of plastic waste from the
downstream waste streams. The reduction of the plastic product footprint is a good plan, but it might
be better if there is a mechanism to mandate the reduction or diversion of plastic packaging wastes not
only on the downstream portion but also the upstream. In one of our consultations with the business
sector, it was raised that it “is unclear if ‘plastic footprint’ covers plastic sales volume or if it includes all
manufactured and imported products. The recovery of plastic product footprint needs to balance
upstream measures with downstream measures.” With this, the recovery of plastic packaging wastes
shall be categorized into three to meet the targets further:

● Reduction of unrecyclable, unnecessary, and single-use plastic packaging. As mentioned


previously, the law only mentioned ‘recovery’ which seems to cover downstream wastes. On the
other hand, a reduction in the use of unrecyclable and unnecessary plastic packaging could be
better, as it means the diversion of plastic wastes (categories I to IV) from the upstream portion
of the waste stream, which may also require the change in the use of these categories of
plastics from the supply chain of the OEs.

● Increase the recyclability of plastic packaging. The EPR encourages making plastics
recyclable more than those that are not. It is in the best interest to advocate for the use of
recyclable materials in the supply chain of OEs so that the generation of unrecyclable and
unnecessary plastics (usually found in the category I to IV plastics) are permanently reduced or
phased out.

● Increase the reuse of recyclable plastic packaging. The reuse of recyclable plastic packaging
materials should be increased in the upstream portion of the waste stream. In this way, the use
of virgin plastic materials will be reduced while increasing the reuse of recyclable plastic
materials, thereby supporting a circular economy.

The reporting on the recovery of the plastic product footprint shall be presented using these three
categories.

A working baseline value on the existing plastic packaging volume of the OEs is needed and shall be
reported the first time the obliged enterprise has registered to the EPR. Succeeding expansion of the
enterprise leading to an increase in the production and volume of plastic packaging shall also be
registered in the succeeding reporting year.

10
3.4.2 Plastic Labelling
Putting labels on plastic packaging is important to help consumers know and identify how plastic
packaging should be disposed of or managed. Labeling is an important aspect to facilitate re-use,
recycling, return to the manufacturer, and other means to circulate the material in the system. This shall
be improved as mandated by the law. With this, we suggest that certain standards for plastic labeling
be enforced and implemented, with the help of DTI and the FDA. Labels, logos, and/or symbols shall be
displayed in the packaging in a manner visible to the consumer showing the following:

● Resin Identification Code. It is suggested that all plastic packaging be mandated to put the
2013 updated RIC symbol in their products (i.e., triangle and not the three arrows). This RIC
symbol, however, is more useful for the producers, recyclers, and aggregators (among others) to
assist them in the recovery and recycling process, but not intended to be useful for the
consumers.

● Recyclability code. Not all plastics are recyclable; some could be reused; while some need to be
disposed of. This information should also be put into the plastic packaging and each
component to aid the consumers how to manage the plastic packaging wastes after their use,
thereby increasing participation in the EPR law. Compared with the RIC symbols, the
recyclability code will be useful for consumers. With this, in addition to the RIC symbols, we
advocate the inclusion of additional code for the EPR implementation.

3.5 Collaboration with LGUs, Cooperatives, and Informal Waste Sector


Establishing a collaborative partnership with LGUs, Cooperatives, and IWS is one of the means to further
implement the EPR in the country, but there is a need to ensure that benefits and/or incentives will
reach all parties of the partnership. One of the means to do this is by incentivizing those “working with
the LGUs” rather than “incentivizing the LGUs” to ensure that the benefits trickle down to the
community, thereby meeting a human rights-based approach. The collaborative partnership with all
the parties should provide clear roles and be approved by all sides.

Education campaigns can be another subject of partnership with the LGUs and civil societies.
Meanwhile, it will also be beneficial to include the academe (research and development), professionals
(e.g., engineers, planners, scientists, etc.), and other civic organizations (e.g., Rotary Club, churches, etc.).

A partnership shall be used for collecting and management of wastes, supporting the MRF operation,
supporting the waste management cooperatives (if applicable), IEC campaign, and training, among
others. Rates should be established for the operation (such as waste collection) of the partnership and
should not be confidential. Should there be a waste collection in a certain community, the
entity/partnership should make an agreement with the existing cooperative in that community first in
order to avoid competition. If there is none, the partnership can go directly with the LGU.

3.6 Fees and Financing


The collection of fees (herewith called EPR fees) from the OEs is important to ensure that the PRO will
be financially and operationally feasible to undertake its responsibilities. Thereby, mechanisms such as,
but not limited to, carefully formulated pricing mechanisms, meticulous monitoring and
documentation of the number of sorted wastes, other safeguards against free riders, and providing
additional revenue streams, are needed to be formulated by the PRO and managed and overseen by
the NSWMC and DTI. This shall be charged yearly depending on the tonnage of plastic products and
packaging that each company has set out to the market per fiscal year. Although the PRO’s fee-based
structure will support downstream solutions (e.g., increased collection and higher recycling rates), the
EPR’s objectives also include upstream solutions like improved product design. Nevertheless, EPR fees
need to be clarified together with financing schemes of programs. There should also be specific fees for
each type of plastic and financial traceability reports.

11
Eco-modulation, on the other hand, is one of the means to encourage producers to transition into more
sustainable and environmentally friendly product development by incentivizing (like reduction of EPR
tax/fees) the use of recyclable packaging and penalizing those that do not (malus or increase of EPR tax
or fees). Eco-modulation of EPR fees should be emphasized, and this should ensure support for
improving the solid waste management system through eco-financing.

The criteria to determine eco-modulation as well as specific values for the basic fees, bonuses, and
maluses can be set by the advisory board of the PRO and approved/monitored by DENR with the
assistance of DTI (see Annex B, Table B-1). The EPR fees are ideally published and accessible to the
public. These also need to be reviewed regularly, perhaps every five years. The level of sophistication and
complexity of setting EPR fees may be determined through a more detailed study of its application in
the Philippine setting. A sample of EPR fees on different packaging types from Citeo (France) is
provided in Annex B, Figure B-1.

In terms of incentives, the law has already provided and identified means by which LGUs, enterprises, or
private entities, including OEs, PROs, and NGOs, will benefit from joining the EPR implementation. This
means that the incentives provided by the law are not limited to the OEs and the PRO. As long as the
MSMEs are registered, they can be covered by the incentives once they participate in the EPR
implementation. Further, they can also apply for benefits under Tier II of SIPP (i.e., green ecosystems).

3.7 Investment and Infrastructure


Investment should also include research and development, technology sharing, and reduction of plastic
waste.

The National Government should invest in the waste management facilities needed to implement the
EPR Act. They can also pool resources with the private sector to invest in order to create financial
mechanisms for those who want to improve the solid waste infrastructure but do not have the capacity
to invest and/or explore other related investments. Investment should also be channeled to
recyclers/processing (machinery) to encourage circularity.

The investment in facilities should be included in the implementation framework of EPR and provide
incentives to obliged entities that will invest in these facilities. This is because recycling alone is not
sufficient as reprocessing recovered wastes needs enough facilities located in the Philippines. In this
way, participation and meeting the target recovery of plastic will increase and processing will be more
accessible for the OEs and the MSMEs.

3.8 Research and Development, and Technology sharing


There is a need for continuous research and development of better packaging products and means to
process them, thereby making packaging design more environmentally sustainable or eco-design.

Eco-design shall be considered by the manufacturers and OEs as one of the main factors of the EPR to:
● conserve raw materials;
● use of recyclates (critical to close the loop in a circular economy); and
● design of packaging (will determine the reusability and recyclability of post-consumer
packaging waste)

Manufacturers can start introducing a minimum portion of recycled material in their products and aim
to use less virgin material and more recyclates as much as possible. By making their designs more
sustainable, they can also meet the required reduction on the use of virgin materials and increase the
rate of recyclable materials. OEs may investigate through research and development (R&D) to
eventually replace low-value plastic packaging with high-value plastic packaging, which has potentially
lower EPR fees than the former.

12
As mentioned previously, the academe can support R&D. Currently, there are existing fabrication
laboratories at the University of the Philippines Diliman, DOST, and other state universities that can be
tapped to innovate and experiment with alternative plastic packaging. Through R&D, the use of natural
material as provided in the IRR can be clarified if this is viable and can promote circularity or not.

Finally, OEs investing in R&D should qualify for incentives or benefits in order to encourage more R&D.

3.9 Registry and Information


A public registry and information data bank should be readily available for monitoring and guidance.
The NEC is expected to develop the EPR Registry, and it should contain an integrated database of
existing EPR programs and solid waste management. It should also ensure that EPR programs are not
concentrated in urban areas but are implemented throughout the country.

4.0 CALL TO ACTION


We commend the authors of the law and DENR for leading the drafting of the IRR in close consultation
with relevant stakeholders in the plastic value chain. The work on implementing this law now begins.

The EPR scheme is a balance of upstream and downstream solutions. Implementing this should not
only focus on reaching the recovery rates but also identify ways to reduce unnecessary plastics in the
packaging and provide alternative product delivery. We call and challenge the OEs to integrate
upstream solutions in the EPR programs that they will be submitting to the National Ecology Center
(NEC) for approval. This way, we not only stop plastic waste leakage but also close the tap and loop
them back into the value chain.

Next, the EPR law implementation should be integrative and inclusive. It should support Local
Government Units (LGUs) that have been at the forefront of solid waste management under RA 9003.
MRFs and recycling facilities have always been a challenge that we hope this EPR law can help address.
Apart from LGUs, EPR programs should include the informal waste sector who has been critical in the
recycling rate. This law can be an opportunity to provide our waste workers with decent working
conditions and insurance, which are part of their human rights. We urge that OEs take on a
human-rights-based approach in implementing this EPR law.

We need to work together to address plastic pollution, and it begins now.

13
5.0 WORLD-WIDE FUND FOR NATURE’S WORK ON PLASTIC POLLUTION
Plastic pollution is a systems problem that requires a holistic approach that addresses gaps in the entire
plastics lifecycle (from production, usage, collection, and treatment, to secondary markets).

As part of the World Wide Fund for Nature’s (WWF) No Plastic in Nature Initiative, a global initiative to
stop the flow of plastics entering nature by 2030 through the elimination of unnecessary plastics,
doubling reuse, recycling, and recovery, and ensuring that the remaining plastic is sourced responsibly,
the organization has been working with various sectors such as:

● Cities, municipalities, and communities in implementing their 10-year Solid Waste Management
Plans through identifying, piloting, and showcasing waste reduction and management
solutions that can be adopted nationally and globally;
● Policy makers in pushing the Philippines’ support to the global treaty on plastic pollution, and
the Extended Producer Responsibility (EPR) scheme in the country;
● Ports and businesses in making public commitments, setting waste reduction and
management goals, and implementing waste reduction and management solutions that can
be adopted nationally and globally; and
● The general public to raise awareness and action to address plastic pollution.

WWF-Philippines work in EPR is part of the initiative of the UN Environment Programme's (UNEP) SEA
circular project, funded by the Government of Sweden. The SEA circular project aims to:

● promote circularity of plastics through extended producer responsibility;


● form producer responsibility organizations (PRO) in the Philippines;
● address challenges and opportunities in the informal sector, recyclers, collection, and recycling
of valuable and non-valuable plastics; and
● enable policies that can support the recycling industry with locally-sourced materials.

This project is part of the EPR initiative by the SEA circular project which is implemented together with
the UN Environment Programme and The Coordinating Body on the Seas of East Asia (COBSEA). The
project is funded by the Government of Sweden.13 Further information on how WWF helps in
addressing plastics pollution can be seen in this link https://wwf.org.ph/what-we-do/plastics/.

13
https://wwf.org.ph/what-we-do/plastics/wwf-continues-its-work-on-extended-producer-responsibility-with-unep-sea-circular/

14
ANNEXES

ANNEX A: Plastic Packaging Waste Management

In addressing plastic packaging wastes and pollution, it is vital that we level off with the understanding
of the types of plastics, whether they are recyclable or not, how they affect the environment, what
makes them pollutive, and which among them is the target for management.

Categories of Plastics

Plastics are categorized using the Standard Classification of Plastics (using the resin identification code
or RIC) developed by the Society of Plastic Industries in 1998. Depending on its material and how it is
produced, plastics are categorized into seven types. It should be noted as well that each type of plastic
corresponds to a unique code which is usually mandated to be put in the plastic product in other
countries. Further, the RIC is never meant to be confused as the “recyclability” code for plastics but
rather, the type of its plastic; hence, in 2013, ASTM International updated the RIC symbol14 from the three
arrows into a triangle.

Table A-1 shows the information on the different types of plastics. Plastics also have the potential for
reuse and recycling and are not entirely disposable (or single-use); thereby, the table also provides
details on the recyclability of each plastic type.

14
https://www.plasticsnews.com/article/20130611/NEWS/130619978/say-so-long-to-recycling-code-arrows

15
Table A-1. Summary of Plastic Types, Characteristics, Sample, and Recyclability

Resin
Identification Polymer Type and Characteristics Products Recyclability Illustration
Code

Polyethylene Terephthalate (PET) Bottles and jars Can be recycled and reused as food
Used with petroleum-based polymer for water, storage (unless previously used for
and is commonly used for beverage detergent, juice, non-food). Caution must be
packaging due to its properties such and food. observed to avoid potential
as transparency, lightweight, a barrier hazardous content contamination
to gas and water, impact strength, and due to repeated use.
un-breakability, among others.

High-Density Polyethylene (HDPE) Crates and Can be easily recycled into new
Considered versatile (especially for boxes, bottles for items and is not recommended to
packaging) and has a low risk of milk, food be reused as food storage.
leaching. Has a higher density and is products,
stronger than the LDPE, and has detergents,
strong chemical resistance hence its cosmetics, food
use for storing a variety of chemicals. storage
containers,
chemicals, and
pesticides.

Polyvinyl Chloride (PVC) Clear jars and Recycling is challenging due to the
PVC is a tough material that is usually bottles for high chlorine content and other
used for pipes and other equipment. toiletries, food additives like plasticizers.
Due to its affordability, this is also used and medication
as packaging for many types of cling film. PVC
products. PVCs are formed into either pipes and other
rigid, soft flexible, or liquid. industrial use.

Low-Density Polyethylene (LDPE) Single-use Challenges in the collection and its


Lighter and more flexible than HDPE. lightweight lightweight nature make it less
Usually used for packaging or bags, bags for competitive in terms of recycling
bags/containers (e.g., plastic labo) frozen price.
because of its thin nature/film and vegetables,
even liner of other types of materials. bread, garbage
and toilet paper,
milk sachets,
and shrink and
stretch wrap.
Resin
Identification Polymer Type and Characteristics Products Recyclability Illustration
Code

Polypropylene (PP) Yogurt and Recycling is difficult and expensive.


A versatile material that is easier to margarine tubs, In many cases, it’s hard to get rid of
mold and has a high melting point ice cream the smell of the product this plastic
making it suitable for holding hot containers, contained in its first life. Usually
liquid. bottle tops, ends up being black or grey, making
closures and it unsuitable for packaging, and can
clear, microwave sometimes be recycled.
dishes,
single-use face
masks, and
metalized films
for confectionery
and sweets.

Polystyrene (PS) Yogurt cups, Can sometimes be recycled and is


Commonly used for food packaging clamshells, food challenging to do so. This depends
and protective and display packaging. trays for meat, on the locality and the presence of
It can be formed into rigid or foam fruit, and infrastructure that does so. recycled
products. PS is characterized as vegetables, and but only in small amounts because
lightweight, good as an insulator, and vending cups. it is difficult to do. Most flexible PS
resistant to heat. materials like plastic boxes, cutlery,
and coffee cups are usually
disposed of but some are recycled
and used as thermal insulation in
buildings. Most of the rigid PS like
CDs or other clear cases are also
rarely recycled while high-impact PS
like plastic cabinets are not recycled.
Resin
Identification Polymer Type and Characteristics Products Recyclability Illustration
Code

Others In packaging, it Due to its nature, ‘other’ types of


A plastic type that does not fall into the can be plastics have low market value for
six types are considered ‘others’. There multilayer recycling since their type of plastic is
are multilayered plastics or those that materials for usually unknown and cannot easily
have more than one type of plastic in long-life be recycled. The same applies to
one product or packaging. products like multilayered plastics, where
sachets for recycling is challenging since the
sauces, juices, plastic composition does not have
processed the same melting point.
meats, and other
food and
non-food
products.

Sources:

Plastics Federation of South Africa (2018). https://www.plasticsinfo.co.za/wp-content/uploads/2019/10/All-About-Plastics-May2018.pdf


WWF Philippines (2020). https://wwf.org.ph/wp-content/uploads/2020/10/Panda-Talks_Plastics.pdf

Project IWASTO https://www.facebook.com/projectiwasto/

Benyathiar, P.; Kumar, P.; Carpenter, G.; Brace, J.; Mishra, D.K. Polyethylene Terephthalate (PET) Bottle-to-Bottle Recycling for the Beverage Industry: A Review. Polymers 2022, 14, 2366.
https://doi.org/10.3390/polym14122366

London Recycles (n.d.). https://londonrecycles.co.uk/recycling-101/seven-types-of-plastic/


https://www.plasticsforchange.org/blog/which-plastic-can-be-recycled
https://www.plasticexpert.co.uk/how-is-polystyrene-recycled/
https://wwf.org.ph/wp-content/uploads/2020/10/Panda-Talks_Plastics.pdf
https://wwf.org.ph/wp-content/uploads/2020/12/WWF_REPORT_EPR_Philippines_2020.pdf
https://s3-prod.plasticsnews.com/s3fs-public/NEWS_130619978_AR_-1_0.jpg
Target Plastic Packaging under the law

The EPR scheme encourages waste reduction through the elimination of unnecessary packaging of
products and the development of more environmentally friendly packaging designs. As recommended
in the previous EPR study, the EPR scheme should be applied to all household packaging of any
material and as much as possible, service packaging and specific single-use plastic items. On the other
hand, this does not mean that other sources of waste should not be addressed but rather, giving more
focus on the household level may improve and increase the rate of recovery of plastic packaging wastes.

In addition to this, it is suggested that the types of plastic packaging to be covered in the EPR law will
be formed into categories. In this way, the monitoring and reporting on the recovery, reuse, recycling,
and reduction of the type of plastic packaging will be more structured/standardized. For reference,
Table A-2 shows the suggested categorization and the illustration of plastic packaging types.

Table A-2. Suggested Plastic Packaging Categorization

Category Coverage Sample Plastic Illustration

I Sachets, labels, laminates, and other


flexible packaging products,
whether single-layer or
multi-layered with plastics or other
materials

https://www.industrialpackaging.com/hs-fs/hubfs/Blogging_Images/flexible-packaging-materials-bofu.jpg?width=600&n
ame=flexible-packaging-materials-bofu.jpg

https://5.imimg.com/data5/SELLER/Default/2021/2/BA/WP/RQ/57468957/sun-plus-packaging-plastic-pouch-500x500.jpg

II Rigid plastic packaging (including


containers for food, beverages,
home, and personal care products,
cosmetics, and their coverings,
necessities and labels)

https://www.asdreports.com/media/PR_29631.jpg
Category Coverage Sample Plastic Illustration

https://marketresearch.biz/wp-content/uploads/2019/02/rigid-plastic-packaging-market.jpg

III Plastic bags/sheets (including SUP


bags)

https://recyclecoach.com/wp-content/uploads/2021/04/how-to-recycle-plastic-bags-600x600.png

IV Polystyrene (such as flexible PS


materials boxes, cutlery, and coffee
cups)

https://www.echotape.com/wp-content/uploads/2017/06/tapa-challenge-polystyrene-foam.jpg
Target Plastic Recovery Rate

The law only mentions plastic product footprint “recovery” and does not distinguish the difference
between reuse, recycling, and reduction. Waste recovery means the diversion of plastic waste from the
downstream waste streams. The reduction of the plastic product footprint is a good plan, but it might
be better if there is a mechanism to mandate the reduction or diversion of plastic packaging wastes not
only on the downstream portion but also the upstream. In one of our consultations with the business
sector, it was raised that it “is unclear if ‘plastic footprint’ covers plastic sales volume or if it includes all
manufactured and imported products.” In this regard, the recovery of plastic product footprint shall be
categorized into three to meet the targets further:

● Target reduction of unrecyclable and unnecessary plastic packaging. As stated previously,


the law only mentions ‘recovery’ which seems to cover downstream wastes. On the other hand,
a reduction in the use of unrecyclable and unnecessary plastic packaging could be better as it
means the diversion of plastic wastes (categories I to IV) from the upstream portion of the waste
stream which may also require the change in the use of these categories of plastics from the
supply chain of the OEs.
● Target increase in the recyclability of plastic packaging. The EPR encourages making plastics
recyclable more than those that are not. It is in the best interest to advocate for the use of
recyclable materials in the supply chain of OEs so that the generation of unrecyclable and
unnecessary plastics (usually found in the category I to IV plastics) are permanently reduced or
phased out.
● Target increase in the reuse of recyclable plastic packaging. The reuse of recyclable plastic
packaging materials should be increased in the upstream portion of the waste stream. In this
way, the use of virgin plastic materials will be reduced while increasing the reuse of recyclable
plastic materials, thereby supporting a circular economy.

The reporting on the recovery of the plastic product footprint shall be presented using these three
categories.

The target percentage and timeline for meeting these can be adopted from what was already provided
in the law but with a certain adjustment. The implementation of the recovery of plastic product
footprint shall be adjusted to the following, by category:

● December 31, 2023 - twenty percent (20%);


● December 31, 2024 - forty percent (40%);
● December 31, 2025 - fifty percent (50%);
● December 31, 2026 - sixty percent (60%);
● December 31, 2027 - seventy percent (70%); and
● December 31, 2028, and every year thereafter - eighty percent (80%).

With this adjustment, the first year after the lapse of the law shall be used as the adjustment phase of
the OEs, LGUs, recycling companies, waste management sectors, and other related stakeholders, which
shall include filling the knowledge and capacity gap of the various entities and create necessary
infrastructures in order to meet the targets in the coming years.

In terms of target recovery percentage, in other countries such as India, for example, there is a separate
target of recovery per category of plastic packaging, and per source (i.e., producer, importer, brand
owner). This is summarized in Table A-3.
Table A-3. Target Recovery/Diversion of Plastic Packaging, per Category in India

Target Percentage (%) per Year


Plastic Packaging Category
Year 4
Year 1 Year 2 Year 3
onwards

Minimum level of recycling (excluding end of life disposal)

Producer, Importer, Brand Owner:

● Category I 50 60 70 80

● Category II 30 40 50 60

● Category III 30 40 50 60

● Category IV 50 60 70 80

Mandatory use of recycled plastic content

Producer, Importer, Brand Owner:

● Category I 30 40 50 60

● Category II 10 10 20 20

● Category III 5 5 10 10

Brand owners’ minimum obligation to reuse Category I (sold annually)

A. Rigid plastic packaging with volume or weight 10 15 20 25


equal or more than 0.9 liter or kg but less than 4.9
litres or kg, as the case may be

B. Rigid plastic packaging with volume of weight 70 75 80 85


equal or more than 4.9 litres or kg

Note: Category I (rigid plastic packaging); Category II (flexible plastic packaging of single layer or multilayer (more than one layer with
different types of plastic), plastic sheets or like and covers made of plastic sheet, carry bags, plastic sachet or pouches; Category III
(multilayered plastic packaging (at least one layer of plastic and at least one layer of material other than plastic)); Category IV (plastic
sheets or like used for packaging as well as carry bags made of compostable plastics)
Source: Government of India (2022). Plastic Waste Management (Amendment) Rules, 2022.
https://egazette.nic.in/WriteReadData/2022/233568.pdf

Finally, to maintain a unified and proper reporting of compliance with this target reduction rate of
plastics, a baseline quantity of plastic packaging used and production amount should be provided as
well. Meanwhile, a standard means of measuring the baseline data and reporting should be
standardized to avoid “double-counting” or “double-crediting”, as requested by the stakeholders in one
of our consultations.

A working baseline value on the existing plastic packaging volume of the OEs is needed and shall be
reported the first time the obliged enterprise has registered to the EPR. Succeeding expansion of the
enterprise leading to an increase in the production and volume of plastic packaging shall also be
registered in the succeeding reporting year.

The calculation for the baseline value, by plastic category, shall be standardized and unified. Thereby,
the following formula shall be implemented:
𝐵𝑎𝑠𝑒𝑙𝑖𝑛𝑒 𝑉𝑎𝑙𝑢𝑒𝑋 = 𝐴 + 𝐵

Where:
X : baseline value of a category of a plastic package in metric tonnes

A : average weight of virgin plastic packaging material (category-wise) purchased


and introduced in the market in the last two financial years

B : average quantity of pre-consumer plastic packaging in the last two financial


years
ANNEX B: Fees and Financing

Table B-1. Factors in Computing EPR Fees

EPR Fee Component Description

Basic Fee These are solely based on weight and type of packaging material. Materials
with higher recyclability shall be given lower basic fees than those with low
recycling potential. For packaging that has various components, such as PET
bottles which have PP caps and PVC labels, each component shall be assessed
individually and shall be charged their corresponding basic fees.

Bonus These are reduction in fees or discounts applied for packaging that has more
recycled content and less virgin material in its formulation, uses less material
overall, has designs that further increases its viability for recycling, or has proof
of compostability.

Malus These are penalties applied for packaging that has properties that reduce its
viability for recyclability, such as being multilayered or containing additives
such as colorants in the case of PET bottles.

Eco-modulated Total Fee This corresponds to the total fee that is paid per material once all applicable
bonuses and maluses are applied to the basic fee.

Total Fee = Basic Fee × (100% - Bonus) x (100% + Malus)

Figure B-1. Sample EPR Fess for different Packaging

You might also like