Extended Producer Responsibility (EPR) for Plastics and Packaging
Given the cross-boundary and multifaceted nature of marine plastics, tackling the issue requires commitment and involvement of governmental authorities from various lines of relevant areas, from local to international level. The roles and responsibilities of specific authorities are different in any given country and region, and so are the regulations, initiatives, and measures taken to address the issues.
The legal basis for waste management in the Philippines is institutionalized in the Republic Act No. 9003 (R.A. 9003), referred to as the Ecological Solid Waste Management Act of 2000. The national law governs the implementation of a systematic, comprehensive, and ecological solid waste management plan down to the district or barangay level1. R.A. 9003 lays the groundwork for the introduction of an Extended Producer Responsibility (EPR) policy by establishing a supportive enabling environment.
In response to increasing concerns over the marine plastic debris issue in the country, the Department of Environment and Natural Resources (DENR) launched the National Plan of Action on Marine Litter (NPOA-ML) in 2021. The Action plan lays out a set of strategies to achieve a “Zero Waste to Philippine Waters by 2040”, with the development and implementation of an EPR system identified as one of these crucial strategies.
Against this backdrop, the Government of the Philippines amended R.A. 9003 by providing further guidelines on adopting a mandatory EPR system through the enactment of the Republic Act No. 11898 or the EPR Act of 2022.
Table 1. Summary of policies, plans, and regulations regarding EPR for packaging in the Philippines.
National Plan of Action on Marine Litter (NPOA-ML)
May 2021
In effect
Republic Act No. 11898, “Extended Producer Responsibility Act of 2022”
23 July 2022
In effect
Obligated Producers
Producers with the obligation to comply with the Act include the following categories.
Large Enterprises
This category encompasses producers whose total assets exceed that of medium enterprises stated under Republic Act No. 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs) (₱100 million). It includes brand owners who sell any commodity under a brand, product manufacturers that either directly or indirectly produce products under their brands, and importers of consumer goods intended to be sold, whether in original packaging or to be repackaged for distribution, to the general public.
Micro, Small and Medium Enterprises (MSMEs)
Some MSMEs are also obliged to implement EPR when the total value of assets of all enterprises carrying the same brand exceeds that of medium enterprises (₱100 million).
Other
Other persons and entities, as may be determined by the DENR Secretary.
Packaging Items Covered
The EPR Act 2022 regulates the mandate for obliged enterprises to manage plastic packaging waste specified below:
Flexible plastic packaging products
Including sachets, labels, laminates, and other flexible plastic packaging products, whether single layer or multi-layered,
Rigid plastic packaging products
Whether layered with any other materials, and their coverings, caps, or lids as well as their promotional materials,
Plastic bags
Including single-use ones, provided or utilized at the point of sale, and
Polystyrene
Mechanism of Implementation
Under the Act, Obliged Enterprises (OEs) are required to prepare and register an EPR Program with the National Solid Waste Management Commission (NSWMC). The program components include specific types of materials used, volume or weight of plastic packaging introduced into the market and their respective targets for recovery, reuse, and recycling. Implementation of the EPR Program may be conducted individually or collectively, with or without a Producer Responsibility Organisation (PRO).
The table below outlines the activities and strategies that may be encompassed within the EPR Program.
Table 2. Activities and strategies included in an Obliged Enterprise's EPR Program.
Component
Activities and Strategies
Reduction of non-environment friendly products (upstream measures)
Adoption of reusable products or redesign of products to improve their reusability, recyclability, or retrievability.
Inclusion of recycled content or materials in a product.
Adoption of appropriate product refilling systems for retailers.
Buy-back, offsetting, or any strategy to increase resource recovery.
Diversion of recovered waste into value chains through recycling and other methods.
Transportation of recovered waste to the appropriate composting, recycling, or other diversion or disposal site in the country.
Establishment of commercial or industrial scale waste diversion facilities.
Partnership with local government units (LGUs), communities, and the informal waste sectors.
Beyond the defined set of activities, the OE's EPR Program should also entail a plan for expanding its coverage to encompass as much of the country as possible. This initiative is known as the Geographic Implementation Program or Roll-out plan.
Enterprises with a complete EPR programme submission are then ordered to pay the EPR Registration Fees and Annual Compliance Monitoring Fees, which will be accumulated into the EPR Special Fund, and start implementation. Based on ongoing analysis of data from the Philippine Statistics Authority, there are 2,130 enterprises that are considered plastic-producing industries that would be covered by the EPR Act. This number will further be evaluated based on analysis of assets data from the Security and Exchange Commission. As of May 2024, 917 EPR Programs have been submitted by OEs, collectives, and PROs.
In the year following the implementation period, obliged enterprises need to submit an audited report on their compliance performance with the Act, referred to as the EPR Compliance Audit Report (ECAR). This report must be certified by an independent third-party auditor before being submitted by July 15th every year, starting from 2024.
Implementation Timeline
Table 3. Implementation timeline of the Philippines’s EPR scheme.
Year
Date
Stakeholder
Action
Previous year
(Y-1)
January
Producers
Establish or phase in EPR Programs for plastic packaging
December
Producers
Need to meet recovery target of plastic product footprint generated during the preceding year
Current year
(Y)
January
Producers
Be ready for compliance audit
July
Producers
Submit EPR Compliance Audit Report (ECAR)
Targets
The targeted recovery rate (relative to the OE's plastic product footprint from the previous year) at the end of each implementation year is, as follows:
2023
2024
2025
2026
2027
2028 and every year after
20%
40%
50%
60%
70%
80%
Incentives and Penalties
The Government of the Philippines provides incentives for companies to comply with the Act in the forms of:
rewards and recognitions, in the form of monetary, which will be sourced from the EPR Special funds, or otherwise;
an incentive scheme to develop effective solid waste management, including recovery and diversion;
tax incentives;
EPR expenses are deductible from annual gross income; and
tax and duty exemption of donations, legacies, and gift.
In the event of a failure to register an EPR Program or meet the plastic recovery rate targets, the DENR has the authority to impose fines on obliged enterprises. These collected fines will be deposited into the EPR Special Fund. The specified amounts for these fines are outlined in the table below.
Table 4. List of penalties imposed on producers who fail to comply with the Philippines’s EPR scheme for packaging.
Offense
Penalty
Failure to register an EPR Program or meet the plastic recovery rate targets
1st offense
₱ 5-10 million of fine
2nd offense
₱ 10-15 million of fine
3rd offense
₱ 15-20 million of fine and automatic suspension of business permit.
Falling short of meeting recovery rate targets
Pay either the fines specified above or a penalty twice the cost of recovery and diversion of the plastic footprint required for compliance, whichever amount is higher.
Roles and Responsibilities
Table 5. Roles and responsibilities under the Philippines’s EPR scheme for packaging.
Responsibility
Upstream
Downstream
Product Design
Collection
Recycling
Physical responsibility
Producers
Producers
Producers, recycling entities, PRO
Financial responsibility
Producers
Producers
Producers
*This is based on the regulation, not on the current waste management system in the Philippines.
The legal basis for waste management in the Philippines is institutionalized in the Republic Act No. 9003 (R.A. 9003), referred to as the Ecological Solid Waste Management Act of 2000. The national law governs the implementation of a systematic, comprehensive, and ecological solid waste management plan down to the district or barangay level1. R.A. 9003 lays the groundwork for the introduction of an Extended Producer Responsibility (EPR) policy by establishing a supportive enabling environment.
In response to increasing concerns over the marine plastic debris issue in the country, the Department of Environment and Natural Resources (DENR) launched the National Plan of Action on Marine Litter (NPOA-ML) in 2021. The Action plan lays out a set of strategies to achieve a “Zero Waste to Philippine Waters by 2040”, with the development and implementation of an EPR system identified as one of these crucial strategies.
Against this backdrop, the Government of the Philippines amended R.A. 9003 by providing further guidelines on adopting a mandatory EPR system through the enactment of the Republic Act No. 11898 or the EPR Act of 2022.
Table 1. Summary of policies, plans, and regulations regarding EPR for packaging in the Philippines.
National Plan of Action on Marine Litter (NPOA-ML)
May 2021
In effect
Republic Act No. 11898, “Extended Producer Responsibility Act of 2022”
23 July 2022
In effect
Obligated Producers
Producers with the obligation to comply with the Act include the following categories.
Large Enterprises
This category encompasses producers whose total assets exceed that of medium enterprises stated under Republic Act No. 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs) (₱100 million). It includes brand owners who sell any commodity under a brand, product manufacturers that either directly or indirectly produce products under their brands, and importers of consumer goods intended to be sold, whether in original packaging or to be repackaged for distribution, to the general public.
Micro, Small and Medium Enterprises (MSMEs)
Some MSMEs are also obliged to implement EPR when the total value of assets of all enterprises carrying the same brand exceeds that of medium enterprises (₱100 million).
Other
Other persons and entities, as may be determined by the DENR Secretary.
Packaging Items Covered
The EPR Act 2022 regulates the mandate for obliged enterprises to manage plastic packaging waste specified below:
Flexible plastic packaging products
Including sachets, labels, laminates, and other flexible plastic packaging products, whether single layer or multi-layered,
Rigid plastic packaging products
Whether layered with any other materials, and their coverings, caps, or lids as well as their promotional materials,
Plastic bags
Including single-use ones, provided or utilized at the point of sale, and
Polystyrene
Mechanism of Implementation
Under the Act, Obliged Enterprises (OEs) are required to prepare and register an EPR Program with the National Solid Waste Management Commission (NSWMC). The program components include specific types of materials used, volume or weight of plastic packaging introduced into the market and their respective targets for recovery, reuse, and recycling. Implementation of the EPR Program may be conducted individually or collectively, with or without a Producer Responsibility Organisation (PRO).
The table below outlines the activities and strategies that may be encompassed within the EPR Program.
Table 2. Activities and strategies included in an Obliged Enterprise's EPR Program.
Component
Activities and Strategies
Reduction of non-environment friendly products (upstream measures)
Adoption of reusable products or redesign of products to improve their reusability, recyclability, or retrievability.
Inclusion of recycled content or materials in a product.
Adoption of appropriate product refilling systems for retailers.
Buy-back, offsetting, or any strategy to increase resource recovery.
Diversion of recovered waste into value chains through recycling and other methods.
Transportation of recovered waste to the appropriate composting, recycling, or other diversion or disposal site in the country.
Establishment of commercial or industrial scale waste diversion facilities.
Partnership with local government units (LGUs), communities, and the informal waste sectors.
Beyond the defined set of activities, the OE's EPR Program should also entail a plan for expanding its coverage to encompass as much of the country as possible. This initiative is known as the Geographic Implementation Program or Roll-out plan.
Enterprises with a complete EPR programme submission are then ordered to pay the EPR Registration Fees and Annual Compliance Monitoring Fees, which will be accumulated into the EPR Special Fund, and start implementation. Based on ongoing analysis of data from the Philippine Statistics Authority, there are 2,130 enterprises that are considered plastic-producing industries that would be covered by the EPR Act. This number will further be evaluated based on analysis of assets data from the Security and Exchange Commission. As of May 2024, 917 EPR Programs have been submitted by OEs, collectives, and PROs.
In the year following the implementation period, obliged enterprises need to submit an audited report on their compliance performance with the Act, referred to as the EPR Compliance Audit Report (ECAR). This report must be certified by an independent third-party auditor before being submitted by July 15th every year, starting from 2024.
Implementation Timeline
Table 3. Implementation timeline of the Philippines’s EPR scheme.
Year
Date
Stakeholder
Action
Previous year
(Y-1)
January
Producers
Establish or phase in EPR Programs for plastic packaging
December
Producers
Need to meet recovery target of plastic product footprint generated during the preceding year
Current year
(Y)
January
Producers
Be ready for compliance audit
July
Producers
Submit EPR Compliance Audit Report (ECAR)
Targets
The targeted recovery rate (relative to the OE's plastic product footprint from the previous year) at the end of each implementation year is, as follows:
2023
2024
2025
2026
2027
2028 and every year after
20%
40%
50%
60%
70%
80%
Incentives and Penalties
The Government of the Philippines provides incentives for companies to comply with the Act in the forms of:
rewards and recognitions, in the form of monetary, which will be sourced from the EPR Special funds, or otherwise;
an incentive scheme to develop effective solid waste management, including recovery and diversion;
tax incentives;
EPR expenses are deductible from annual gross income; and
tax and duty exemption of donations, legacies, and gift.
In the event of a failure to register an EPR Program or meet the plastic recovery rate targets, the DENR has the authority to impose fines on obliged enterprises. These collected fines will be deposited into the EPR Special Fund. The specified amounts for these fines are outlined in the table below.
Table 4. List of penalties imposed on producers who fail to comply with the Philippines’s EPR scheme for packaging.
Offense
Penalty
Failure to register an EPR Program or meet the plastic recovery rate targets
1st offense
₱ 5-10 million of fine
2nd offense
₱ 10-15 million of fine
3rd offense
₱ 15-20 million of fine and automatic suspension of business permit.
Falling short of meeting recovery rate targets
Pay either the fines specified above or a penalty twice the cost of recovery and diversion of the plastic footprint required for compliance, whichever amount is higher.
Roles and Responsibilities
Table 5. Roles and responsibilities under the Philippines’s EPR scheme for packaging.
Responsibility
Upstream
Downstream
Product Design
Collection
Recycling
Physical responsibility
Producers
Producers
Producers, recycling entities, PRO
Financial responsibility
Producers
Producers
Producers
*This is based on the regulation, not on the current waste management system in the Philippines.
Updated as of 10 January 2025.
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