Packaging used to be the domain of branding and logistics. Now it is one of the biggest variables shaping compliance costs, emissions reporting, and supply chain strategy. With Extended Producer Responsibility (EPR) in the UK and the EU’s Packaging and Packaging Waste Regulation (PPWR) coming into force, the stakes for packaging decisions are much higher. These frameworks do not just change how brands report; they change what brands need to prioritise.
In a recent virtual session, experts from Zevero and Ecosurety broke down what these regulations mean for packaging and climate strategy. If you’re navigating compliance, carbon goals, or both, here’s what you need to know.
EPR and PPWR are raising the stakes for packaging
Extended Producer Responsibility (EPR)
The EPR framework in the UK marks a major departure from previous packaging regulations. Responsibility is no longer shared across the supply chain. It now sits with a single “obligated producer,” typically the brand owner or importer. Instead of covering just recycling, EPR fees now fund the full cost of waste management, including collection from households.
Crucially, these fees are modulated based on recyclability. Materials rated as “red” under the UK’s Recyclability Assessment Methodology (RAM) will be significantly more expensive than recyclable alternatives. The fee multipliers will increase over time:
- 1.2x base fee in 2026
- 1.6x in 2027
- 2x in 2028
The first wave of these fees will be due in October 2025, covering packaging placed on the market in 2024. That means the packaging you’re using right now could already be locked into higher compliance costs, even if you’re not yet feeling the impact.
The Packaging and Packaging Waste Directive (PPWR)
Meanwhile, the EU's PPWR introduces even more sweeping requirements. Beyond recyclability, it includes:
- Volume efficiency rules that penalise excessive empty space
- Material restrictions for certain single-use formats, such as hotel sachets and dine-in packaging
- Minimum recycled content thresholds that can only be met using post-consumer recycled (PCR) material
- Reusability mandates for formats like transport packaging and foodservice containers
Together, these changes shift packaging from a supply chain detail to a core sustainability concern.
Not all packaging is treated the same
While these regulations are comprehensive, not all packaging is treated equally. In the UK, EPR’s waste management fees apply only to household packaging. This typically includes primary packaging that ends up in consumers’ bins. Packaging used exclusively in B2B contexts may be exempt, but proving this requires a high standard of evidence.
Reusable packaging is also incentivised. Producers only pay the waste fee once, no matter how many times the item is reused. Similarly, containers covered under the UK’s upcoming Deposit Return Scheme (DRS) do not incur EPR waste management fees, as they are handled through a separate compliance system. For companies selling into both the UK and EU, understanding these distinctions is essential to avoid underreporting or incurring avoidable penalties.
Packaging compliance data can power your climate strategy
What makes these packaging rules especially significant is how closely they intersect with carbon reporting. Most packaging-related emissions fall under Scope 3. These include emissions from purchased goods and services, transportation, and end-of-life treatment. The same data collected for EPR and PPWR compliance—such as material types, weights, sources, and recyclability—is also essential for emissions calculations.
This means data gathered for compliance can serve double duty. It can support climate reporting across frameworks like the Greenhouse Gas Protocol, B Corp, CDP, CSRD, and ISSB. By aligning internal systems early, companies can reduce duplication, avoid reporting fatigue, and unlock new insights into their environmental performance.
Aligning procurement, sustainability, and packaging decisions
One of the biggest hurdles brands face is not the regulation itself, but internal misalignment. Procurement teams optimise for cost. Sustainability teams focus on environmental outcomes. Marketing may influence design decisions that impact recyclability. Often, no one is tracking how these choices interact (or conflict).
Cross-functional collaboration is key in successfully navigating the evolving landscape. This means bringing procurement, operations, sustainability, and even marketing into a shared roadmap. Teams should align on overall targets while tailoring KPIs to each function. For example:
- Procurement might focus on shifting to materials with lower compliance costs or higher recycled content
- Operations could target reductions in packaging weight or energy used in production
- Marketing should be aware of finishes or design elements that can compromise recyclability
When these teams work in silos, trade-offs are missed. When they work together, businesses can move faster and more effectively.
Not all packaging trade-offs are obvious
Effective packaging decisions today require evaluating changes through multiple lenses: compliance, emissions, and cost. Switching from plastic to glass might improve brand perception and recyclability, but it can also increase transport emissions. A material with low emissions might still be classified as non-recyclable under RAM, which leads to higher fees. And a new design could meet your climate goals but make the packaging ineligible for sale under PPWR.
Scenario modelling helps companies navigate these complexities. By using real data to test how changes affect emissions, recyclability, and compliance costs, teams can make smarter, more informed decisions.
A real-world example: Why one brand switched to aluminum
One Zevero customer moved from glass bottles to 100% recycled aluminium cans, resulting in a 50% reduction in carbon footprint and 80% lower EPR costs. This decision worked because the team approached it holistically. They looked beyond a single goal and built a strategy that aligned compliance, emissions reduction, and product design. Not every product can make the same switch, but this shows what is possible when the right teams and data are brought together early.
Five steps to build a smarter packaging and climate strategy
If packaging is not yet part of your sustainability roadmap, now is the time to act. Start by:
- Auditing your packaging portfolio to understand formats, materials, and weight
- Talking to your suppliers about recyclability and recycled content readiness
- Centralising data so you can connect packaging, emissions, and compliance
- Modelling trade-offs to assess the impact of changes across key metrics
- Setting up cross-functional collaboration with shared targets and tailored KPIs
The earlier you begin, the easier it becomes to manage future obligations and unlock business value from your strategy.
The bottom line
Regulations like EPR and PPWR are changing the rules. But more than that, they are changing how companies need to think about packaging: as a climate issue, a financial risk, and a strategic opportunity.
Those who delay may find themselves stuck with rising costs and misaligned systems. Those who invest in data, alignment, and forward planning will be in a stronger position to reduce emissions, meet compliance requirements, and respond with confidence to a more circular, low-carbon economy.
Want to align your packaging and climate strategy before the next deadline?
Zevero helps companies turn compliance data into action. Talk to our team.
