EPR Policies in South Korea, Japan, and Southeast Asia

An overview of EPR requirements in South Korea, Japan, Vietnam, Philippines, Indonesia, Singapore, Malaysia, and Thailand.

Over decades, the government has managed garbage, but with little success because environmental issues require multiple parties. According to OECD, Extended Producer obligation (EPR) extends the producer’s obligation for products to the post-consumer stage of their life cycle, promoting ecological policies. EPR requires producers to consider environmental factors during product design.

Therefore, understanding the EPR policy in the target markets became an essential compliance issue for enterprises, especially for those whose business layout cover a variety of countries

South Korea

Manufacturers, importers, and dealers who utilize packaging materials in South Korea must recycle a set amount under the EPR plan. Businesses must recycle product and packaging trash. Failure to comply will result in excessive recycling fees that surpass recycling costs. Companies that make, import, and sell packaging are called “producers required to recycle packaging.”

EPR applies to paper packs, glass bottles, iron/aluminum cans, synthetic resin, film/sheet packaging materials, foamed synthetic resin buffer materials, and more, according to the MOE. To increase product and packaging recycling, MOE sets a long-term recycling target every five years and an annual recycling obligation rate. Annual Recycling Rates of Products and Packaging Materials for 2023 sets the recycling rate for each packaging material.

The obligated recycling amount  is calculated by multiplying the quantity of products/packaging materials manufactured or imported in the current year (obligation fulfillment year) by the recycling obligation rate. The computational formula is as follows:

Obligated recycling = product/packaging material quantity x recycling obligation rate

Producers must pay a share fee to Recycling Business Mutual Aid Cooperatives to fulfil recycling commitments jointly. Recycling Business Mutual Aid Cooperatives will assign waste disposal institutes to collect and recycle packaging materials 

Every January, the producer required to recycle packaging and Recycling Business Mutual Aid Cooperatives must submit a plan to KECO. After KECO approves, the relevant party can collect and recycle packaging according to plan.

Japan

The Packaging Recycling Act 5 of 1995 was the first EPR policy in Asia that was introduced in Japan.

The act requires firms that utilize glass bottles, PET bottles, other plastic packaging, and paper packaging to recycle them, as well as those that make or import them. These companies, called “designated producers,” must recycle a certain percentage of correctly sorted waste packaging.

The designated producers can recycle waste packaging themselves or hire a PRO, the Japan Containers and Packaging Recycling Association, to meet their recycling duty.

Vietnam

Vietnam implemented the EPR strategy first in Southeast Asia. EPR regulations in Vietnam took effect on January 10, 2022, with Decree No. 08/2022/ND-CP Detailing a Number of Articles of the Law on Environmental Protection.

Producers, importers, brand owners, and plastic waste processors must recycle. They could either recycle products and packages themselves or donate to the Vietnam Environment Protection Fund (VEPF). The EPR plan in Vietnam covers packages, batteries and accumulators, electric and electronic devices, tyres, lubricants, and transportation vehicles. 

EPR policy optimization is Vietnam’s goal. Vietnam’s Ministry of Natural Resources and Environment (MONRE)8 released a consultation amendment of Decree No. 08/2022/ND-CP Detailing a Number of Articles of the Law on Environmental Protection on October 20, 2023, to streamline administrative procedures and delegate power after several changes.

The Draft defines “manufacturer” and “importer” as those who recycle products and packaging. The Draft eliminates gum from food packaging and pesticides from “Detergents and preparations for domestic, agricultural and medical use” packaging since these products have their own recycling/waste management standards. Also, waste treatment exemption is updated. This draught raises the same exemption level for packaging manufacturers and importers as for recycling.

Philippines

The Philippines only recently adopted EPR policy. Philippine Environmental Management Bureau (EMB) of DENR announced the enactment of Republic Act 1189811, the Extended Producer Responsibility (EPR) Act of 2022, on August 12, 2022. This act requires producers to establish and implement EPR programmed to reduce, recover, and divert plastic waste throughout its life cycle.

In January 2023, the DENR Secretary signed the EPR IRR12, which outlines EPR implementation procedures.

Large firms must create an EPR programmed to reduce plastic waste under Republic Act 11898. Obliged Enterprises are large-scale producers (including brand owners), manufacturers, and importers who must execute the EPR programmed. OEs can authorize PROs to perform EPR actions on their behalf. Micro, medium, and small firms are urged to practice EPR but not included by the programmed.

OEs in the Philippines must implement an EPR programmed to reduce plastic waste. OEs or PROs must register their EPR programmed with the NSWMC for approval. By December 31, 2023, enterprises must fulfil the initial recovery rate target of 10%, then grow by 10% each year (i.e., 20% by 2024, 30% by 2025, etc.).

EPR-covered products:

• Rigid packaging (e.g., containers of food, beverages, detergent, other cleaning or household products, cosmetics, personal care, etc.);
• Flexible plastic packaging (e.g., sachets and labels), either single or multilayered;
• Polymer plastic bags, including single-use plastic bags used for carrying or transporting goods;
• Other plastic products used in business-to-business transactions and otherwise not intended for sale to the general public (e.g., polystyrene).

Indonesia

The Waste Reduction Roadmap, also known as Ministerial Regulation 75/2019, establishes the legal basis for the Indonesian EPR. The retail sector, the hotel and restaurant industry, and the consumer products industry are all given targets by the act. Paper, glass, aluminum (cans), and plastic packaging are among the materials that must be recycled.

Regarding businesses’ responsibilities, manufacturers of food, cosmetics, and other consumer goods have a 30% reduction in waste production by 2029, with a focus on resource recycling and reuse. It is illegal for retailers to use single-use plastic bags. The Roadmap establishes recycling and savings goals for hotels and restaurants that are similar to those of the hospitality sector. Furthermore, the legislation states that single-use polystyrene containers, plastic straws, and plastic bags would all be completely prohibited starting in 2030.  

Pre-packaged beverage manufacturers and importers in Singapore must comply with EPR. They must register their beverage items and pay the Scheme Operator to collect and recycle empty beverage containers. The Scheme Operator will collect and refund deposits and manage empty beverage containers. All packaging materials will be covered by the 2025 Beverage Container Return Scheme.

Singapore

Singapore’s EPR rules apply to E-waste and beverage containers.

Singapore introduced the first EPR framework for electrical and electronic trash (E-waste)15 in July 2021. Producers must collect and treat end-of-life items. The National Environment Agency administers the Resource Sustainability Act (RSA) 16 EPR Scheme for E-waste. ALBA E-waste Smart Recycling Pate Ltd17 will also collect designated consumer electrical and electronic waste in Singapore for producers from July 1, 2021, to June 30, 2026.

Singapore is starting EPR for packaging with the Beverage Container Return Scheme18. This programmed requires consumers to pay a small deposit for pre-packaged beverages, which is repaid when they return them at authorized locations. The programmed encourages clean, high-quality recyclables to reduce waste and increase resource use.

Pre-packaged beverage manufacturers and importers in Singapore must comply with EPR. They must register their beverage items and pay the Scheme Operator to collect and recycle empty beverage containers. The Scheme Operator will collect and refund deposits and manage empty beverage containers. All packaging materials will be covered by the 2025 Beverage Container Return Scheme.

Malaysia

The Malaysia EPR framework is being developed and will be released soon. The Malaysia Plastics Sustainability Roadmap 2021-203019 underpins EPR. Malaysia’s EPR framework includes the target, stakeholder duties, eco-modulated charge structure, product improvement system, and other important factors. Under the plan, plastics EPR is voluntary till 2025 and mandatory in 2026.

Thailand

Thailand’s EPR regulation is also in the consultation stage. The draft Sustainable Packaging Management Act B.E. 20 states that the first government plan to promote sustainable packaging management will include at least five types of packaging: glass, metal, paper, plastic, and composite materials for food, beverages, cosmetics, and transport. The 2026 EPR standard will encompass all packaging materials.