In a new column, Viwat Supatham* discusses the latest developments in the ASEAN glass industry. Here, he speaks on a recent Extended Producer Responsibility (EPR) system in Thailand and its impact on glass manufacturers there.
Extended Producer Responsibility (EPR) is an environmental policy approach in which the producer’s responsibility for a product and/or packaging is extended to the post-consumer phase of the product’s life cycle.
An EPR policy is characterised by shifting responsibility for a product and/or packaging to the producer and away from local authorities and municipalities.
It also aims to incentivise producers to take environmental aspects into account when designing their products.
The concept of EPR was first used in Germany’s packaging industry in the late 1980s and has been continuously developed and adapted ever since.
The basic principles of an EPR system are consistent across countries.
Every producer pays a fee upon introducing packaged goods to the market, proportional to the packaging volume and material.
This fee covers collection, sorting and recycling.
Managing an EPR system
An EPR system can succeed if all stakeholders fulfill their tasks, from producers to consumers and recyclers.
To assure and co-ordinate the interaction between the different stakeholders, the system operator (PRO) comes into play.
The PRO is the ‘System Operator’ and the key actor in EPR system.
The PRO is responsible for setting up, developing and maintaining the system.
The PRO organises the take-back of packaging waste for the obligated stakeholders (collection, sorting and recycling).
Producers are responsible for collecting, sorting and recycling. This is usually done collectively by a Producer Responsibility Organization (PRO).
The framework conditions and objectives of an EPR system are determined by the policies of a respective country (e.g. collection and recycling rate).
Since the first introduction of an EPR system in Germany in 1991, almost all countries in Europe as well as countries such as Australia, Canada and South Korea have introduced an EPR system for packaging.
In all those countries, packaged goods can only be placed on the market if the producer or importer pays for the subsequent collection and disposal of their packaging waste.
European and OECD countries generally have extensive EPR experience.
Likewise, low- and middle-income countries are starting to introduce or draft regulations in this area.
In addition to an EPR system for packaging, it has also been introduced in some countries for electronic waste, textile waste, and car tyres.
Most countries start by introducing an EPR system for packaging as these are large and growing material streams with high potential of recycling.
EPR Scheme in Thailand:
opportunity and challenge
The Office of the Council of State has been informed of the Pollution Control Department’s plan to propose the draft EPR Act. Preparation will be made to review the draft once the Cabinet approves its principles.
The Thailand Institute of Packaging and Recycling Management for Sustainable Environment (TIPMSE) was authorised by the Federation of Thai Industry (FTI) to collaborate with the government, to promote and develop the application of the EPR scheme for comprehensive packaging management.
This initiative aims to maximise benefits, enable packaging reuse and reduce packaging waste in the future.
Additionally, TIPEMSE serves as a mediator to enhance understanding, provide assistance and gather feedback from FTI members.
During 2023-2024, with several activities and lessons learned from those experienced countries, TIPMSE will conduct the gap analysis to understand the extent for practical application of an EPR system in Thailand.
A PRO structure development and EPR fee guideline will be developed and proposed.
The EPR system in Thailand will focus on glass, aluminium, paper and plastic.
Thailand has set a target to collect and recycle up to 86% of glass packaging (glass bottles) by 2027 from 76% of the base year in 2022.
2.6 million tons of glass will be reused and recycled from this EPR.
Depending on the final EPR fee of glass material/ton, an estimated 2-4 billion Thai Baht will be cash collected by the system operator (PRO).
(The annual capacity of Thailand’s glass bottle production was around 3 million tons in 2024.)
Four majors scheme for Thailand’s EPR that were proposed are:
1) Modulate the EPR fee and incentivise an eco-design.
2) Labelling and communication with end consumers to drive behaviour change.
3) Producers pay for waste management payment fees and an obligation to meet recycling target for collecting, reuse and recycle.
4) Monitoring and enforcement of compliance.
EPR fees must be paid by ‘Producers’ which are: manufacturers of packaged goods, importers of packaged goods, manufacturers of service packaging, or importers of service packaging.
While the EPR fee will cover the costs of collection, sorting, recycling, part of the PRO’s administrative cost, and communication to consumers.
EPR Milestone (2024-2027)
Seven plans are subject to be implemented from 2024 to 2027. These are:
1) Voluntary PRO (by TIPMSE and FTI).
2) Infrastructure (by Department of Pollution Control - DPC).
3) EPR Recommendation (by DPC and FTI).
4) Data Management (by DPC, TIPMSE, and FTI).
5) Incentives (by DPC, TIPMSE, and FTI).
6) Communications
7) Legislations (by DPC)
Summary
The EPR system in Thailand is fully driven by the Thai Government and expects to achieve a target of implementation of EPR legislation by 2027.
Several stakeholders, especially glass bottle manufacturers and cullet recyclers/treatment plants, involved in this packaging act will need to prepare for such an impact on their business. Recommendations are as follows:
1) Closely monitor this new legislation.
2) Prepare to follow the packaging law when implemented.
3) Collection of information of their packaging used.
4) Choose the eco-design and innovation packaging.
5) Communicate with clients.
**Former Glass Operation Head,
Siam Glass Industry, Thailand
