Overview of the Philippines’ EPR Law
In August 12, 2022, the Extended Producer Responsibility Act (EPRA) of 2022, also known as RA 11898: An Act Institutionalizing the Extended Producer Responsibility on Plastic Packaging Waste, Amending for This Purpose Republic Act No. 9003, Otherwise Known as the “Ecological Solid Waste Management Act Of 2000,” took effect and required individual or collective obliged enterprises with or without a Producer Responsibility Organization (PRO) to establish and submit to the National Solid Waste Management Commission (NSWMC) their EPR programs for the reduction, recovery, reuse, recycling, treatment, and/or proper disposal of plastic packing waste that they generate and release to the domestic market and general public.1,2 Obliged enterprises are large product producers whose total assets, including loans but exclusive of the land where their office, plants, and equipment are located, exceed 100,000,000 Philippine pesos (PHP).3 Even though Micro, Small and Medium Enterprises (MSMEs) are not covered by this law, they are highly encouraged to voluntarily implement and practice EPR programs.1,2
The EPR Law covers the following types of plastics1,2, as directly quoted from the Law:
- Sachets, labels, laminates and other flexible plastic packaging products, whether single layer or multi-layered with plastics or other materials;
- Rigid plastic packaging products, whether layered with any other materials, which include containers for beverages, food, home, personal care and cosmetic products, including their coverings, caps, or lids and other necessities or promotional items, such as cutlery, plates, drinking straws, or sticks, tarps, signage, or labels;
- Plastic bags, which include single-use plastic bags, for carrying or transporting of goods, and provided or utilized at the point of sale; and
- Polystyrene
As stated by the EPR Law, the following programs may be included in the obliged enterprises’ EPR activities and strategies1,2:
Reduction of non-environment friendly products:
- Adoption of reusable products, or redesign of the products to improve its reusability, recyclability, or retrievability
- Inclusion of recycled content or recycled materials in a product
- Adoption of appropriate product refilling systems for retailers
- Viable reduction rates plan
- Information and education campaign schemes
- Appropriate labeling of products, including the information thereon for the proper disposal of the waste product
Product waste recovery programs aimed at effectively preventing waste from leaking to the environment:
- Waste recovery schemes through redemption, buy-back, offsetting, or any method or strategy that will efficiently result in the high retrievability, high recyclability, and resource recovery of waste products
- Diversion of recovered waste into value chains and value-adding useful products through recycling and other sustainable methods
- Transportation of recovered waste to the appropriate composting, recycling, or other diversion or disposal site in the country
- Clean-up of waste leaked to coastal areas, public roads, and other sites
- Establishment of commercial or industrial scale recycling, composting, thermal treatment, and other waste diversion or disposal facilities for waste products, when investment therein is viable
- Partnership with LGUs, communities, and the informal waste sectors
Targets for the recovery of plastic product footprint generated are also stated in the EPR Law1,2:
Schedule | Recovery Target |
---|---|
By December 31, 2023 | 20% |
By December 31, 2024 | 40% |
By December 31, 2025 | 50% |
By December 31, 2026 | 60% |
By December 31, 2027 | 70% |
By December 31, 2028 and every year after | 80% |
What are Plastic Credits?
As mentioned above, one of the EPR strategies mentioned in the EPR Law is the establishment of waste recovery schemes through methods such as offsetting. This is where plastic credits come into play in the management of plastic wastes of obliged enterprises in the Philippines. Plastic credits are transferrable units that represent a unit of weight of plastic waste that has been collected and/or processed through projects, where specific definitions of scope are dependent on the verification standards used.4
These plastic credits are offered by various organizations worldwide, and PCX Markets is one of them. Plastic credits help in the management of plastic waste by funding and investing in plastic reduction, recycling, and recovery projects, educational campaigns, and infrastructures4.
What is PCX Markets and what do they do?
PCX Markets is a fully transparent plastic credit marketplace for audited and traceable plastic waste recovery and processing worldwide.5 Originally started off as the Plastic Credit Exchange, a non-profit organization in the Philippines, the Plastic Credit Exchange was split into the following6:
- PCX Markets: A for-profit organization that is in charge of the verified plastic credits marketplace for the global circular economy
- PCX Solutions: A non-profit organization that develops the Plastic Pollution Reduction Standard (PPRS)
- “Aling Tindera,” a 100% women microentrepreneur waste-to-cash network, is now owned by HOPE, a non-profit organization.
PCX Markets offer a variety of services to aid companies in their plastic neutrality journey, such as the following5:
Services | Summary of service |
---|---|
Plastic footprinting: | PCX Markets helps companies calculate their plastic footprint and connect them to third-party auditors that serve as verification/validation (VVB) bodies. |
Benchmarking: | PCX Markets helps companies know how their plastic-related strategies compare to other organizations and identify companies’ plastic-related goals. |
EPR Compliance: | PCX Markets offers services on how to comply with the EPR Laws relevant to the companies’ area/s of operations and to file submissions and requirements to relevant regulatory bodies. |
Public Registry: | PCX Markets has an online public registry on their website which includes information on all its credit sales, credit serial numbers, supporting documentation, and auditor verifications for each plastic credit purchase entry.7 |
Project Marketplace: | PCX Markets has a list of plastic reduction, recovery, and other related projects on their website from around the globe and credits that will be issued from these projects are audited and verified.8 |
Plastic Cleanup Partner Program: | PCX Markets launched this program to provide an avenue for companies to clean up plastic waste. The Plastic Partner label will be awarded to companies that made a significant and measurable impact on plastic waste reduction and recovery.9 |
How are plastic credits issued?
The diagram below summarizes the steps taken by PCX Markets to register, verify, and sell plastic credits10:
PCX Markets defines one plastic credit as represented by one metric ton of plastic that has been collected and recycled, upcycled, or co-processed (a form of waste-to-energy recovery), and cannot leak back into nature10.
What is PCX Solutions and what do they do?
As discussed briefly above, PCX Solutions manages the PPRS, and conducts public consultations and stakeholder engagements to receive feedback and comments for the standard.11 Following the most recent public consultation period (March 28-April 30, 2024), a new version (v8) of the PPRS was released by PCX Solutions on June 5, 2024.12
PCX Solutions also has requirements to approve Validation and Verification Body (VVB) applicants who would want to use the PPRS, as summarized below.13
- ISO 14065:2020
- Experience in environmental and social auditing
- Experience in waste management systems
- Confidentiality and protection of information
- Legal status of the VVB entity
For transparency, PCX Solutions also has a PPRS registry which contains project information for PPRS Registered Projects and information on issued and retired PPRS Plastic Credits.
Other plastic credit platforms
There are also other platforms that offer plastic credits and related services, such as14:
- rePurpose Global (based in the United States)
https://repurpose.global/ - Empower (based in Norway)
https://www.empower.eco/ - TONTOTON (based in Vietnam)
https://tontoton.com/
Overall, plastic credits have the potential to play a significant role in addressing plastic waste challenges and promoting sustainable practices across various industries. However, the success of plastic credits will depend on effective implementation, regulatory support, and ongoing commitment from stakeholders, organizations, and the regulatory bodies worldwide.
References
- Environmental Management Bureau. Extended Producer Responsibility Law Frequently Asked Questions. Environmental Management Bureau https://emb.gov.ph/wp-content/uploads/2023/04/EPR-Frequently-Asked-Questions.pdf (2023)
- Congress of the Philippines. RA 11898: An Act Institutionalizing the Extended Producer Responsibility on Plastic Packaging Waste, Amending for This Purpose Republic Act No. 9003, Otherwise Known as the “Ecological Solid Waste Management Act Of 2000”. https://legacy.senate.gov.ph/republic_acts/ra%2011898.pdf (2021)
- Congress of the Philippines. RA 9501: An Act to Promote Entrepreneurship by Strengthening Development and Assistance Programs to Micro, Small and Medium Scale Enterprises, Amending for The Purpose Republic Act No. 6977, As Amended, Otherwise Known as the “Magna Carta for Small Enterprises” And for Other Purposes. https://issuances-library.senate.gov.ph/sites/default/files/2023-02/ra%25209501.pdf (2007)
- PCX Markets. PCX Markets: Glossary. https://www.pcxmarkets.com/learn#glossary
- PCX Markets Website. https://www.pcxmarkets.com
- PCX Solutions Website. https://www.pcxsolutions.org
- PCX Markets. PCX Markets: Public Registry. https://portal.pcxmarkets.com/registry
- PCX Markets. PCX Markets: Marketplace. https://marketplace.pcxmarkets.com/collections/plastic-credits
- PCX Markets. PCX Markets: The Plastic Cleanup Partner Program. https://www.pcxmarkets.com/plastic-cleanup-partner-program
- PCX Markets. PCX Markets: FAQ. https://www.pcxmarkets.com/learn#faq
- PCX Solutions. PCX Solutions: Public Consultation. https://www.pcxsolutions.org/consultations
- PCX Solutions. PPRS Version and History & Abbreviations. https://www.pcxsolutions.org/pprs-version-and-history-abbreviations
- PCX Solutions. PCX Solutions: Verification & Validation. https://www.pcxsolutions.org/vvb
- Bahraini, A. 5 Platforms That Offer Plastic Credit Programs for Your Business. waste4change https://waste4change.com/blog/5-platforms-that-offer-plastic-credit-programs-for-your-business/ (2022)