The Next 30 Years of U.S. EPR: Six Lessons From Across the Pond

What will U.S. Extended Producer Responsibility (EPR) look like in 2055? With seven states in various phases of implementing EPR programs, we can’t pull out a crystal ball and see what our future will look like — but at SPC Advance, we got close: U.S. producers heard lessons from 30 years of European and UK producer responsibility. 

Thanks to Ecosurety’s Robbie Staniforth and James Piper, U.S. producers now have six lessons on how producers can build EPR strategies that support their companies and consumers alike, improve sustainable packaging systems, and ultimately, keep valuable materials in circulation. 

For SPC members, these insights reveal how EPR will reshape our near-term sourcing, design, and recovery strategies while transforming the long-term trajectory of the U.S. packaging economy. Let’s explore the six lessons from producer responsibility abroad that can inform our path forward here in the U.S.

Lesson 1: Modulated Fees Will Drive Design Changes

Eco-modulation is the lever within EPR programs that rewards sustainable packaging with lower fees, and penalizes less sustainable packaging with higher fees. In the UK, they have a “traffic-light” model for eco-modulation, one where materials can move from red, to yellow, to green depending on their sustainability or recyclability. What’s notable about this model is that producers of materials in the “red” zone don’t face static fees — their fees get higher each year. 

“If your packaging was deemed as very difficult to recycle, the multiplier could double by year three,” Staniforth said. This “escalator” was one of the better features of the UK’s system, Staniforth said. It enabled companies to take stock in their packaging, see what the fees would be not just next year, but several years ahead, and it allowed them to make R&D investments or material switches to reduce their fees. 

The lesson for U.S. producers: Producers who plan ahead — reviewing the eco-modulation schemes for states as they’re released, familiarizing themselves with state targets around PCR mandates, and adopting sustainable material swaps — can stay ahead. As SPC Director Olga Kachook said, “How can we think of EPR not as a burden, but as an innovation catalyst? … What if we dropped the stick (fees), and thought of EPR as an innovation carrot?”

Lesson 2: EPR Doesn’t Operate in Isolation

In the UK, EPR didn’t arrive alone. It exists as part of a four-part policy suite that included the Plastic Packaging Tax, a nationwide Deposit Return Scheme (DRS), and standardized curbside collections called “Simpler Recycling.” The intersection of these policies creates a holistic framework to support a more circular materials system.

By contrast, previous sustainable policies taken in isolation weren’t always successful. Take the nation’s 2022 £200-per-ton Plastic Packaging Tax as an example. Under this tax, the cost of virgin plastic was still cheaper than recycled material, which distorted incentives, rewarding non-recycled materials. However, under a system that both rewards recycled content (via their EPR eco-modulated fees) and taxes plastic, incentives are reset to reward the more circular solution. 

The lesson for U.S. producers: In the U.S., we’re already seeing state EPR laws filed or passed in tandem with packaging policies, like recycled-content mandates, bottle bills, and labeling requirements. Now, as these EPR laws roll out, the industry can model how they’ll intersect with other policies and avoid optimizing for one law in isolation. A design that works for an EPR fee structure may fail under a state-specific PCR mandate, for example. Moving forward, truly circular systems will demand coordinated, cross-policy thinking — not compliance silos.

Lesson 3: Understand the New Cost Reality

The UK’s transformation from a £50 million producer responsibility to a £2 billion EPR system represents a seismic shift in who pays for waste management overseas. Under the nation’s 2024 “polluter pays” principle, brands will now shoulder 100% of collection, sorting, and recycling costs. 

Similar changes won’t be cheap for U.S. producers, either. During the conference, Circular Action Alliance’s Shane Buckingham said, “Please don’t take our early fee schedule as being indicative of what your cost will be in 2027, [right now] it’s just a drop in the bucket,” he said. “The fees are going to go up significantly in California.”

The lesson for U.S. producers: Right now, the business case for sustainable packaging has never been clearer. U.S. producers can begin modeling EPR fees across product portfolios to understand their exposure by material type, package weight, and recyclability. Producers can also use these EPR projections to justify sustainability investments internally — because when leadership sees escalating fees, redesign becomes a business imperative, not just a nice-to-have.

Lesson 4: Policy Stability Matters More Than Policy Perfection

Imagine playing a board game where the rules kept changing mid-game. Now, imagine the rules we’re talking about affect your ability to hit your sustainability targets or achieve profitability across a SKU. In the UK, stakeholders lost valuable time to define their strategies because of delayed decisions or rulemaking shifts. 

“Good policy-making is to set the law and just leave it untouched for three years,” Robbie Staniforth said. Delays and changes throughout their rulemaking process stalled the program’s progress, hindered investments in infrastructure, and created uncertainty around packaging redesign strategies.

The lesson for U.S. producers: Continue to engage in rulemaking, advocating for clear timelines and consistency across states. Don’t bet on delays or major revisions, instead build strategies assuming that regulations stick, or at least build the infrastructure for the data you need to make your case for rule changes. And if you plan for the long-haul, you can establish the strategies for material usage, infrastructure investments, and R&D to maximize your sustainability and minimize your fees.

Lesson 5: Balance Cost Efficiency with True Circularity Goals

The UK packaging policy experience as shared by Staniforth and Piper revealed a fundamental trade-off: when policymakers and producers focus too heavily on minimizing costs, they risk creating a system that recycles invoices rather than materials. Both the UK and EU found that cost containment, without equal investment in reuse, refill, and eco-design, limits circularity outcomes. Fees can shift money around, but they don’t inherently drive waste prevention or innovation.

The lesson for U.S. producers: Treat compliance as the floor, not the ceiling, for what’s possible in your sustainable packaging initiatives. By using EPR to prioritize circular design and material recovery, the U.S. can avoid the trap of “cheap compliance” and instead build durable, future-proof systems.

“It’s not easy work, but together, it’s inevitable that we’ll get there.” – SPC Director Olga Kachook.

Become an SPC member today, or join a Collaborative to get the most out of your membership.

Lesson 6: Education and Behavior Change Are Non-Negotiable — Budget for Them

Infrastructure alone doesn’t make EPR work. People make EPR work.

In the UK, programs like the Flexible Plastic Fund proved that citizen trust and participation can make or break recycling success. The initiative, backed by major brands like Unilever and Mars, tested household collection in 10 communities. 

Results showed over 90% correct sorting and contamination below 1%, at a cost of just £8.82 per household per year. Why? Because the program invested in transparency, clear labeling, and communication from day one.

The lesson for U.S. producers: Allocate resources for education and consumer engagement, not just compliance. Citizens must understand what, where, and how to recycle — and believe it actually works. Consistent on-pack labeling, honest claims, and shared data across brands can build that trust. As the UK learned, standardized bins only go so far without standardized understanding. Circularity starts with infrastructure, but it only succeeds with people.