ACP – The Official Guide to the PRN System

Source: National Packaging Waste Database- NPWD 2016. ACP_PRN_System_Guide_2015_-_Final

The UK Governments, Advisory Commission on Packaging, The ACP, has Published the Official Guide to the PRN System, the financial market system which facilitates Producer Compliance to meet their legal Recovery and Recycling Obligations under the UK Packaging (Waste) Regulations. Download a full copy of the report below

ACP_PRN_System_Guide_2015_-_Final

Executive Summary

The system was jointly developed by industry working with Government and is designed using the principle of “Producer responsibility”. This means that packaging producers are required to contribute to financing the
recovery and recycling of packaging materials so that UK as a whole achieves the European packaging recycling targets.

In practice this means that packaging producers are required to provide a financial incentive to the
packaging recycling industry to collect and reprocess (or export for reprocessing elsewhere)
sufficient material to meet the targets set by the Government. The system does not finance the full
cost of recycling or recovery but instead it provides a “top up” subsidy over and above market prices
to incentivise reprocessors to process sufficient material.
Packaging producers are all businesses (above certain size limits) that place packaging or packaged
products on the UK market and include importers, brand owners, packaging and packaging material
manufacturers as well as distributors and retailers, regardless of whether the material supplied is for
household or business consumption. Each stage in the supply chain is assigned a set share of the
financial responsibility.
The UK Government sets annual targets for UK producers to achieve for each of the materials
concerned (paper, glass, steel, aluminium, plastic and wood) plus general recycling and recovery
targets. Businesses are not required to recycle their own packaging, but to ensure that an
equivalent amount of packaging waste of the relevant materials has been recovered and recycled to
meet their obligation. This is done by acquiring unique evidence of recycling or recovery – a
Packaging waste Recovery Note (PRN or PERN for material that is exported) – from properly
accredited reprocessors (or exporters for recycling overseas) in exchange for a financial transaction.
Rreprocessors or exporters have to be specifically accredited for this purpose by the relevant
enforcement agency. The funds raised are used by the recycling industry to incentivise increases in
capability towards reaching future targets.
Most producers meet their obligations by joining a collective service provider called an approved
compliance scheme. Several of these exist providing various levels of cost and service. Competition
amongst compliance schemes is thought to be one of the main reasons why the UK system costs are
considerably lower than those in other parts of Europe.
Since the UK regulations came into force in 1997 the UK has significantly improved its packaging
recycling performance to the point where we now achieve over 60% overall recycling and are
amongst the best performers in Europe.
The precise use of PRN funds by reprocessors and exporters is difficult to quantify, but this guide
presents several case studies to illustrate a range of projects and activities to increase collection and
recycling which would not have been possible without PRN financial support.