Wherever you’re reading this, stop and take a look around you. You’re likely surrounded by products deliberately designed for short lives: packaging thrown in the trash after a single use, electronics with built-in obsolescence, appliances that can’t be repaired and fast fashion that unravels after a season.
For decades, Extended Producer Responsibility (EPR) was touted as the solution – a policy idea that makes producers pay for the environmental cost of their products. The theory is simple: if companies are made responsible for their products after use, they will design better, longer-lasting, less polluting products.
But that’s not what happened in practice. A new report by Zero Waste Europe, which analyses the past 30 years of EPR implementation in the EU and beyond, shows waste levels are still rising, recycling rates are stagnating, and reuse rates have actually fallen drastically over this time1. Many producers have simply paid fees to comply – without improving how they design, deliver or market their products.
Something has gone seriously wrong. The idea of EPR remains powerful – but today’s systems need a major rethink if they are to live up to their promise.
What is EPR?
Extended Producer Responsibility (EPR) is exactly what it sounds like: extending the responsibility of manufacturers beyond the point of sale. Instead of letting products become someone else’s problem at end-of-life, EPR policies make companies responsible – financially, logistically, and sometimes physically – for what happens to their products and packaging after consumers finish using them.
Originally, this was intended to make the environmental impacts of products a business cost, thereby creating incentives for producers to design products that are easier to reuse, repair, and recycle – or better yet, to prevent waste in the first place.
But too often today, this “responsibility” has been watered down. Companies have ended up paying nominal fees to fund waste collection, take-back programmes or a few extra recycling bins – effectively a “pay to pollute” scheme.

How the current system works
Today, most EPR schemes work like this:
- Producers pay fees into a collective system, often run by a Producer Responsibility Organisation (PRO).
- The PRO funds the collection, sorting, and recycling (or disposal) of waste products.
Producers claim this ‘closes the loop’ – but in reality, the system has serious flaws:
- End-of-life The focus remains heavily on recycling, not on preventing waste or promoting reuse. This treats waste as inevitable, rather than something to be avoided through better design and infrastructure. As the Zero Waste Europe report shows, implementing EPR without reuse targets has had the effect of making reuse the least favoured option.
- Fee structures Producers often pay based on weight or general material type (e.g. ‘metal’ or ‘plastic’), without strong enough “eco-modulation” to reward truly sustainable designs and penalise bad ones. This weakens the incentive to innovate.
Eco-modulation adjusts EPR fees based on the environmental performance of individual products, making it cheaper to do the right thing, and more expensive to pollute. Example: a reusable glass bottle = lower EPR fee. A multilayer plastic sachet that can’t be recycled = much higher EPR fee. The goal is to create a strong financial incentive to design products that are better for the environment – not just to manage waste but to prevent it. |
- Lack of regulation Many PROs are industry-controlled and self-regulating, leading to a conflict of interest. Producers have little motivation to set ambitious reuse targets or high environmental standards when they effectively police themselves. At the same time, the revenue they provide to the government gives them a platform for lobbying and allows them to claim that “something is being done”.
- Lack of transparency It’s often unclear what PROs’ targets are (e.g. is “recycling” measured at the collection point or on delivery to a recycling plant?); whether they are being met; how funds are being used; or what really happens to the waste collected. As a result, municipalities and taxpayers still shoulder much of the burden of management. Fraud and greenwashing are real risks.
- Lack of integration It is very rare in current EPR legislation that the treatment of the collected waste is specified or controlled. PROs can therefore follow any existing waste management laws, whether these send plastic for incineration or closed loop recycling. In other words, EPR can only work well if there is already a good waste management system in place.
So at best the current EPR system locks us into endless waste management and does nothing about waste prevention, resource efficiency or a just transition; at worst it actively fights against these outcomes.

How we could make EPR work
EPR can still play a major role in creating a circular economy, but only if it’s fundamentally restructured to follow the waste hierarchy, with prevention first. This is what it would look like:
Priority for prevention and eco-design: The first goal is to reduce the amount of waste we generate. EPR funds help build reuse systems, refill networks, and repair services – not just more waste treatment infrastructure. EPR fees strongly encourage reusable, durable, and non-toxic designs.
Strong eco-modulation: Fees clearly reward sustainable products and penalise polluting, wasteful ones, sending tangible financial signals to drive better design.
Deposit return schemes (DRS): Consumers pay a small surcharge for packaging and are thus incentivised to return it to a collection point in order to get a refund, enabling producers to preserve reusable items or ensure high quality recycling. (DRS are a type of EPR and are proven to be the most efficient and effective way to achieve high collection rates of packaging. Many countries that have implemented a DRS have achieved collection rates of over 90%.)
Clear, ambitious targets: Mandatory targets for waste prevention, reuse, recyclability, and toxic material phase-outs are at the core of EPR legislation, not just recycling rates. Targets are clearly defined (i.e. when and how they are measured), progressive and ensure the local waste management system is equipped (or can be over time) to deal with them effectively.
Independent governance: Producer Responsibility Organisations are independently managed and regulated, with strong public oversight to avoid industry capture.
Transparency and public accountability: Open access to data, third-party verification and monitoring and meaningful penalties for non-compliance is standard.
Integration with other policies: EPR is one piece of a wider resource management strategy, considered together with waste management, climate, health and other material resource policies, so they are all compatible. Bans, cap and trade, production reduction, reuse targets, taxes and other policy instruments are used alongside EPR to mutually support circularity.
If EPR systems are redesigned along these lines, they can become powerful drivers of innovation, sustainability, and climate action instead of a symbol of greenwashing and weak “pay to pollute” policymaking. The Global Plastics Treaty negotiations will play a key role in determining whether this happens.
It seems obvious that producers must be held responsible not just for managing their waste – but for creating less of it to begin with. Truly extending their responsibility means looking beyond “recycling” to designing products and building infrastructure, like DRS, that make circularity the easy choice, not the exception.
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