What's happening in the world of policy: May 2026
Through May and into June, we’ve seen a range of important policy and regulatory developments across both the UK and EU; with packaging, product sustainability and circular economy legislation remaining high on the agenda as businesses continue to navigate evolving requirements.
Our Policy & Public Affairs Advisor, Michael Jennings, breaks down the key updates and what they mean for businesses.
UK
Packaging Extended Producer Responsibility (pEPR)
Whilst pEPR has seemingly settled down and many of the challenges are being reviewed and ironed out, obstacles and uncertainty remain as businesses await their Year 2 disposal fees.
You placed packaging on the market during 2025, ‘illustrative’ fees were published in December 2025, and submissions were completed by April 2026, but now what? Producers are still awaiting confirmed Year 2 disposal fee rates and their Year 2 Notice of Liability (NoL) – initially due to be published in June 2026 and July 2026 respectively, with Year 2 NoL now due to be issued in August 2026 following further delay.
The four nations are most probably grappling with the rising cost of living, but continued uncertainty on these costs, and therefore what producers' NoL will look like, is only fuelling uncertainty, particularly with the reported £65-100 million blackhole from Year 1.
With the Government recently stating there is no change on their position on pEPR, and policy to go ahead as planned, businesses will be hoping any revisions to the ‘illustrative’ fees are within a manageable level. Also, in their annual Operational Plan, PackUK have moved the ‘recalculation deadline’ from 1st October to 1st November. After this date, any resubmissions that decrease a producer’s obligation won’t be reflected in a recalculated NoL, due to the knock-on effects for all other producers. We recommend businesses continue to work internally, and with their account manager, to strengthen their systems for gathering and storing accurate data under this new regulatory landscape.
Plastic Packaging Tax (PPT)
A new consultation has opened, running until 10th August 2026, regarding mandatory certification for mechanically recycled plastic.
- This follows ongoing amendments to include chemically recycled plastic through a mass balance approach, which would introduce mandatory certificates for chemically recycled plastic.
- This consultation is also on introducing mandatory certificates for mechanically recycled plastic, aligning with chemically recycled plastic certificates - introducing standardised and easier to obtain evidence (especially for importers), increasing transparency and reducing fraud.
Deposit Return System for Drinks Containers (DRS)
At the beginning of June, Exchange for Change published several updates relating to the DRS for drinks containers.
- The application deadline for the appointment of the Welsh Deposit Management Organisation (DMO) closed on 2nd June 2026.
- The Return Handling Fee (RHF)* has been published. While the fee level itself is relatively modest (~£12k for 225k returned containers), it is expected to influence producer registration costs, with further details anticipated.
- Funding and support have been published for smaller independent retailers operating as mandatory return points, alongside an expansion of exemption criteria under certain circumstances.
*The RHF is the amount of money a Return Point will receive back for every drinks container returned, to cover staffing and running costs, etc.
Waste Electrical and Electronic Equipment (WEEE)
Businesses with locations in Wales should note an important change regarding the disposal of small Waste Electrical and Electronic Equipment (sWEEE). Until now, only unsold sWEEE was required to be separated for recycling, but this now applies to all sWEEE, such as onsite kettles or toasters.
On 1st June 2026, the Environment Agency (EA) published its report detailing the volume of Electrical and Electronic Equipment (EEE) placed on the market and WEEE collected under the regulations.
EU
While May was relatively quieter from a legislative perspective, we expect EU activity to increase significantly ahead of the implementation of the Packaging and Packaging Waste Regulation (PPWR) and the anticipated publication of the Circular Economy Act (currently scheduled for Q3 2026).
Packaging and Packaging Waste Regulation (PPWR)
Two previously adopted PPWR documents have now been published in the Official Journal, with little to no amendments:
Also, in response to some companies calling for the Commission to reopen or delay PPWR, more companies are urging the Commission to stay on course – reflecting the significant investments in current obligations and timelines already made by many businesses.
Ecodesign for Sustainable Products Regulation (ESPR)
We take another step forward towards Digital Product Passports (DPP) with the opening, and closing, of the consultation on finalising the arrangements for the DPP Registry.
This is good news as the DPP Registry was originally due to be open by mid-July for companies to start registering products with certain batteries, under the EUBR – the first products expected to require a DPP by February 2027.
However, some uncertainty remains, with final details on what these passports will look like and requirements around providers yet to be published.
EU Deforestation Regulation (EUDR)
New FAQ and guidance documents have been published, alongside the previous infographic, to help organisations navigate the changes, where they stand in the supply chain, and their obligations under EUDR.
A consultation on amendments to in-scope products closed on 1st June 2026. Proposed changes could see soluble coffee products and palm oil derivatives added to scope, while leather products may be removed, although final decisions are still awaited.
Empowering Consumer for the Green Transition (ECGT)
The EU have recently taken action on 20 Member States for failing to transpose the ECGT Directive into national law on time. For companies supplying directly to consumers in the EU, guidance has recently been published on the Harmonised Notice and Label of durability, due to come into force in September. The guidance includes practical examples, images, and information to give businesses the opportunity to prepare ahead of the new requirements taking effect.
Beyondly is here to help!
Our passionate team is committed to always finding a better way to collectively create a more sustainable world for all. We're proud to host a variety of insightful webinar sessions for industry professionals, detailing our services, market updates, and policy changes to help adapt to the evolving landscape.
