The Packaging Recovery Note System
The packaging recovery note system is the UK Government’s approach to meeting European Union targets for the recycling and recovery of packaging waste.
A marketplace for the trading of evidence of recycling or recovery was established to coincide with the implementation of the UK’s Producer Responsibility Obligations (Packaging Waste) Regulations 1997, and with the intention of reducing the cost of compliance for those companies obligated under these regulations.
An obligated producer will be subject to both Material Specific obligations (ie. relating to the type and tonnage of materials handled by the producer) and an overall Recovery obligation. Both of these elements are calculated1 on the basis of material-specific and overall recovery targets laid by down by DEFRA and reviewed on an annual basis to ensure the UK is on track to meet its medium and long-term obligations under the EU Directive.
A Packaging Recovery Note (PRN) can be issued by re-processors accredited by the Environment Agency for each tonne of waste packaging processed. A Packaging Export Recovery Note (PERN) can be issued by exporters of packaging waste, accredited by the Environment Agency, for each tonne of material exported to overseas re-processors (subject to overseas facilities operating to standards broadly equivalent to those prevailing in the UK).
Packaging waste compliance schemes purchase PRNs and PERNs on their members’ behalf, such that a scheme’s aggregated obligation in a given registration year is met. Since the inception of the National Packaging Waste Database (NPWD) in 2007, all PRNs and PERNs are issued electronically. Schemes and brokers must acquire PRN evidence on behalf of either their aggregated obligation in the case of a scheme or a specific obligated producer in the case of a broker. Either the name of the scheme or the obligated producer must be included on the PRN/PERN as recipient. This approach has been established to ensure a more predictable market and to prevent the speculative acquisition of evidence.
Note1: Obligated businesses with a turnover of less than £5M have the option to calculate their obligation on the basis of a single target pertaining to the predominant material handled by weight.
