Less Waste, More Savings: Taiwan’s Proposed New Green Design Fee Explained
by Ramisa Shahjahan at 08:10 in Emerging, Packaging, Environmental
The rise of packaging waste has become a significant environmental issue in Taiwan, with single use plastics and glass containers contributing heavily to landfills and pollution. In response, the Ministry of Environment has proposed the introduction of a 'Green Design Fee' for producers of plastic and glass packaging. The green fee system is an initiative by the Ministry of Environment to encourage producers of packaging to adopt more sustainable practices and encourage the use of recycled plastic materials and green design principles.
The proposed green fee is an adjustment to the current Extended Producer Responsibility (EPR) fees, allowing producers to pay a lower disposal rate to the Ministry of Environment for the glass and plastic packaging they sell in the Taiwanese market.
What is the Green Design Fee?
In Taiwan, EPR applies to manufacturers, importers, and brand owners of certain packaging containers. In-scope packaging containers are those which are:
- less than 17 litres
- used to contain of the 31 regulated products listed in the law
- made from one of the regulated packaging materials listed in the law
Currently, producers whose packaging meets these conditions are obligated to register and pay set disposal fees to the Environmental Protection Administration.
On 20 September 2024, the Ministry of Environment proposed a draft amendment to the current Fee Rates for Container's that fall under Extended Producer Responsibility. The draft amendment included the introduction of a 'Green Design Fee' for producers of plastic and glass packaging.
The Green Design Fee would allow producers to pay a lower rate to the Environmental Protection Administration for the glass and plastic packaging they sell. However, to be able to use this green fee, producers would have to meet certain conditions.
Eligibility for Glass Packaging: Reverse Recycling
The criteria for glass packaging centres on reverse recycling. Producers of glass packaging who would like to use the 'Green Fee' would need to demonstrate how they would implement a reverse recycling process for their glass packaging. Reverse recycling involves implementing a method whereby the glass packaging containers can be reused in the production cycle. The draft law does not provide any further guidance on this. However, it does state that the producer must submit a proposal in advance to the central competent authority. The proposal would need to include details on how the producer will use the reverse recycling model with their packaging, a description of the repeated refilling process, and an estimated total volume of the glass containers that would be reused. If the producer's proposal is accepted, they would then be able to use the 'Green Fee' for their glass packaging.
Eligibility for Plastic Packaging: Design and Recycled Content
For plastic packaging, the conditions depend on certain design requirements and the use of recycled plastic materials. The design requirements for plastic packaging includes:
- restrictions on the colour of the container's body and lid
- the lid being designed in way that it cannot be detached from the container
- labelling requirements like the height of the label not exceeding 30% of the container body height.
In relation to the use of recycled plastic materials, the draft law states that the packaging must contain at least 25% recycled plastic to qualify for the green fee.
Plastic packaging is also further classified into the categories 'PET Category A' and 'PET Category B'. The category 'PET A' requires more stringent environmental standards. The fees are different – depending on which category the plastic packaging falls under.
Ineligible Packaging Designs
Certain packaging designs are explicitly excluded from qualifying for the Green Fee. These include:
- PVC containers and accessories such as caps
- Bioplastics or mixed plastic materials
This exclusion emphasizes the Ministry's focus on promoting recyclable and sustainable materials, as PVC and bioplastics can present challenges in recycling processes.
The green fee system is clearly an initiative by the Ministry of Environment to help encourage producers of packaging to utilise more sustainable practices. It does this by offering reduced disposal fees for those who adhere to the green design guidelines and use of recycled content rules. The system thus supports companies to shift towards more circular economy models, which ultimately supports Taiwan's sustainable development goals. It is yet to be determined if the law will pass and when it is expected to become effective. If you would like to learn more about out how these could impact your products get in touch with us today!