Extended Producer Responsibility (EPR) is reshaping how companies handle packaging waste. It shifts some responsibility for end-of-life management from municipalities to producers, making businesses accountable for recycling and disposal costs. A growing tool within EPR systems is ecomodulation, which adjusts fees based on the environmental performance of your packaging.

Understanding ecomodulation can help companies reduce fees, earn bonuses, and improve sustainability—all while staying compliant.

What is Extended Producer Responsibility (EPR)?

Extended Producer Responsibility is a policy framework that places the responsibility for the lifecycle of a product—including its post-consumer phase—on the producer. These policies exist around the world and are heavily dependent on location, such as regional, national, state, and/or local legislation. This approach incentivizes producers to design eco-friendly products, reduce waste, and fund the recycling or disposal of their products.

Where Does EPR Apply?

Extended Producer Responsibility (EPR) is spreading quickly, with programs already active in some regions and preparing to launch in others.

United States: States such as Oregon (active), Maryland (passed), and Colorado (passed) have EPR laws in place, with implementation timelines either underway or just beginning. Other states, including California and Minnesota, have also passed legislation that will phase in over the next few years.

European Union: The EU has some of the most mature frameworks. Key examples include the Packaging and Packaging Waste Regulation (PPWR) (active/in transition), the Waste from Electrical and Electronic Equipment (WEEE) Directive (active), and the Batteries Regulation (active).

Together, these laws reflect a global trend: producers must prepare for EPR obligations as both current and upcoming requirements reshape packaging and product responsibility.

What Is Ecomodulation?

Ecomodulation is a system that modifies EPR fees according to the environmental impact of packaging. Companies that design their packaging with sustainability in mind and have a smaller impact can qualify for reduced fees, while less eco-friendly options with larger impacts may be subjected to higher costs. Common practices that can lower fees include:

Using recycled content in packaging
Designing for easy recyclability
Minimizing overall packaging weight and material usage
Avoiding toxic or hard-to-recycle materials

By rewarding better environmental performance, ecomodulation creates a financial incentive to make packaging more sustainable.

How Ecomodulated Fees Work

Base Fee Calculation

EPR regulation typically establishes a base fee for each packaging material type (plastic, glass, paper, etc.). This is based on a variety of factors such as recycling rates, post-consumer recycled (PCR) content, and disposal costs.

Environmental Assessment

The packaging is evaluated for sustainability, including recyclability, recycled content, and environmental impact. A lifecycle assessment (LCA) can help evaluate these impacts by analyzing packaging from cradle-to-grave. While not always required, LCAs are useful tools for compliance and informed decision-making.

Fee Adjustment

Fees are then adjusted up or down based on the assessment. Eco-friendly packaging may earn reduced fees or even bonuses, while unsustainable packaging may incur higher charges.

Benefits of Ecomodulation

Cost Savings: Reduce fees by designing packaging with lower environmental impact.

‍Sustainability: Promote the use of recyclable, reusable, or lightweight materials.

Innovation: Encourage the development of new, eco-conscious packaging solutions.

Regulatory Alignment: Stay compliant with evolving EPR regulations and avoid penalties.

Oregon EPR

Oregon’s EPR law (SB 582) requires Producer Responsibility Organizations (PROs) to design fee schedules—currently in development—that account for sustainability criteria such as post-consumer recycled content, recyclability, and require LCA impacts. While the exact fee structures are not yet finalized, the intent is clear: producers that choose more sustainable packaging will pay less, while those using harder-to-recycle or more harmful materials will pay more.

Requirements for all covered products sold or delivered in this state:

By 2026, 55 percent must be reused or recycled, five percent of which must be reused.
By 2030, 75 percent must be reused or recycled, ten percent of which must be reused.

Additional requirements by material include:

For rigid plastic:
- By 2026, 25 percent must be reused or recycled; and
- By 2030, 60 percent must be reused or recycled.
For flexible plastic:
- By 2026, 10 percent must be reused or recycled; and
- By 2030, 25 percent must be reused or recycled.
For paper:
- By 2026, 60 percent must be reused or recycled; and
- By 2030, 85 percent must be reused or recycled.
For aluminum:
- By 2026, 55 percent must be reused or recycled; and
- By 2030, 75 percent must be reused or recycled.
For steel:
- By 2026, 45 percent must be reused or recycled; and
- By 2030, 75 percent must be reused or recycled.
For glass:
- By 2026, 70 percent must be reused or recycled; and
- By 2030, 85 percent must be reused or recycled.

The full fee schedule is still being finalized, but it is designed around a base fee rate for each material type. Materials with the highest supply volumes and waste management costs will bear the largest portion of fees, while those generating the most commodity revenue will receive the greatest reductions. Notably, materials that are highly recyclable will not automatically pay higher fees compared with lower-performing materials, ensuring the schedule reflects both environmental impact and economic factors.

There are three LCA bonuses (A, B, and C) that can be granted to producers.

Bonus A

Bonus A is granted to producers that voluntarily evaluate and disclose LCA impacts of the packaging used for their product SKU. The level of incentives correlates with the level of supply.

Bonus A is set at 10% of the base fees and will be capped at $20,000 for each LCA evaluated and disclosed. This applies to all non-exempted primary packaging and excludes secondary and tertiary packaging from the bonus.

Bonus B and Bonus C

Bonus B and Bonus C is granted to producers that demonstrate substantial LCA impact reductions achieved through changes made to the packaging used for their product SKU. The level of incentives correlates with the level of supply and environmental reduction.

Bonus B is granted based on impact reduction tiers:

Tier 1: impact reduction of 10%-40%
Tier 2: impact reduction of greater than 40%-70%
Tier 3: impact reduction of greater than 70%

It is capped at $50,000 for a SKU or batch of SKUs. It applies to all non-exempt covered product and primary packaging and excludes secondary and tertiary packaging.

Bonus C is granted to producers that conduct and LCA and demonstrates impact reduction from switching from single-use packaging to reusable/refillable packaging for a SKU. There are three ways to achieve Bonus C:

Switching from Single-Use Packaging to Reusable Packaging (using Projected Return Rates)
Switching from Single-Use Packaging to Reusable Packaging (using Actual Return Rates)
Switching from Single-Use Packaging to Refillable Packaging (using Actual Refill Rates)

Option 1 is set to a maximum of 2 times higher than Bonus A and a cap up to $40,000 for the SKU. Option 2 is set to at least 2 times higher than Bonus A and a cap of $50,000 for the SKU. Option 3 is set to at least 2 times higher than Bonus A and a cap of $50,000 for the SKU.

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By linking financial incentives directly to packaging design, Oregon is setting the stage for eco-modulated fees that reward circularity and penalize waste.

Challenges to Consider

While ecomodulation is beneficial, it comes with some considerations:

Complexity: Fee structures and sustainability criteria can be detailed and vary by jurisdiction.

Initial Costs: Transitioning to sustainable packaging may require upfront investment.

Tracking & Reporting: Companies need robust systems to document packaging performance and recycled content.

Practical Steps for Companies

Evaluate Your Packaging: Audit your current materials and design for recyclability, weight reduction, and recycled content.

Monitor Local Regulations: EPR and ecomodulation rules vary by jurisdiction—keep up to date to ensure compliance.

Leverage Technology: Use software tools or consult experts to track packaging performance and calculate potential fee reductions.

Invest in Design Innovation: Explore alternative materials, lightweight designs, and modular packaging solutions.

Key Takeaways

Ecomodulation within EPR systems aligns environmental responsibility with financial incentives. By designing packaging with sustainability in mind, companies can lower fees, earn bonuses, and strengthen their eco-credentials. Because rules vary by jurisdiction, it’s important to track specific criteria in each market—for example, recyclability in France, recycled content in Oregon, or toxic substances in Italy.

‍Next Steps: Generate EPDs at Scale with CarbonBright

CarbonBright’s AI-powered platform makes it faster and easier to manage Extended Producer Responsibility (EPR) requirements. From tracking packaging data to modeling eco-modulated fees, CarbonBright helps producers stay compliant while identifying opportunities to reduce costs.

By automating data collection, streamlining reporting, and aligning packaging choices with evolving fee structures, CarbonBright empowers even small teams to navigate complex EPR regulations—without enterprise-level overhead.

Backed by expert compliance support and trusted methodology, every report generated with CarbonBright meets the highest standards of accuracy and regulatory alignment.

Ready to get ahead on EPR? Contact CarbonBright today to simplify compliance.

Understanding the rules and opportunities around ecomodulation is crucial for staying compliant, reducing costs, and promoting a circular economy.

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EPR and Ecomodulation: How to Manage Packaging Fees and Bonuses