A Comprehensive Guide to the Philippine Extended Producer Responsibility (EPR) Law

Updated June 2026

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The Philippines has been ranked as one of the largest contributors to marine plastic litter worldwide. The country, which is made up over 7,600 islands, is hampered by limited waste management infrastructure, and the widespread use of single-use plastics, often in the form of sachets which offer basic goods in small units to cater to a population with a low average income.¹

Three years ago, the Philippines rolled out one of the world’s most ambitious laws on Extended Producer Responsibility (EPR), which requires producers to be environmentally responsible throughout the lifecycle of a product, especially its post-consumer or end-of-life stage.

That act, which lapsed into law in July 2022, requires companies with at least 100 million pesos in assets to take responsibility for a percentage of their plastic packaging footprint, starting at 20% in 2023 and incrementally increasing to 80% by 2028 and beyond.

Since 2023, a total of over 1,000 businesses (717 Obliged Enterprises, 300 Voluntary Enterprises) have registered under the EPR program. Both compliance years 2023 and 2024 have exceeded the mandated recovery targets, achieving 33.16% and 55.98% respectively, compared to the set targets of 20% and 40%.²

DENR‑EMB evaluated the SEC’s Top 1000 companies to identify those utilizing plastic packaging, and subsequently issued Show Cause Orders transmitted via official company email and courier to the addresses listed in SEC records.³ As enforcement actions escalate, more enterprises are recognizing that non-compliance carries significant operational and reputational risks, underscoring the critical need to align swiftly and fully with EPR requirements.

In this guidance, we address the most frequently asked questions about the EPR Law for large companies and micro, small, and medium enterprises (MSMEs) in the Philippines.

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1. What is the EPR Law?

The Extended Producer Responsibility (EPR) Act of the Philippines, officially known as Republic Act No. 11898, was enacted in July 2022. It amends RA 9003 or the Ecological Solid Waste Management Act of 2000 to institutionalize EPR as a mechanism for reducing plastic waste pollution. The law requires producers to take full responsibility for the lifecycle of their plastic products, from design to post-consumer waste management, in alignment with the principles of a circular economy.

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2. Who is mandated to comply?

The EPR Law applies to businesses that generate plastic packaging waste.

a. Large enterprises, which are defined as business entities with assets exceeding P100 million, excluding land.⁴

b. MSMEs operating under the same brand name and have combined assets of over P100 million, excluding land. 

These include:

• Manufacturers, importers, and brand owners of consumer goods packaged in plastics.
• Enterprises distributing goods that generate post-consumer plastic packaging waste.

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3. What plastic packaging categories are covered in the EPR Law?

The law applies to the following plastic packaging categories:

Figure 1. Plastic packaging covered under the EPR Act of 2022

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a. Flexible plastic packaging: This includes sachets, labels, and laminates, whether single-layered or multi-layered with plastics or other materials. Examples are sachets used for condiments, shampoo, and other single-use products, as well as plastic labels and laminates.

b. Rigid plastic packaging product: This includes containers for beverages, food, home care, personal care, and cosmetic products. This category also covers their coverings, caps, or lids, and other necessities or promotional items such as cutlery, plates, drinking straws, sticks, tarpaulins, signage, or labels.

c. Plastic bags: This category covers plastic bags used for carrying or transporting goods, including single-use plastic bags provided or utilized at the point of sale.

d. Polystyrene: This includes products made from polystyrene, commonly used in foam packaging materials like food containers, cups, and protective packaging for electronics.

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4. Are there penalties for non-compliance?

Yes! Companies that don't take action on their plastic packaging face stiff fines - and risk losing their business license. Here’s what’s at stake:

• Fines: Ranging from P5 million to P20 million, depending on the severity of the violation.
  • 1st Offense - P5 million to P10 million (89,000 to 178,000 USD)
  • 2nd Offense - P10 million to P15 million (178,000 to 268,000 USD)
  • 3rd Offense - P15 million to P20 million (268,000 to 357,000 USD) and suspension of business permits
• Civil and Criminal Liabilities: Negligence causing environmental damage may lead to additional liabilities.

The Department of Environment and Natural Resources has emphasized that penalties will be strictly enforced to ensure compliance and deter violations.

The Pollution Adjudication Board (PAB) has passed a resolution in 2025 for the fines and penalties associated with non-registration of EPR Programs. It is expected that the fines and penalties for other non-compliances stated in the EPR Act will follow.

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5. What are my EPR obligations?

Businesses must comply with three main obligations:

1.) Register and Implement an EPR Program

Submit an EPR Program to the DENR through the National Ecology Center (NEC). This can be done directly by the company or through a registered Producer Responsibility Organization (PRO).

2.) Meet Annual Recovery Targets

Obliged Enterprises (OEs) are required to meet progressive recovery targets for post-consumer plastic packaging waste under the EPR Law. These targets increase annually to ensure steady progress toward sustainability.

These targets are calculated based on their audited plastic packaging footprint of the previous year. The diversion accomplishments together with the footprint are included in the scope of the ECAR and must be supported by auditable, traceable and verifiable documentation.

3.) Submit EPR Compliance Audit Reports (ECAR)

Companies must submit an ECAR to the DENR annually, which must include:

• Verified plastic packaging footprint
• Recovery and diversion accomplishments
• Compliance activities

The report must be independently audited by a third-party auditor. These periodic compliance reports are to be prepared in accordance with DAO 2024-04, reinforcing transparency and accountability in the compliance process.

OEs may complete these independently or streamline the process by working with a PRO.

Reporting Deadline

Obliged enterprises must submit their annual ECAR to the DENR within the first six months of the following year.

For example, if a company generated 100,000 metric tons of plastic packaging in 2025, it should recover 60,000 metric tons or 60% of its plastic footprint in 2026, and submit its ECAR to the DENR on or before June 30, 2027.

Figure 4. Source: DAO 2024 -04

We have now reached the fourth year of EPR compliance, with diversion targets climbing steadily each year. While some registered companies have exceeded mandatory recovery goals in 2023 and 2024, many enterprises are still in the process of complying. Funding is already flowing into waste management which signals progress, but there remains significant work ahead to meet the goals of EPR.

Incentives

Pursuant to the EPR Act, fiscal incentives are available to obliged enterprises to encourage compliance with recovery and diversion targets. These include:

1. Tax Incentives: Obliged enterprises and PROs may qualify for tax incentives under Title XIII of the National Internal Revenue Code of 1997 for eligible activities. These activities must adhere to the standard qualification processes under the Strategic Investment Priority Plan (SIPP).
2. Deductibility of EPR Expenses: Expenses related to EPR activities, such as recovery and diversion of plastic waste, may qualify as necessary business expenses deductible from taxable income in accordance with the National Internal Revenue Code.⁵
3. ‍Tax and Duty Exemption of Donations: Donations supporting EPR activities through local government units (LGUs), enterprises, or NGOs for programs advancing socially acceptable and effective solid waste management may be exempt from internal revenue taxes and customs duties, and are deductible from taxable income.

The DENR and DOF are working on a Joint Administrative Order (JAO) for the aforementioned fiscal incentives for EPR in an effort to further drive the implementation success of the law. Stakeholder concerns on the draft JAO remain such as recognition of offsetting mechanisms as deductible expenses, retroactive deductions, transitory provision, and ease of doing business while government agencies face tight timelines, limited institutional capacity, and the risk of revenue leakage.⁶

The Technical Working Group (TWG) identified ways forward: (1) finalizing the JAO with transition clauses to ease compliance without compromising basic rules, (2) aligning the EPR Procedural Manual to complement the JAO, and (3) releasing other supplementary issuance.⁷ These steps seek to address current limitations of the JAO while focusing on building a credible, transparent system for fiscal incentives.

Nevertheless, this directive already stands as a milestone for EPR in the Philippines, establishing a stronger fiscal support pathway for OEs. More than a regulatory requirement, the scheme represents an opportunity to drive growth and innovation through investments in recovery, recycling, redesign, and circular solutions.

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6. What Strategies Can I Use to Achieve Compliance?

The EPR Law outlines a variety of strategies that enterprises may include in their registered EPR Program to meet compliance requirements. As detailed in Section 44-A of the law, these strategies may involve upstream and midstream measures to reduce the plastic packaging footprint and downstream initiatives to recover and divert post-consumer plastic waste from the environment. The EPR Program must also specify the enterprise’s estimated annual plastic packaging footprint and annual targets for recovery and diversion, ensuring alignment with the principles of a circular economy.

6 upstream and midstream strategies to reduce footprint

Figure 5.  Modes of EPR Program- Reduction of non-environment friendly packaging products ⁸

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Reduction of non-environment friendly products which may include the following activities and strategies:

1. Adoption of reusable products, or redesign of the products to improve its reusability, recyclability and retrievability
2. Inclusion of recycled content or recycled materials in a product
3. Adoption of appropriate product refilling systems for retailers
4. Viable reduction rates plan
5. Information and education campaign schemes
6. Appropriate labeling of products, including the information thereon for the proper disposal of the waste product.⁹

6 downstream strategies to recover and divert footprint

Figure 6.  Modes of EPR Program - Recovery programs aimed at effectively preventing waste from leaking to the environment ¹⁰

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Product waste recovery programs aimed at effectively preventing waste from leaking into the environment may include the following activities:

1. Waste recovery schemes through redemption, buy-back, o setting, or any method or strategy that will efficiently result in the high retrievability, high recyclability, and resource recovery of waste products;
2. Diversion of recovered waste into value chains and value-adding diversion of recovered waste into value chains and value-adding useful products through recycling and other sustainable methods;
3. Transportation of recovered waste to the appropriate composting, recycling, or other diversion or disposal site in the country;
4. Clean-up of waste leaked to coastal areas, public roads, and other sites;
5. Establishment of commercial or industrial scale recycling, composting, thermal treatment, and other waste diversion or disposal facilities for waste products, when investment therein is viable; and
6. Partnership with LGUs, communities, and the informal waste sectors.¹¹

What are the modes of compliance?

Obliged enterprises shall institute an EPR program either individually or collectively with other Obliged Enterprises and designate a lead OE, or they may form or authorize a Producer Responsibility Organization (PRO).

What is the role of a Producer Responsibility Organization (PRO)?

A PRO is an organization voluntarily formed or authorized by obliged enterprises under the EPR Law, that serves as the viable platform to implement their EPR program.

Key Functions of a PRO:

• Setting Internal Standards
  • Establishes internal standards for EPR compliance, recovery mechanisms, and auditing of plastic footprints and offsets until official government standards are issued.
• Monitoring and Verification
  • Monitors and verifies the reduction, reuse, and recycling initiatives of its member OEs.
• Consolidation of Data and Reports:
  • Consolidates the audited plastic packaging footprints and EPR compliance reports of member OEs.
  • Prepares the EPR Compliance Audit Report (ECAR), facilitates its audit by an Independent Third-Party Auditor (I3PA), and submits the report to the Department within regulatory deadlines.
• Traceability and Documentation
  • Ensures all reported waste diversion is accurate, supported by sufficient and fully traceable documentary evidence.
• Issuance of Plastic Credits: Issues Plastic Credit Certificates to member OEs, ensuring the veracity and traceability of each credit through supporting documentation.

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Note:

The key functions outlined above are based on PCX Solutions' EPR Program. Other Producer Responsibility Organizations (PROs) may have different approaches or program structures. To learn more about PCX Solutions and their EPR services, visit PCX Solutions.

The Philippines has taken a pragmatic approach and crafted an accessible law that makes the goals set out in the EPR law achievable. The EPR law provides companies with a clear framework to manage their plastic footprint. It includes six upstream measures, such as using recycled content, reusable packaging, or refilling, to help reduce their footprint. Additionally, it offers six downstream measures, like plastic credits, to support recovery efforts. Together, these options enable companies to develop a comprehensive and achievable plastic responsibility plan.

The plastic pollution crisis in the Philippines demands urgent action, and businesses have a key role to play. With 83% of Filipino consumers preferring brands with sustainability goals, taking responsibility for your plastic footprint is not only good for the environment- it’s good for business.

Join PCX in our mission to ensure no plastic ends up in nature.

To read more about the Philippines' EPR law, click here to download an in-depth case study published by PCX Solutions, “EXTENDED PRODUCER RESPONSIBILITY IN THE PHILIPPINES: EARLY LEARNINGS AND INSIGHTS FOR EMERGING MARKETS BATTLING PLASTIC POLLUTION”

To learn more about PCX’s PRO services, click below, or email us at partnerships@pcxmarkets.com to set up a call with one of our sustainability experts.

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^{1 Reyes, A., & Beitien, S. (2024). Extended Producer Responsibility in the Philippines. Early Learnings and Insights for Emerging Markets Battling Plastic Pollution. PCX Solutions. https://www.pcxsolutions.org}

^{2 De Pedro, I. (2025). Status of Implementation of the Extended Producer Responsibility Act of 2022, and its IRR Compliance. Department of Environment and Natural Resources (DENR) - Environmental Management Bureau (EMB)}

^{3 Ibid.}

^{4 Republic Act No. 9501 Magna Carta for MSMEs}

^{5 Section 34(A)(1) of the National Internal Revenue Code of 1997.}

^{6 Incentivizing Responsibility: Aligning Fiscal Policy with EPR Goals in the Joint Administrative Order (JAO) on Availment of Fiscal Incentives for EPR (2026). Fiscal Policy and Monitoring Group - Department of Finance.}

^{7 Ibid.}

^{8 DENR Philippines (2023). Presentation of Undersecretary for Policy, Planning and International Affairs - Atty. Jonas Leones during the launching of the EPR Program - Loop Forward at Conrad Hotel, Manila}

^{9 Implementing Rules and Regulations of Republic Act No. 11898, Section 44-A.}

^{10 DENR Philippines (2023). Presentation of Undersecretary for Policy, Planning and International Affairs - Atty. Jonas Leones during the launching of the EPR Program - Loop Forward at Conrad Hotel, Manila}

^{11 Implementing Rules and Regulations of Republic Act No. 11898, Section 44-A.}

^{12 (2023, February 24). Pulse Asia survey: Over 80% Filipino consumers prefer eco-friendly products. Inquirer.net. www.newsinfo.inquirer.net}