Fixing the foundations: Our response to the Civil Sanctions consultation for packaging compliance

To deliver environmental impact, regulations need more than good intentions, they need effective enforcement. Without a level playing field, compliant businesses are undermined, and bad actors gain an unfair advantage.

That’s why we responded to the Environment Agency’s (EA) recent consultation on how Civil Sanctions will be applied under the new Producer Responsibility (Packaging and Packaging Waste) Obligations Regulations 2024, which took effect on 1 January 2025.

The EA’s proposals will shape how non-compliance with the Environment Act 2021 is handled, specifically through Civil Sanctions, such as monetary penalties and enforcement undertakings, prior to any criminal proceedings.

Why this is important now

• The cost of packaging compliance is increasing, which may tempt more businesses to cut corners.
• The EA is updating its Enforcement and Sanctions Policy to respond.
• We submitted detailed feedback to ensure the system is fair, proportionate, and truly effective.

Key points from our response

1. Fixed Penalties are too rigid

Fixed Monetary Penalties (FMPs) leave no room to escalate responses for serious or repeat offences, and don’t allow regulators to recover enforcement costs. We recommend more flexibility to avoid under-enforcement.

2. Variable Penalties should be based on obligations, not turnover

Currently, Variable Monetary Penalties (VMPs) are tied to business turnover. We believe this is misleading.
Instead, penalties should reflect a business’s packaging waste obligations, which better indicate their environmental impact and compliance risk.

3. Reform Enforcement Undertakings

We support the use of Enforcement Undertakings, but they mustn’t become a loophole.
They should be tied directly to supporting the packaging waste system (e.g. funding recycling infrastructure), and not used to sidestep core financial responsibilities.

4. More clarity needed for large offenders

Many businesses exceed £50 million turnover, yet there’s limited guidance for how penalties scale at that level.

Clear thresholds for “very large” offenders would increase accountability and improve deterrence.

Our position

We support a Civil Sanctions regime that is:

• Transparent – with clear rules for all sizes of business
• Proportionate – matching the level of harm and offence
• Relevant – reflecting the reality of how packaging systems work

We look forward to working with the Environment Agency and industry partners to ensure these rules are fair, enforceable, and aligned with the goals of extended producer responsibility.