As Extended Producer Responsibility (EPR) programs roll out across seven U.S. states and several more conduct needs assessments, the Closed Loop Center for the Circular Economy, through its Composting Consortium, has released a new report highlighting a major opportunity to strengthen EPR in the U.S.: the inclusion of compostable packaging and composting.
The framework is published on the heels of recently released findings on the recoverability of compostable packaging. The Composting Consortium鈥檚 extensive in-field testing with U.S. composters in 2024 demonstrated high disintegration levels for certified compostable packaging at composting facilities that meet reasonable operational parameters in the U.S., highlighting the role this packaging type plays in diverting food from landfills.
The new report introduces a framework for integrating compostable materials into EPR programs, ensuring composters are incentivized and reimbursed鈥攁 critical step toward a truly circular economy. This framework serves as a practical tool for Producer Responsibility Organizations (PROs), regulators and policymakers to incorporate compostable packaging into EPR policies and guide investment strategies that expand U.S. composting infrastructure.
Today, EPR has been positioned as a tailwind for recycling, but compostable packaging鈥攅ssential for diverting food scraps and reducing greenhouse gas emissions in landfills鈥攊s not considered in many EPR programs around the world. 鈥淭here鈥檚 growing interest in compostable packaging, but more clarity on how to include these materials in EPR programs is critical to advancing circularity for organics,鈥� said Kate Daly, Managing Partner and CEO of the Center for the Circular Economy at Closed Loop Partners. 鈥淭his framework helps close that gap, creating a clear path forward for producers and composters alike.鈥�
Given that U.S. food waste composting infrastructure has operational considerations different from those of conventional recycling鈥撯�搃ncluding varying operational costs and contamination challenges from non-compostable materials鈥攖he Consortium鈥檚 analysis shares practical ways to incentivize participation and recover compostable packaging that reflect the true economics of composting. The proposed framework ties reimbursement to the volume of compostable packaging processed at a facility, incentivizing early adopters and driving critical infrastructure growth. Key features of this new EPR reimbursement framework for compostable packaging include:
- Volume-Precision Formula: Rewards composters based on the share of compostable packaging processed in their respective EPR state.
- Eligibility Criteria: Incentivizes facilities to responsibly process certified compostable packaging and produce high-quality finished compost.
- Strategic Fund Allocation: Prioritizes operational reimbursement, infrastructure upgrades, education and waste characterization studies.
鈥淐omposters who process compostable packaging want to be part of EPR. As EPR scales in the U.S., it is important that the system is designed with composters and compostable materials in mind,鈥� said Justen Garrity of Veteran Compost (Maryland). 鈥淭his new framework brings us into the discussion and spells out the benefits for composters who diversify their feedstocks and accept compostable packaging.鈥�
As U.S. policy and regulations related to waste reduction and circularity evolve, the Closed Loop Center will continue its work to help brands and key stakeholders navigate these shifts, alongside its broader work on material innovation, reuse systems and recycling improvement to advance the circular economy.