Are biodegradable plastics like PLA and PHB exempt from EPR fees?

Biodegradable plastics, such as polylactic acid (PLA) and polyhydroxybutyrate (PHB), are polymer materials engineered to break down into natural elements under specific biological conditions, offering an alternative to fossil-based packaging while remaining fully subject to extended producer responsibility obligations.

For years, e-commerce merchants and physical retailers have viewed biodegradable plastics as the ultimate solution for packaging sustainability. Switching from traditional polyethylene shipping mailers to PLA or plant-starch alternatives often feels like an instant win for a brand's environmental image, promising consumers an unboxing experience free of permanent plastic waste. Many sellers assume that because the packaging will theoretically vanish into the earth, it falls outside the scope of strict environmental compliance frameworks.

However, the regulatory reality of supplying these materials is far more demanding. Environmental regulators and Extended Producer Responsibility (EPR) schemes do not grant a free pass to biodegradable packaging. In many jurisdictions, replacing standard clear plastic with PLA or PHB can actually increase a merchant's compliance costs, trigger stricter granular reporting requirements, and introduce new design restrictions. As European and global laws attempt to manage how these bio-based materials interact with existing municipal waste infrastructure, understanding the strict definitions and reporting rules surrounding them is a core operational requirement.

What biodegradable plastics actually mean

Biodegradable plastics are materials capable of undergoing a near-complete biological decomposition into carbon dioxide, water, inorganic compounds, and biomass. This process relies on naturally occurring micro-organisms such as bacteria and fungi. The most common commercial formats used in consumer packaging include polylactic acid (PLA), which is typically derived from fermented plant starch such as corn or sugarcane, and polyhydroxybutyrate (PHB), which is produced directly by micro-organisms in response to physiological stress.

In the context of the incoming EU Packaging and Packaging Waste Regulation (PPWR), the legal definition of "readily biodegradable" relies on a strict technical threshold. To meet this legal classification, a material must demonstrate a proven ability to convert more than 90% of its original mass into carbon dioxide, water, and minerals via biological processes within a strict six-month window. If a bio-based polymer cannot meet this rapid degradation timeline, it is legally treated under standard plastic categories rather than as a genuinely biodegradable material.

"To qualify as readily biodegradable under the PPWR, plastics must demonstrate a proven ability to convert more than 90% of their original material into CO2, water, and minerals by biological processes within 6 months."

The distinction between biodegradable and compostable is also highly regulated and frequently misunderstood by online sellers. While all compostable plastics are biodegradable, not all biodegradable plastics are compostable. Compostable materials require specific, highly controlled industrial environments with sustained high heat and specific humidity levels to break down effectively. Because these conditions rarely exist in natural environments or household compost bins, regulators treat the end-of-life management of these materials very cautiously.

Does this apply to me?

If your business sells physical products packaged in PLA, PHB, or other biodegradable films and rigid containers, you are fully obligated under national EPR laws. There is absolutely no blanket exemption for using bio-based or biodegradable materials. You must still register your business with the relevant national environmental authorities, actively track the exact weights of the biodegradable packaging you place on the market, and pay the corresponding waste management fees to a designated Producer Responsibility Organisation (PRO).

In fact, depending on the specific market, using biodegradable plastics can trigger unique reporting hurdles. Regulators and compliance schemes often categorise these materials entirely separately from standard plastics like PET or HDPE. Because biodegradable plastics generally cannot be processed in standard mechanical recycling facilities, they are sometimes subjected to higher eco-modulated fees. If the local municipal waste infrastructure cannot recover PLA efficiently, the compliance scheme will often penalise the material financially for acting as a contaminant in the recycling stream.

Furthermore, global regulations are tightening around specific formats. If a merchant uses PLA or PHB for carry-out bags, certain jurisdictions demand unit-level tracking on top of the standard weight-based declarations, forcing merchants to maintain much more detailed supply chain records.

Key thresholds and deadlines for biodegradable packaging

The compliance landscape for PLA and PHB is shifting rapidly, primarily driven by the implementation of the PPWR across the European Union and specific provincial stewardship rules in North American markets. Merchants must track both long-term design deadlines and highly specific reporting metrics.

Common misconceptions about biodegradable plastics

Biodegradable packaging is exempt from EPR fees. This is a dangerous and costly assumption for an e-commerce brand. Using PLA or PHB does not remove your legal status as an obligated producer. You must still register your business, report the precise weight of your packaging, and pay compliance fees. In many European countries, biodegradable plastics actually attract higher financial levies because they disrupt the standard mechanical recycling infrastructure.

Enzyme-mediated plastics are the same as bioplastics. According to industry guidelines published by European Bioplastics, enzyme-mediated plastics are simply conventional, fossil-based plastics containing specific chemical additives. They are neither genuinely biodegradable nor compostable, and labelling them as such is considered a deceptive environmental claim that can violate consumer protection rules.

Consumers can just throw PLA in the regular recycling bin. Biodegradable plastics often look and feel identical to standard PET or PE packaging, but their chemical structure is completely different. If a consumer places a PLA clamshell into a standard plastic recycling bin, it acts as a severe contaminant in the mechanical recycling process, degrading the quality of the secondary raw materials.

"Biodegradable" means it disappears safely if littered. Regulatory bodies actively discourage the use of the term "biodegradable" without heavy qualification. Stating a product is biodegradable often gives consumers the false impression that they can discard it in nature without causing environmental harm. In reality, materials like PLA require industrial composting facilities to break down effectively and will persist for years in marine environments or standard household landfills.

5 examples of biodegradable packaging compliance

1. Switching to PLA shrink wrap A logistics provider replaces its standard low-density polyethylene (LDPE) shrink wrap with a PLA-based film to secure transport pallets. The company must ensure the new material is properly tracked under specific biodegradable EPR categories rather than being grouped with standard flexible plastics.

2. Supplying PHB carry-out bags A retail franchise uses bio-plastic bags made of polyhydroxybutyrate (PHB) for customer purchases. When reporting their packaging volumes to the local compliance scheme in Manitoba, the brand's logistics team must declare both the total mass in kilograms and the exact numerical count of bags supplied.

3. Using compostable mailing satchels An independent clothing label posts garments across borders in certified compostable mailers made from corn starch blends. Despite the bold environmental marketing printed on the bag, the brand remains legally obligated to secure an EPR registration number and pay fees for placing the packaging on the destination country's market.

4. Implementing PLA clamshells for food A fresh food delivery service switches to clear PLA clamshells for its salads. Because the containers look exactly like traditional PET plastic, the brand must apply strict disposal labelling to ensure consumers direct the packaging to industrial composting streams rather than contaminating standard kerbside recycling bins.

5. Applying compostable fruit labels A grocery importer uses small sticky labels directly on individual apples and bananas. Under the incoming PPWR, these specific labels must meet industrial composting standards by February 2028 so they do not contaminate the organic bio-waste stream when consumers naturally discard the fruit peels.

Terms related to biodegradable plastics

Frequently asked questions

Do I still pay EPR fees if my packaging is 100% biodegradable?

Yes. Extended Producer Responsibility schemes charge fees based on the systemic cost of managing the waste your packaging creates, regardless of whether the material is bio-based or fossil-based. You must register with the relevant national authorities and pay for every kilogram of PLA or PHB you place on the market.

Will biodegradable plastics save me money on compliance?

In most cases, no. Because materials like PLA and PHB often require specialised industrial composting facilities and can actively contaminate standard mechanical recycling streams, many Producer Responsibility Organisations apply a malus penalty to them. This means your eco-modulated fees could actually be higher than if you used a highly recyclable mono-material like clear PET.

How does the PPWR classify biodegradable materials?

The EU Packaging and Packaging Waste Regulation (PPWR) officially categorises biodegradable rigid and flexible plastics as Category 19. To qualify for this category, the material must demonstrate a proven scientific ability to convert over 90% of its original mass into carbon dioxide, water, and minerals through biological processes within six months.

Can I use the term "biodegradable" in my marketing?

You must be extremely cautious when making environmental claims. Consumer protection agencies and environmental regulators treat unqualified "biodegradable" claims as highly deceptive. If you claim a PLA package is biodegradable, you must clearly specify the exact conditions required for it to break down (such as industrial composting) so consumers do not mistakenly litter the item or place it in the wrong municipal bin.

What is the difference between PLA and enzyme-mediated plastics?

PLA is a genuine bio-based polymer derived from renewable resources like fermented plant starch, capable of biological decomposition under the right conditions. Enzyme-mediated plastics, on the other hand, are conventional, fossil-fuel-based plastics that have been treated with specific chemical additives. Industry guidelines clarify that enzyme-mediated materials are not truly biodegradable or compostable and should not be treated as bioplastics.

Sources:

• Packaging and Packaging Waste Regulation (EU) 2025/40
• FOR STEWARDS GUIDEBOOK - Multi-Material Stewardship Manitoba
• Fact sheets & background information – European Bioplastics e.V.
• Commission Notice – Guidance document for Regulation (EU) 2025/40 on packaging
• NATIONAL STEWARDS GUIDEBOOK - Multi-Material Stewardship Manitoba