Packaging Recycling Law Enacted November 1995

Packaging Recycling Law Enacted

On June 9, 1995, the "Law for the Promotion of Sorted Collection and Recycling of Containers and Packaging," commonly known as the "Packaging Recycling Law," was enacted. This law imposes obligations on businesses to collect and recycle packaging waste such as bottles, cans, plastic containers, and paper boxes. The primary goal of this legislation is to reduce the ever-increasing amount of waste through recycling.

The main entities targeted by this law are manufacturers of food and beverages and the manufacturers of their containers. Additionally, retailers such as department stores and supermarkets are also subject to this law. However, small businesses with fewer than 20 employees in manufacturing or fewer than five in retail are exempt from this law. Furthermore, small and medium-sized enterprises are granted a three-year grace period for compliance.

After the law is implemented, businesses will be required to collect and recycle packaging waste that has been sorted and collected by municipalities. Businesses can also establish public corporations to which they can delegate their recycling obligations. The Ministry of Health and Welfare estimates that once the system is fully operational, the cost burden on companies will be approximately 100 billion yen. This equates to a recycling cost of about 1.3 yen per PET bottle and 0.1 yen per glass bottle. The law also allows these costs to be passed on to the product price, ultimately making consumers bear the cost.

Initially, the packaging waste subject to sorted collection under the law will include bottles, cans, paper bags, and PET bottles starting in 1997. Plastic containers, for which recycling technology is not yet established, are expected to be included by 2000.

In response to the enactment of this law, industries have begun concrete discussions to improve recycling rates. Notably, the recycling rate of PET bottles, widely used in the beverage industry, was less than 1% at the time of the law's enactment. As a result, container and resin manufacturers operating a joint recycling plant in Tochigi Prefecture are committed to further developing recycling technology. They are also considering the construction of a second plant if necessary.

Moreover, the food industry, which also bears recycling obligations, is contemplating whether to pass these costs on to product prices. For instance, Kikkoman stated that they would "consider this after the detailed regulations to be issued in the future are determined."

The enactment of the Packaging Recycling Law is a significant step towards environmental conservation, as it imposes new cost burdens on businesses and requires consumers to rigorously separate waste. How Japan's industrial sector responds to this new legislation will significantly impact the progress of environmental conservation activities in the future.