Packaging Materials Recycling Law enacted.

Packaging Materials Recycling Law enacted.

On June 9, 1995, the Law for Promotion of Sorted Collection and Recycling of Containers and Packaging, commonly known as the "Packaging Materials Recycling Law," was enacted. The purpose of this law is to impose on companies the obligation to sort, collect, and recycle containers and packaging waste such as bottles, cans, plastic containers, and paper boxes. This law was a major step toward reducing the ever-increasing amount of waste and promoting recycling.

The law primarily targets manufacturers of food and beverages and their containers. In addition, retailers such as department stores and supermarkets are also subject to the law. However, small businesses, such as manufacturers with 20 or fewer employees and retailers with five or fewer employees, are exempt from the law. There is also a three-year grace period for small and medium-sized businesses.

After the law comes into effect, each company will be required to take back containers and packaging waste collected separately by the municipality and recycle them. Companies may also establish a public benefit corporation for recycling and outsource the performance of their recycling obligations to that corporation. The Ministry of Health and Welfare estimates that once the system is in place, companies will have to pay approximately 100 billion yen. This corresponds to a recycling cost of 1.3 yen per plastic bottle and 0.1 yen per glass bottle. The law also allows these costs to be passed on to product prices and ultimately borne by consumers.

Containers and packaging waste to be collected separately when the law comes into effect in 1997 include bottles, cans, paper bags, and plastic bottles. Plastic containers and other items for which recycling technology has not yet been established will be subject to recycling by 2000.

With the passage of this law, the industry has begun specific studies to improve the recycling rate. In particular, the recycling rate for plastic bottles, which are widely used in the beverage industry, remained at a low level of less than 1% at the time the law was passed. Therefore, the container and resin manufacturers, which jointly operate a recycling plant in Tochigi Prefecture, have indicated that they intend to focus on further development of recycling technologies. In addition, the construction of a second plant is being considered if necessary.

In addition, the food industry will also be obligated to recycle and is considering whether to pass on the cost to consumers in the form of higher prices. Kikkoman, for example, has stated that it will consider the matter after the details are determined by a government ordinance to be issued in the future.

The enactment of the Packaging Materials Recycling Law will encourage companies to bear new costs for environmental protection, and consumers will also be required to thoroughly separate garbage. How Japanese industry responds to this new law will have a significant impact on the future progress of environmental conservation activities.