On August 20, 2026, the Philippine Presidential Communications Office announced that the Department of Environment and Natural Resources (DENR) had issued 155 show-cause letters to potentially obligated enterprises suspected of failing to meet requirements under the country’s Extended Producer Responsibility (EPR) Act of 2022 (FPF reported). DENR is auditing companies’ reported plastic recovery rates to assess compliance. The government did not identify the companies receiving the letters and clarified that issuance of a show-cause letter does not mean that a company has already been found in violation or penalized.
Under the EPR Act, large producers and importers placing plastic packaging on the Philippine market are required to recover or offset an increasing share of their plastic packaging footprint. The mandated recovery target increases every year: from 20% by weight in 2023 to 60% by the end of 2026, and 80% from 2028 onward. Packaging formats covered by the mandate include sachets, labels and laminates; rigid containers for food, beverages, personal care products and other goods; plastic bags; polystyrene; and several disposable food service items such as cutlery, plates, and straws.
The government reported that, in aggregate, companies surpassed the legal target in 2024: audited recovery rates reached 59.98% for rigid plastics and 56.33% for flexible plastics, compared with the required 40%. However, DENR said it sees a need for closer monitoring of individual companies as the targets increase.
What is included in “recovery”?
DENR’s implementing rules allow recovered plastic packaging to be diverted through several routes, including container reuse, mechanical recycling, chemical recycling, co-processing in cement kilns, waste-to-energy, and, under specified circumstances, proper disposal in sanitary landfills. Companies can also undertake measures intended to reduce their packaging footprint, including reusable packaging, refill systems, packaging redesign, and incorporating recycled material.
EPR programs must describe what happens to packaging after recovery and document diversion through audited certificates. Rigid and flexible plastic footprints are accounted for separately. Recovered flexible packaging generally cannot be used to offset a company’s rigid-plastic obligation, and vice versa.
What happens to non-compliant companies?
Companies that fail to register or meet their recovery obligations can face substantial penalties. Under the EPR Act, a first violation carries a fine of PHP 5–10 million ($79,500–$159,000), increasing to PHP 10–15 million ($159,000–$238,500) for a second offense, and PHP 15–20 million ($238,500–$318,000) for a third. A third offense can also result in suspension of the company’s business permit until it complies. For failure to meet a recovery target, authorities may instead impose a fine equal to twice the cost of recovering and diverting the company’s shortfall if that amount is higher.
References
Presidential Communications Office (August 20, 2026). “Marcos admin warns companies of their obligations under Extended Producer Responsibility Act of 2022.”
Republic of the Philippines (July 23, 2022). “Republic Act No. 11898 – Extended Producer Responsibility Act of 2022.”
Department of Environment and Natural Resources (January 24, 2023). “DENR Administrative Order No. 2023-02 – Implementing Rules and Regulations of Republic Act No. 11898.” (pdf)
