Composting Consortium launches framework for compostable packaging in EPR programs

The Closed Loop Center provides guidance on how to integrate compostable packaging into EPR programs.

Person stands by pile of compost.

Photo courtesy of the Center for the Circular Economy at Closed Loop Partners

As extended producer responsibility (EPR) programs roll out across seven U.S. states, the Center for the Circular Economy at Closed Loop Partners, New York, has released a new report through its Composting Consortium, highlighting an opportunity to strengthen EPR in the U.S. 

The framework is published following recently released findings on the recoverability of compostable packaging. The organization says its in-field testing with U.S. composters in 2024 demonstrated high disintegration levels for certified compostable packaging at composting facilities, which 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, which the consortium says is a critical step toward a circular economy. This framework can serve as a tool for producer responsibility organizations (PROs), regulators and policymakers to incorporate compostable packaging into EPR policies and guide investment strategies to expand U.S. composting infrastructure.

The Composting Consortium says EPR has been positioned as a tailwind for recycling, but compostable packaging, which helps to divert food scraps and reduce greenhouse gas emissions in landfills, is not considered in many EPR programs around the world. 

“There’s growing interest in compostable packaging, but more clarity on how to include these materials in EPR programs is critical to advancing circularity for organics,” says Kate Daly, Center for the Circular Economy at Closed Loop Partners managing partner and CEO. “This framework helps close that gap, creating a clear path forward for producers and composters alike.”   

Given that U.S. food waste composting infrastructure has operational considerations different from those of conventional recycling––including varying operational costs and contamination challenges from noncompostable materials—the Consortium’s analysis shares ways to incentivize participation and recover compostable packaging that reflect the economics of composting. 

The proposed framework ties reimbursement to the volume of compostable packaging processed at a facility, to incentivize early adopters and drive critical infrastructure growth. Key features of this EPR reimbursement framework for compostable packaging include: 

  • volume-precision formula, to reward composters based on the share of compostable packaging processed in their respective EPR state;

  • eligibility criteria, which incentivizes facilities to responsibly process certified compostable packaging and produce high-quality finished compost; and

  • strategic fund allocation, prioritizing operational reimbursement, infrastructure upgrades, education and waste characterization studies. 

“Composters 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,” Veteran Compost founder Justen Garrity says. “This new framework brings us into the discussion and spells out the benefits for composters who diversify their feedstocks and accept compostable packaging.” 

As U.S. policy and regulations related to waste reduction and circularity evolve, the Closed Loop Center says it will continue its work to help brands and key stakeholders navigate shifts, alongside its broader work on material innovation, reuse systems and recycling improvement to advance the circular economy.   

The full report is available to download