On January 06, 2025, the Government issued Decree No. 05/2025/ND-CP, amending and supplementing several articles of Decree No. 08/2022/ND-CP, which provides detailed regulations on the Law on Environmental Protection.
One of the notable points in the Decree is the adjustment of the Extended Producer Responsibility (EPR), including an exemption from recycling obligations of packaging for chewing gum and several bottled beverages when they are collected and reused. Under the previous regulations, the producers have the responsibility for (i) collection, treatment, and recycling obligations towards several products (e.g., chewing gum) or (ii) recycling the collected and reused packaging (e.g., beer bottles, 19L water bottles). These provisions were deemed inconsistent and resulted in difficulties for producers and importers.
Therefore, Decree No. 05/2025/ND-CP is adjusted and clarifies that producers and importers of chewing gum shall not be subject to the recycling obligation for commercial packaging of chewing gum, such packaging is only required to be collected and treated as prescribed instead. Additionally, for packaging that has been brought to market and subsequently recovered, repackaged, and reintroduced into the market by the same producers or importers, the recycling obligation for these producers and importers shall not apply to such packaging.
The most significant new regulation in Decree No. 05/2025/ND-CP is the recycling specifications. Accordingly, compulsory recycling specifications refer to certain recycling solutions designated for each product and packaging type, rather than the requirements of a minimum revoked material or fuel for product and packaging recycling as previously.
Furthermore, under the new Decree, a recycling unit hired by a producer, importer, or an authorized third party to carry out product and packaging recycling must meet the conditions as follows: (i) Obtaining an environmental license or a component environmental license having the recycling contents of such products and packaging in accordance with laws; and (ii) Being authorized by at least three producers or importers who are subject to the recycling obligations under the EPR framework.
Under Decree No. 05/2025/ND-CP, the responsibility to recycle packaging is determined based on the revenue from the products to be recycled, rather than applying to the entire revenue or import value. Producers are also allowed to reserve recycling volumes from the previous year if they have implemented the plan, which creates flexible conditions in fulfilling recycling responsibilities.
These amendments shall apply to groups of products and goods covered under the Law on Environmental Protection 2020, including packaging, electronic equipment, vehicles, and various other products. In addition, enterprises can choose to make financial contributions in stead of direct recycling, without being subject to the minimum material recovery requirements, thereby providing flexibility in fulfilling their recycling obligations.
