Environment Agency warns about potential removal of incorrect PRNs and PERNs

Last week the EA released a formal communication about the potential removal of incorrect PRNs and PERNs.

Packaging Recovery Notes (PRNs) and Packaging Export Recovery Notes (PERNs) are created by reprocessors or exporters as evidence that they have recycled, or exported for recycling, one tonne of packaging waste in a specific material. This evidence is then generally purchased by compliance schemes on behalf of producers to cover their legal obligations, based on the amount of material they place on the market.

The potential for fraud has long been a concern in the PRN and PERN markets, highlighted by the Environmental Audit Committee (EAC) back in 2018, and the issue of transparency surrounding recycling evidence is one that Ecosurety has long campaigned about.

The EA has now indicated in a direct communication to reprocessors, exporters, packaging compliance schemes and packaging producers that in exceptional circumstances, for example if an operator is uncooperative in removing or rebalancing incorrect PRNs/PERNs, or the non-compliance is of a significant risk to the regime, that they may escalate their enforcement response to the cancellation of reprocessor or exporter accreditation and/or prosecution.

In such circumstances, from 1 July 2021 onwards, they reserve the right to remove and cancel incorrect PRNs/PERNs from the system themselves. This communication marks an important change in the Agency’s position on the role of schemes and what checks they are expected to perform beyond the usual due diligence of checking accreditation lists.

Positive impacts for Ecosurety members

As a compliance scheme, Ecosurety welcome this decision by the EA as we have been openly championing for more transparency in the PRN system for the past five years. This new EA position will act as a warning to any unscrupulous PRN traders, which may help to reduce any fraud in the system.

We have identified four positive impacts for Ecosurety members relating to this news:

1. A minimisation of risk of buying fraudulent PRN/PERNs

Ecosurety already goes beyond due diligence and does not solely rely on EA accreditations to choose the PRN traders to buy from. We have an extensive experience of the PRN market and we carefully maintain an updated list of reprocessors and traders we trust and are confident working with.

2. Ecosurety retains liability, not our members