Southeast Asia is steadily progressing toward more consistent and mandatory extended producer responsibility (EPR) systems for packaging, as governments across the ASEAN region intensify efforts to reduce plastic waste and accelerate the transition to a circular economy.
According to Liviana Zorzi, Asia regional specialist at the World Economic Forum’s Global Plastic Action Partnership (GPAP), the region is shifting away from fragmented, voluntary approaches toward legally enforceable and increasingly harmonized EPR frameworks. This evolution follows the ASEAN Declaration on Plastic Circularity, released one year ago, which underscored the need to address plastic packaging waste at its source.
Front-runners and emerging systems across ASEAN
ASEAN countries are currently at different stages of EPR development. Vietnam and the Philippines are leading the region, having implemented mandatory, legally binding EPR schemes for packaging. These countries are setting the pace and providing regulatory reference points for their neighbors.
Other major economies in the region, including Malaysia, Thailand, Singapore, and Indonesia, have introduced voluntary or partial EPR frameworks and are now actively designing or gradually rolling out comprehensive mandatory systems. Meanwhile, Brunei Darussalam, Cambodia, Lao PDR, and Myanmar are laying the groundwork by developing policy foundations and piloting early-stage initiatives.
Despite these variations, momentum toward alignment is building. “Vietnam and the Philippines have established regional benchmarks, with Indonesia, Malaysia, and Thailand close behind,” Zorzi notes. Platforms such as GPAP and its national chapters, known as National Plastic Action Partnerships (NPAPs), are playing a central role in supporting governments and industry as EPR systems take shape.
Greater regional alignment, she adds, would reduce regulatory fragmentation, make compliance easier for businesses operating across borders, and support consistent standards for circular packaging design. Harmonized frameworks could also deliver broader social and economic benefits throughout ASEAN.
EPR as a foundation for food-grade recycling and ESG goals
As EPR systems mature, they are expected to become a core mechanism shaping how fast-moving consumer goods (FMCG) companies secure access to safe, food-grade recycled packaging materials.
Zorzi highlights that food-grade recyclate regulation presents a major opportunity for regional cooperation. Aligning standards across ASEAN would help build economies of scale, support investment in high-quality recycling infrastructure, and give companies greater confidence in meeting regulatory and sustainability requirements.
EPR frameworks are also increasingly linked to corporate environmental, social, and governance commitments. Clear rules and predictable obligations help companies plan long-term packaging strategies while demonstrating progress toward circularity and responsible material use.
Financing the infrastructure needed for circularity
Building effective waste management systems across ASEAN will require significant investment. According to Zorzi, system modeling across the five NPAP countries in the region, Cambodia, Indonesia, Lao PDR, the Philippines, and Vietnam, shows that billions of dollars in new capital are needed to expand collection, sorting, recycling, and reuse infrastructure.
Public funding alone will not be sufficient to meet this challenge. As a result, alternative financing models are gaining traction. Blended finance, which combines concessional funding from development partners with private capital, is already helping to reduce investment risks and unlock early-stage projects in countries such as Indonesia, Vietnam, and the Philippines.
These models are strengthening the pipeline of investable recycling infrastructure while providing FMCG companies with more reliable and transparent supply chains for recycled materials.
Results-based financing and plastic credits gain traction
In addition to blended finance, results-based financing and plastic credit mechanisms are emerging as complementary tools to support waste management expansion.
Under outcome-linked financing structures, investors are repaid only when verified collection or recycling targets are achieved. This approach directs capital toward measurable environmental impact and improves accountability across the value chain.
Plastic credit platforms, meanwhile, allow companies to voluntarily invest in verified recovery and recycling projects, particularly in remote or underserved areas where formal waste systems are limited. When combined with EPR schemes, these mechanisms can help close funding gaps and extend waste management services to more communities.
EPR fee collection itself provides a stable, long-term funding source. When designed effectively, EPR systems can deliver environmental improvements while encouraging innovation and supporting market development. Eco-modulated fees, for example, reward producers for using more recyclable or reusable packaging formats, creating clear incentives for better design and long-term cost predictability.
26 January 2026
26 January 2026
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