A guide to Recycling Assessment Methodology (RAM) and EPR
If your business uses packaging, you may have heard the terms RAM and EPR banded about this year – but what do they mean?
RAM stands for Recycling Assessment Methodology and EPR is shorthand for Extended Producer Responsibility. The latter is key legislation that will have significant impact on businesses using packaging and putting it on to the UK market.
With the first round of EPR levies on the horizon, EPR and the RAM are a big concern to many businesses. So, in this article we’ll take a whistlestop tour of Recycling Assessment Methodology and EPR, as well as reviewing ways in which businesses can prepare their packaging to mitigate the costs associated with this environmental regulation.
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What is the Recycling Assessment Methodology (RAM)?
The Recycling Assessment Methodology (RAM) is a framework for assessing the recyclability of packaging that ends up in UK households.
At a basic level, RAM assesses packaging based on the UK’s current recycling infrastructure, considering collection, sorting and processing potential of packaging materials. It then gives them a RED, AMBER OR GREEN rating.
RAM was developed by Defra, as part of Extended Producer Responsibility legislation and it will be used to modulate EPR fees from 2026.
What is Extended Producer Responsibility (EPR)?
Extended Producer Responsibility (EPR) is a signature piece of UK regulation that shifts the financial and reporting responsibility for packaging waste from local authorities to the businesses that produce and place packaging on the market.
From 2025, businesses in scope of EPR will be required to cover the full net cost of collecting and disposing of packaging waste. This cost will be charged to businesses through annual fees based on the weight and type of packaging companies put into UK households.
This legislation aims to reduce unnecessary packaging, drive more sustainable material choices and ultimately increase recycling rates across the UK.
For businesses, this means greater scrutiny of packaging designs and data collection, as well as significant costs if you’re using a lot of packaging. If your company places over 25 tonnes of packaging on the UK market annually and has a turnover above £1 million, you’ll need to register, report detailed packaging data. Larger businesses with a turnover of £2m and handling 50+ tonnes will also be liable for EPR fees.
Key Impacts of EPR on UK Businesses
The impact of EPR legislation will be wide reaching. Some impacts include:
- Increased costs – businesses will be required to cover the full net cost of collecting, sorting, recycling and disposing of household packaging waste via modulated fees
- More detailed reporting requirements – companies must submit more granular data on packaging materials, formats, weights
,and whether items are household or non-household - Greater accountability for circularity – obligated businesses must assess the recyclability of their packaging, as hard to recycle materials will incur higher fees. Materials that promote a circular economy will attract lower fees
- Significant operational change – internal processes and systems will need to be updated and robust for data collection and auditing to meet ongoing EPR reporting deadlines
- Pressure to update & optimise packaging – brands will need to prioritise lightweight, recyclable packaging choices to minimise fees and environmental impact
- Reputational considerations – non-compliance could have financial and reputational repercussions. On the flip side, companies that embrace more sustainable practices could see improved customer perception
How RAM works and will impact EPR fees
How RAM works
The Recycling Assessment Methodology is used to evaluate the recyclability of each packaging component based on material type, format and how it’s collected and processed in the UK.
Each item is assessed against a national list of packaging materials that are routinely collected for recycling by local authorities. If a material is widely collected and can be effectively reprocessed, it’s classed as recyclable. If not, it may be considered non-recyclable — even if it technically can be recycled — because the infrastructure to do so isn’t widely available.
When assessing a packaging material via the RAM, you consider 5 stages:
- Classification – the type of material
- Collection – if it can be collected at kerbside or via collection schemes
- Sortation – if the material can be sorted easily using current UK infrastructure
- Reprocessing – if the material needs specialist processes or could contaminate reprocessing
- Application – whether the material can be repurposed into new products, contributing to a circular economy
In addition, there are material-specific considerations that must be accounted for. For example, if flexible plastics contain any carbon black pigment in their masterbatch, they are an automatic red.
While some materials are automatic reds, there are also some materials that will be exempt, such as reusable packaging (if it has not been imported) and select drinks containers, as well as exported packaging.
How the RAM will impact EPR fees
Introductory fees being charged in 2025 for EPR are modulated by packaging material type (e.g. paper or glass etc). From 2026 fees will also be calculated factoring in how easy a material is to recycle. Enter the Recycling Assessment Method, which allows companies in scope of EPR to understand how their packaging will be classified and taxed.
The RED, AMBER OR GREEN rating assigned to a piece of packaging will dictate if a business will be charged the base material fee, an increased fee or a discounted fee.
It’s expected that the basic calculation will be:
Weight of material in tonnes X Base fee per material X Recyclability factor = EPR FEE
But what will the recyclability factor be?
- GREEN – green rated packaging is expected to be discounted versus amber or red items
- AMBER – amber packaging fees will be paid at the base material fee cost
- RED – fees for red rated packaging will be multiplied to increase itfrom 2026 fees for 2025 packaging use, will be 1.2 times the base fee
- from 2027 fees is forecast to be 1.6 times the base fee
- from 2028 fees are expected to rise to 2 times the base fee
In simple terms, the recyclability factor is going to financially penalise businesses using harder to recycle packaging, whereas those using materials easy to recycle will pay lower fees.
Ways to prepare for RAM & EPR fee modulation
So, if you’re in scope of EPR, how can you prepare for the RAM and fee modulation?
Our experts have made the following suggestions to prepare for EPR and fee modulation…
Reduce packaging use
As EPR fees will be charged per tonne, using less packaging is a no brainer. Therefore, it’s worth considering if you need to use all the packaging SKUs you buy.
Are there opportunities to rationalise your packing use? Could one box fit a range of products? Are you using too much void fill?
Asking these questions can help you identify opportunities to reduce the volume of packaging you use and in EPR fees.
Optimise packaging to make it lighter
Packaging optimisation is the way forward. Fitting your packaging size, specification and design to your products will be a key component in battling rising costs.
Just simple changes can make your packaging lighter, helping you mitigate EPR fees.
For example, swapping to a high- performance cardboard that’s lighter for your boxes could pay significant dividends and improve your sustainability at the same time! Lighter packaging not only helps minimise the impact of EPR fees, but it also helps you reduce transport costs and associated CO2 emissions.
Swap to easier to recycle materials
With RAM in mind, making appropriate sustainable packaging swaps could help you lower the impact EPR fees. Paper-based materials attract the lowest base fee and items like plain cardboard are largely expected to be green rated.
It’s worth noting that while swaps that enhance recyclability can help, they should be done so with careful thought for your full supply chain journey through to delivery, as well as your business’ sustainability goals.
Collect robust packaging data
Collecting your packaging accurately is a must. If yu’re in scope of EPR and the RAM, you need to be collecting data about:
- Packaging activities
- Packaging types
- Packaging class
- Materials and weights
- Nation of sale
Making use of supplier data in e-trading systems or dashboards from compliance partners will help ease the burden. For example, at Macfarlane we have developed specialist dashboards and tools like The Packaging Optimiser which can help make reporting easier.
Conclusion & further support
Understanding Recycling Assessment Methodology (RAM) and Extended Producer Responsibility (EPR) is essential for businesses looking to future-proof their packaging strategies.
This new methodology provides a consistent way to measure how recyclable packaging components are in real-world UK conditions, all while EPR places greater emphasis on businesses taking cost-ownership for household packaging waste.
At Macfarlane Packaging, we’re helping customers navigate this shift by offering guidance on packaging optimisation and material selection—enabling you to mitigate EPR expand and enhance sustainability across your supply chain.
If you need EPR support, you can contact us or learn more by clicking here.