Recycle or Pay: Maryland’s New Packaging Play

SB 901 introduces recyclability-linked fees, driving investment in recycling, coatings and circular polymers

23 May 2025

Maryland just joined a small but growing club of states rewriting the rules on packaging waste. On May 13, Governor Wes Moore signed SB 901 into law, making Maryland the sixth state to adopt extended producer responsibility (EPR) for packaging. The move aligns the state with California, Colorado, Maine, Minnesota, and Oregon.

The law targets the hidden costs of garbage. Starting in 2028, producers of packaging, from food wrappers to bottle labels, will have to disclose their materials and pay fees based on recyclability. Simple, mono-material formats will get a break. Complex laminates? Expect a penalty.

The shift is lighting a fire under investors. Alterra has raised money from LyondellBasell and Chevron Phillips Chemical to scale its process for breaking down mixed plastics. Dow is backing Xycle’s Rotterdam plant, locking in a stream of recycled feedstock for high-grade plastics.

Coating technology is also heating up. Amcor’s startup challenge is dangling half a million dollars for compostable or recyclable barrier coatings. In Germany, IonKraft just secured €3.5 million to expand its plasma-based tech that makes flexible packaging fully recyclable.

Big food and beverage companies are locking in recycled polymers. Tetra Pak, for instance, is working with dairies in Switzerland, France, and Finland to roll out cartons made with ISCC PLUS-certified recycled plastic from used beverage containers.

The momentum isn’t just local. Analysts at The Business Research Company project the global circular economy will hit $798.3 billion by 2029. A Bain & Company study found that companies embracing circular strategies, from reuse to recycling, generate stronger returns than those that don’t.

For Maryland, SB 901 isn’t just legislation. It’s a signal. Packaging design, corporate investment, and environmental responsibility are converging, and the race is on.