… split Extended Producer Responsibility fees and a ‘’transition to circularity’’ fund
The environmental network Zero Waste Europe (ZWE) proposes addressing the EU’s stagnating circularity rate by using Extended Producer Responsibility (EPR) budgets to finance the transition to circularity, to be mandated in the upcoming EU Circular Economy Act.
This proposal, outlined in ZWE’s “Extended Producer Responsibility for waste reduction” policy brief, includes splitting EPR fees into two distinct budgets: one for waste management and another for waste reduction.
In practice, this budget split would mean:
- Waste management fees to cover the costs of waste management needed to meet collection and recycling targets.
- Waste reduction fees to cover the costs of repair and reuse systems, meeting waste reduction targets.
According to Theresa Mörsen, Waste & Resources Policy Manager at ZWE, “the waste reduction fee should cover, for example, the budget necessary to achieve waste reduction targets, via reuse, repair, refurbishment and similar measures.”
Due to a lack of data on the costs of reduction and reuse systems in some Member States, defining a specific “waste reduction fee” can be challenging. This is why ZWE proposes a bridge measure for an interim period until 2030: a temporary “fund for the transition to circularity” that earmarks a minimum percentage of the Producer Responsibility Organisations (PRO) budget for reduction and reuse activities in Member States.
“Most of the initiatives to boost reuse and repair today, be it repair vouchers or local reusable packaging systems, are financed by the public budget. As treasuries are increasingly under pressure, producers must, in line with the Polluter Pays Principle, bear a greater share of the costs of the transition to circularity. The general mindset is still pretty much stuck with protecting outdated linear business models instead of helping new ones to thrive,’’ adds Theresa Mörsen.
Strong governance, transparent reporting, and legally binding targets for PROs are essential to ensure effective financing of circular business models across the EU and to guarantee a successful transition. The EU set itself a clear target of 22.4% circularity by 2030. However, given that it reached only 12.2% in 2024, this won’t be possible unless the necessary funds are made available.
Source: Zero Waste Europe
