INCPEN Member News

Legislation Updates

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Italy - MACSI tax remains scheduled to come into force from Jul-21 - 29 April 2021

• EE producer association APPLiA called on 7-Apr-21 for wider tax exemptions or at least the option for a lump sum payment - for many packaged goods suppliers, the costs of implementing an accounting, management and control system for the MACSI tax would involve an effort disproportionate to their tax obligation.
• Confapi, the federation of small and medium-sized enterprises, called on the Government to stop plastic raw material prices from spiralling out of control. They have already been affected by substantial increases in recycling fees and will at some point also have to absorb the EU levy at EUR 800 per ton of non-recycled plastics.
• Umbrella federation Confindustria called on 15-Apr-21 for a cancellation of the MACSI tax as it would increase ‘competitive imbalances at European level’ and reduce liquidity during COVID recovery.

• Scope: The tax applies to ‘MACSIs’, which comprise SUP products as well as essentially all SUP packaging, whether containing a product or not. In more detail: MACSIs are ‘plastics articles used to contain, protect, handle or deliver goods or food products’ that are made at least partially of plastic materials of synthetic origin and are not designed to be reused for the same purpose for which they were designed.  They may be empty or packed (containing a product). Devices that allow the closing, the marketing or the presentation of articles are also considered MACSIs, as are semi-finished products, including preforms used in the production of MACSIs. 
  
  Exempt are
  • compostable plastics (in compliance with the EN 13432)
  • recycled plastics
  • medical devices and plastic materials used to contain medical preparations.

• Tax rate: The tax is charged at EUR 450 per tonne of virgin plastics used in MACSIs.
• Tax payers must report and pay the tax on a quarterly basis. For MACSIs produced in
  • Italy, the manufacturer or buyer;
  • the EU:
    • in the case of B2B sales: the Italian buyer
    • in the case of B2C sales: the EU based seller
    • other countries: the foreign seller.

• Sanctions: Failure to pay the tax incurs administrative sanctions from 2 to 5 times the tax evaded (but not less than EUR 500), while tax payment delays are punished with a 30% surcharge (but no less than EUR 250). Late declarations incur penalties from EUR 500 to 5,000.
• Tax credit: A tax credit for manufacturers of MACSIs of 10% of expenses (but max. EUR 20K) incurred to adjust production to compostable (bio-based) MACSIs.

Poland - Details of DRS emerge; proposal to overhaul packaging EPR regime imminent - 16 April 2021
 

• Scope: The mandatory DRS will be nationwide and apply to glass bottles with a capacity of up to 1.5L and single-use plastic beverage containers with a capacity of up to 3L. Aluminium containers are not planned to be included in the scope at launch but may be added later.
• Return mechanism: A return-to-retail model is planned. Retailers with a retail area of under 2000sqm will be required to take-back deposit packaging manually and return deposits to consumers, while larger retailers will be required to purchase reverse vending machines to be positioned inside stores. An early-stage draft amendment to the Packaging Act sent to the Legislative Office and the Parliamentary Analyses Office for comments in Mar-21 would allow the Government to subsidize 80% of the purchase costs of the machines through the National Fund for Environmental Protection and Water Management.
• Operation and targets: Producers of DRS packaging will be required to create and organise the DRS. They will have to meet set collection targets and pay ‘product charges’ in the event targets are missed – as currently applied to all EPR-subjected products.
• Deposit amount: Little was revealed about the level of the deposit. However, it was announced that deposits would be set per packaging type and perhaps differ according to the pigmentation applied to glass or plastic. In neighbouring countries with a DRS in place, deposits range from ~EUR 0.02 – 0.05 (PLN 0.1 - 2).

• regulate the interface and financing mechanism between municipalities and industry;
• introduce an obligation for producers to finance the waste packaging regime through two mandatory channels:
  • fees paid to packaging PROs and
  • additional levies on volumes POM paid to the Fund for Environmental Protection and Water Management (NFEP);
• uniformly regulate PROs, incl. transposing the CEP’s min. requirements on PROs; and
• regulate the DRS [It remains unclear through which text(s) the DRS will be regulated].

• establishing a single PRO to streamline the interface between municipalities and producers. Single PRO models are gaining traction in the EU as requirements on PROs have become more prescriptive;
• imposing full cost coverage by producers, including financial responsibility for the management packaging in ‘mixed municipal waste’ and litter cleanup (beyond those stipulated in the SUPD);
• expanding the scope of the planned mandatory DRS for aluminium beverage packaging and including a remuneration mechanism for participating retailers.

Norway - First part of EPR review published as consultations on CEP transposition end - 12 April 2021
 

• Free-riding remains a large issue for all waste streams, exacerbated by the a trend towards online shopping and distance sales. In regards: -
  • plastic packaging, free-riders are responsible for an estimated 30% of plastic packaging POM. A new packaging register - as proposed in consultation is expected to assist in identifying these producers. Currently there is no registration requirement but EPR-obligated entities with a packaging POM above 1 ton per annum must must join a PRO.
  • WEEE and batteries, the Agency approached 200+ suspected free-riders in H1-20. By Oct-20, about half complied and 12 were issued fines. The Agency is closely following EU developments on distance seller EPR obligations.
• Competition between PROs (3.8): Competition between PRO’s emerged only in 2014/5. The Agency notes ‘challenges in several of the current producer responsibility schemes that can be linked to distortions of competition’ and ‘believes that there is a need to assess whether changes in the regulations can contribute to a more efficient use of society's resources’ which this may include assessing where competition is appropriate. As an example of an inefficient use of society's resources, the Agency mentions several PROs contracting collectors in the same geographical area with the result that none get sufficient materials to fill their trucks.   For general packaging, there are currently 2 competing PROs: Grønt Punkt Norge (GPN – comprising 5 approved non-competing material centric PROs – and Norsirk. For beverage packaging - which is tax-discounts if part of a DRS - 3 competing PROs are operating 9 voluntary DRS’: Infinitum (2 approved sub PROs), GPN (4 approved sub-PROs) and 3 smaller DRS.
• Transposition of the CEP’s minimum requirements: Although a number of the requirements of the WFD’s Art. 8a (min. requirements on PROs) are already being met, the Agency sees a need to a) improve transparency (information on membership, recycling fees and the process of selecting contractors), b) regulate the use of modulated fees and c) clarify the financing obligations of the PROs in order to promote full cost recovery.

• Norway’s failure to meet the EU’s 2019 65% collection target (the 2018 collection rate was about 50%): This is due to a number of reasons, most notably considerable volumes unauthorised (off-grid) WEEE collection and the resulting illegal export, insufficient and often inaccurate reporting from the treatment sector, an underdeveloped re-use sector and the high incidence of small WEEE arising in the MSW stream.
• Municipalities’ demands for higher compensation: All municipalities are required to collect WEEE from households and the commercial sector, however disagreements with PROs concerning cost coverage remains a problem, especially for tasks which are conducted beyond the municipalities’ legal obligations. As such the Agency sees a need to further specify the roles and responsibilities of the municipalities and the financing obligations of the PROs.

• Ambiguities with the definitions in the legislation: The definition of “producer” under Chapter 7 of the Waste Regulations ultimately covers both producers and importers of packaging as well as producers and importers of packaged products (packers/fillers). This has led to producers and return systems (PROs) having differing interpretations of who ultimately is the obligated party. Additionally, the definitions also lack differentiation between packaging material types.
• A lack of clarity concerning the interface between PROs and municipalities: The interface between municipalities and the PROs is lightly regulated, resulting in unnecessarily complex negotiations and the hindering of cooperation between the two sides – an element essential to the performance of the regime given municipalities play a crucial role in the collection mechanism. Note: On 2-Dec-20, an Amendment to the Waste Regulations requires PROs to collect waste packaging (for which they are approved) on an ongoing basis throughout the country.
• Ambiguity concerning the calculation of return rates: Legislation does not provide a methodology for calculating the ‘return rate’ (only that it is calculated as “the ratio between the volume of packaging recycled and the amount of packaging POM by the members of a PRO in one calendar year” and that further (limited) details are provided in the PRO approvals) and as such, differences are observed in the PROs’ calculation methodology. Revised calculation methodology was proposed by the Agency in 2014 (which excluded energy recovery) but was abandoned. The Agency proposes to revisit this issue.
• Review of the beverage container tax system: Exemptions to the packaging material tax – applied to beverage containers – are currently provided for containers that participate in a system that achieves a high return rate (for reuse or recycling) of 95% or more and discounts are provided for rates below 95%. In parallel with the review of the return rate methodology, the Agency is planning to review the tax policy on beverage containers – which has remained unchanged for years in a market that has seen significant transformation.
• POM data is unreliable: The accuracy of national packaging POM data is questioned as POM data are largely estimated and calculated using data from the PROs, which are not publicly available. Uncertainty and questions arise concerning the ‘true’ obligations of the PROs, whether their obligations are met and the effect of their intransparency on competition between them.

• WEEE collectors (holding a permit under the Pollution Control Act) that are not linked to the approved PROs to conclude agreements (through written consent) with municipalities and retailers to collect their WEEE. Collectors operating on behalf of PROs are exempt from the agreement requirement;
• retailers and municipalities to display posters at their collection points stating that WEEE will not be relinquished without consent.

• A change to the producer definition: The current packaging producer definition “anyone who professionally imports or produces in Norway packaging or packaged products for placement onto the Norwegian market” covers both packaging producers and packers/fillers. To clarify who the obligated parties are, the Agency proposes two alternatives, one primarily targeting packaging converters,  the other primarily fillers/brandholders:
  • First proposal: “anyone who commercially
    • imports packaging or packaged products for placement onto the Norwegian market or
    • produces packaging in Norway for placement onto the Norwegian market”.
      
      This definition predominantly targets the ‘packaging producer’ and not the ‘Norwegian producer of packaged products’ (the ‘packer’, ‘filler’ or ‘brandholder’), likely resulting in fewer obligated producers and less administrative burden on the consumer goods sector.
       
  • Second proposal: “anyone who on a professional basis
    • fills or otherwise uses packaging that is not service or transport packaging (filled at the POS) to package a product in Norway,
    • imports packaged products for placement onto the Norwegian market,
    • imports service or transport packaging for placement onto the Norwegian market, or
    • produces service or transport packaging for the Norwegian market in Norway”.
      
      This definition targets the packer/filler of packaging, as well as the importer and producer of POS (service & transport) packaging and leaves out the ‘importer or producer of packaging’, resulting in a larger number of obligated producers. The argument for targeting the packer/filler is their greater influence on package design and the materials used. Under this definition, as many more entities would be obligated, pressure would be put on the packaging producers themselves to take-over and assume the obligations on behalf of the numerous packers/fillers.

• Revised material specific collection targets: The Agency proposes material-specific recycling targets (which the packaging PROs – and newly the beverage packaging PROs under Chapter 6 – are responsible for meeting) in line with the EU CEP, excluding plastic which is set lower than the EU at 47% from 2025 (EU: 50%) and 52% from 2030 (EU: 55%):

• Establishment of a new digital packaging register: The creation of a packaging register is proposed to hold data on packaging producers, POM data from the Norwegian Customs Directorate and identify free riding producers. The Register will be linked to the EEE and batteries registers and will be financed by the approved PROs according to market share.
• Revision of methodology for calculating the ‘return rate’: The Agency proposes to revise the return rate calculation methodology to bring it in line with Decision (EU) 2019/665 amending Directive 2005/270/EC.
• Revision of the reporting and record keeping requirements on PROs: PRO’s reporting requirements should include data on reusable packaging and plastic carrier bags POM and a requirement to separately report materials of multi-material packaging constituting >5% of total weight. A requirement to report packaging materials separately (as opposed to packaging types) is clarified.
• Beverage packaging PROs are subjected to the recycling targets, information and reporting requirements imposed on packaging PROs under Chapter 7 of the Waste Regulations.

• draft Regulations on the sorting of bio and plastic waste would require municipalities to separately collect household food, garden and plastic waste (plastic packaging and SUPs) and meet the food and plastic waste targets (plastic waste: 50% in 2025 increasing to 70% in 2035; food waste 55% in 2025 increasing to 70% in 2035). Businesses that generate ‘household like' food, garden and plastic waste are to sort their waste and deliver it for recycling. The annual additional costs – namely infrastructure/sorting and administrative costs – are estimated at NOK 665 (EUR 65) million per year up to 2035 for municipalities, and NOK 285 (EUR 28) million per year for the commercial sector.
• a draft amendment to the RoHS regulations would impose a labelling requirement on SUP sanitary products, wet wipes, tobacco products and beverage cups, as per Art. 7 of the SUPD.

France - Parliament adopts ban on single-use polystyrene packaging from 2025 - 06 April 2021
 

• present a high level of risk for the natural environments due to their toxicity when degrading - they represent 3.2% of floating debris in the Mediterranean and have proven negative effects on the reproduction and metabolism of marine fauna, in particular oysters.
• are not recycled and disrupt the sorting and recycling of other household packaging waste - they represent 42% of plastics incinerated and 27% of waste in landfills.

• large retailers and food brands ‘have already committed to no longer use styrene polymers and co-polymers by 2025’ in the French Plastics Pact. Note: the pact itself only mentions abolishing PVC and EPS (expanded polystyrene).
• alternative materials for PET, PP and PE with operational recycling channels are already widely deployed.

1.  As of January 1, 2030, retail businesses with an area greater than or equal to 400 square meters devote at least 20% of their consumer goods sales area, or an equivalent reference ratio or proportion of turnover, to the sale of products presented without primary packaging, including bulk sales.
2. A decree specifies the objectives to be achieved - depending on the categories of products, health and safety requirements as well as the adaptations required in the practices of producers, distributors and consumers.
3. Adopted addition: To encourage the players concerned to promote bulk over single-use plastic packaging. From 2025, the packaging mentioned in (I.), made entirely or in part of styrenic polymers or co-polymers, are prohibited.

Ireland - Second consultation on DRS: Government has opted for a centralised model - 02 April 2021
 

News from Industry

• Co-op to ditch plastic ‘bags for life’ over pollution concerns; With more than 1.5 billion “bags for life” sold each year Jo Whitfield, the chief executive of Co-op Food, said plastic pollution was a “massive issue” for retailers. “Many shoppers are regularly buying so called “bags for life” to use just once and it’s leading to a major hike in the amount of plastic being produced,” she explained.
• Amcor develops ‘breakthrough’ recyclable healthcare packaging; Amcor has announced customer trials of ‘the world’s first recyclable* polyethylene-based thermoform blister packaging’.
• HMRC in dark over illegal waste exports and fly-tips; HMRC has admitted it has no idea how much landfill tax is lost to illegal exports and fly-tipping, a parliamentary report has said. The Public Accounts Committee, which monitors Whitehall spending, said HM Treasury focused on the revenue raised by environmental taxes but showed little concern for their effects on achieving environmental targets.
• Sharpak presents new strawberry punnet with no bubble pad; Sharpak Aylesham has announced the launch of SP Airlite, a range of recyclable strawberry punnets with a protected design that mitigates the need for bubble pads, which the company claims is a UK industry first.
• Record high for aluminium recycling; Aluminium beverage can recycling hit a high of 82% in 2020 industry body Alupro has said.
• Asda launches new second-hand vintage range; In partnership with vintage fashion wholesaler ‘Preloved Vintage Wholesale’, the new concept will be rolled out across the UK, with customers able to buy vintage, retro and second-hand branded pieces, preventing thousands of tonnes of garments going to landfill each year.
• Oddbox pledges to save 150,000 tonnes of food from going to waste by 2025; Oddbox, which rescues ‘too odd’ or ‘too many’ fresh fruit and vegetables directly from growers and delivers it to members, is marking Stop Food Waste Day (28th April) with the release of its first annual Do Good Report.
• Researchers found possible solutions for hard-to-recycle plastics; Researchers have developed a new method to convert single-use plastic waste into ready-to-use molecules for jet fuels, diesel and lubricants. It requires 50 percent less energy than other technologies and doesn't add carbon dioxide into the atmosphere.
• Ireland government urged to include glass bottles in scheme; Glass bottles should be included in Ireland’s deposit return scheme (DRS) in a bid to tackle the country’s waste crisis, according to Danish experts.
• Research: Lactic acid bacteria can extend the shelf life of foods; Researchers at the National Food Institute have come up with a solution that can help combat both food loss and food waste: They have generated a natural lactic acid bacterium, which secretes the antimicrobial peptide nisin, when grown on dairy waste.
• School trust launches uniform recycling campaign; A leading school trust is launching a new campaign alongside uniform supplier, Trutex. Outwood Grange Academies Trust, which consists of over 30 schools across the North of England, is hoping the campaign can help lower the cost of uniforms by making high-quality recycled uniforms available.
• How to recycle old wind turbine blades; Old wind turbine blades could be recycled and reused under plans being developed by Aker Offshore Wind, Aker Horizons and the University of Strathclyde.
• Astra Zeneca recycles waste with Rocket Composter on-site; The pharmaceutical and biopharmaceutical company Astra Zeneca has invested in an A900 Rocket Composter from Tidy Planet to process 24 tonnes of annual food and green waste in its manufacturing site in Macclesfield.
• New digital recycling heatmap illustrates need for ‘new policy’ – Suez; SUEZ recycling and recovery UK has today (26 April) released an interactive digital map of local authority recycling data, showing recycling rates for the 2019/20 financial year and the change over the previous period. 
• Asda switches chicken packaging from plastic trays to pouches; Asda is moving its chicken range out of plastic trays and into the new pouches, cutting plastic by up to 50%.
• Retask the Mask: UK recycling campaign tackling face mask pollution; Statistics reveal 58 million masks are used a day in the UK, making them one of the most common forms of plastic pollution, with an estimated 1.5 billion masks already entering the ocean.
• New french recycling plant installs Machinex sorting robots; The Veolia Group buys three sorting robots from Machinex for a new recycling plant in France. Their installation is scheduled for Fall 2022.
• Plans progress for commercial polystyrene recycling plants in Europe; INEOS Styrolution, Recycling Technologies and Trinseo have announced that they have reached a significant milestone in their plans to build commercial polystyrene (PS) recycling plants in Europe with Recycling Technologies having been selected as the technology partner.
• New OPRL refill labels support reusable pack increase; With brands and retailers increasingly offering refillable packaging as alternatives to single use models, OPRL is launching a new labelling range to support consumers in adopting new behaviours.
• Apple’s Independent Repair Provider programme expands globally; Apple’s Independent Repair Provider programme will soon be available in more than 200 countries, nearly every country where Apple products are sold, Apple recently announced. Launched originally in 2019 and expanded to Europe and Canada last year, the programme enables repair providers of all sizes access to genuine Apple parts, tools, repair manuals, and diagnostics to offer safe and reliable repairs for Apple products.
• Korean rice brand opts for SIG’s microwaveable Heat&Go aseptic carton; Nucare winter edition is offered in SIG’s packaging format combiblocMini 200ml and is filled on standard SIG filling machines. SIG’s Heat&Go microwaveable packaging innovation opens up a new channel for hot vending and using microwave ovens. In the past it has been a much more cumbersome process, with additional preparation required.
• Renault wants to generate 1 billion euros from 'circular economy' by 2030; Renault wants to turn a french factory into a research, recycling and repair centre and achieve more money with it than from assembling cars by 2030.
• Superdry and Morrisons sign up to clear polythene recycling initiative; Mainetti, the global retail solutions provider, has started working with a number of retailers – including Superdry, Nutmeg at Morrisons and Very.co.uk – to provide a ‘world first’ closed loop clear polythene recycling initiative, Mainetti Polyloop.
• Veolia and SUEZ reach merger ‘agreement in principle’; Veolia and SUEZ have announced that their respective boards of directors have reached an agreement in principle on the key terms and conditions of the merger between the two groups.
• Viridor and TOMRA collaborate for Scottish deposit return scheme bid; Viridor and TOMRA have formed a partnership to bid for the design, build and operation of the Scottish deposit return scheme (DRS) counting and sorting centres. Scotland’s DRS, set to launch in 2022, will require consumers to pay a 20p deposit when they buy a glass bottle, can or PET plastic container. The money is then reimbursed when the empty containers are returned to a return point.
• UK Government may ban oxo-degradable plastics following consultation; The UK Government says it may introduce a ban on oxo-degradable plastics, following its consultation seeking evidence to develop standards for biodegradable, compostable and bio-based plastics.
• Every Can Counts announces its first drink brand partnership in Ireland; Every Can Counts has announced its first ever drinks brand partnership in Ireland with carbon neutral, Irish start-up, The Naked Collective, to help inspire and encourage more people to recycle their empty drink cans.
• Waitrose-funded projects to tackle plastic pollution making a ‘real difference’; Plastic eating fungi and technology to prevent fishing nets being lost at sea are among projects that Waitrose says are making a ‘real difference in the fight against plastic pollution’.
• Drone technology and AI used in UK-first to tackle litter; Bournemouth, Christchurch and Poole will be the focus of a ground-breaking pilot scheme this summer which will see drone-based technology used to tackle the issue of litter.
• Morrisons to ditch plastic bags for life from stores; Morrisons claims that the move will save 3,200 tonnes of plastic per year. The retailer removed single-use plastic bags in 2017. Shoppers can buy paper bags for 30p and they will be available alongside other reusable options including string, jute, cotton and reusable woven bags, priced between 75p and £2.50.
• Government to explore making tobacco industry responsible for smoking litter in England; Tobacco companies may have to pay for the litter created by cigarettes under plans being explored by ministers to protect the environment and save local councils money.