Extended producer responsibility for packaging in the context of German packaging law
In Europe, packaging is subject to an extended producer responsibility (EPR): companies placing packaged goods on the market must minimise the harm their packaging does to the environment.
From an environmental perspective, the best packaging is no packaging at all. That is why the prevention of packaging is at the very top of the waste hierarchy. The ways society has changed over the past several years are reflected in its use of packaging: online retail and food takeaways are booming as the numbers of both single households and people working full time are rising, all of which is triggering a surge in processed foods and ready meals. The ecological footprint of packaged goods is generally much greater than that of the packaging itself. These factors mean the demands placed on packaging have also increased. In keeping with the principle of prevention, packaging is designed to dramatically extend the shelf life of products. It is precisely this issue that has led to situations where packaging is sometimes used that is only partly suitable for recycling, or that cannot undergo high-quality recycling, for example because of barrier coatings. Another example is small 'single-serving' packaging: it prevents food waste but means more packaging is used and leads to an increase in the number of packaging units. These conflicting ecological goals are a challenge.
That is why it is all the more important that packaging should be reusable or suitable for high-quality recycling where it cannot be prevented. To ensure a level playing field, companies must assume extended producer responsibility for their retail, grouped, shipment or service packaging by paying for its recycling. And to promote high-quality recycling of packaging waste, the entire value chain must be taken into account and greater awareness must be raised among consumers. This is the idea behind the Verpackungsgesetz (Packaging Act), which entered into force on 1 January 2019.
Role, duties and goals: The ZSVR and German packaging law
Producers under the Verpackungsgesetz, including manufacturers, retail companies, importers, mail order companies and online retailers, must pay for the recycling of their packaging that is subject to system participation by concluding a system participation agreement with a system operator. This payment obligation is an early incentive to prevent packaging: assuming extended producer responsibility and paying for their packaging’s recycling is cheaper for those who bring less packaging on the German market. This had worked well in the past for those living up to their responsibility, but there was also a large number of free riders, especially where packaging volumes are high.
An overview of the system operators can be found here.
No company should be able to shirk the responsibility of financing the recycling of the packaging subject to system participation that they place on the German market with their goods. To put a stop to free riding, the Verpackungsgesetz clarified a number of definitions and provisions, and created the Zentrale Stelle Verpackungsregister (Central Agency Packaging Register – ZSVR).
- Parties responsible for products must be registered in the LUCID Packaging Register so anyone can see who they are.
- The ZSVR’s administrative regulations ensure that legal requirements are applied uniformly and that relevant companies (called ‘producers’ under the Verpackungsgesetz) are treated equally.
- The centralised database – the LUCID Packaging Register – enables the ZSVR to transparently check whether all the involved parties have properly reported their volumes.
This means that all producers/distributors will benefit from the envisaged ecological incentives of the Verpackungsgesetz,
- as the companies under obligation meet their extended producer responsibility and
- bear the cost of recycling their packaging that typically accumulates as waste with private final consumers.
Click here for the LUCID Packaging Register.
It is not only companies under obligation that report their packaging volumes to the ZSVR, system operators do as well. The ZSVR uses the volumes reported by system operators at statutory filing dates to conduct checks and to calculate the system operators’ market shares by material group (glass; lightweight packaging; paper, paperboard, cardboard). These market shares are then published.
This is to ensure that the system operators’ recycling costs correspond to their participation volumes creating an even playing field between the system operators. The rules are set by the ZSVR in coordination with the German Federal Cartel Office.
The market shares are calculated as follows: Read on here to learn more.
The statutory recovery and recycling quotas have increased since the Verpackungsgesetz (Packaging Act) first entered into force in 2019. Meeting these targets requires all the parties involved to make a concerted effort. Measures will be required at every stage of the value chain. The ZSVR publishes the statutory quotas together with actual recycling rates to ensure transparency. This is a massive drive for the environmental sector in Germany – new technology that is needed urgently around the globe needs to be developed.
Facts and figures: The system operators’ recycling rates for previous years can be found here.
Every year, the ZSVR develops a minimum standard to measure how recycling-friendly the design of packaging is. After an annual update, the minimum standard is published on 1 September of each year. Using this as a basis, system operators must then create financial incentives to encourage sustainable design in packaging. Doing so is necessary to meet the high recycling quotas and other goals of the Verpackungsgesetz over the long term. It also strengthens the ecological incentives created by system participation fees.
When is packaging recyclable – and what are the advantages of recycling-friendly design? You can find further information on this and on the minimum standard here.
The system operators must provide information about recovery figures and the rationale of separate collection systems, regionally and transregionally. This is defined in the Verpackungsgesetz. If the ambitious recycling quotas set there are to be met, packaging waste needs to be properly sorted. This is where everyone can do their part.
That is why the system operators have started the initiative ‘Waste separation works’ to educate consumers about proper waste disposal and recycling. Further information is available at https://www.muelltrennung-wirkt.de/en/.
The first amended version of the Verpackungsgesetz entered into force in three stages, concluding on 1 July 2022. Find out more about the statutory changes here.