Waste disposal associations support plastic levy

The planned plastic levy in Austria is intended to incentivise recyclable packaging.
Gabriele Jüly, President of the Association of Austrian Waste Management Companies (Image: VOEB)

The Association of Austrian Waste Management Companies (VOEB) and the Working Group of Austrian Waste Management Associations (ARGE AWV) welcome the Austrian government's decision to introduce a levy on non-recyclable plastic packaging. The measure is intended to encourage producers and importers to make greater use of recyclable materials and promote the circular economy.

The planned national step follows on from the EU-wide levy on non-recycled plastic packaging, which has been in place since 2021 and is currently financed from public budget funds. In Austria, these payments recently totalled over 170 million euros per year. In the future, companies that place non-recyclable plastic packaging on the market will be required to contribute directly to the financing. The expected revenue is also estimated at around 170 million euros.

Steering effect for packaging design and choice of materials

According to the associations, the levy creates a targeted economic incentive to orientate packaging more towards recyclability. Gabriele Jüly, President of the VOEB, said: „We have been calling for years for there to be incentives for recyclable packaging. After all, plastic that is only used once consumes energy and resources unnecessarily. A plastic tax would have a clear steering effect, which our industry welcomes in the interests of an efficient circular economy.“

From the perspective of the waste and resource management industry, it is crucial that the levy is designed in a practicable way and strengthens the mandatory use of recyclates. Only a permanently high demand for recycled plastics can ensure a functioning circular economy. The industry has signalled its willingness to get involved in the concrete implementation.

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Responsibility along the value chain

ARGE AWV also sees the planned levy as an important step towards the polluter pays principle. President Christian Macho said: „We need to keep plastics in circulation. A plastic tax makes producers more accountable and makes it clear that they are responsible for the non-recyclable plastic packaging they put into circulation.“ The associations hope that the measure will lead to additional investment in research and development as well as a stronger focus on recyclable materials in the packaging sector.

The organisations are also positive about the planned levy on parcel shipments from third countries. This could help to reduce the growing volumes of packaging waste and the import of materials that are difficult to recycle, for example from online retailers.

Classification in relation to the existing EU levy

The EU-wide plastic levy remains in place regardless of the national structure. Since 1 January 2021, member states have had to pay 80 cents per kilogramme of non-recycled plastic packaging to the EU. In Austria, around 300,000 tonnes of plastic packaging waste are generated every year, of which around two thirds are not yet recycled, according to reports. Whether the federal government will introduce an additional levy or finance the existing EU levy according to the polluter-pays principle in future remains to be seen.

Source: Association of Austrian Waste Management Companies