On 11 February the Federal Cabinet approved the draft for the new Packaging Implementation Act (VerpackDG). Werner & Mertz now warns that without targeted incentives for high-quality recycling, the circular economy in Germany could be significantly weakened by 2030.
„Missed opportunity: There will hardly be a functioning recycling economy in Germany by PPWR 2030!“ - with these drastic words cleaning products manufacturer Werner & Mertz reacts to the draft of the new Packaging Implementation Act (VerpackDG) passed by the German Federal Cabinet. From Werner & Mertz's point of view, the draft falls short.
Although there were repeated calls in advance for a level playing field, i.e. a level playing field for high-quality recyclates in particular, to be created in Germany, and there are concrete solutions as to what a balanced incentive system could look like, this aspect has been completely ignored in the new law. This is all the more regrettable as there are already effective incentive systems in many other European countries.
„Instead of high-quality recycling, the new law promotes downcycling, if at all. But that is a dead end. With this decision, the BMUKN and BMWE are visibly prolonging the investment backlog for the entire recycling industry in Germany.“
Reinhard Schneider, Werner & Mertz owner
German recycling industry suffers
Company owner Reinhard Schneider argues that the VerpackDG thus contradicts the European Packaging Ordinance PPWR, which is intended to promote the use of high-quality recyclates. However, as key parts of the PPWR will not take effect until 2030, the industry cannot wait until then. The German recycling industry is already suffering massively - in recent months, an increasing number of sites in the plastics recycling sector have closed, plants have been shut down and insolvencies have been filed, as industrial demand for high-quality recyclates has continued to fall due to price factors.
According to Werner & Mertz, recyclers, most of whom are SMEs, need incentives and certainty to invest in high-quality sorting technologies right now. They cannot wait until 2030, as the financial lean period is too long for companies that are already struggling financially and the construction of sorting facilities requires a longer lead time, they say.
Bonus-malus system required
Werner & Mertz proposes a bonus-malus system as a solution. Companies that use virgin plastic would have to pay a tax, while the use of high-quality recyclates would be financially incentivised. „This system is neither overly complex nor unreasonable - it creates exactly the financial incentive needed to increase industrial demand and trigger the necessary investments in high-quality recycling,“ says Schneider.
In addition to ecological arguments, Schneider also refers to geopolitical aspects. A stronger circular economy could reduce dependence on fossil raw materials and thus contribute to resilience. „Resilience is a key factor for Germany and Europe, and it is precisely now that we need to free ourselves from dependence on and blackmail over fossil raw materials. The VerpackDG urgently needs to be revised to achieve this.“
Source: Werner & Mertz
