The German government is planning a new plastic levy that is intended to generate additional revenue of 1.4 billion euros per year. This measure, which aims to shift the costs for non-recycled plastic packaging onto the producers, is sharply criticised by Werner & Mertz. The company warns that the levy could further burden the already struggling recycling industry in Germany and jeopardise investments in recycling facilities.
Since 2021, EU member states have already had to pay 80 cents per kilogram for non-recycled plastic packaging. In Germany, this corresponds to around 1.7 million tonnes of plastic waste, and thus 1.4 billion euros, which have so far been covered by tax revenues. The new levy, which makes no distinction between packaging made from virgin material and recycled plastic, could further reduce demand for expensive recyclate. This would further exacerbate the economic situation of recycling companies, which are predominantly small and medium-sized.
Werner & Mertz owner Reinhard Schneider expresses concern about the lack of incentives for using recyclates and the resulting risks for the circular economy.
„The proposed German plastic levy would not be helpful in its current form: it represents an additional burden on Germany as a business location, without any promotion of the circular economy. Instead, we call for eco-modulation within the scope of Section 26 of the VerpackG, which would provide a steering effect and support climate protection as well as German raw material resilience.“
Reinhard Schneider, Owner of Werner & Mertz
Call for alternative approaches
Instead of a plastic levy, Werner & Mertz is proposing an alternative solution to promote high-quality recycling. The idea is for all manufacturers placing plastic packaging on the market to pay a slightly increased licensing fee, which would be paid to a neutral body. This body would then pay out reimbursements for the quantity of recycled materials placed on the market that are higher than the fees paid. This is intended to create a financial incentive to use recycled materials and effectively support the circular economy.
Source: Werner & Mertz
