The single-use plastic fund is coming

So now it's finalised: the single-use plastic fund is coming. A slightly amended version of the bill passed the Bundestag on 2 March and now only needs to be passed by the Bundesrat. The target start date is 2025. The German Packaging Institute, among others, has criticised the bill.

So now it's finalised: the single-use plastic fund is coming. A slightly amended version of the bill passed the Bundestag on 2 March and now only needs to be passed by the Bundesrat. The target start date is 2025. The German Packaging Institute, among others, has criticised the bill.

What is it about? As early as November 2022 the Federal Ministry for the Environment presented a draft law to establish a so-called single-use plastic fund. The law stipulates that manufacturers of single-use plastic items should contribute to the costs of waste disposal in public spaces. Depending on the quantity put into circulation in each case, a levy would have to be paid to one of the Federal Environment Agency (UBA), which then distributes these funds to the municipalities. The funds will be used to finance waste management and awareness-raising measures. With this law, the German government wants to comply with the EU Single-Use Plastics Directive against single-use products. According to the initial results of a research project by the Federal Environment Agency, the fund's annual income is estimated at up to 450 million euros.

The view of the Ampel coalition is clear. The „passed-on“ costs incurred by local authorities for waste disposal are a failure of the market. „We are therefore correcting this market failure and at the same time protecting the environment from littering, and - what I particularly like about this law - we are also supporting those who free us from the flood of plastic in our parks, on paths and in forests every day, namely our local authorities,“ commented Green MP Jan-Niclas Gesenhues, head of the Environment, Nature Conservation, Nuclear Safety and Consumer Protection working group, in the Bundestag debate on the draft law on 2 March.

Criticism from the dvi

After the draft in November had already caused displeasure among the associations, the German Packaging Institute (dvi) with harsh criticism of the project. „Unfortunately, all the fears expressed by industry and its associations from the outset have materialised. The new levy on single-use plastic packaging for to-go food and drinks and carrier bags is anything but expedient,“ says Kim Cheng, Managing Director of the association.

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According to the dvi, the new tax would lead to a Double levy, because the distributors of the packaging concerned pay licence fees for the collection and disposal of their packaging anyway. The littering problem cannot be solved by the new levy either; in the view of the association, the law is merely a symptom control measure.

Approval from local authorities

On the other hand, the draft law has received approval from local authorities, particularly from the waste management industry. Patrick Hasenkamp, Vice President of the Association of Municipal Enterprises (VKU), commented on the draft: „It is It is high time that the high municipal cleaning costs caused by single-use plastic products are no longer passed on to the general public of tax and fee payers., but should be imposed on manufacturers. It is now up to them to make greater use of reusable systems and develop more environmentally friendly business models.“

The VKU is particularly pleased about the so-called evaluation clause. According to this, a review is to be carried out relatively soon, whether the fund should not be extended to other disposable products made from other materials. The legislator is thus fulfilling a VKU demand for the fund to be expanded into an „anti-littering fund“. In the future, the VKU believes that Chewing gum, pizza boxes or aluminium trays be included in the manufacturer financing of municipal cleaning services. So it remains exciting.

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