It’s a change that doesn’t suit everyone, but should relieve many: From 2025, manufacturers of plastic products should contribute to the costs of disposing of the garbage that ends up in the environment every day through careless disposal. This is a radical change, because until now the local authorities had to shoulder these costs themselves. The resistance of the industry is naturally great. But what exactly is it about? An overview:

What the manufacturers should pay for

Whether in parks, streets or forests: too often plastic cups, cigarette butts and containers for food just end up in the area. The local authorities are then responsible for disposal – so far they have borne the costs alone. That should change with the law that the federal cabinet passed this Wednesday. It stipulates that product manufacturers should pay into a fund every year from 2025 – the so-called single-use plastic fund. Municipalities can then siphon off funds from this fund and thus finance the disposal of plastic waste.

The law also provides that the municipalities can use the fund to claim additional expenses in connection with disposal, such as for information campaigns. The affected products include cigarettes with filters containing plastic, plastic beverage containers and balloons.

The amount of the taxes

The manufacturers should pay into the fund for the first time in spring 2025 – that’s what the law says, which the Bundestag is supposed to pass in the coming weeks. The basis for the contributions is then the product volume placed on the market in the 2024 calendar year. However, the specific amount has not yet been determined. The contributions are still being determined on behalf of the Federal Environment Agency (UBA). A new commission provided for in the law is to advise on the determination. The payment system to the municipalities is also still in the works. According to the Ministry of the Environment, there should be clarity on these questions by spring at the latest – by then the legislative process should also be completed. According to initial UBA estimates, the fund’s annual income amounts to up to 450 million euros.

Manufacturers feel left out

The manufacturers who don’t feel taken along are anything but enthusiastic. In a statement, seven industry associations vented their anger, arguing that the fund was “untimely.” In the current energy and cost crisis, politicians must refrain from unnecessary burdens. The signatories include the German Retail Association (HDE) and the Federal Association of the German Food Industry.

They also complain that the UBA should determine the future contributions and not leave the question of costs to the manufacturers themselves. The industry is also annoyed by the uncertainty about the amount of the tax. The Federal Association of German Waste Management, Water and Raw Materials Management (BDE) did not agree with the letter, but also expressed criticism. BDE boss Peter Kurth points to the danger that in future money from the fund could “not be used consistently for its intended purpose”.

How the municipal disposal companies react

The Association of Municipal Companies (VKU), which represents municipal waste disposal companies and city cleaners, welcomes the fund as an “important milestone”. The city cleaning department is increasingly struggling with the fact that used products are simply thrown away, says VKU general manager Ingbert Liebing. “Without the participation of the manufacturers, the citizens would have to pay for the disposal themselves – whether through higher taxes or subsidies from their tax funds.” It is only fair that companies should now also do their part.

Manufacturer responsibility also for other products?

So far, the fund has been limited to products made of single-use plastic, i.e. plastic. That doesn’t go far enough for the VKU. In addition to plastic, pizza boxes, aluminum trays and chewing gum are often found, emphasizes VKU boss Liebing. Politicians must therefore develop the fund into a fund against littering in the future.

Environment Minister Steffi Lemke (Greens), however, emphasizes the added value of what has already been achieved. They worked on this law for two years, and now the corresponding EU directive is finally being implemented into national law. She clearly rejects the criticism of the manufacturers that the fund comes “at the wrong time”. The manufacturers would only have to pay in 2025, says Lemke. This takes into account the current burden. But it also makes one thing very clear: there should be no exceptions or back doors.

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