German Plastic Tax: A Step Towards Environmental Sustainability

In alignment with global efforts to reduce plastic pollution and promote environmental sustainability, Germany has recently joined the countries implementing a plastic tax. Following the footsteps of Spain and UK, Germany introduced its plastic tax through the “Single-Use Plastic Fund Act” of May 11, 2023, (EWKFondsG in German) for short. Having taken effect on January 1^st 2024, with the first levy payable in 2025, this initiative aims to address the environmental impact of single-use plastic products.

 

Background of EU Law

The foundation of Germany’s plastic tax lies within the framework of EU’s Green Deal, initiated on December 11, 2019. This comprehensive plan strives to achieve climate neutrality and sustainability by 2050, emphasizing measures to reduce greenhouse gas emissions and promote the circular economy. Directive 2019/904, issued on June 5, 2019, by the EU, serves as a guide for member states to implement strategies that reduce the environmental impact of plastic products.

 

Levy’s Estimated Revenue

The single-use plastic levy will lead to estimated revenues of up to € 436 million for the German federal government, state governments and municipalities, which will be transferred in full to the eligible public-law waste management authorities and other entitled legal entities, in accordance with the legal requirements of the EWKFondsG.

 

The Levy Rates

The levy rates were adopted by the German Bundestag and made public in the Federal Law Gazette (Federal Law Gazette I 2023, No. 274) in the form of the Ordinance to the EWKFondsG of 11 October 2023, EWKFondsV.

The following levy rates in euros per kilogram apply to the single-use plastic levy under Section 12 of the Single-Use Plastic Fund Act:

• food containers- € 0.177
• bags and foil packaging – € 0.876
• non-deposited beverage containers – € 0.181
• beverage containers with deposit – € 0,001
• beverage cups – € 1.236
• lightweight plastic carrier bags – € 3.801
• wet wipes – € 0.061
• balloons – € 4.340
• tobacco products with filters and filters for tobacco products – € 8,972

 

 

EWKFondsG’s Objective and Details on “Single-use” Products and Manufacturers

The primary objective of EWKFondsG is to prevent the harmful effects of certain single-use plastic products on the environment and human health, while encouraging innovative and sustainable alternatives.

EWKFondsG covers the first-time provision of certain EWK products on the German market. These are products that consist entirely or partially of plastic, i.e. artificially produced polymers (in accordance with Art. 3 No. 5 of the REACH Regulation) and include:

• Containers for foodstuffs whose contents are intended for immediate consumption
• Bags and film packaging made from flexible material, such as wrappers
• Beverage containers with a filling volume of up to 3 liters
• Beverage cups including their closures and lids
• Wet wipes intended for household and personal care
• Balloons intended for consumers
• Tobacco products with filters and the filters themselves
• Lightweight plastic carrier bags

Levy’s earnings will be directed towards funding future waste management costs incurred in connection with the disposal and reduction of certain SUP products. The responsibility for compliance falls on manufacturers, importers, and sellers operating within Germany, who must register with the Federal Environment Agency and fulfill their reporting obligations.

 

Requirements for Market Participants

To navigate the complexities of EWKFondsG, market participants (legal entities and partnerships with legal capacity) must assess their involvement and obligations under the law. This includes determining whether their products fall within the scope of the legislation, initiating the required registration procedures and addressing categorization issues. Additionally, internal processes and systems should be reviewed and adapted to ensure compliance with reporting and payment requirements.

 

Conclusion

Germany’s implementation of the plastic tax underscores the nation’s commitment to sustainability. By holding stakeholders accountable for the environmental impact of single-use plastics and incentivizing the adoption of eco-friendly alternatives, EWKFondsG represents a significant step towards building a greener, more sustainable future. As the law takes effect, proactive engagement and compliance from all parties will be essential in achieving levy’s objectives and maintaining a cleaner and healthier Germany for the generations to come.