Packaging waste recycling
Unfortunately, the dialogue and consultation on waste management, initiated by the Environment Ministry, did not materialize with any concrete results in improving the legal framework on packaging recycling.
It also did not generate any significant impact on the performance of packaging waste collection.
Moreover, the lack of implementing rules to the recently adopted legislation has also generated more confusion among packaged product manufacturers and importers.
Today, the market is “flooded” by all sorts of offers / proposals to meet packaging recycling obligations (more fanciful than others), which most businesses can not properly assess because they do not have the appropriate skills to their analysis.
The absurd (unconscious!) Legislative proposal to reduce the packaging tax from 2 lei / kg to 0.3 lei / kg (Law 420/2016) demonstrates once again the lack of a strategic approach to the recycling of packaging waste in Romania.
Considering that packaging waste generated in households represents 55-60% of the total packaging placed on the national market and their collection has not registered any significant progress, in 2017 the fulfillment of the recycling obligations by the producers and importers of packaged products will achieve only through a cumulation of solutions: responsibility transfer, individual recycling solutions and payment of the fee to the Environmental Fund Administration (for unfulfilled objectives).
Each of these solutions presents a number of advantages and disadvantages for manufacturers and importers of packaged products.
Clearly, establishing an optimal strategy for meeting recycling obligations for packaging waste is an extremely difficult task for any producer or importer that operates on the national market.
Many of them will have to turn to consultants, strategists or industry specialists for:
- Assessing regulatory issues (current and future) as well as other legal requirements;
- \Identifying probable scenarios and their applicability;
- Analyzing the identified scenarios and their implications based on cost-benefit, risks and requirements, probability and impact.
The recent attempts to modify the economic model of recycling obligations, initiated by industry representatives and certain associations, give us the hope that in 2018 Romania will have a new economic recycling of packaging waste, more realistic, more efficient and fair for all those who have responsibilities in the recovery and recycling of packaging waste.
Until that time, however, 2017 marks an extremely difficult year for all manufacturers and importers of packaged products.
About the author:
Marius Brinzea has managerial experience of more than 20 years, he is a graduate of the Competitive Strategy Executive Program within INSEAD, he has worked in managerial positions both in Romania and abroad, providing consultancy and involvement in a series of projects in Europe, USA, and South America.