The announcement of prices has triggered a major debate
There has been overwhelming attention and a lively debate in the media about producer responsibility on packaging throughout the summer. The lively debate was sparked when VANA, as the first producer responsibility organisation (PRO), announced prices to our member companies at the end of June. We are still waiting for a political clarification of the uncertainties.
Price differences of up to 4000 %
The prices that form the basis for the ongoing payment for the handling of member companies' packaging waste have long been awaited among members and other stakeholders, and have proved to be significantly higher than the estimates made by the Environmental Protection Agency (EPA) from 2021 (COWI report). The large difference is partly due to the fact that the fees announced by the municipalities, which were over 2 months delayed, are significantly higher than anticipated, and the quantities of household packaging reported by companies are significantly lower than expected. This means that it is expected that there is a larger volume that has not been reported but is included in the prices (the so-called free rider problem). Additionally, it has been shown that there are fee differences between municipalities of up to 4000% on, among other things, cardboard, and especially the prices for glass are very high despite the potential for both reuse and a high degree of recycling.
A solution is urgent
The price level has raised a number of questions and concerns, and we are pleased that our announcement has helped to kick-start the debate, and that both our members, partners, and founders have contributed to alerting both the media and ministers over the summer, so that hopefully the rules can be rectified before everything kicks off on October 1st.
“Now we are holding our breath and of course pushing where we can, to ensure that good solutions are delivered that can clear away the many uncertainties for our member companies. It is urgent to get control over the issues regarding, among other things, free-riders, discrepancies in municipal prices and fees, and other costly and complicating obstacles to the otherwise good intentions in the legislation. And we are of course ready to manage any new lower producer fees from the municipalities, should this be announced. If the municipalities lower their fees, our members can expect a price adjustment before we go into operation,” states CEO Marianne Roed Jakobsen.”
Three concrete proposed solutions
VANA points to 3 solution possibilities to tackle the price chaos, which we have also highlighted during the implementation both in the collaboration committees we have participated in and the many consultation responses we have sent to the authorities along the way:
1) recalculating key figures for billing with the municipalities for the portion of waste that is not packaging
2) redistribution from DPA based on our previous consultation proposal
3) clarification and definition of the municipalities' service level and thus fee calculation.
”We take pride in being part of the solution. We want change, and it is our firm belief that we achieve this best together and through cooperation. We are therefore also ready to engage in dialogue with all parties and look forward to participating in the IT operations meetings and advisory board that Dansk Producentansvar will start next week,” explains Marianne Roed Jakobsen.
Ready to start
For when the producer responsibility enters into force this autumn, the packaging waste will 'change hands' from the municipalities to the collective organisations, which will be the "cornerstone of the new system" as we, on behalf of our member companies, ensure that as much packaging waste as possible is recycled.
Read more about the background and framework for producer responsibility here.
”The producer responsibility for packaging is just around the corner, and we are eager to get started. We are ready to start with ambitious agreements on all fractions,” says CEO Marianne Roed Jakobsen, and continues: "We are quite satisfied with the frameworks and agreements we have negotiated on behalf of our members in all the areas where we have influence. I am pleased that we have succeeded in achieving significant economies of scale for the benefit of both members and the environment.”