Compensation for commercial waste
The waste-producing company has the practical responsibility for ensuring that the packaging waste is treated. The packaging waste is usually transferred to private waste collectors.
Compensation
The following points are clarified in the model below:
1. Producers have the financial responsibility for the packaging they place on the market, which ends up in commercial waste. They pay costs for this to the producer responsibility organisation (PRO) they are a member of.
2. Waste-producing companies can seek compensation for their expenses related to the collection and treatment of packaging waste. The company still pays for the part of the waste that is not packaging.
3. The producer responsibility organisation (PRO) pays compensation for the costs of handling commercial packaging waste to one of the following:
- waste-producing company
- waste collector, who applies on behalf of their customers.
VANA is working on the specific model for compensation payment and updates regularly.
The waste-producing company must apply for compensation from the producer responsibility organisation (PRO) that has been assigned the payment obligation for the fraction and municipality where the waste-producing company is physically located based on the p-number.
The fractions that can be applied for are:
- cardboard packaging waste
- paper packaging waste
- metal packaging waste
- glass packaging waste
- plastic packaging waste
- food and beverage carton packaging waste
- wood packaging waste
- packaging waste correctly sorted as residual waste
- packaging waste in hazardous waste.
To calculate how much producers (via VANA) need to pay waste-producing companies for commercial packaging waste, the Danish Environmental Protection Agency sets key figures, which are adjusted once a year.
Calculation
The actual calculation of compensation is based on the guidelines outlined in the appendix 12 of the statutory order on packaging.
VANA calculates the payment for the collection, transportation, and treatment of commercial packaging waste from waste producers using the formulas below:
- Amount to be paid = number of tons * allocation key for packaging share * (key figures for collection + key figures for treatment).
For combined collection, the following formula is used:
- Amount to be paid = number of tons * allocation key for combined collection * allocation key for packaging share
* (key figures for collection + key figures for treatment).
Definitions for formulas for calculation
The number of tons is the amount of waste that the waste producer has generated and requested payment for within the given payment period.
The allocation key for packaging share consists of the allocation keys outlined in tables 4-7 in appendix 8. The producer must use these allocation keys when calculating their costs.
The allocation key for combined collection consists of the allocation keys detailed in table 2 in appendix 8 for waste fractions, collected via municipal collection schemes, that are gathered through combined collection. The producer must use these allocation keys when calculating their costs.
Key figures for collection and key figures for treatment comprise a total market price for collection, transportation, and treatment, including also pre-treatment and marketing of waste materials. In calculating the payment, the producer must use key figures for costs for both collection and treatment, which are set by the Danish Environmental Protection Agency. The producer must use the applicable key figures that are available at the time of the calculation, as indicated on the Danish Environmental Protection Agency's website, cf. § 68.
The Danish Environmental Protection Agency establishes key figures for the collection and treatment of commercial waste based on a basic figure for a current market price for treatment and transportation, respectively.
The basic figures are continuously price-regulated, among other things, by using indices for marketing prices, and are multiplied by price efficiency factors to adjust key figures, reflecting an efficient collection and marketing.
Returned quantities:
- Companies that have taken back their own packaging waste and report this as returned to their collective scheme cannot simultaneously seek compensation for the collection, transport, and treatment of commercial packaging waste that originates from the company’s available packaging.
Waste that is part of a municipal collection or bring scheme:
- Waste-producing companies that have their waste picked up as part of a municipal household collection, or that deliver their waste in a bring scheme (recycling stations), cannot seek compensation, as the costs for packaging waste are covered by the municipality's fee for collection, which is included in the producer responsibility. This means that the fee for collection or use of the recycling station should become lower.
- Waste-producing companies that have their waste collected by a municipality that separately collects commercial waste from household waste cannot seek compensation, as this right to compensation has been transferred to the municipality.
Packaging waste with profit:
- The Danish Environmental Protection Agency has indicated that: "if you, as a waste-producing company, have a completely clean load of packaging waste from which a total profit can be obtained for sale, you should not request payment." VANA is in dialogue with the authorities to clarify how this should be interpreted and handled in practice.
Key figures for commercial packaging
Compensation to the waste-producing companies is calculated, among other things, by using Miljøstyrelsen's key figures and the distribution keys specified in the statutory order on packaging.
The key figures cannot be equated with the prices that the companies must pay for handling commercial waste, as other factors also contribute to the price calculation. The key figures are therefore part of the overall calculation of the price, which you must pay for collection, transport, and treatment of commercial packaging waste.