Spain’s war on waste: Packagers oppose heavy taxation while recycling infrastructure remains insufficient

22 Nov 2022 --- The Spanish packaging and waste industries are battling to improve circularity while keeping the country’s sectors competitive within Europe. New laws set to penalize single-use plastics through prohibition, taxes and reduction targets starting in 2023 are being met with criticism as energy prices and inflation are placing additional burdens on industry players. 

A new tax is being imposed on single-use plastic containers and another on waste sent to landfills or for incineration. The aim is to help Spain reduce the amount of waste it generates to 15% of its 2010 level by 2030. 

Announced in April this year, the new taxes have a broad scope and will charge businesses €0.45 per kg of non-recycled plastic packaging. This scheme is envisaged to collect approximately €724 million (US$743 million) annually for the government. 

The new waste laws also ban the marketing of single-use plastic products and cosmetic products and detergents containing microplastics. The destruction or disposal of unsold nonperishable products, including textiles, toys or electrical appliances would also be banned. 

However, with economic burdens peaking, the pressure placed on the packaging and packaging waste industry is inviting attacks on Spain’s socialist Prime Minister Pedro Sanchez, whose policies are being branded “communist and sectarian” by political rivals. 

WIthout an effective DRS in place, industry says taxing plastic packaging is unfair.Spanish waste
According to Greenpeace, Spain is the fifth-largest producer of single-use bottles in the EU. Very few of them are recycled – the Global Waste Index 2022 found that Germany produces much more waste than Spain – 632 kilograms (1,390.4 pounds) versus 455 kilos per capita — but that half of this waste is recycled, whereas Spain’s recycling quota only amounts to 86 kilograms per person.

Last week, Aimplas, Instituto Tecnológico del Plástico and Cicloplast held the sixth edition of the Plastics and Circular Economy Debate Day. About 130 professionals participated along with speakers from public administrations, universities, technology centers and companies in the sector. 

Representatives emphasized that the Spanish plastic sector comprises 3,000 companies that generate more than €31 billion (US$31.8 billion) per year and provide direct employment to 93,000 people and indirect or induced employment to 255,000 people.

To achieve the government’s targets, improved infrastructure – such as a deposit return scheme (DRS) – would need to be implemented along with significant other investment plans to boost the country’s ability to handle the waste. 

Tackling corruption 
Last year, a Changing Market Foundation (CMF) report alleged that major FMCGs like Coca-Cola, Unilever and Danone were successfully and intentionally derailing the introduction of DRS in Spain.  

The report accuses non-profit organization Ecoembes of attempting to greenwash packaging for these companies through a scheme called “Reciclos,” which uses deposit and reward schemes connected to consumers’ mobile phones. 

However, CMF says the age restrictions, return limits and scarcity of regions where this scheme operates show it is merely an attempt by major packagers to delay and derail costly legislation. The report also details how Ecoembes’ board of directors was paid a total of €2.1 million (US$2.5 million) in 2018.

Ecoembes called the report misleading and asserted the Reciclos scheme would soon be running nationwide. 

By Louis Gore-Langton

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