Plastic Tax: EU Tax on Non-Recycled Plastic Packaging
Since 2021, a levy on non-recyclable plastic packaging has been in effect for all EU member states. Germany currently pays this so-called “plastic tax” out of the federal budget. As part of the negotiations on the 2027 budget, the EU levy is now set to be shifted to companies—with the goal of creating incentives for sustainable and recyclable packaging.
What exactly is the plastic tax?
The plastic tax is an EU levy that member states have been required to pay to the EU since 2021. It is levied on non-recycled plastic packaging. The amount of the levy is calculated based on each country’s recycling rate. The basic idea is that countries that recycle less should pay more.
Packaging materials are considered recycled only if they are subsequently processed into new products or materials. If packaging materials are shipped to another EU member state for recycling, they may be counted as recycled only in the country where they were collected.
The specific details and implementation of the EU plastic tax at the member state level are left to the individual countries.
How is the plastic tax calculated?
The exact amount of the fee is calculated as the difference between the weight of packaging waste generated in a given year and the amount recycled in that same year.
A fee of 0.80 euros must be paid per kilogram of packaging waste—of which one-quarter (0.20 euros) remains in the member state, and three-quarters (0.60 euros) goes to the EU.
According to “Plastic Europe,” Germany has been paying the European Union 1.4 billion euros annually since 2021 for the approximately 1.7 million metric tons of non-recycled plastic.
What is the money from the plastic tax used for?
Revenue from the levy goes into the EU budget. It is part of what is known as the EU’s own resources and is intended, among other things, to help repay the NGEU (“Next Generation EU”) recovery program. The funds are also to be used for climate protection measures, such as promoting the circular economy.
With the levy on non-recycled plastic packaging, the EU is pursuing several goals:
- Reducing Plastic Waste
- Promoting the Circular Economy
- Funding for Environmental Measures
- Raising Environmental Awareness
Plastic tax in Germany: plans to pass the cost on to businesses starting in 2027
In Germany, the plastic tax has not yet been passed on to companies—the levy has been paid to the EU from the federal budget. That is now set to change: During negotiations on the 2027 budget, there was discussion about passing the levy on to companies starting in 2027.
The EU plastic tax is to be passed on to companies that place packaging on the market in Germany for the first time. With this measure, Germany plans to implement an extended producer responsibility system, similar to those already in place in other countries, such as the United Kingdom. Affected companies are not required to pass the tax on to consumers. However, it is likely that the higher costs will be reflected in prices.
The tax is intended to reward manufacturers who use recycled materials or produce packaging that is easy to recycle. This will help keep plastics in the cycle and facilitate their reuse. At the same time, the tax creates an incentive to avoid unnecessary packaging and make reusable packaging more attractive.
everwave and the removal of plastic from the environment
Here at everwave, we work every day to keep rivers and waterways around the world free of plastic. Using trash collection boats, barriers, and manual cleanup efforts, we remove packaging waste from rivers and waterways. This work is essential to combating plastic pollution—but simply collecting trash from the environment isn’t enough to solve the problem permanently.
That is why it is important that companies that contribute plastic waste to the circular economy are held accountable. Plastic pollution can only be addressed by reducing plastic waste, increasing the use of recyclable packaging, and strengthening the circular economy—in combination with cleanup projects.
