Business
11:41 25 March 2025
Post by: WBJ

Polish government planning to overhaul current waste recovery system

Polish government planning to overhaul current waste recovery system
Dr. Katarzyna Michniewska, CEO of Eko Cykl Packaging Recovery Organization S.A.

Controversial Government Proposals on Waste Management Raise Alarm

Businesses in the recycling industry are warning that the government's proposed changes to the waste management system are unconstitutional and could cause recycling costs to skyrocket—by up to 300%. The controversy centers on new regulations for Extended Producer Responsibility (EPR), which will be discussed at the Parliamentary Subcommittee for Waste Management on March 18.

Currently, the EPR system is handled by 20 private packaging recovery organizations, which have supported over 100,000 businesses for two decades. These companies help meet legal recycling targets and assist recyclers. The sector operates under competitive market conditions, with pricing based on actual demand.

Under the new proposal by the Ministry of Climate and Environment (MoCE), the entire system would be dismantled and replaced by a centralized body—the National Fund for Environmental Protection and Water Management (NFOŚiGW). This government entity would assume full control as the sole "public producer responsibility organization," replacing all private actors.

Critics argue the plan will:

  • Triple system costs
  • Function inefficiently under central management
  • Result in new, ineffective fees—passed directly onto consumers, fueling inflation

Currently, producers avoid a product fee by meeting recycling targets. Under the new rules, all producers would pay a fixed fee upfront, regardless of performance. This effectively introduces a new tax without improving waste management.

Legal and Economic Concerns

Dr. Katarzyna Michniewska, CEO of Eko Cykl Packaging Recovery Organization S.A., has submitted a formal objection to Prime Minister Donald Tusk. She argues the plan violates the Polish Constitution, especially protections for acquired rights and the principle of a social market economy. Eliminating private recovery organizations without compensation would amount to expropriation.

“These actions contradict constitutional principles,” her letter states, “and would likely require the State Treasury to pay significant compensation to affected businesses, including foreign shareholders.”

Impact Beyond Business

Beyond legal and economic implications, the proposal would dismantle long-running public education efforts led by recovery organizations. Eko Cykl, for example, operates Bohema House Theatre—the world’s only professional ecological theater. It has reached over 45,000 attendees and supported more than 10,000 educators with free environmental education resources. Losing this would be a cultural and educational setback, especially in the context of the climate crisis.

Flawed Reform Strategy

While the current system has flaws, industry leaders believe it can be improved—particularly through better digital documentation and tracking in the BDO (Waste Management Database). They advocate for reform, not destruction. However, the Ministry’s plan includes eliminating recycling confirmation documents (DPRs), making it impossible to verify if EU-mandated recycling levels are achieved.

Key Risks of the Proposal:

  • New tax burden
  • 300% cost increase
  • Inflation and higher consumer prices
  • Major blow to SMEs
  • Risk of state-funded compensation
  • End of educational and environmental campaigns

(PAP)


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