CONAI: the economic situation leads to an increase in EPR fees for aluminium, paper, and plastic packaging. Decrease, on the other hand, for bioplastic packaging

CONAI, following a series of cost increases related to the collection of packaging waste, amid general inflation, and the simultaneous reduction in revenues from the sale of post-consumption packaging reported by the CIAL, COMIECO and COREPLA Consortia, has assessed the scenario of the corresponding recycling chains – worsened beyond expectations – and seen a reduction in the capital reserves of the three Consortia. It has therefore been necessary to approve the request for an increase in the EPR fee, submitted by the aforementioned consortia, for aluminium, paper and plastic packaging in order to ensure the packaging waste separate collection, recycling and recovery service.

In the current economic situation, the increases have been applied in a timely manner in order to limit them as much as possible and distribute them, starting from 1 April 2024, during the rest of the year.

At the same time, thanks to the consolidation of the start-up phase of the BIOREPACK Consortium, in agreement with the latter, CONAI has decided to reduce the EPR fee for compostable bioplastic packaging.

During the coming year, CONAI will periodically monitor the evolution of the main factors that are difficult to predict but may affect the economic and financial balance of the Consortia.

Also confirmed, starting from 1 January 2024, is the reduction of the EPR fee for wood packaging from 8 euros/tonne to 7 euros/tonne, already announced last summer.

Aluminium packaging

The fee for aluminium packaging will increase from 7 euros/tonne to 12 euros/tonne.

An increase that is a consequence of a gradual reduction in scrap values in the presence of an increase in the amount of waste managed by CIAL. Factors that negatively affect the Consortium’s accounts, with direct effects also on capital reserves, which need to be rebalanced to cope with the possible continuation of the difficult situation in the scrap market.

Paper packaging

The base fee for paper packaging will increase from 35 euros/tonne to 65 euros/tonne.

Following the reduction to 5 euros/tonne, in effect from June 2022 to October 2023, when the extraordinary values of pulp had made this downward revision possible, today the main factors justifying the increase are: reduction beyond expectations, which began in the autumn of 2022, in the market values of pulp; increase in the quantities of packaging waste managed by COMIECO, despite the contraction in the quantities put on the market recorded in 2023; and the need to restore the Consortium’s capital reserves to a level suitable for ensuring continuity in collection and recycling commitments. Indeed, these reserves, due to the decrease in the EPR fee mentioned above, were gradually reduced by more than 150 million euros between the second half of 2021 and 2023.

For the time being, the values of the extra EPR fees to be applied to paper-based polylaminated packaging suitable for containing liquids (20 euros/tonne), to type C packaging (with a cellulose component greater than or equal to 60% and less than 80%, equal to 110 euros/tonne) and to type D packaging (with a cellulose component less than 60% or not made explicit, of 240 euros/tonne) remain unchanged. An assessment in this regard is planned during 2024, effective in 2025.

EPR fee values for paper will thus be as follows:

Plastic packaging

The average fee for plastic packaging will increase from 294 euros/tonne to 398 euros/tonne.

Indeed, between 2022 and the first part of 2023, the average values of the modulated fee for plastic packaging have undergone a significant and gradual decrease as a result of the positive economic situation experienced by the COREPLA Consortium starting from 2021; this also allowed it to draw on capital reserves to meet the needs of the EPR fee. The average fee for plastic packaging in 2021 was 398 euros/tonne, in 2022 327 euros/tonne, and in 2023 294 euros/tonne.

Starting from 1 April 2024, the average fee will therefore revert to the 2021 values, given the need to replenish the reserves to ensure plastic packaging collection and recycling. These reserves, over the course of 2023, have been significantly reduced, partly as a result of a decrease in auction revenues (for which in 2024 there is moderate optimism, since many expect values to improve) as well as an increase in collection and sorting costs (which the COREPLA Consortium has already strived to optimise where possible) linked mainly to the impact of inflation on ANCI-CONAI remunerations.

For 2024, the nine levels in effect since 2023 remain confirmed, with values increasingly linked to the costs required to send the types of packaging included in each level for recycling.

Levels A1.2 and A2, recently adjusted, will not increase.

Level A1.1 will increase from 20 to 24 euros/tonne.

Level B1.1 will increase from 20 to 224 euros/tonne and level B1.2 will increase from 20 to 233 euros/tonne. Two levels with the highest increases: indeed, they benefited most between the second part of 2022 and 2023 from the possibility of drawing on reserves, to which they had contributed the most as a result of extraordinary auction values.

The EPR fee values for these levels thus return to their pre-2021 ordinary values, despite the inflation recorded in the 2022/2023 two-year period.

Level B2.1 will increase from 350 to 441 euros/tonne; level B2.2 will increase from 477 to 589 euros/tonne; level B2.3 will increase from 555 to 650 euros/tonne; level C will increase from 560 to 655 euros/tonne.

 Also starting from 1 April 2024, certain types of packaging will change level.

XPS trays will be reallocated from C to B2.3, thanks to the development of an experimental recycling chain promoted in recent years.

Rigid PP packaging with covering labels made of any polymer, regardless of the presence or absence of perforations/punching, now in level B2.2, will all be reallocated to level B2.1 due to sorting process efficiencies.

Opaque PET bottles, jars, and detergent bottles and the like and/or those with non-punched covering label, as well as their preforms, will be reallocated from B2.3 to B2.2 due to the consolidation of the recycling chain for these items.

Updated lists of plastic packaging in the 9 fee levels will soon be available on the CONAI website.

Below is a summary of the EPR fee values for plastics starting from 2024:

Compostable bioplastic packaging

The fee for compostable bioplastic packaging will decrease from 170 euros/tonne to 130 euros/tonne.

A reduction made possible by the BIOREPACK Consortium’s containment of operating costs and the use of capital reserves generated in these first few years of operation.

Simplified import procedures

This readjustment will also have an effect on the flat rate/simplified procedures for filled packaging imports, which return to values that are nevertheless below those of 2021.

Flat-rate calculations for EPR fees on the weight of packaging alone (tare) on imported goods (total weight without material distinctions) will decrease from 70.00 euros/tonne to 69.00 euros/tonne as from 1 January 2024 (as already announced in July 2023) and to 98.00 euros/tonne as from 1 April 2024.

Starting from 1 April 2024 the rate to be applied on the total value of imports (in euros) for packaged food products will increase from 0.11% to 0.15% and for packaged non-food products from 0.06% to 0.08%.

The flat rate fees/rates will thus be as follows:

The new values of the other simplified procedures will soon be available on the CONAI website.

For any questions and clarifications, please call the toll free number 800337799 or write to the email address infocontributo@conai.org.