MEPs back waste exemption for small businesses amid circular economy push

MEPs back waste exemption for small businesses amid circular economy push
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Small and micro businesses based in the EU could be temporarily exempted from having to appoint an authorised representative in every member state where they sell products under waste-related rules, after MEPs backed a targeted suspension.

The European Parliament adopted its negotiating position ahead of talks with EU governments on changes affecting producers of packaging, batteries, textiles, footwear, electronics and single-use plastics, the parliamentary press service reported on Tuesday.

Under existing EU rules, producers placing products on the EU market pay fees to help fund the collection, sorting and recycling of those products when they become waste, a system known as extended producer responsibility (EPR).

Companies must also appoint an authorised representative for EPR compliance in each country where they sell.

MEPs supported narrowing a suspension proposed by the European Commission so it would apply only to EU-based small and micro enterprises — defined as firms with fewer than 50 employees and annual turnover or a balance sheet under €10 million — rather than to a broader range of companies.

The exemption would run until 2035, or until a more comprehensive “circular economy act” is adopted.

A circular economy act refers to planned EU-wide rules intended to cover how products and materials are kept in use for longer through measures such as reuse and recycling.

What would and would not change

MEPs said the suspension would not alter other EPR obligations, such as waste-prevention requirements or fees paid under the scheme.

They also called for better information exchange between member states, interoperable digital systems and common reporting requirements for companies operating across the EU single market.

The report’s lead MEP, Ingeborg ter Laak of the centre-right EPP group in the Netherlands, said “unnecessary administrative burdens should be reduced” while companies continued to take responsibility for the waste they produce.

The Parliament’s position on waste batteries and packaging waste passed by 616 votes to 9, with 39 abstentions.

A separate vote covering textiles, footwear, electronic appliances and single-use plastics passed by 612 votes to 8, with 39 abstentions.

Negotiations on the final laws can begin once the Council of the EU — representing EU member states — has also agreed its position.


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