Germany Introduces "Plastic Tax" - Disposable Plastic Fund Act

Germany has officially implemented the Disposable Plastic Fund Act (Einwegkunststofffondsgesetz, EWKFondsG), introducing a new levy on specific single-use plastic products. The act, passed on May 11, 2023, came into effect on January 1, 2024, with the first payments anticipated in 2025.

The law aims to reduce the environmental impact of certain single-use plastic items and encourage sustainable business practices. Collected funds will be channeled into a dedicated account to reimburse public waste management authorities for costs associated with the collection, cleaning, and reduction of these products.

This regulation is part of the EU's broader "Green Deal" initiative, which seeks to achieve climate neutrality by 2050. Although the first payment is still over a year away, businesses are advised to prepare for the new obligations and clarify their responsibilities with the German Federal Environment Agency (UBA).

The scope of EWKFondsG covers specific disposable plastic products, with a focus on food packaging such as containers, film packaging, and beverage cups. Other items include certain plastic carrier bags, wet wipes, and tobacco product filters. The law broadly defines "producer" to encompass all market participants who first place these products on the German market.