Poor Plastic Recycling Costs Finland EUR 90 Million Annually
Finland faces a EUR 90 million annual penalty due to failing to meet EU plastic recycling targets. Retailer K Group has collected over 1,100 tonnes of plastic packaging from its stores for recycling since 2023.
Finland is incurring an annual penalty of EUR 90 million to the EU because it is falling short of the bloc's plastic recycling targets. Achieving these targets necessitates more efficient sorting of plastic waste. K Group, a major Finnish retailer, has collected 1,138 tonnes of plastic packaging waste from its stores and other business locations for recycling since the implementation of separate collection in 2023.
Plastic packaging waste is generated daily at K-food stores, K-Rauta, and Onninen outlets from the handling of goods. K Group initiated separate collection of plastic packaging from over 300 business locations as part of its circular economy agreement, following an amendment to the Finnish Waste Act. In 2023 alone, 545 tonnes of plastic packaging were collected within the group.
"The separate collection of plastic packaging has elevated K Group's high-quality waste management to a new level. Previously, a significant portion of store waste, consisting of plastic packaging, was sent for incineration as energy or mixed waste. Now, this material can be recycled," stated Noomi Jägerhorn, Vice President of Sustainability at Kesko.
The EU's target for plastic packaging recycling is 50 percent, while Finland currently recycles only about a third. Improving this rate requires a concerted effort from the entire value chain, including packaging manufacturers, businesses, the public sector, and consumers. Turunen of Finnish Packaging Recycling RINKI Ltd emphasized that plastic packaging waste generated by workplaces, hospitals, schools, and restaurants also needs careful sorting.
The shift towards recycling also brings economic benefits. K Group estimates it has saved over EUR 100,000 to date through separate collection, with further savings expected as incineration costs rise relative to recyclable materials. Jägerhorn highlighted this as an example of how sustainability initiatives can be economically sound, preventing usable plastic from being incinerated while the country pays penalties.