The European Parliament has approved new binding rules to reduce food and textile waste. By 2030, Member States will need to cut food waste by 10% in processing and 30% in retail, hospitality, and households. At the same time, producers placing textiles on the EU market will be required to finance the collection, sorting, and recycling of textile waste through Extended Producer Responsibility (EPR) schemes.
There is no doubt that reducing waste is a priority. Each European generates an average of 132 kg of food waste and 12 kg of textile waste every year, and less than 1% of textiles are currently recycled into new products. EPR systems can be an effective part of the solution. But their success depends not only on ambitious targets, but on careful design and inclusive implementation.
At EECI, we argue that the effectiveness of EPR systems always hinges on how they are designed, how costs are distributed, and how stakeholders are involved. Drawing on our research and experience with circular economy instruments, we recommend the following principles to guide implementation.
Preparing for EPR: engaging markets and consumers
To ensure that EPR delivers real results rather than new burdens, policymakers should:
- Raise awareness and invest in education. Public understanding of recycling and circular economy principles must be strengthened through information campaigns and active involvement of the full supply chain.
- Support innovation and eco-design. Producers should be incentivised to develop products that are more recyclable and durable.
- Assess and upgrade infrastructure. Collection and recycling networks must be ready to handle the increased volumes efficiently and cost-effectively.
- Encourage consumer participation. Reward schemes and motivational tools can help ensure that products are actually returned.
- Complement EPR with economic incentives. Tax measures, green procurement, or tradable certificates can reinforce the system.
Key design features for effective EPR
Based on our analysis, EECI recommends that future EPR schemes incorporate the following structural features:
- Transparent and flexible financing with eco-modulated fees that reward sustainable practices.
- Balanced incentives and penalties to drive continuous improvements in recycling and reuse.
- Realistic, measurable targets aligned with long-term strategies.
- Accessible yet cost-efficient collection networks, based on clear analysis of existing capacities.
- Well-chosen market organisation – whether through new or existing Producer Responsibility Organisations (PROs).
- Regular re-authorisation of PROs to guarantee transparency and accountability.
- Full inclusion of e-commerce and SMEs, ensuring that cross-border trade does not unfairly disadvantage domestic producers.
- Robust monitoring and transparent reporting supported by modern technologies.
- Ex-ante cost assessment to ensure financial sustainability and predictability.
A call for balanced implementation
EPR has the potential to make Europe’s circular economy ambitions a reality. But poorly designed systems risk creating administrative burdens and market distortions without delivering meaningful environmental outcomes.
To succeed, EPR schemes must balance environmental ambition with economic practicality, engaging all stakeholders, ensuring proportional costs, and keeping market functioning intact. Only then will they help reduce waste while supporting innovation and competitiveness.
Written by Michael Fanta