CNMC ANALYZES THE REGULATION THAT WILL REGULATE PACKAGING AND PACKAGING WASTE

The National Commission for Markets and Competition (CNMC) has launched a report on the Draft Royal Decree (PRD) on packaging and packaging waste. The document details that the regulatory framework for waste management introduces a series of obligations with the objective of protecting general interests related to public health and environmental conservation.

The CNMC welcomes the nationwide validity of the authorization of collective systems, the inclusion of “ecomodulation” criteria in the financial contributions of producers and the introduction of safeguards against anti-competitive behavior in extended producer responsibility systems.

Among the recommendations included in the document is the risk of exchanges of commercially sensitive information and other risks to competition. Precisely to avoid possible bad practices, the following measures are established, among which are the extended responsibility models, which should be evaluated periodically; the management of commercially sensitive information by independent third parties is recommended, as well as ensuring that public information and reports do not contain any sensitive information.

The paper also recommends further justification of other reuse and packaging collection targets in order not to create unjustified competitive disadvantages between different beverage containers, product types or packaging (household, commercial and industrial).

With respect to UNE-EN standards, it is necessary to determine the precise obligations in the regulatory text instead of referring to UNE standards and, if they are maintained, to include a mention of the possibility of using equivalent regulatory standards.

Regarding prevention and eco-design business plans, the document proposes a greater justification of the thresholds for their obligatory nature, more flexibility in terms of time and a more precise delimitation of permitted activities. In the case of collective systems, it is necessary to specify that the costs of preparing such plans should only include the obligated companies.

Although it is positive that a solution based on the recognition of national effectiveness is proposed, it is recommended that the terms “specifications and precisions” that can be introduced in the authorization of the system by the regional authorities be made more precise, in order to avoid unjustified differences at the territorial level.

In the financial contribution section. The CNMC appreciates the fact that the financial contribution made by the producer of the product establishes a system of bonuses and penalties that is transparent with respect to the ecomodulation criteria. However, it is recommended that this system be reviewed periodically to ensure its transparency.

Also in the area of financial guarantees, it is proposed that the calculation formula be made more precise, that there be freedom to choose the type of guarantee and that ecomodulation criteria be included in its distribution.

In relation to the agreements of the Public Administrations with the extended producer responsibility systems, the document includes the promotion of public contracts when the Public Administrations intervene in the organization of waste management in order to open the provision of the service to competition, as well as including the possibility for the Public Administrations to communicate to the CNMC any indication of anti-competitive practices in this area.

Finally, in relation to the deposit, return and refund systems, the report recommends an efficient design of the DRS and the implementation of control procedures in order to avoid or minimize fraud.