With Europe’s circularity rate stagnating at approximately 12%, far below the 2030 target of 24%, Zero Waste Europe (ZWE) has released a landmark proposal to fundamentally restructure how waste management is financed. The organization is calling for the upcoming EU Circular Economy Act to mandate a “split” in Extended Producer Responsibility (EPR) fees and the creation of a dedicated transition fund to shift financial responsibility from taxpayers to polluters.
The current waste management landscape across the European Union remains heavily focused on collection and recycling, often neglecting the higher tiers of the waste hierarchy: prevention and reuse. According to the ZWE policy brief published on February 17, 2026, the financial burden of establishing repair and reuse networks currently falls disproportionately on public authorities. ZWE argues that to achieve true circularity, the “polluter pays” principle must be strictly applied to the producers of the waste.
The “Split EPR” Model: Funding Prevention, Not Just Disposal
The cornerstone of the proposal is the mandatory division of EPR budgets into two distinct categories. Currently, fees paid by producers are almost entirely consumed by the logistical costs of waste disposal and recycling. ZWE’s “Extended Producer Responsibility for Waste Reduction” brief outlines a dual-budget structure:
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Waste Management Fee: This would continue to cover the operational costs of meeting collection and recycling targets, ensuring infrastructure for materials that have already entered the waste stream.
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Waste Reduction Fee: This new, dedicated budget would strictly fund the infrastructure for repair, refurbishment, and reuse systems.
Theresa Mörsen, Waste & Resources Policy Manager at Zero Waste Europe, emphasized that this second fee should specifically cover the costs of “reuse, repair, refurbishment, and similar measures,” such as national repair vouchers or local reusable packaging networks, which are currently underfunded.
A Bridge to 2030: The “Transition to Circularity Fund”
Recognizing that many Member States lack the immediate data to calculate the exact costs of reuse systems, Zero Waste Europe proposes an interim “bridge” measure. For the transition period leading up to 2030, the organization calls for a “Fund for the Transition to Circularity.”
This fund would require Producer Responsibility Organisations (PROs) to earmark a mandatory minimum percentage of their total budget specifically for prevention and reuse activities. This ensures that a portion of producer contributions is protected from being absorbed into traditional recycling operations, providing the necessary seed capital for circular business models.
Quantitative Targets for a Circular Future
Beyond financial restructuring, Zero Waste Europe advocates for strict, legally binding quantitative limits to be integrated into the Circular Economy Act. Key metrics proposed include:
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Residual Waste Limit: Capping non-recyclable (residual) waste at 175 kg per capita by 2030 to force a reduction in absolute waste generation.
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Bio-waste Purity: Establishing a maximum physical impurity threshold of 5% for separately collected bio-waste to ensure high-quality composting.
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Absolute Reduction Goals: Setting municipal solid waste reduction targets of 20% by 2030 and 30% by 2035.
Moving Beyond “Recycling Only”
The proposal criticizes the EU’s over-reliance on percentage-based recycling targets, which can improve even as total waste volumes grow. Zero Waste Europe demands mandatory mixed waste sorting before any incineration or landfilling occurs, ensuring that no recoverable materials are lost. Furthermore, the group advocates for reclassifying waste incineration as “disposal” under the Waste Framework Directive, thereby removing its current economic advantages over circular alternatives.
Summary: Incentivizing Prevention
The message from Zero Waste Europe to the European Commission is clear: the Circular Economy Act, expected in late 2026, will only succeed if it makes waste prevention a financial necessity for manufacturers. By splitting EPR fees and establishing a transition fund, the EU can finally decouple economic growth from resource consumption and meet its ambitious 2030 circularity goals.