You've probably heard of eco-participation or the EPR tax, but you sometimes feel overwhelmed by the complexity of environmental regulations?

You're not alone.

Extended Producer Responsibility (EPR), often misunderstood, is more than just a tax. If you're in charge of finance or compliance, and need to understand in detail what this scheme means for your company, you've come to the right place.

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• Extended Producer Responsibility imposes a financial obligation on companies introducing products onto the French market for the first time to participate in the management of recycling and recovery of waste from their end-of-life products.
• This financial contribution, known as eco-contribution, varies greatly depending on the products you sell, as the recyclability of the materials used in your products has an impact on the actual costs of recycling.
• Products subject to EPR are currently divided into 19 channels. Waste prevention, collection, sorting, reuse and recycling are managed by state-approved eco-organizations. Penalties for non-compliance can be as high as 75,000 euros.
• EPR offers companies the opportunity to play an essential role in preserving the environment.

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Eco-participation or tax EPR ? To find out more

Eco-participation, also known as eco-contribution, is the financial contribution made by the purchaser of a new product to finance the recycling of this product at the end of its life.

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The eco-contribution, often mistakenly referred to as the " EPR tax", is not a tax because it is not paid to the public authorities. All eco-contributions are paid to eco-organizations, which are non-profit companies approved by the French government. These eco-organizations, whose role is to collect, sort, reuse and recycle waste, make no profit from the eco-contributions paid by companies. All eco-participation fees are dedicated to the missions entrusted to them by the public authorities.

Please note

• The eco-tax is included in the sales price and is therefore subject to VAT.
• It must be passed on identically to the customer (who must be informed in the case of electrical or electronic equipment or furnishings).
• The amount of the eco-contribution is not eligible for any discount or rebate.
• It applies to all products placed on the market, including those sold free of charge.

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Eco-participation: Is my company concerned?

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The EPR system is based on the "polluter pays" principle. In other words, anyone who manufactures, distributes or imports a product must contribute to its end-of-life recycling costs. 

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You are considered a "Producer" within the meaning of EPR if you are the first to market a product in France for the national market, regardless of whether you are a manufacturer, distributor, retailer, importer, French or foreign company. Extended Producer Responsibility therefore obliges you to contribute financially to the recycling of your products.

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The French government has created 25 recycling channels EPR, and by 2024, 19 of them will be up and running. These channels group together major product families to facilitate sorting, recycling and reuse. State-approved eco-organizations manage specific channels. They are responsible for waste processing, and are committed to meeting a set of specifications including collection and recycling targets.

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This obligation stems from the AGEC Act of 2022, which promotes the circular economy. This law not only encourages the reuse of resources and the reduction of waste, but also promotes eco-design in the manufacture of products.

The EPR system improves companies' environmental impact and reduces recycling costs, thus benefiting society as a whole.

If you market products from several different channels, you will need to join as many eco-organizations as possible, which will collect the eco-contribution for end-of-life management of the products concerned.

Let's take the example of a watch manufacturer: if it integrates a battery or a connected function into its product, it is responsible not only for the end-of-life of the watch, but also for that of the battery, any instructions and its packaging.

As a result, depending on the nature of your products, you may be subject to several EPR channels simultaneously for one and the same product.

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Eco-contribution: How my financial contribution will be used

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France is actively organizing its recycling channels, which will number 25 by 2025. According to ADEME, this initiative will manage 9.4 million tonnes of waste by 2021. The aim now is to extend this organization across Europe, to harmonize a market of almost 350 million consumers.

Environmental regulations change frequently. Anticipating these changes can be beneficial for any company.

Eco-participation is not just a cost; it's an opportunity to contribute to a sustainable future. As entrepreneurs, our role is essential, not only for our companies, but also for the planet. 

Particularly in internal communications, clearly communicating these efforts to your teams strengthens their commitment and fosters a responsible corporate culture. And that's even if it's a regulatory obligation, which could be perceived as a trivial action by the consumer-citizen. It also attracts new strategic talent, essential to your company's development.

Eco-participation: How much will it cost me?

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The amount of the eco-contribution is determined by a scale set each year by the eco-organizations. It varies according to the cost of waste treatment. Thanks to the anti-waste law for a circular economy (AGEC), this amount will be reduced if the product integrates environmental criteria (bonus) or increased if the product is highly polluting (malus). This is known as eco-modulation.

Eco-participation scales are regularly revised by the eco-organizations. In 2024, eco-participation costs were aligned with actual recycling costs, impacting companies' finances and environmental strategies. 

There are several ways to manage the costs associated with recycling and sustainable product design. 

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Firstly, reducing the use of materials that are difficult to recycle right from the design stage can generate significant savings.

Toy giant Playmobil, a major consumer of plastic, has been using plant-based plastics and packaging made from at least 90% recycled cardboard and 100% recycled paper since spring 2024.

Secondly, investing in clean technologies that consume less energy and resources is another effective approach.

Thirdly, transparency about your recycling efforts not only helps to comply with regulations, but also enhances your reputation. 

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Eco-participation: How and why should I comply?

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Environmental regulations change frequently. Anticipating these changes can be beneficial for any company.

These complex calculation methods require constant vigilance on the part of companies to adapt to changes and avoid penalties. Eco-organizations are obliged to publish their scales, which are accessible online on their respective websites.
To remain compliant, it is essential to respect the obligations of declaration, payment of eco-contribution and annual documentation.

The risks of non-compliance can result in severe fines of up to 75,000 euros, or even prison sentences and business stoppages.

CompliancR is a self-service digital platform offering you all the services you need to meet your obligations EPR, from the automatic calculation of eco-contributions for your products to the declaration of placing on the market with eco-organizations, via membership of the channels to which you belong and the creation of your UINs (Unique Digital Identifier).

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