E-waste Tax: Commission Proposal in New MFF

On 16 July, the European Commission presented its proposal for the next Multiannual Financial Framework (MFF) for 2028–2034, outlining a nearly €2 trillion investment plan.

Alongside major funding programmes, and a new Competitiveness Fund, the proposal includes a package of new “own resources” to finance the EU budget. Among them is a potential tax on non-recycled electronic waste.

The e-waste levy would apply a uniform rate per kilogram of uncollected and unrecycled e-waste in each Member State.

Circular and budgetary goals

The goal is to encourage better collection and recycling of critical raw materials, while contributing to the EU’s budgetary needs in a way that aligns with green and circular priorities.

The Commission estimates revenues from this source of up to €15 billion per year.

The idea takes inspiration from the plastic packaging levy introduced in the last MFF, and reflects the Commission’s wider push to integrate circularity and fiscal sustainability.

However, the proposal is still in an early conceptual phase and will require agreement from all Member States and the European Parliament.

Caution

Landbell Group cautions EU policymakers against such a proposal, particularly in its current form.

It is important to develop ways to boost e-waste collection. However, the planned tax risks creating a double burden on producers that already finance EPR systems and are made financially liable for material losses beyond their control.

Instead, positive incentives to improve collection rates would be much more suitable. Producers should not be held accountable for such material losses, particularly in Member States where public infrastructure is lacking.

Furthermore, the question remains whether revenues would be sufficiently earmarked to support system improvements, public awareness or enforcement.

More fitting alternatives could include:

• rewarding overperformance at Member State level, and
• ensuring any new fiscal mechanism is directly linked to measurable environmental benefits and fair distribution of responsibilities

Next steps

The Commission’s proposal for a new MFF now enters interinstitutional negotiations, requiring support from all Member States and consent from the European Parliament. This process usually spans more than 18 months.