Economic cost recovery in the recycling of packaging waste: the case of Portugal

The recycling of packaging waste is an objective of the Community with clear targets set in the European law. The study of the institutional arrangements, recycling systems and of the costs that resulted from this environmental policy represents an ongoing effort. While each member state has currently its own packaging waste management system, there is still a lack of evidence regarding the actual costs of recycling and on how these costs have been distributed among stakeholders. This paper addresses the Portuguese framework and discusses the financial transfers undertaken by the entity that manages the Green Dot scheme. For this purpose, we use data from the entities in charge of selective collection and sorting of household packaging waste for the year 2010. We compare the financial transfers of the Green Dot company with the costs incurred by the local authorities (which are generally in charge of selective collection and sorting) and open a discussion on the extent to which the principles of the Directive on Packaging and Packaging Waste are being fulfilled in practice. Currently, the Green Dot company is only bearing 77% of the financial costs of the recycling systems in operation in Portugal. The unit cost of the selective collection and sorting of packaging waste is estimated to be 204 €/ton collected.