Economic Viability of Packaging Waste Recycling Systems: A Comparison between Belgium and Portugal

The Packaging and Packaging Waste Directive has had an undeniable impact on waste management throughout the European Union. Whereas recycling and recovery targets are the same, member states still enjoy a considerable degree of freedom with respect to the practical organization and management strategies adopted. Nevertheless, in all cases, the industry (which brings packaging material onto the market) should be responsible for the costs associated with packaging waste recycling/recovery (following the extended producer responsibility principle). The current paper compares and contrasts the institutional frameworks and financial costs and benefits of waste management operators for Belgium and Portugal. The unit costs of selective collection and sorting of packaging waste are provided for both countries. In Belgium, the extra-costs of recycling seem to be fully supported by the industry (through Fost Plus, the national Green Dot agency). In Portugal the fairness of the recycling system depends on the perspective adopted (economic or strictly financial). Adopting a strictly financial perspective, it seems that Sociedade Ponto Verde (SPV, the Portuguese Green Dot agency) should increase the transfers to local authorities. However, the conclusions differ for this country if the avoided costs with refuse collection and other treatment are taken into account.