Eco-contribution: who has to pay the "EPR tax"?
You have probably heard of the eco-contribution or the "EPR tax", but you sometimes feel overwhelmed by the complexity of environmental regulations?
You are not alone.
Extended Producer Responsibility (EPR), often misunderstood, is more than a simple tax. If you are responsible for finance or compliance and need to understand in detail what this scheme means for your business, you are in the right place.
Only 1 minute to spare?
- Extended Producer Responsibility requires companies that place products on the French market for the first time to contribute financially to the recycling and recovery of waste from their products at end of life
- This financial contribution, called the eco-contribution, varies greatly depending on the products you sell, since the recyclability of the materials used in your products affects the actual cost of recycling.
- Products subject to EPR are currently split into 19 schemes. Prevention, collection, sorting, reuse and recycling of waste are managed by producer responsibility organisations (PROs), authorised by the state. Penalties for non-compliance can reach €75,000.
- EPR gives companies the opportunity to play an essential role in protecting the environment.
Eco-contribution or EPR tax? Let's clarify
The eco-contribution, also called the eco-participation, is the financial contribution paid by the buyer of a new product towards the recycling of that product at end of life.
The eco-contribution, often wrongly called the "EPR tax", is not a tax because it is not paid to public authorities. All eco-contributions are paid to producer responsibility organisations (PROs), non-profit companies authorised by the state. These PROs, whose role is to collect, sort, reuse and recycle waste, make no profit from the eco-contributions paid by companies. The entire eco-contribution is dedicated to the tasks assigned by public authorities
Please note
- The eco-contribution is included in the sale price and, as such, is subject to VAT.
- It must be passed on unchanged to the customer (who must be informed if it concerns electrical or electronic equipment, or furniture items)
- The amount of the eco-contribution cannot benefit from any discount or rebate.
- It applies to all products placed on the market, including those given away free of charge.
Eco-contribution: is my company affected?
EPR works on the "polluter pays" principle. In other words, whoever manufactures, distributes or imports a product must contribute to the cost of recycling it at end of life.
You are considered a "producer" under EPR if you are the first to place a product on the French market for national distribution, regardless of whether you are a manufacturer, distributor, reseller, retailer, importer, French or foreign company. Extended Producer Responsibility therefore requires you to contribute financially to the recycling of your products.
The State has created 25 EPR schemes, of which 19 were operational in 2024. These schemes group large families of products to facilitate sorting, recycling or reuse. Producer responsibility organisations (PROs) authorised by the state manage specific schemes. They handle waste treatment and commit to meeting a set of requirements including collection and recycling targets.
This obligation stems from the AGEC law of 2022, which promotes the circular economy. It encourages not only the reuse of resources and reduction of waste, but also eco-design in product manufacturing.
The EPR system improves companies' environmental impact and reduces recycling costs, benefiting society as a whole.
If you sell products covered by several schemes, you will need to join as many PROs, which will collect the eco-contribution to manage the end of life of the products concerned.
Take the example of a watch manufacturer: if a battery or a connected function is included in the product, the manufacturer is responsible not only for the end of life of the watch, but also for the battery, any instructions leaflet and the packaging.
As a result, depending on the nature of your products, you could be subject to several EPR schemes at once for a single product.
Eco-contribution: what will my financial contribution be used for
France actively organises its recycling schemes, which will number 25 by 2025. According to ADEME (the French environment agency), this initiative made it possible to manage 9.4 million tonnes of waste in 2021. The aim now is to extend this organisation to European level, to harmonise a market of nearly 350 million consumers.
Environmental rules change frequently. Anticipating these changes can benefit any company.
The eco-contribution is not simply a cost; it represents an opportunity to contribute to a sustainable future. As business owners, our role is essential, not only for our companies but also for the planet.
Particularly in internal communication, clearly explaining these efforts to your teams strengthens their engagement and fosters a responsible corporate culture. This holds true even though it is a regulatory obligation, which consumer citizens might see as routine. It can also attract new strategic talent, essential for the growth of your company.
Eco-contribution: how much will this cost me?
The amount of the eco-contribution is set by a fee scale established each year by the PROs. It varies depending on the cost of treating the waste. Thanks to the anti-waste law for a circular economy (AGEC), this amount will be reduced if the product meets environmental criteria (bonus) or increased if the product is highly polluting (malus). This is known as eco-modulation.
Eco-contribution fee scales are regularly revised by the PROs. In 2024, eco-contribution costs were aligned with actual recycling costs, affecting the finances and environmental strategies of companies.
There are several ways to manage the costs associated with recycling and sustainable product design.
First, reducing the use of materials that are hard to recycle from the design stage can generate significant savings.
The toy giant Playmobil, a major plastic user, has been using plant based plastics since spring 2024, along with packaging made of at least 90% recycled cardboard and 100% recycled paper.
Second, investing in clean technologies that consume less energy and fewer resources is another effective approach.
Third, transparency about your recycling efforts not only helps you comply with regulations, but also improves your reputation.
Eco-contribution: how and why to become compliant
Environmental rules change frequently. Anticipating these changes can benefit any company.
These complex calculation methods require constant vigilance from companies to adapt to changes and avoid penalties. PROs are required to publish their fee scales, which are available online on their respective websites.
To remain compliant, it is essential to meet declaration, eco-contribution payment and annual documentation requirements.
Non-compliance risks can lead to severe fines of up to €75,000, and even prison sentences and business shutdowns.
CompliancR is a self-service digital platform that provides all the services you need to meet your EPR obligations, from automatically calculating eco-contributions for your products to declaring the quantities you place on the market to PROs, including joining the schemes you depend on and creating your EPR unique identification numbers (UINs).