Companies that release packaged products on the market are legally obliged to handle packaging collection and recycling, including the deposit system. We refer to this as the Extended Producer Responsibility (EPR). Verpact has assumed this responsibility. It is also the responsibility of Verpact, on behalf of the packaging industry, to report on an annual basis to the government about the attainment of statutory recycling targets and is responsible for achieving these (norm addressee). Reports are verified by an external audit firm and the Dutch Human Environment and Transport Inspectorate (ILT). The collective approach prevents arbitrariness in the systems in place.

The more complex the packaging (with, for example. different types of plastic and paper mixed together), the higher the fee. Fair enough. The fee is distributed among municipalities, sorters, recyclers for collection and recycling.

Verpact is fully committed to achieving the recycling and circularity targets, as set by the Dutch Government.

The Netherlands circular, every package counts.

We play a key role in making the packaging chain circular. Our UPV-related work ensures that packaging is collected and recycled effectively and efficiently, including in respect of the DRS (Deposit Refund System). 

We also help producers and consumers to make the right circular choices and we facilitate reuse. This enables us to conserve precious raw materials in the chain, to reduce the amount of litter and microplastics and to limit the impact that packaging has on the environment. Another initiative that Verpact has taken is to be a Supporter of the Schoon/Clean & Tidy scheme, whose purpose is litter prevention. The Kennisinstituut Duurzaam Verpakken (KIDV)(the Knowledge Institute for Sustainable Packaging) that helps organisations to make well-founded and realistic packaging choices is part of Verpact, as is Statiegeld Nederland. 

Verpact funds the packaging recycling chain. 

The collection, sorting and recycling of packaging is financed by those businesses that market packaged products in the Netherlands. They finance it by paying Verpact a packaging-related levy known as the PWMC (the Packaging Waste Management Contribution). This levy pays for the costs incurred in the collection, sorting and recycling of household packaging waste as follows: the municipalities receive a fee for the kilotons of packaging waste they collect, for example from the glass collection bins or the PMD Kliko bins. The sorters and recyclers are then paid for the additional processing into new raw materials. Costs including those for the emptying of the glass and waste-paper bins and for transporting the packaging waste are paid by Verpact too.

The fees that businesses pay Verpact for their packaging is based on the costs we incur for the collection, sorting, processing and commodification of the type of material in question. For example, the fee for plastic packaging is higher than that for other packaging materials because the cost of sorting and recycling plastic packaging is higher. 

The fee for each type of material also includes a fixed sum to cover general system costs. These include the costs of monitoring, of litter prevention (Supporter of Schoon/Clean & Tidy) and of the Knowledge Institute for Sustainable Packaging (KIDV/Kennisinstituut Duurzaam Verpakken).   

The following table sets out the amounts of the revenues and the costs.  

Revenues and costs 

For the period from 1 January to 31 December 2022 inclusive, the revenues and costs of Verpact (known at that time as the packaging waste fund foundation Stichting Afvalfonds Verpakkingen) were as follows:

Explanatory notes

Revenues 

Waste Management Contribution 
Verpact’s income consists of the Waste Management Contribution that is collected from those businesses that market packaged products in the Netherlands. This Waste Management Contribution is calculated based on the number of kilos of packaging that a business sells in the Dutch marketplace, broken down by type of material. Each type of material has its own fee, which is based on the costs incurred for the collection and recycling of the packaging material in question. The fees for the Waste Management Contribution are accordingly based on the total cost of collecting and recycling that particular type of material. The calculation of the relevant fee also takes into account any revenues from the recycled material. 

System contribution 
For each particular type of material, we apply - in addition to the Waste Management Contribution - the same fee for the general system costs, which is known as the ‘system contribution’. This includes the costs for monitoring, for litter prevention (Supporter of Schoon/Clean & Tidy) and for the KIDV knowledge institute (the Kennisinstituut Duurzaam Verpakken (see above)). 

Litter prevention
The revenues for litter prevention measures are included in the system contribution and were used to finance the litter prevention incentive programme (which ran from 2013-2022; see also explanatory note under ‘Costs’). 

Costs 

Chain-related costs 
The Waste Management Contribution that the businesses pay to sell their packaged products in the Netherlands is used by Verpact to reimburse the relevant parties for the cost of their collection and recycling of packaging.  

Glass packaging 
The costs for glass packaging primarily relate to payments made to municipalities for the collection and processing of glass packaging. The revenues earned from selling the glass fragments are set off in these fees. In 2022, 401 kilotons (89%) of glass were recycled.  

Packaging - paper and cardboard 
These costs primarily relate to the registration fees that Verpact pays municipalities for passing on the quantities of waste paper and cardboard collected and processed. In 2022, 1265 kilotons (90%) were recycled. 

Plastic packaging  
These costs relate to the collection fees paid to municipalities for the separate collection of this waste and for the sorting of mixed waste, as well as the costs for the storage and transshipment, transportation, sorting and processing of sorted plastic packaging. The figure for any sorting of mixed waste also includes the costs of the associated systems. In 2022, 258 kilotons (46%) were recycled. 

Beverage cartons
These costs relate to the collection fees paid to municipalities for the separate collection of this waste and for the sorting of mixed waste, as well as the costs for the storage and transshipment, transportation, sorting and processing of sorted beverage cartons. The figure for any sorting of mixed waste also includes the costs of the associated systems.  

Aluminium packaging 
These costs relate to the collection fees for the separate collection of this waste and for the sorting of mixed waste, as well as the costs for the storage and transshipment, transportation, sorting and processing of sorted aluminium. The figure for any sorting of mixed waste also includes the costs of the associated systems. In 2022, 34 kilotons (70%) were recycled. 

Other metal packaging 
These costs relate to the collection fees for the separate collection of this waste and for the sorting of mixed waste, as well as the costs for the storage and transshipment, transportation, sorting and processing of sorted metal. The figure for any sorting of mixed waste also includes the costs of the associated systems. In 2022, 142 kilotons (95%) were recycled. 

Litter prevention incentive programme 
It was agreed in the Framework Agreement (Raamovereenkomst) 2013-2022 that the packaging industry, represented by the Verpact Foundation, would provide € 20 million each year for litter prevention measures. During the period covered by said Agreement, municipalities could deploy the credit balances they held with the Foundation. The remaining costs of € 3.3 million relate to the administration costs for the Nederland Schoon/Clean & Tidy Netherlands programme that includes the costs of organising the National Clean-up Day, of the litter prevention projects carried out in conjunction with schools, businesses and municipalities, and of research and campaigns.  

Administration costs 
Verpact’s administration costs relate to the costs for its personnel and organisation, IT, monitoring, centre of expertise, communications etc. 

Financial revenues and costs 
The negative interest rate in 2022 meant that Verpact had to pay interest charges. 

Net setoff of surpluses and shortfalls 
Verpact is a nonprofit foundation that does not pursue capital formation. However, each year a shortfall or surplus will arise, due to the difference between:

- the actual net costs of collection, processing and commodification per type of material incurred in a particular calendar year, and

- the Packaging Waste Management Contribution for that type of material received in that same calendar year.

Shortfalls and surpluses are set off for the first three calendar years following the determination of the surplus or shortfall. For 2022, a sum of € 13.3 million was set off against past surpluses and shortfalls. 

Corporation tax
The balance of the system contribution and the costs of litter prevention and administration is subject to corporation tax. 

The provisions governing the collection and recycling of packaging are set out in the 2014 Dutch Packaging Management Decree. The Dutch Packaging Management Decree is the interpretation of the European Packaging Directive under Dutch law and legislation. It contains the Dutch transposition of the European rules regarding, amongst other things, producer responsibility and recycling targets but also the composition of packaging (in order to prevent harmfulness of this packaging in the waste stage). For example, they include measures to limit the amount of packaging waste as much as possible and to design and manufacture packaging so as to facilitate recycling. The Association of Dutch Municipalities and Verpact established new arrangements for collecting and recycling packaging waste in 2019. These are set out in the Chain agreement. This Chain agreement contains arrangements as a supplement and follow-up to the Framework agreement.

The provisions governing some single-use plastic products are set out in Dutch law in the Decree pertaining to single-use plastic products and the Ministerial rules pertaining to single-use plastic products. In this legislation, for implementation of the European Single-Use Plastics Directive, it states that certain plastic products (including some packaging) may no longer be placed on the market, must include a special marking or must be modified. Extended Producer Responsibility shall also apply to, amongst others, 5 types of packaging: drinking cups, lightweight plastic carrier bags, beverage packaging, food packaging with or without a lid and pouches and wraps containing food items. A report must be submitted annually concerning how much (by weight and quantity) of this packaging has been released on the Dutch market and in the case of PET bottles a declaration issued about how much (by weight) recycled material has been incorporated into the bottle.

Agreements about the Packaging Waste Management Contribution are set out in the generally binding Waste Management Contribution Agreement.

Want to read more about our policy relating to the rates? You can do so here.