The waste disposal industry in Germany is facing considerable economic challenges at the start of 2024. Two significant political decisions will lead to a sharp rise in waste disposal costs; directly affecting both waste disposal companies and consumers.
Rising lorry tolls
A major change will result from the adjustment of lorry tolls from 1 December 2023. The average increase of 83% reflects the increased CO2 taxes that are already incorporated into the price of diesel. The additional revenue from the tolls is to be used primarily to improve the rail infrastructure. Waste disposal companies; which rely heavily on lorries for their services; will not benefit directly from these investments. The increased transport costs will inevitably be passed on to customers.
CO2 tax on waste incineration
In addition; a CO2 tax on waste incineration will be introduced on 1 January 2024. Under the Fuel Emissions Trading Act (BEHG); facilities that incinerate waste will be required to pay a tax on their CO2 emissions. Although waste disposal companies strive to recycle or dewater as much waste as possible; a significant proportion must be treated thermally. In addition; the need to use additives for combustibility increases both the volume of waste and the corresponding CO2 taxes.
The BEHG levy of €40 per tonne of CO2 will therefore inevitably have cost implications that will also have to be passed on to customers. The individual structure of this pass-through will vary from waste disposal company to waste disposal company. For some types of waste that are not sent for thermal recycling; the full levy may not apply.
Efficient waste disposal solutions
It is now even more important for companies to minimise additional costs and implement efficient waste disposal solutions through accurate analysis and strategic planning. The separate disclosure of the BEHG levy and toll costs on invoices creates the necessary transparency and enables precise cost tracking.
The BEHG levy is expected to increase annually; a development that is already enshrined in law. In this changing environment; it will be crucial to develop innovative and sustainable waste disposal strategies in order to remain competitive and reduce environmental impact.
Do you have any questions? At ERA Group; we are happy to help with our expertise and tailor-made solutions. Contact us now.
