Denmark’s largest packaging manufacturer, DS Smith, is raising concerns about the Danish implementation of new EU packaging regulations, arguing that they could harm the environment and the Danish economy. The company contends that the new rules, designed to reduce waste and increase recycling, may unintentionally incentivize the use of cheaper, less recyclable plastics.

According to Mette Staal, spokesperson for DS Smith, the fees on plastic are lower than those on glass or cardboard. This price difference could lead to higher prices in supermarkets and encourage companies to switch to cheaper, less recyclable packaging materials.

The new regulations, which came into effect on October 1st, require companies in Denmark to pay for the public expenses associated with handling packaging waste. While the intention is to promote reduced packaging and increased reuse, the complexity and high costs of the scheme are drawing criticism.

Staal highlights the significant variation in waste collection and treatment costs across Danish municipalities, with cardboard fees differing by as much as 4,000 percent. She describes this disparity as “absurd” and warns that it could distort the competitiveness of Danish companies and lead to job losses.

The higher fees on easily recyclable cardboard could create a paradoxical situation where it becomes more cost-effective for DS Smith to transport packaging solutions from its German facilities to Denmark, avoiding administrative burdens and potentially selling products under its German VAT number.

Furthermore, the complexities of dealing with 98 different municipalities, each with its own system, are adding to the administrative burden and costs for companies. Staal argues that the Danish implementation of the EU directive undermines the competitiveness of businesses and calls for equal conditions and competition across EU countries.

The fish company Tenax Sild has also expressed concerns about the new fees, estimating an additional annual bill of up to 25 million kroner due to the fee on glass. This may force the company to seek cheaper alternatives to avoid raising the price of their herring.

Despite promises of action, the Minister for Industry, Business and Financial Affairs, Morten Bødskov, has declined to comment on the implementation of producer responsibility for packaging. The Ministry stated in an email that he does not wish to comment.