The Circular Economy Act to replace the current Waste Act – with the aim to modernise and clarify legislation

A working group appointed by the Ministry of the Environment began to prepare a new Circular Economy Act in late August. When completed, the act will replace the current Waste Act. There are several reasons for enacting a new law.

“The Waste Act is old and has been amended a number of times. It is not useful from the regulatory-technical perspective. We also want to have the entire life cycle of products taken account of in the act,” says Anna-Maija Pajukallio, chair of the working group on the objectives of the Circular Economy Act.

The Act also aims to prevent free-riding, i.e. avoiding compliance with producer responsibility obligations. “The idea is to improve the supervision of legality, which would mean that all operators are on an equal footing,” says Pajukallio.

“In general, the new act will seek to ease the situation for circular economy operators now that EU regulation, in particular, is becoming more complicated,” Pajukallio sums up. The purpose is to implement new EU legislation in connection with the Circular Economy Act, with a view to creating a predictable operating and investment environment for circular economy operators.

The drafting is still in its early stages, and the structure of the act is being discussed. The working group works closely together, and experts from various organisations are invited to be heard at its meetings as required. The working group collaborates with a committee of representatives from the waste industry and circular economy that operates under the Ministry of the Environment.

Divisions may also be set up in the working group. At least one producer organisation division is likely to be created to ensure that the producer responsibility perspective is covered in the preparation. The advisory board of producer organisations is represented in the working group by Lisa-Marie Stenbäck from Recser, and the deputy member is Pekka Tommola from Finnish Packaging Producers.

Producer organisations want control of free-riders and appropriate tools

Pekka Tommola, CEO of Finnish Packaging Producers, agrees that the Circular Economy Act will need to curb free-riding.

“Producer organisations do not really have any tools for controlling this issue, but the authorities are in charge. When implementing laws, regulations and directives, resources for monitoring should be sufficient,” says Tommola.

Mika Surakka, Sumi’s Managing Director, hopes that the law reform will improve recycling processes but notes that it is too early to comment on an act that is still in its early stages of preparation.

“I hope that the preparation is based on researched data. Finland’s interests should come first, even if EU legislation is implemented at the same time,” Surakka says of Sumi’s expectations for the Circular Economy Act. Sumi’s voice will be heard in the legislative amendment through the advisory board of producer organisations.

Rinki’s owner organisations hope to have a say on the decision-making process

“The Waste Act has been an obstruction in the path towards circular economy. This reform is very necessary and commendable,” says Satumaija Levón, Director of Sustainability at the Finnish Food and Drink Industries’ Federation.

However, Levón is concerned about whether the parties affected by the new act, such as food companies, will be sufficiently consulted in the drafting of the legislation. “About 80 per cent of grocery sales are food and beverages, and packaging is an indispensable part of the product. These packages are a big part of the recycling process.”

“Food industry companies are responsible for the costs of collecting and recycling packaging waste, which is why it would be fair for these parties to also be involved in discussing the new legislation,” Levón explains.

Food packaging is particularly strictly regulated for safety reasons, and Levón hopes that this will be taken into account in the act. “We hope that the act will bridge the gap between safety and the measures required to achieve recycling targets,” Levón sums up.

Marja Ola, Chief Policy Adviser at the Finnish Commerce Federation, agrees with Levón: “Companies in the commerce sector are the biggest producers of packaging in the economy. Our industry is at the core of circular economy, which is why we had hoped to have been invited to the working group preparing the new act,” says Ola.

The Finnish Commerce Federation would like to see cost-efficiency taken into account in the new act. “The focus should be on the most effective and cost-efficient measures,” Ola explains.

She also highlights the fact that EU legislation has brough and will bring more regulations concerning packaging. “There are a lot of regulations already in place that add to the costs in the commerce sector. Careful consideration should be given before more regulations are introduced as companies are already quite heavily regulated,” says Ola.

Preparation of the Circular Economy Act

• 28 August 2024: A working group appointed by the Ministry of the Environment starts drafting the act
• 3 December 2025: The term of the working group ends
• The bill is expected to be presented for debate before Parliament in autumn 2026
• The act will come into effect in summer 2027 or at the beginning of 2028 at the earliest