Tightening of the EPR System from April 1
Since the introduction of the Extended Producer Responsibility (EPR) system, a key question has been when the National Waste Management Authority (OHH) would begin strictly enforcing EPR obligations and when companies failing to comply would face significant penalties. That time has now come: Starting April 1, 2025, the EPR penalty will be imposed under special rules, and non-compliant companies may face sanctions of up to 50% of outstanding payments.
EPR System – What Changes on April 1?
Under current regulations, the OHH, not MOHU (the concession rights holder), is responsible for overseeing EPR obligations. While EPR inspections have taken place in the past, they have mainly involved data reconciliation and have not resulted in serious penalties for companies that bypassed their EPR duties.
More Intensive EPR Audits
The April changes will give the OHH full authority to take action against companies that fail to meet their EPR obligations. "In the future, the number of inspections is expected to increase, including on-site audits of companies' business operations."
Consequences of Failing to Report EPR Data
As with any new regulation, the EPR system is entering a "new era": Companies that do not properly fulfill their EPR obligations will face significant financial penalties.
Amount of the EPR Penalty
The amendment to the government decree on waste management penalties, which takes effect on April 1, 2025, provides the legal basis for the waste management authority to impose effective sanctions—referred to as the EPR penalty—against free riders.
How High Can the EPR Penalty Be?
Under the new rules, a company that:
- Fails to report data on the circular products it places on the market will have to pay both the outstanding EPR fee and a penalty of 50% of the unpaid amount.
- Submits false EPR data and underpays EPR fees will face a fine of 50% of the undeclared amount.
- Misreports multiple product streams will be subject to cumulative EPR penalties for each affected product category.
What Can Affected but Unregistered Companies Do?
With the introduction of the EPR penalty system, there is no room for delays. Companies that have not yet registered for the EPR system should do so immediately and ensure that they:
- Maintain an EPR register,
- Submit EPR data reports accurately,
- Pay EPR fees on time.
Failure to comply will now result in not only administrative but also significant financial consequences. However, with the support of an experienced advisor, companies can still avoid penalties and ensure full compliance with EPR obligations.
Challenges of Hybrid Regulation
The EPR system is a unique hybrid regulation that combines elements of the previous product fee system with waste management regulations. The main difference is that while the product fee was previously managed by the Tax Authority (NAV), the EPR system has now been transitioned to a concession model. In this model, revenues no longer go to the state budget but instead flow to the concession operator, MOHU.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
