Swiss lawmakers draft bill on circular economy on heels of EU Commission action plan

Recently, the EU Commission presented an action plan for the circular economy with the aim of achieving a CO₂-neutral, sustainable, toxin-free and closed-loop circular economy by 2050 at the latest.

In Switzerland, a more sustainable economy is also the subject of political debate. At the beginning of November, a parliamentary commission sent a bill into consultation that, in addition to provisions on waste recycling, contains regulations designed to reduce waste and promote the development of recyclable products. The proposal consists of several amendments to the Environmental Protection Act (Draft EPA).

At the heart of the reform is the principle that waste must be recycled if technically possible and economically viable, and if recycling causes less damage to the environment than disposal or manufacturing new products. In cases where there is no obligation to recover materials, the combustible fractions of the waste must be harnessed for energy recovery, provided that this process is technically possible and economically viable (Art. 30d Draft EPA).

Depending on the environmental impact caused by the products and packaging, the government can impose specific requirements on new products and packaging, including service life, reparability and recyclability, and also on the labelling and information listed on a product.

In the process, the government will consider the regulations of Switzerland's most important trading partners (Art. 35i Draft EPA). Ultimately, anyone who intentionally violates regulations on the resource-conserving design of products and packaging is to be punished with imprisonment of up to three years or a fine (Art. 60 para. 1 let. s Draft EPA). In addition, mail order companies based abroad will be required to pay an advance disposal fee just as their Swiss competitors must do (Art. 32a^bis Draft EPA). Electronic platforms that serve only as intermediaries are obliged to inform their users about the advance disposal fee (Art. 32a^sexies Draft EPA).

The amendments do not provide for a general ban on products or substances, as has been the case for single-use plastics at the EU level since July. Furthermore, the government is authorised, but not obliged, to ban environmentally harmful products or make them less attractive through price surcharges. However, it is exactly this open provision, empowering the government to regulate materials and products and create incentives, which appears most controversial.

As part of the consultation process, interested parties have until 16 February 2022 to comment on the proposed amendments. We will keep you informed about the further developments in the legislative process.