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EU Parliament backs targeted EPR rule suspensions for small companies

Members of the European Parliament (MEPs) have backed a “targeted suspension” from EU extended producer responsibility (EPR) rules, limiting their impact on small and micro enterprises based in the bloc.

Jangoulun Singsit October 27 2026

MEPs have voted to exempt only small companies from the requirement to appoint representatives for waste legislation compliance in each member state where they sell their products.

The change will apply to small textile and footwear producers, as well as packaging, electronics and single-use plastic products.

Currently, companies selling products in multiple EU countries must appoint an authorised representative in each member state to manage EPR compliance, which includes financial contributions towards the handling of waste from their products.

The move comes ahead of trilogue negotiations with the Council and Commission, which will determine the final details of new laws affecting waste regulations for textiles, footwear, single-use plastics and others.

The Commission had initially suggested sector-specific suspensions to this requirement, but the Parliament has instead backed an exemption for all EU-based businesses with fewer than 50 employees and an annual turnover or balance sheet below €10m.

This exemption would remain in effect until 2035, or until new circular economy legislation is introduced.

The adopted position maintains all other EPR obligations, such as waste-prevention and payment of relevant fees. The change intends to reduce administrative hurdles for smaller businesses, without undermining environmental objectives.

To further streamline compliance, MEPs have called for more effective information sharing between member states, the creation of interoperable digital systems, and harmonised reporting requirements.

These proposed reforms, the Parliament stated, are designed to facilitate smoother operations for companies within the single market.

Rapporteur Ingeborg ter Laak said: “For European companies to be able to grow and sell, unnecessary administrative burdens should be reduced without compromising our environmental ambitions. It is clear that companies should take responsibility for the waste they produce, and that products need to be collected and recycled properly.

“We should reach these goals without creating unnecessary obstacles for the businesses we want to see succeed in Europe. We can show that environmental responsibilities can go hand in hand with economic opportunities.”

Support for the new approach was substantial, with 612 MEPs in favour, eight opposed and 39 abstentions.

These legislative measures are part of the Environmental Omnibus package, an initiative aimed at simplifying environmental regulation while maintaining EU standards on health and sustainability.

The package covers a range of areas, including industrial emissions, the circular economy, environmental assessments and geospatial data.

Following the Parliament’s endorsement, the proposed laws will move to negotiations with the Council. The outcome will determine how EU waste legislation is applied to small businesses and could influence both administrative processes and environmental compliance across the single market.

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