A new EU regulation aimed at reducing packaging waste has become a costly burden for Danish companies—while foreign competitors, particularly from China, appear to bypass the rules with little consequence.
According to a recent survey by the Confederation of Danish Industry (DI), new EU-wide requirements for packaging registration and waste management are placing significant strain on Danish businesses. The rules, which came into force this year, mandate companies to report the volume of packaging used in their products—a measure meant to combat the estimated one million tons of packaging waste generated annually in the EU.
The legislation is part of the broader Extended Producer Responsibility (EPR) framework, designed to encourage businesses to adopt sustainable packaging solutions by holding them financially accountable for the waste their products generate.
However, while Danish companies are scrambling to comply with the new reporting and financial obligations, a growing number of non-EU companies—particularly from China—are sidestepping the system altogether.
Unequal Playing Field
A recent report by Danish Producer Responsibility reveals a stark disparity: despite outreach efforts from the Danish Environmental Protection Agency (DEPA), only about 260 Chinese companies have registered with Denmark’s EPR system. This figure is alarmingly low, especially considering that over 1,000 Chinese firms were contacted in December.
Karin Klitgaard, Head of Environmental Policy at DI, warns that this regulatory gap has real consequences for Danish businesses.
“These Chinese companies don’t pay into the system. As a result, it’s Danish companies who are left to cover the cost of managing the packaging waste. This not only increases operational costs but also erodes their competitive advantage,” Klitgaard says.
With rising compliance costs, Danish firms face pressure to raise prices—something their Chinese competitors can avoid if they continue to operate outside the regulatory framework.
Packaging Rules Among Most Burdensome
Earlier this year, DI surveyed its member businesses to identify the most burdensome regulations. The packaging waste rules ranked among the highest, with many companies citing the administrative and financial toll as disproportionate.
Frustration is mounting, not just over the scope of the requirements, but also over the lack of enforcement against foreign firms who flout them.
DI Calls for Stronger Enforcement
In response, DI is urging Danish authorities to ramp up enforcement and supervision. Klitgaard emphasizes the need for more comprehensive oversight campaigns to ensure foreign companies are held to the same standards.
“We need a proper control regime. Without it, we’re punishing the companies that follow the rules while letting others profit,” she says.
While there has been some progress—only one Chinese manufacturer was registered before the new year, compared to 260 today—DI says the pace is too slow and the oversight insufficient.
Regulatory Bodies Defend Progress
Despite criticism, DEPA defends its approach. Thomas Bangsgaard Vestergaard, head of DEPA’s Circular Transition Department, maintains that the system is largely working, with about 7,000 producers—both Danish and international—now registered.
“All in all, the status is quite good,” says Vestergaard, who personally led outreach efforts to platforms like Temu, a Chinese-based e-commerce giant. “Even just getting a response from them was a small victory.”
Still, he acknowledges there’s more work to be done:
“We’re not at the finish line yet. We believe many more companies still need to register.”
A Nordic Effort in China
To address the issue at its source, DEPA is joining forces with environmental agencies in other Nordic countries. A joint campaign is being launched in China, in cooperation with the Nordic embassies, to raise awareness among Chinese producers about the new EU rules—this time in Chinese.
The hope is that increased awareness and diplomatic pressure will improve compliance. But until the playing field is truly level, Danish companies are likely to keep shouldering an unfair share of the burden.
Editor’s Note: The ongoing disparity in enforcement raises questions not just about environmental responsibility, but also about fair trade and competition. As the EU ramps up its green transition efforts, equal compliance across borders will be crucial to ensure no nation—or its businesses—are left to carry the cost alone.