Is it Waste or By-product? Legal Terminology in European Legislation

Are you a manufacturer trying to find the untapped potential hidden within your industrial residue? Many unintended by-products from production processes hold hidden value as raw materials for other industries.

The distinction in environmental legislation between waste and by-product is crucial for manufacturers looking to maximise value and positively impact their sustainability goals.

Let's explore European legislation to uncover whether your "waste" might actually be a valuable resource.

Distinguishing between Waste versus By-product

The EU Waste Framework Directive (2008/98/EC) provides the foundation for these definitions and their interpretation.

The “Guidelines on the interpretation of key previsions of Directive 2008/98/EC on waste” provides great insight into the evolution of the term by-product and its inclusion into the Framework. (https://ec.europa.eu/environment/pdf/waste/framework/guidance_doc.pdf)

?Legal Definitions within European Legislation

?According to the EU Waste Framework Directive (2008/98/EC):

• Waste is "any substance or object which the holder discards or intends or is required to discard." (https://eur-lex.europa.eu/eli/dir/2008/98/2024-02-18#B-3)
• By-product is “a substance or object resulting from a production process, not primarily aimed at producing that item, which meets specific conditions.” https://eur-lex.europa.eu/eli/dir/2008/98/2024-02-18#B-11)
• End-of-waste is “criteria within Member States determining when a substance or object, having undergone recovery, ceases to be waste.” (https://eur-lex.europa.eu/eli/dir/2008/98/2024-02-18#B-13)

Challenges for Manufacturers in Maximising Residues

If you are having a hard time applying these definitions in your environment, you are not alone. Below are some of the common challenges we help manufacturers to navigate:

1. Case by Case Determinations: Manufacturers must conduct case-by-case assessments to determine the legal status of each production residue, examining its specific production context, potential use and environmental implications. This process requires a nuanced understanding of waste legislation, case law and the unique characteristics of each material. This is a complex but critical aspect of regulatory compliance and resource management.
2. Meeting by-product criteria: Manufacturers need to demonstrate the material's certain future use, direct usability without further processing, integral production within their process and lawful use without adverse environmental or health impacts. These stringent requirements demand thorough documentation and necessitate expert assessment for successful navigation. (https://eur-lex.europa.eu/eli/dir/2008/98/2024-02-18#B-12)
3. Navigating Regulatory Procedures: Authorisation requirements can differ significantly between countries in the EU, adding a layer of complexity to compliance efforts. To successfully justify by-product or end-of-waste status, manufacturers need to compile and present evidence. Variabilities in regulatory approaches necessitates a thorough understanding of local requirements and may demand tailored strategies for each jurisdiction in which a manufacturer operates. If operating on a global level, Extended Producer Responsibility (EPR) policies can potentially impact strategic paths for by-products and their associated streams. (https://www.oecd.org/en/publications/extended-producer-responsibility_67587b0b-en.html)

Navigate Environmental Legislation and Unlock Business Success

European law regarding the definition of waste versus by-product is complex. While legislation within Asia or the Americas might be less comprehensive, it still presents challenges for global manufacturers looking to optimise their residue value chains.

Manufacturers can optimise their contributions to the circular economy and potentially contribute to their bottom line if they can navigate definitions and regulatory requirements. This requires staying informed, conducting assessments and seeking guidance on application needs.

Still not sure whether what’s in your warehouse is waste or has worth?

Don’t worry because that’s where MBP Solutions can help! Our team members around the world are available to create opportunities from your local challenges. Connect with us and together we can find solutions for your untapped potential.

=> Reach out to speak to our experts about your by-product challenges.

=> Download our 5-step guide to valorising biological by-products from your production.

=> Read the Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives

Contributing Writer:

Anna C.