CJEU Advocate General Advises Annulling EU Wastewater Levy
An Advocate General of the Court of Justice of the European Union has recommended annulling a key provision of the revised Urban Wastewater Treatment Directive that would impose a levy on pharmaceutical and cosmetics producers.
Advocate General Juliane Kokott has advised the Court of Justice of the European Union (CJEU) to annul the extended producer responsibility (EPR) scheme within the revised Urban Wastewater Treatment Directive. This provision would have imposed a levy on pharmaceutical and cosmetics companies to fund the advanced 'quaternary treatment' required to remove micropollutants from their products in urban wastewater.
This opinion is significant for clients in the affected sectors as the levy was designed to implement the 'polluter pays' principle. If the Court follows the AG’s recommendation, the substantial cost burden for this advanced treatment would shift away from producers, potentially to public utilities and taxpayers, creating major financial and policy implications. The case also raises uncertainty for future EPR schemes for other product categories in the EU.
While the AG's opinion is not binding, the CJEU's Grand Chamber follows such recommendations in the majority of cases. Market participants and legal counsel should now monitor the Court for its final judgment, which will determine the fate of this environmental levy and influence the design of future EU product regulation.