Deciding the recycling fee amounts

The amount of a recycling fee shall be based on Recycling Fund estimates as to the cost of processing the waste.

Products covered by the Act on Recycling Fees are classified into several categories, for example tyres, paint, car batteries, etc., with the recycling fee amount collected within each product category being solely intended to support the expense of handling the waste originating in that category. This method prevents the transfer of costs from one product category to another and thereby ensures that the recycling fee for each product category reflects as exactly as possible the cost due to that category.

The Board of the Recycling Fund presents proposals to the Minister for the Environment on changes in recycling fee amounts as well as on the subjection of new goods to fee payment and the amount of the recycling fee for those goods. When the Board finds it necessary to subject products to a recycling fee in order to attain greater recovery, it submits a proposal on this and the fee amount to the Minister. When preparing the proposal on new products to subject to fees, the Board should show regard for government policy and obligations concerning waste.

Upon receiving a proposal from the Board of the Recycling Fund, the Minister for the Environment presents a proposal to the Minister of Finance on changing the amounts of recycling fees, imposing recycling fees, or subjecting new products to fees, as applicable. The Minister of Finance introduces bills to the Althingi on recycling fee amounts.