The purpose of operating the Icelandic Recycling Fund and collecting recycling fees.

In recent years, understanding has increased of how necessary it is to gain control of the growing quantity of waste that has accompanied today's consumer society.

Demands are placed by individuals, municipalities and the commercial sector on systematic solutions for waste and on products not causing damage to the environment. At the level of the European Economic Area, rules with this objective have been set for the Area as a whole, as well as by the governments of individual member states.

These rules build on the "polluter pays principle", meaning that whoever causes waste should pay for its reuse, recovery or disposal. The trend is towards shifting responsibility to an ever greater extent onto those who put the product on the market, regardless of whether they are manufacturers or importers. This is referred to as "producer liability".

Iceland's authorities have set the goal of systematically reducing waste formation and channelling waste into reuse and recovery. The Act on Recycling Fees was passed in an effort to achieve this end, charging the Icelandic Recycling Fund with creating conducive economic conditions for reuse and recovery, lowering the volume of waste going into final disposal and ensuring the proper disposal of hazardous substances.