Impact of the new measures related to the circular economy on the management of agrochemical packaging in Spanish agriculture and the use of biodegradable plastics

BACKGROUND: Waste disposal is an activity that pollutes the environment. The European Union has developed different legislative measures which are based on the circular economy (CE) to avoid this negative externality. The management of agricultural packaging (fertilizers and phytosanitary products) is carried out through Collective Deposit, Return, and Refund Systems (CDRRS). New regulations on waste tax the consumption of non-recyclable plastic in packaging, but also reward the use of plastic by-products from packaging. The administrations recommend using biodegradable plastic in the means of production, as well as establishing a traceability system (TS) to control the proper management of all the generated waste. The proposed measures can affect producer cost accounts. This work aimed to identify and evaluate the existing agricultural packaging management system in Spain. It also studied the influence of the price of a barrel of oil, crop surface, irrigation regime, and the type of subsectors on CDRRS, and quantified the impact of the latest fiscal measures and initiatives proposed by Spanish administrations. RESULTS: The generation of agricultural packaging is influenced by variables including the cultivated area, irrigation regime, and agricultural subsector. The price of a barrel of oil directly influences the current by-product utilization system. Using biodegradable plastic or implementing a TS can increase production costs by up to 9.80%. The current system of subsidies to producers can soften the economic impact caused by the additional cost of biodegradable plastic (4.03%), but no subsidies have been foreseen to encourage the use of environmentally friendly alternatives. CONCLUSIONS: Findings indicate that public administrations should be guided by the specific characteristics of the different agricultural systems when defining regulations on agricultural waste management. The fixed rate in the current system of subsidies for using plastic by-products obtained from packaging should be substituted for a variable rate. Transferring powers to autonomous communities to define by-products may lead to heterogeneity in the Spanish territory. New measures derived from the recent environmental agreements to comply with the 2030 Agenda will increase production costs even after considering the current aid scheme. The subsidy coefficient should be increased to 80% of the purchase invoice.