Law No. 98-25 Regarding Solid Waste Key modifications and practical implications for enterprises and municipal authorities.
Law No. 98-25, which amends and supplements various provisions of Law No. 225-20 on Comprehensive Management and Co-processing of Solid Waste, aims to strengthen the national waste management system, reduce environmental impact, and promote the circular economy, in accordance with the provisions of Article 1 of Law No. 98-25, which redefines and expands the purpose of the existing regulation. This reform introduces new technical, financial, and operational obligations that directly impact companies and local governments.
Special Contribution and Strengthening of the System
One of the most significant changes is the introduction of a mandatory Special Contribution, through the amendment of Article 36 of Law No. 225-20 and the inclusion of Paragraph III, as established by Law No. 98-25. This contribution applies to all legal entities, both public and private, is calculated based on the annual income reported to the General Directorate of Internal Taxes (DGII), and becomes enforceable as of the 2025 fiscal year-end. The funds collected are allocated exclusively to financing transfer stations, recovery plants, sanitary landfills, and other infrastructure of the national waste management system, strengthening its financial sustainability, while also representing a new cost that companies must anticipate.
Increased Oversight and Corporate Responsibility
Law No. 98-25 amends and expands the provisions of Law No. 225-20 relating to the Ministry of Environment and Natural Resources, reinforcing its role as the governing authority of the system and its regulatory and supervisory powers over public and private stakeholders. Likewise, through the amendment of Articles 27 and subsequent articles of Law No. 225-20, the Extended Producer Responsibility (EPR) regime is broadened, imposing on producers, importers, and marketers the obligation to ensure the post-consumption management of waste derived from their products. These amendments promote the circular economy but entail greater technical and operational compliance requirements.
Regulation of Plastics, Municipalities, and Compliance Deadlines
The regulation introduces specific changes regarding single-use plastics and expanded polystyrene (foam), through the amendment and incorporation of provisions contained in Articles 30 to 34 of Law No. 225-20, as amended by Law No. 98-25, establishing mandatory technical requirements for their manufacture, importation, and commercialization, including biodegradability certifications. Likewise, Law No. 98-25 amends Articles 38 and 41 of Law No. 225-20, conditioning municipalities’ access to financial contributions on the approval of municipal waste management plans and establishing deadlines for the regularization and closure of open-air dumps. These reforms seek to reduce environmental and health risks, although they require operational adjustments at both the business and municipal levels.
Drawbacks and Challenges of Law No. 98-25
Despite the advances introduced, Law No. 98-25, by amending multiple provisions of Law No. 225-20, presents significant practical challenges. These include increased financial burdens on companies resulting from the Special Contribution incorporated into Article 36 of Law No. 225-20, as amended by Law No. 98-25, as well as the costs associated with complying with the revised Extended Producer Responsibility regime; a higher administrative and regulatory burden due to new registration, certification, and planning requirements; and the need to make operational and technical adjustments to products, processes, and supply chains, particularly in relation to single-use plastics. In addition, although the revised compliance deadlines are progressive, they may be demanding for certain sectors and municipalities with limited technical or financial capacity.
At Alburquerque Abogados, we support our clients in conducting a specific analysis of the impact of this regulation on their activities, as well as in the design and implementation of legal and operational strategies that enable them to comply with current regulations, minimize risks, and efficiently take advantage of the opportunities offered by the new comprehensive waste management model.