Government reviews waste management fee and redistributes revenues based on efficiency criteria

The Government has amended the General Regime for Waste Management (RGGR) for the fifth time and redesigned the Waste Management Fee (TGR), with a revenue distribution model based on criteria of efficiency, proportionality, and economic rationality. The amendment is contained in Decree-Law no. 205/2026, of October 27, published in the Diário da República, 1st series, no. 208, of October 27, 2026. The diploma was approved in the Council of Ministers on August 6, 2026, and promulgated by the President of the Republic on October 19.

The decree-law carries out the fifth amendment to Annex I of Decree-Law no. 102-D/2020, of December 10, amending 40 articles and adding articles 55-A and 86-B. The preamble frames the reform within the Strategic Plans for Urban Waste (PERSU 2030) and for Non-Urban Waste (PERNU 2030) and the Action Plan for the Circular Economy in Portugal 2030 (PAEC 2030), with two reference targets: to reduce the amount of urban waste sent to landfills by 10% by 2035 and to increase preparation for reuse and recycling to at least 60% by weight by 2030.

The TGR maintains its function as an economic instrument to compensate for administrative costs and discourage waste production, but the revenues now take on the role of a driver for results-oriented public investment. The self-governing bodies of the Autonomous Regions, the National Association of Portuguese Municipalities, the Competition Authority, and the Water and Waste Services Regulatory Entity were consulted, and hearings were held with the Order of Engineers and the Order of Technical Engineers.

Revenues distributed among entities, municipalities, and the Environmental Fund

The new article 114 of the RGGR distributes the proceeds of the fee and sets ceilings: the sum allocated to entities cannot exceed 40% of the total annual TGR revenue, with the Environmental Fund receiving at least 60%. The distribution is now carried out under the following terms:

• The proceeds of the TGR under article 111 are allocated to IGAMAOT, GNR, PSP, ARR, and ANR.
• The proceeds of the TGR under article 112 are allocated to IGAMAOT and ANR.
• The funds are updated annually by the average annual rate of change of the consumer price index.
• The amount made available to municipalities cannot be less than 30% of the TGR proceeds covered by article 111.

The decree also creates incentives for compliance: any municipality that demonstrates full compliance with the objectives of the municipal plan approved by the ANR will not be subject to the annual fee update, and compliance between 75% and 100% reduces this update by 25%. The calculation of the TGR for extended producer responsibility systems will now follow the formula TGR = TGR EG × δ, settled annually starting from 2025, and the ANR is required to publish an annual report by June 30 on the disaggregated allocation of revenues, with reporting from entities by March 31.

Municipal systems may go beyond the public service reserve

The new Article 11 allows municipal, inter-municipal, and multi-municipal waste management systems to collect, transport, and treat urban waste outside the public service reserve and non-urban waste, on a subsidiary basis and provided that three conditions are cumulatively met:

• The producer or holder of the waste requests the service from the system.
• The absence of offer by licensed private operators is proven, specifically due to manifestly abusive commercial conditions, discriminatory prices or clauses, or restrictive competition practices.
• The waste is suitable, in quality and quantity, for the system in question.

The exercise of these activities requires mandatory opinions from the Competition Authority, the ANR, and ERSAR and, where applicable, authorization from the entity holding the service. The contract has a maximum duration of three years and ceases when any of the prerequisites are no longer met, resulting in the expiration of the authorization; the matter will be regulated by an ordinance from the Government members of the economy and environment areas.

Asbestos and selective demolition with new obligations

In Article 49, the decree provides that the collection and management of construction and demolition waste containing asbestos, originating from private works exempt from licensing and not subject to prior communication under the Legal Regime of Urbanization and Building (RJUE), may be ensured by the municipal urban waste collection system, through a specific tariff. To raise recovery standards, Article 55-A is added, which requires a pre-demolition audit with a material identification and evaluation report, the model of which is published on the ANR website, and it becomes mandatory to record the selective deconstruction methodology in the site logbook, focusing on asbestos waste, and to sign a term of responsibility. Article 117 now typifies new non-compliances, including the lack of a pre-demolition audit, the violation of the minimum recycled material incorporation rate, and the incorrect management of construction and demolition waste.

Waste transfers and phased entry into force

The decree-law implements Regulation (EU) 2024/1157 on waste shipments within the domestic legal order, digitizing procedures through the European Commission’s central system and graphical user interface, and requiring a financial guarantee covering 90 days of storage, payable within five days following a request from the ANR. The entry into force is staggered:

• As a general rule, in the month following its publication.
• Paragraphs 1 to 6 of Article 114 and Article 115 take effect on January 1, 2026.
• Paragraph 7 of Article 114 takes effect on January 1, 2027.
• Article 11 takes effect 180 days after the entry into force.

The impact is direct for those paying the fee: municipalities, waste operators, entities managing specific streams, and the construction industry will now operate with a performance-indexed revenue distribution and new traceability obligations at construction sites. The expansion of municipal system competencies and the possibility of collecting asbestos waste in exempt private works address situations where the market offers no solution, but remain subject to opinions from competition and regulatory authorities.

Source: Diário da República, 1st series, no. 208, of October 27, 2026, p. 1 (official reference: Decree-Law no. 205/2026).