Glossary
Eco-modulation
Adjusting the fee a producer pays into an EPR scheme according to how repairable, durable or recyclable the product is.
Under Extended Producer Responsibility, producers pay a fee per unit placed on the market to fund end-of-life treatment. A flat fee is neutral: it costs the same to sell a product designed to last as one designed to be thrown away.
Eco-modulation removes that neutrality. Fees are adjusted against criteria such as reparability, durability, recycled content and ease of dismantling, so that better-designed products pay less. It is the mechanism that turns EPR from a tax into a design incentive.
The criteria and the size of the adjustment are set nationally and differ between markets, which means a product can attract a bonus in one country and a penalty in another. For anyone selling across Europe, that turns eco-modulation into a reporting exercise as much as a design one.