Munich to Implement New Waste Fee Model from 2028
Munich, September 17 – The city of Munich is set to restructure its waste fees, introducing a new model that will come into effect from the 2028 fee period. This new system will comprise a basic fee and a performance-based fee. The Communal Committee of the City Council approved the new model proposed by the Munich Waste Management Company (AWM) in its session yesterday. The final decision will be made by the City Council in its plenary meeting on September 30.
This new fee model aligns Munich with other major German cities such as Berlin and Hamburg, which have already adopted similar systems. The primary objective is to separate the costs of providing municipal waste management services from the actual utilization of disposal services. The overall financial volume of the costs to be covered will not change as a result of this transition. The aim is to make fees more transparent, comprehensible, and fair, while continuing to incentivize waste avoidance and proper waste separation.
Current Funding Model
Currently, all municipal waste management services in Munich are financed through the residual waste fee. This includes not only residual waste collection but also organic and waste paper collection, recycling centers, the hazardous waste mobile, old clothes collection, treatment plants, the composting plant, and services in waste consulting, customer service, and environmental education.
Fees are calculated for a period of three years. The AWM is not permitted to generate profit from these fees. If actual revenues exceed permissible costs, this impacts the fee calculation for the subsequent fee period. Conversely, cost increases or uncovered costs can lead to higher fees.
New from 2028: Basic Fee and Performance Fee
The new model will be divided into two components:
- Basic Fee: This fee will cover costs that are incurred regardless of the amount of waste generated by an individual user unit. These include, for example, the provision of vehicles and containers, disposal facilities, IT, administration, as well as consulting and service offerings. All user units connected to municipal waste disposal will contribute to these common overhead costs.
- Performance Fee: The performance fee will reflect the actual disposal services utilized. It will be determined by the type of container, container size, and emptying frequency. Organic and paper bins will remain cheaper than residual waste bins. This preserves the ecological incentive of the current system: those who reduce residual waste and properly separate recyclables such as organic waste and old paper can continue to save on fees.
Waste fees represent the financial compensation for utilizing public waste disposal facilities. Their collection is based on the Bavarian Waste Management Act (Bay-AbfG) and the Municipal Charges Act (KAG).
With this new model, Munich aims to achieve several goals: to make fees comprehensible, fair, and suitable for a modern circular economy. The specific amount of the fees from 2028 has not yet been determined. It will be calculated as part of the fee assessment for the new three-year fee period.
