Changes in TGAP :

The issue of taxing polluting activities has become crucial in the current context of growing concern for the environment. In France, General tax on polluting activities (TGAP : Taxe générale sur les activités polluantes), has emerged as one of the key instruments for encouraging industrial players to reduce their environmental impact.

What is TGAP ?

TGAP was introduced in 1999 to discourage activities generating air pollution, wastewater discharge, waste and other forms of environmental nuisance, by providing financial incentives for companies to adopt more environmentally-friendly practices.

This is in line with policies designed to promote sustainable development, such as the Law on Energy Transition for Green Growth (LTECV : Loi de transition énergétique pour la croissance verte) published in the Journal Officiel in 2015.

In practice, this taxation is based on the quantity of pollutants emitted or generated by industrial activities. The more pollutants a company emits, the higher its tax rate. This incentive-based approach is designed to encourage companies to invest in clean technologies and environmentally-friendly production processes. Market players can also benefit from partial or total tax exemptions by implementing emission reduction measures.

Companies must pay a portion of the tax for each type of waste related to the following activities :

  • Receipt of waste in a facility requiring environmental impact assessment (ICPE : Installation Classée pour la Protection de l’Environnement) dedicated to the storage or thermal treatment of waste, subject to authorization.
  • Transfer of waste to another state for reception in a local waste storage or thermal treatment facility, also subject to authorization.

TGAP must be settled by the following entities, respectively :

  • The operator of a waste storage or thermal treatment facility subject to authorization, i.e. the person holding the operating permit or the operator.
  • Companies transferring waste from France to another country.

How does TGAP waste tax

work ?

The « waste » TGAP covers all operations relating to the storage of hazardous or non-hazardous waste, its treatment (such as landfill or incineration) or its export to other countries. The aim is to encourage reuse and recycling.

It is divided into 2 categories :

  • Non-hazardous waste includes household waste and various materials such as metals, plastics, wood, paper and packaging.
  • Hazardous waste containing elements that are toxic or dangerous to human health or the environment.

The « non-waste » TGAP applies to polluting emissions, detergents and extraction materials. It does not apply to the recycling of materials that have already been sorted, such as paper, cardboard or bio-waste.

By taxing these companies, the aim is to encourage the circular economy by taxing non-recycled waste and rewarding virtuous practices, where waste is considered a resource rather than a residue.

For more information

Read the article on the circular economy

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TGAP : the latest trends !

As environmental concerns continue to grow, and in its fight against waste and pollution, the government has significantly increased the TGAP rate since 2021.

By 2024, each tonne of non-hazardous waste sent to landfill will be taxed at €52, rising to €65 by 2025. For incinerated waste, the current tax of €20 per tonne will rise to €25 over the same period.

Encouraged by the strengthening of the legislation and in this context of economic constraints on polluting activities, Néolithe has been able to develop and offer a solution for the treatment of waste subject to this tax.

Unlike current methods, such as landfill or incineration, Néolithe has developed an innovative TGAP-exempt method that decarbonizes the waste industry by recycling and cold fossilizing non-hazardous, non-inert and non-recyclable waste. This reduces CO2 emissions into the atmosphere, while sequestering carbon in aggregates that can be used in the construction industry.

Offering an economically and technologically viable alternative, in line with national carbon neutrality objectives, Néolithe deploys waste-to-energy plants throughout France. These facilities aim to process locally-generated waste and supply aggregates for surrounding construction sites, thus contributing to the development of circular economy loops.

For more information

Néolithe has developed a technology to decarbonize the waste industry

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