Guide to Waste Law 7/2022: What Changes and How to Avoid Penalties

The Waste and Contaminated Soils Law 7/2022 for a circular economy marks a turning point in environmental management in Spain.

In force since April 2022, this regulation aligns the country with the latest European directives on circular economy, recycling, and the reduction of single-use plastics. For companies, it is not just a legal change, but a structural transformation that impacts costs, processes, and reputation.

This guide provides a detailed analysis of the new law, the obligations it imposes on organizations, and how to avoid fines that, in the most serious cases, can exceed €3.5 million.

What is the objective of Waste Law 7/2022?

The main purpose is to reduce waste generation and improve its management, promoting prevention, reuse, and recycling instead of landfilling. The goal is to reach a maximum landfill disposal rate of 10% of municipal waste by 2035.

This means companies must rethink their production and consumption models to integrate into a circular economy framework, where waste becomes a resource.

Key developments introduced by Law 7/2022

New environmental taxes

The law establishes a tax on landfilling, incineration, and co-incineration of waste, applicable to both hazardous and non-hazardous waste.

It also introduces a special tax on non-reusable plastic packaging, charging €0.45 per kilo of virgin plastic used.

Ban on single-use plastics

Since 2023, the sale of products such as straws, cutlery, plates, cotton swabs, and expanded polystyrene containers is prohibited. Companies in the hospitality and retail sectors must adapt their packaging models to reusable or compostable alternatives.

New producer responsibilities

Waste producers now have greater responsibility for traceability and classification, especially in sectors such as construction, healthcare, and the chemical industry. Failure to assign the correct EWC (European Waste Catalogue) code can result in direct penalties.

Strengthening of separate collection

The law requires the separate collection of five fractions: paper-cardboard, metals, plastics, glass, and bio-waste. In addition, by 2025, separate collection of textiles, used cooking oils, and household hazardous waste must be implemented.

Expansion of the sanctioning regime

Fines are classified as minor, serious, and very serious. Minor fines can reach up to €2,000, serious fines range from €2,001 to €100,000, and very serious fines range from €100,001 to €3.5 million.

How Waste Law 7/2022 affects companies

The entry into force of the Waste and Contaminated Soils Law 7/2022 not only requires regulatory adjustments but also represents a profound transformation in the way Spanish companies manage their production and administrative processes.

Its impact can be analyzed in three main areas which, while initially seen as challenges, also open the door to improvement opportunities.

Impact on operating costs

One of the most immediate changes for companies is the increase in costs associated with waste management.

The new landfill, incineration, and co-incineration tax, together with the levy on non-reusable plastics, directly increases expenses for organizations that have not adapted their processes.

For example, a distribution company that continues to use virgin plastic packaging will see its cost increase by €0.45 per kilo, which represents a significant expense at high volumes.

However, companies that replace these materials with recyclable or reusable packaging neutralize this impact and, in many cases, achieve medium-term savings.

Regulatory and administrative compliance burden

The new law strengthens reporting, traceability, and waste documentation obligations.

Companies must now record their waste streams more thoroughly and use digital platforms such as e-SIR for the transfer of hazardous and certain non-hazardous waste.

This increases the administrative workload, since partial compliance is not enough: traceability must be documented at every stage. Although initially seen as additional bureaucracy, in the medium term digitalization reduces errors and streamlines audits. In fact, companies that adopt digital management systems reduce by up to 35% the time spent on waste-related administrative processes.

Competitiveness and opportunities for differentiation

Far from being only a restrictive framework, Law 7/2022 also acts as a driver of innovation.

Companies that take proactive measures, such as implementing zero-waste strategies or energy recovery from waste, not only comply with regulations but also strengthen their market position.

A company that demonstrates a real commitment to the circular economy improves its ESG ratings, which translates into access to green financing and preference in public tenders.

In highly competitive sectors such as retail or construction, strict compliance with regulations becomes a selling point for increasingly sustainability-conscious clients.

Strategies to avoid penalties under Law 7/2022

Compliance with Law 7/2022 requires more than superficial changes: it demands a proactive and ongoing approach that combines prevention, control, and organizational culture. Penalties can be significant, but the greatest risk lies in reputational damage and the loss of sustainable financing opportunities.

Here are the key measures every company should adopt:

Conduct internal waste audits

Audits help identify what waste the company generates, at which points in the value chain, and how often.

This initial diagnosis helps detect inefficiencies, calculate real management costs, and establish reduction plans.

For example, an industrial SME that performs quarterly audits typically saves 10–15% on transport and storage through better material classification.

Properly classify waste with Its EWC Code

Correct identification of waste using the European Waste Catalogue (EWC) code is a legal requirement and the basis for defining the appropriate treatment. Errors not only lead to fines but also create environmental risks.

A common mistake is confusing varnished wood waste (hazardous) with clean wood (non-hazardous). The difference in management and cost can reach up to 40%.

Train staff in separation and traceability

Regulatory compliance is not just the responsibility of the environmental department. Operators, warehouse staff, and logistics managers must be trained in waste separation and the use of traceability tools.

Training sessions reduce human errors, which the Ministry for Ecological Transition identifies as the main cause of minor sanctions.

Replace plastic materials with reusable alternatives

The new tax on non-reusable plastics requires companies to rethink their packaging policies. Adopting compostable or reusable packaging not only avoids the €0.45 per kilo tax on virgin plastic but also improves corporate image with clients and investors.

In the retail sector, companies that have eliminated single-use bags report a 12% increase in customer loyalty.

Work with authorized waste managers

The law requires that transfers and treatments be carried out only by authorized managers. Partnering with certified operators ensures compliance and full traceability through to the final recovery or disposal phase.

Moreover, many managers offer recovery services that turn costs into revenue, such as the sale of scrap metal or recycled cardboard.

Digitize Reporting with tools like the e-SIR platform

Digitalization is key to efficient compliance. The e-SIR platform centralizes information on waste production, transfer, and treatment, preventing paperwork errors and enhancing transparency for auditors and inspectors.

Waste Law 7/2022: more than a legislative imposition

Waste Law 7/2022 should not be understood merely as a regulatory imposition, but as a lever for modernizing processes and reducing medium-term costs.

Organizations that adapt their business models will not only avoid fines but also gain competitiveness in a market that rewards sustainability.

FAQs about Waste Law 7/2022

Does the law also apply to freelancers?

Yes, since any economic activity that generates waste is subject to this regulation.

What happens with hazardous waste?

Traceability requirements are reinforced, and such waste must be registered in the e-SIR platform.

Is a waste management plan mandatory?

Yes, companies must have a documented prevention and management plan.