Slovenia is lagging behind in implementing European legislation on waste packaging, particularly with regard to introducing the full cost system, under which producers would cover all costs of waste packaging management. Slove- nian Environmental Protection Act (Zakon o varstvu okolja – ZVO-2) intro- duces a monopolised extended producer responsibility system, in which only one non-profit organisation would be allowed to manage waste packaging. The Constitutional Court has temporarily suspended the disputed provision, while the EU Court of Justice is assessing its compliance with EU law. Meanwhile, the EU has adopted a new Packaging Regulation, setting ambitious environ- mental goals, such as reducing packaging waste, increasing recycling rates, introducing a deposit-return system, and designing packaging for easier recy- cling. Simultaneously, the Regulation strictly regulates innovative packaging, which could hinder development. Despite the legal requirement for priority processing in Slovenia, most plastic packaging is exported due to a lack of re- cycling facilities and lengthy permitting procedures. The author warns that the transition to a circular economy will not succeed without business profitability. In his view, the monopolisation and non-profit nature of extended producer responsibility systems send the wrong message—that the circular economy is not financially viable and requires subsidies. He emphasises that the EU must find the right balance between high environmental standards and competitive- ness, as excessive regulation could stifle innovation and economic growth.
Key words: waste packaging, extended producer responsibility, circular econ- omy, innovative packaging, Constitutional Court, EU Court.