The Norwegian Competition Authority (NCA) has voiced support for policies that encourage reuse, repair, and recycling, but cautioned that poorly designed rules could stifle competition and innovation.
Responding to the Ministry of Climate and Environment’s recent report “Not Straight Forward”, the Authority stressed that a shift toward a circular economy must also ensure efficiency, consumer choice, and market access for new players.
“We must ensure that new rules do not prevent companies from developing better and more environmentally friendly solutions, and it must be worthwhile, both for companies and consumers, to choose circular solutions,” said Ingvild Nordtveit, economist at the NCA.
Among its concerns are industry-led schemes and mandatory requirements that could unintentionally limit competition:
- Electronics and appliances: The NCA is skeptical of a proposal under which manufacturers would set fees on new products to finance repairs, warning it might not actually reduce costs or improve access for consumers.
- Garages and car parts: A rule requiring all garages to offer used spare parts could disadvantage small workshops if there is no functioning second-hand market, potentially driving up prices and reducing consumer choice.
- Public construction projects: Stricter circularity requirements in public building contracts risk excluding potential bidders, the Authority cautioned, which could result in higher costs and inefficient use of resources.
At the same time, the watchdog sees major opportunities in the waste sector. It backs proposals to increase producer responsibility for waste reduction and calls for clearer, simpler regulations to lower barriers for new entrants. More competition, the Authority argues, would mean lower prices and more effective environmental solutions.
“The goal of a more circular economy is important, but it must be implemented in a way that ensures well-functioning competition,” Nordtveit said. “That will deliver better and cheaper goods and services for consumers.”
Source: https://konkurransetilsynet.no/konkurranse-er-avgjorende-for-a-lykkes-med-en-mer-sirkulaer-okonomi/
