New Regulation for SIGRE Management

The new Regulation for Allocation and Compensation Mechanisms (“ACMs”) within the Integrated Packing Waste Management System (“SIGRE”) (the “Regulation”) was published in the Official Gazette of the Republic of Portugal on September 24, 2025. The Water and Waste Services Regulation Authority (“ERSAR”) issued the Regulation.

The Regulation was approved following Decree-Law 24/2004 of March 26, which amended the UNILEX Regime to grant ERSAR powers to determine compensation values and ACM mechanisms within packaging waste streams. For a detailed overview of the amendments under Decree-Law 24/2004 of March 26, please see our earlier Post.

In force since September 9,2025, the Regulation establishes that the allocation and compensation rules will apply starting January 1, 2026.

The Regulation governs ACM provisions for packaging streams within urban waste management systems (“UWMS”).

The ACM was introduced when SIGRE was opened to the competition of various management entities (“SIGRE MEs”) under Decree-Law 71/2016 of November 4, which amended the General Waste Management Regime then in force (Decree-Law 178/2006 of September 5).

When multiple entities operate within a packaging waste stream, the allocation and compensation mechanisms served as the tool created to compensate the entity managing waste, without having been assigned that responsibility.

The Waste Management Monitoring Committee—CAGER—was initially tasked with defining ACMs and setting the fees payable by SIGRE MEs to finance their development and operation. However, in the legislative framework for the UNILEX Regime (as amended by Decree-Law 24/2004 of March 26), these competencies have been transferred to ERSAR.

The Regulation applies to the following SIGRE stakeholders:

a)   Licensed SIGRE management entities

b)   UWMS entities, comprising 12 multi-municipal companies and 11 intermunicipal companies.

The Regulation aims the ACM operations to:

a)   use digital technologies and data;

b)   standardize procedures through regulated acts; and

c)    be simpler and more transparent.

The Regulation introduces the following methodological changes to ACMs:

a)   Material quantities are assigned based on SIGRE MEs’ theoretical market shares in allocation and compensation units.

b)   The allocation of material load units to be taken back is determined by an allocation algorithm.

c)    SIGRE MEs to which loads are allocated are obligated to take back loads directly from UWMS.

d)   Compensation is payable when the quantities collected exceed or fall short of the SIGRE ME’s market share.

Theoretical market shares refer to the amounts of packaging that, throughout the year in question, are or have been paid for financially to the pertinent SIGRE ME. These shares, as defined by the Regulation, will be calculated twice: once before and once after the year in question ends. This ensures the allocation algorithm works properly and enables the calculation of any compensation amounts.

The SIGRE MEs have their own collection networks, separate from the urban waste cycle, to help Portugal meet its recycling targets. These networks are excluded from the ACMs.

Procedurally, those covered by the Regulation must meet the following deadlines:

(i)          SIGRE MEs must estimate and report the quantities of materials they plan to place on the market by September 30.

(ii)         ERSAR must determine the market shares by November 15.

(iii)        SIGRE MEs must report actual data for the previous year, based on their activity and financial reports, by April 15.

(iv)        The draft decision on compensation amounts between MEs will be announced by May 15, and the payment must be made within 60 days.

Also, ERSAR may monitor UWMSs or SIGRE MEs if it considers this necessary within the scope of ACM management.

 Entry into force and application of the new ACM

The new Regulation outlines the following regarding its entry into force and application:

• Until December 31, 2025, the allocation will be carried out in accordance with the CAGER decision of April 15, 2018, as amended, on the rules applying to the ACM in the context of SIGRE.
• The compensation procedure for 2025 will be processed in 2026, based on the methodology established in the CAGER decision of April 14, 2018, as amended, except for its frequency, which is now annual.
• The new ACM will be fully implemented from January 1, 2026.