Industries fail in first bid to knock down EU micropollutant regs

The first industry challenge to the European Union’s 'polluter pays' micropollutant levy has been thrown out on a legal technicality. The next battle will not be so easy to avoid.

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The General Court of the European Union (GCEU) last week dismissed a lawsuit brought by pharmaceutical and cosmetics industry associations seeking to annul the "polluter pays" clause of the revised Urban Wastewater Treatment Directive (UWWTD).

The Extended Producer Responsibility (EPR) clause (Article 9) requires the two industries to cover at least 80% of the cost of fourth-stage sewage treatment – estimated to be over €1.5 billion per year across the EU.

Importantly, the GCEU did not assess industry claims that the EPR disproportionately burdens the pharma and cosmetics producers, citing instead a lack of legal standing under strict EU rules on private challenges. The ruling allows implementation of the UWWTD to go ahead despite ongoing legal uncertainty. Both industries continue to challenge the Commission’s findings that they account for 90% of micropollutants entering WWTPs.

Jurate Svarcaite, director general of AESGP (Association of the European Self-Care Industry), commented in a statement: “While the General Court’s ruling closes one procedural avenue, it does not address the underlying problem: the Directive remains scientifically unbalanced and unfair in how it allocates responsibility.”

It is not the only legal challenge seeking to annul the EPR clause. Next in line is a case launched by Poland in March last year. Unlike industry associations, Poland’s member state status means the case cannot be dismissed for a lack of standing and must be examined on the substance of the law. 

A separate case by the Irish Pharmaceutical Healthcare Association, filed in October 2025, also contests the proportionality of the EPR. The case is still being reviewed by the Irish High Court before it can be referred to the CJEU.