Chile’s New Regulation on Lubricant Oil Recycling Targets Sustainability

In a significant step towards environmental sustainability, the Chilean government issued a Supreme Decree on 11 November 2024, focused on improving the collection, recycling and proper disposal of lubricant oils. The regulation, officially published in the Diario Oficial, sets ambitious recycling and valorization targets, in line with Chile’s broader commitment to combat climate change and advancing a circular economy.

Key Provisions of the Decree

The Decree establishes mandatory collection and valorization targets for lubricant oils and requires producers to organize systems that handle used oils responsibly. Producers who introduce more than 66 litres of lubricant oils annually are now subject to the Extended Producer Responsibility (EPR) framework (Responsabilidad Extendida del Productor (REP) in Spanish).  This initiative ensures that producers finance the collection, transportation, and processing of used oils to minimize environmental damage.

Key elements:

1. Recycling Targets: The decree mandates progressive recycling goals for recoverable oils. It recognizes the environmental hazards posed by improper disposal and aims to ensure that used oils are either effectively recycled or reused.

2. Producer Accountability: The EPR system requires producers to fund and manage the collection and recycling of their products, promoting a closed-loop system that discourages waste.

3. Consumer Obligations: Consumers, including industrial users, must return their used oils to registered management systems or authorized recyclers. Penalties are in place for non-compliance.

4. Labeling Requirements: Within three years, lubricant oil packaging must include clear messages about proper disposal and the environmental risks associated with mishandling used oils.

5. Transparency: Producers and recycling systems must provide detailed information about their operations and ensure public access to data on collection points, recycling rates, and system performance.

Encouraging Innovation and Collaboration

The Ministry of the Environment emphasized that used lubricant oils are classified as hazardous waste, underscoring the urgency of the regulation. The decree also provides guidelines for the development of new technologies to trace and process waste oils, thereby enhancing accountability throughout the supply chain. The regulation allows exceptions for small-scale producers while encouraging industrial-scale operators to adopt efficient waste management practices. Additionally, it provides incentives for collaborative and collective recycling systems, provided they meet the set compliance standards.

Timeline and Implementation

The decree provides a 24-month preparation period for industry to adapt before its provisions take full effect. During this time, stakeholders must finalize recycling plans, establish infrastructure, and ensure compliance with the new requirements.

This regulation represents a significant stride in Chile’s environmental policy and signals the government’s dedication to sustainable waste management and the fight against climate change. For additional information, the resolution (in Spanish) can be accessed here.