Chile’s Second Environmental Court has heard legal challenges from Copec, Enex and PTH Grupo Ambiental seeking to annul Supreme Decree No. 47/2023, a regulation issued by the Ministry of the Environment that sets collection and recovery targets for lubricating oils under the Extended Producer Responsibility (EPR) law.
The companies argue the decree unlawfully restricts individual management systems and improperly grants powers to lubricant marketers, claims that the government rejects as unfounded and contrary to the law.
In 2016, Chile enacted Law No. 20,920, the EPR Law, which requires producers of priority products, including lubricating oils, to manage end-of-life waste and authorizes the Ministry of the Environment to establish collection and recovery targets through supreme decrees, to be met via individual or collective management systems.
The Ministry later drafted regulations for lubricating oils, initially proposing a full restriction on individual management systems before adopting a partial restriction to address potential market distortions. The draft was approved on October 13, 2023, and Supreme Decree No. 47/2023 was published on November 11, 2024.
On December 16, 2024, Copec, Enex and PTH Grupo Ambiental filed legal challenges, arguing the decree exceeds the Ministry’s legal authority, distorts competition and contains technical and legal flaws.
The companies also contend the decree lacks adequate technical and economic justification and improperly alters roles established in the EPR Law by granting lubricant distributors powers reserved for industrial consumers, creating legal uncertainty and undermining the effectiveness of the extended producer responsibility system.