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Financial Guarantees for Waste Shipments

Regulatory Requirements for Financial Guarantees under the EU Waste Shipment Regulation

Last updated: March 2026 | Regulatory basis: Regulation (EU) 2024/1157

Key Points​

  • Financial guarantees ensure that funds are available if shipments cannot be completed as planned.
  • They cover potential costs of transport, recovery or disposal, and remediation.
  • Guarantees must typically be provided before consent for notified shipments is granted.
  • Requirements arise under Regulation (EU) 2024/1157.

Overview​

Financial guarantees under the EU waste shipment regulation are instruments that secure the availability of funds to cover the costs of a waste shipment and its recovery or disposal in the event that the notifier or other responsible party fails to complete the shipment or to meet its obligations. They protect the environment and public finances by reducing the risk that waste is abandoned or that recovery or disposal costs fall on public authorities or third parties.

The requirement for financial guarantees is set out in Regulation (EU) 2024/1157 on shipments of waste. Competent authorities may require the notifier to provide a guarantee before consent is granted or before the shipment may commence. The form (e.g. insurance, bank guarantee, or other approved instrument), the amount, and the validity period are determined in accordance with the Regulation and with national practice. This guide explains when guarantees are required, what they typically cover, and how they interact with the consent procedure.

The legal basis for financial guarantees in the context of waste shipments is Regulation (EU) 2024/1157 of the European Parliament and of the Council of 11 April 2024 on shipments of waste. The Regulation allows or requires competent authorities to demand a guarantee from the notifier to cover the costs of the shipment and of recovery or disposal, including costs of repatriation or alternative disposal if the shipment cannot be completed as planned. The detailed implementation—including the form of the guarantee, the method of calculating the amount, and the timing of its provision—is governed by the Regulation and by national law and administrative practice.

When Guarantees Are Required​

Financial guarantees are typically required in the following situations:

Notified waste shipments. For waste subject to the prior notification and consent procedure, the competent authority of destination (or, where applicable, the authority of export or transit) may require the notifier to provide a financial guarantee before consent is granted or before the waste may be shipped. The Regulation does not prescribe a guarantee for every notified shipment; the competent authority assesses the need based on the type of waste, the route, the recovery or disposal operation, and the risk of non-compliance or default.

Certain recovery operations. The level of risk associated with the intended recovery operation may influence the authority’s decision. Shipments to recovery operations that involve higher environmental or technical risk, or that are carried out in facilities with a history of non-compliance, may be more likely to trigger a guarantee requirement.

Shipments involving higher environmental risk. Waste that is hazardous or that poses a higher environmental risk may be subject to a guarantee more frequently. The authority may also consider the notifier’s track record, the financial standing of the parties, and the complexity of the shipment.

Notifiers should contact the competent authority at an early stage to confirm whether a guarantee is required for their shipment and what form and amount are acceptable.

Coverage of Guarantees​

Financial guarantees typically cover the following categories of cost:

Transport costs. Costs of transporting the waste from the point of departure to the recovery or disposal facility, including any interim storage or handling required if the shipment is interrupted.

Recovery or disposal costs. Costs of the intended recovery or disposal operation at the facility. If the notifier or consignee fails to complete the operation, the guarantee may be used to fund alternative recovery or disposal.

Interim storage. Where waste must be stored temporarily (e.g. pending return or alternative disposal), the costs of that storage may be covered by the guarantee.

Environmental remediation. If the waste is abandoned or improperly managed and causes environmental damage, the guarantee may be used to contribute to remediation costs, to the extent provided for in the Regulation and national law.

The precise scope of coverage depends on the wording of the guarantee instrument and on the conditions set by the competent authority. Notifiers and their financial providers should ensure that the guarantee meets the authority’s requirements and that it remains valid for the full period required (e.g. until completion of recovery or disposal or until release by the authority).

Determination of Guarantee Amounts​

Competent authorities determine the amount of the guarantee based on the specifics of the shipment and the associated risks. Factors may include the quantity and type of waste, the distance and mode of transport, the cost of the intended recovery or disposal operation, and the cost of alternative disposal or repatriation if the shipment fails. National guidance or formulae may exist for calculating minimum or typical amounts.

The notifier must provide the guarantee in the form accepted by the competent authority (e.g. a guarantee from a bank or insurer, or a deposit). The authority will verify that the guarantee is in place and sufficient before consent is effective or before the shipment may begin. If the guarantee lapses or is insufficient during the shipment, the authority may require it to be reinstated or increased and may take enforcement action if the shipment proceeds without a valid guarantee.

Compliance Considerations​

Coordination with financial institutions. Arranging a guarantee can take time. Notifiers should initiate the process early so that the guarantee is in place when the competent authority is ready to grant consent. Delays in obtaining the guarantee can delay the entire procedure.

Timing relative to consent procedures. The authority may make consent conditional upon the provision of the guarantee. In that case, consent is not effective until the guarantee has been provided and verified. Notifiers should clarify with the authority whether the guarantee must be in place before the consent decision is issued or before the first movement of waste.

Guarantee validity periods. The guarantee must remain valid for the duration of the shipment and until the recovery or disposal operation is completed and, where required, confirmed to the competent authority. If the shipment is prolonged or if completion is delayed, the notifier may need to extend the guarantee to avoid it expiring before the procedure is closed.

Key References​

  • Regulation (EU) 2024/1157 of the European Parliament and of the Council on shipments of waste
  • European Commission — Waste shipments

Legislative References​

[1] Regulation (EU) 2024/1157 of the European Parliament and of the Council of 11 April 2024 on shipments of waste

European Shipment Review provides regulatory information for compliance purposes. This guide reflects the position as of March 2026. Operators should consult their national competent authority for jurisdiction-specific requirements.