On Wednesday 21 November 2023, the European Parliament (EP) adopted their draft of the Packaging and Packaging Waste Regulation (P&PWR). The draft P&PWR will now move on for consideration by the European Council.
Timings are uncertain on when the Regulation will be in force, however packaging is a priority topic for the EP and we understand that the aim is to reach agreement on the P&PWR before the European Union parliamentary elections in June 2024.
Companies in all sectors who wish to work in the EU will need to welcome a new era of reusable, refillable and recyclable packaging by 2030. If the P&PWR comes into force in any shape close to where it is now, circularity will not be a nice to have, but a necessity to keep products on the market in the EU.
This article covers some of the ways in which the EU P&PWR is likely to regulate the recyclability of packaging, recyclable content of plastic packaging, extended producer responsibility (EPR), deposit return schemes (DRS) and single use plastics (SUP).
The P&PWR will (in every EU Member State (MS)):
An important consideration in the regulations is packaging design - so innovation will be key for packaging producers. By 2030 only packaging that is recyclable can be placed on the EU market. So far we know that this means:
Then by 2035, packaging needs to be recycled at scale - so we will need enough infrastructure to allow recycling at industry level.
There are ambitious 2030 and 2040 minimum recycled content targets for plastic packaging. However, there are exemptions, for example, in relation to contact sensitive plastic packaging for medicinal products and special foods for infants. Microenterprises are also excluded from these obligations.
Plastic packaging will need to have a minimum recycled content, recovered from consumer plastic waste, per unit of packaging of:
Recycling is only possible if consumer packaging is separately collected and returned and this happens through separate collection schemes, including EPR and DRS.
The P&PWR will require infrastructure to be in place in all member states (MS) across the EU by 1 January 2029 to ensure return and separate collection of glass, paper, cardboard, metal, plastic, wood, cork, textiles, clay and stone. Minimum recovery targets are also set for MS.
1. Extended producer responsibility (EPR) obligations will be harmonised across the EU. There is currently EPR for packaging in place in 26 of the 27 MS and Denmark will implement it in early 2024. The provisions of the P&PWR currently require that the European Commission create EPR rules, at EU wide level, on how producers of packaging report on the packaging they place in market in the EU and rules on the criteria for fees modulation. The actual amount of modulated fees will be set by each individual state, but the Commission will set the criteria based on the packaging recycling performance grade, and for plastic packaging, the percentage of recycled content.
Furthermore, a producer of packaging will also need to appoint an EPR authorised representative in each MS where it places packaging on the market, other than where it is established.
2. Deposit Return Schemes (DRS) for glass, plastic, and cartons are one of the separate collection schemes that the P&PWR sets out to facilitate the availability of recycled content of these waste streams. There are already 13 DRS schemes in place for glass and plastic packaging in the EU. Unless certain separate collection targets are met, DRS schemes are likely to be in place by 1 January 2029 for:
It’s also worth noting that packaging for wine, spirit drinks and some milk and milk products are no longer excluded from the DRS obligations.
3. Re-use and refill by 31 December 2028, MS are required to set up systems for re-use of packaging with sufficient incentives for return and systems for refill in an environmentally sound manner.
Subject to limited exemptions, certain types of single use packaging (SUP) will be banned from 31 December 2027 from the EU market. Current examples of these SUP that are expected to be banned include shrink wrap used to group retail packaging, nets used to group less than 1kg of fruit and vegetables, cups to be filled at the point of sale in the HORECA sector, sachets for condiments, hotel miniature shampoo bottles of less than 100 ml or 100 gr, shrink wrap used at airports for suitcases and secondary packaging for cosmetic creams.
Our legal, strategy and sustainability teams are working together to support a number of clients in their circular packaging journey. We can help you adapt your businesses’ strategy to achieve circular packaging goals and compliance with the P&PWR, by providing the following services:
Please get in touch to continue the conversation.
The article touches upon the expected fees payable, timelines relevant to large packaging producers over the coming year, and includes links to PwC guidance on how to account for pEPR fees for internal financial and account teams.
The proposal for a new Ecodesign for Sustainable Products Regulation is being introduced to reduce product-related emissions and progress to net-zero.
The Corporate Sustainability Reporting Directive (CSRD) has introduced sustainability reporting obligations for more companies. Those companies who fall in scope must report on a much wider range of sustainability impacts than ever before.
The Competition and Markets Authority (CMA) is sharpening its focus on “greenwashing”- giving a false impression (including through words, logos, branding or advertising) that a product or service is “green”, or more sustainable or environmentally friendly than alternatives.
