Final green light for European reform of the packaging and packaging waste framework

On 16 December 2024, the Council of the EU officially adopted new rules to reduce, reuse and recycle packaging, concluding the final step of the legislative process. The Packaging and Packaging Waste Regulation (PPWR) will be published in the EU Official Journal in the coming weeks, and will enter into force on the twentieth day following its publication. 

The PPWR establishes rules for the entire life-cycle of packaging, from design to waste, with measures on reuse and recycle. The main goal is to tackle growing waste and boost the circular economy, whilst at the same time harmonising national rules on packaging and packaging waste to the benefit of the internal single market. 

Key takeaways

• The new regulation imposes numerous obligations on the different players in the packaging value chain (manufacturers, suppliers, economic operators, distributors and importers) who may have to rethink their business models and prepare for significant changes in order to be able to comply with the PPWR.
• In particular, the PPWR establishes requirements to ensure that packaging is sustainable, by imposing recycling and labelling obligations and minimising the presence of substances of concern.
• The generation of waste is also targeted by establishing re-use obligations, limiting single-use packaging and minimising packaging use in general.
• The PPWR sets out common principles in case of non-compliance with its requirements and obligations. It is then up to each Member State to lay down the provisions on penalties and fines.
• In the coming months / years the European Commission will adopt a series of implementing and delegated acts for numerous provisions of the PPWR (i.e. design for recycling criteria; harmonised labelling; rules; methodology on re-usability targets; calculation and verification of the percentage of recycled content; methodology for the calculation of empty space ration; format of registration in and reporting to the register), and companies should be aware of the possibility to participate in this part of the legislative process.

Background

On 30 November 2022, the European Commission put forward a proposal for a regulation on packaging and packaging waste, to review, for the third time, the Packaging Directive of 1994 (Directive 94/62/EC). EU negotiators managed to agree on a common and final version of the proposed regulation in March 2024, which was then adopted by the European Parliament (April 2024).

The PPWR is a flagship initiative of the EU Circular Economy Action Plan, adopted by the European Commission in March 2020 as one of the building blocks of European Green Deal. The Circular Economy Action Plan contains a series of legislative initiatives to promote sustainability and circular economy processes, focusing on resource intensive sectors such as vehicles, batteries, electronics, textiles, construction and, of course, packaging.

Scope of the Regulation 

The PPWR covers all types of packaging and packaging waste, regardless of the material used or the source of waste, without prejudice to the Waste Framework Directive (Directive 2008/98/EC).

Main provisions 

The PPWR introduces a series of new rules to ensure that all packaging is reusable or recyclable in an economically feasible way by 2030.

Substances in packaging (Art. 5)

Substances of concern must be minimised in packaging placed on the market and food contact packaging containing certain thresholds of per- and polyfluorinated substances will be banned. The substances of concern include those affecting human health or the environment or those affecting the re-use and recycling of materials such as lead, cadmium and mercury. 

Recyclability (Art. 6)

From 1 January 2030, all packaging placed on the EU market must be recyclable, according to three performance grades: A, B and C.

As of 1 January 2038, packaging must meet grades A or B.

In order to be considered recyclable, packaging must meet certain requirements: (i) it must be designed for material recycling, (ii) separately collected and sorted into specific waste streams, and (iii) recyclable at scale.

However, there are some exemptions to the recyclability requirements for certain types of packaging that serve specific purposes or have a low environmental impact, including packaging of medicinal products, contact sensitive packaging of medical devices and in vitro diagnostic medical devices, packaging used for the transport of dangerous goods, sales packaging made from certain materials that are placed on the market in very small quantities (i.e. lightweight wood, cork, textiles, rubber, ceramics, porcelain or wax) and innovative packages under certain conditions. 

Recycled plastics content in packaging (Art. 7)

The PPWR also imposes minimum percentages of recycled content for plastic parts in packaging. Depending on the type of packaging, this percentage varies from 10% for contact sensitive packaging made from plastics other than polyethylene terephthalate (PET) to 35% for general plastic packaging, and is set to increase by 2040.

The regulation also specifies the conditions for the recycled content, such as the source, the recycling process and the verification methods, in addition to the exemptions, especially in the medical products and pharma sectors.

Packaging products imported into the Union from third countries must also comply with the minimum requirements and must follow the same minimum percentages depending on the type of packaging. The recycling process must occur in a location within the EU or in a third-country installation operating under the same conditions as far emissions and environmental performance are concerned.

Economic operators will have to demonstrate compliance with these requirements in the technical documentation in accordance with Annex VII. 

Packaging minimization (Art. 10)

By 1 January 2030, manufacturers and importers will have to ensure that the weight and volume of the packaging placed on the market are reduced to the necessary minimum to maintain functionality.

Moreover, the regulation imposes maximum empty space ratios such as 50% for grouped, transport or e-commerce packaging.

Operators shall again prove compliance with packaging minimization requirements in the technical documentation as set out in Annex VII. 

Re-usability for packaging (Art. 11, 26, 27, 28, 29, 30, 31)

The regulation sets a series of conditions (in total nine criteria) for packaging to be deemed reusable, such as being designed for multiple uses and being able to accomplish many rotations while maintaining safety, quality and hygiene requirements and its ability to perform its function.

Economic operators who make reusable packaging available must ensure that a system for re-use is in place in the Member States.

Specific reusability targets are also foreseen for certain sectors such as the e-commerce and hospitality sectors from 2030 (with an increase as of 2040), with repercussions also on the transport packaging.

The hospitality sector is also targeted by way of refill requirements: they must provide a system for consumers to bring their own containers to be filled.

Compliance with the requirements must be demonstrated in the technical information in Annex VII. Economic operators will have to report to the competent authorities data concerning the re-usability targets, with the first reporting period starting on 1 January 2030. 

Harmonized labelling (Art. 12)

All packaging placed on the market will have to be marked with a label containing information on its material composition, with the exception of transport packaging or packaging which is part of a deposit and return system). A QR code will also provide further information such as instructions to facilitate consumer sorting or its re-use. 

Packaging bans (Art. 25 and Annex V)

A series of packaging formats will be forbidden as of 1 January 2030, including:

• single use plastic packaging for unprocessed fruit and vegetables;
• single use plastic packaging for foods and beverage when consumed inside cafes and restaurants;
• single use packaging for cosmetics, toiletry products for the use in the accommodation sector,
• very lightweight plastic carrier bags.

EU conformity declaration (Art. 15)

In order for packaging to be placed on the market, the new rules will require manufacturers to assess conformity with the regulation and then issue a declaration of conformity. Both the declaration of conformity and the technical documentation referred to in Annex VII shall be kept for five years after single-use packaging has been placed on the market and ten years in case of reusable packaging.

Suppliers of packaging and packaging materials must provide manufacturers with all the information and documentation necessary for the assessment procedures.

National packaging registers and data reporting obligations (Art. 44)

EU Member States are required to establish a register to monitor producers' compliance with the obligations set out in the regulation.

Packaging producers must register in each Member State where they make packaging or packaged products available for the first time on the market. They will then report annually (by 1 June for each preceding calendar year) to the competent authority responsible for the register a series of information including on packaging types and arrangements to ensure the producer responsibility (see Annex IX – part II).

Extended producer responsibility (Art. 45, 46, 47) 

The PPWR introduces extended producer responsibility (EPR) for packaging producers in the form of financial contributions which cover costs of labelling, collecting, sorting and recycling packaging waste. Producers may decide to appoint an authorized representative, which shall then assume the EPR obligations of the producer in the Member State where the packaging is made available. They can also decide to entrust a producer responsibility organisation to carry out the EPR obligations on their behalf. 

Infrastructure (Art. 48, 49, 50)

Member States will also need to ensure that systems and infrastructures are set up to provide for return and separate collection of all packaging waste from end-users, that they adopt mandatory collection rates and fulfill separate collection targets of, for example, single-use plastic bottles and metal containers and that deposit return systems for plastic bottles and metal containers are established.

Green public procurement (Art. 63) 

To incentivise supply and demand of sustainable packaging, the PPWR foresees minimum mandatory requirements for public contracts where packaging and packaged products represent more than 30% of the estimated contract value.

Circularity 

The PPWR plays an important role in wider EU efforts to establish a strong product policy framework towards circular economy and sustainability. Although recycling rates in the EU have increased, the amount of waste generated from packaging is growing faster than the amount recycled.

Other key initiatives are the Ecodesign for Sustainable Products Regulation; Regulation for Waste Shipments; targeted revision of the EU Waste Framework Directive; Right to Repair Directive and the Corporate Sustainability Reporting Directive. Some of them have already been adopted, while others are on the final steps of the legislative procedure and will be finalized soon. 

All companies operating and consumers in the EU will be affected by the regulation in some way. Companies should assess how the new rules will apply to them and adopt a holistic approach to better prepare, from paying attention to the design and performance of their products to end-of-life disposal.