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Following years of assessments, discussions, stakeholder meetings and intense trilogue consultations, on April 24, 2024, the European Parliament adopted the Packaging and Packaging Waste Regulation (PPWR) at first reading, which should contribute to the transition to a circular economy. Once in full effect, the PPWR will replace the Packaging Directive 94/62/EC. Stretch Wrap Film
The PPWR marks a far-reaching shift in the way packaging is regulated in the European Union and harmonizes the Union’s internal market for packaging (Art. 1(2) PPWR). It will cover a broad range of packaging types that are produced, imported, distributed, or used in inter-company logistics by millions of companies and citizens in the EU. Companies must prepare for significant changes regarding the handling of their product packaging to comply with the PPWR.
The new PPWR will undoubtedly shake up the European packaging and logistics sector. Moreover, the changes will affect e-commerce, the HORECA sector, retailers, as well as other players that are new to the game in most Member States, such as fulfilment service providers. Established producer responsibility organizations (PROs) and authorized representatives will discover a new range of services to offer to market participants. Due to numerous new obligations, manufacturers and distributors will need to know ‘their’ packaging holistically at an unprecedented level. Failing to do so might result in sales bans and fines. The days when packaging was (only) differentiated by its price and logistical effectiveness will belong to the past. Recommendations in a nutshell:
The PPWR sets out a comprehensive framework aimed at preventing packaging waste and fostering re-use and recycling of packaging.
Recyclability of packaging—per unit and at scale. The PPWR requires all packaging to be recyclable, with very limited exceptions (Art. 6 PPWR, Annex II Table 1 PPWR). Three recyclability performance grades and thresholds—A, B and C—will gradually increase pressure on producers over the coming years (Annex II Table 3 PPWR).
The Commission is tasked with adopting delegated and implementing acts to establish design for recycling criteria (2028) and a methodology for the recycled at scale assessment (2030).
Notable exemptions exist for compostable packaging (Art. 9 PPWR), certain packaging of medicinal products, contact sensitive packaging of medical devices and in vitro diagnostics, packaging used for the transport of dangerous goods, sales packaging made from specific materials (lightweight wood, cork, textile, rubber, ceramic, porcelain or wax), contact sensitive packaging for processed cereal-based food, food for special medical purposes and baby food as well as, for a limited period and upon notification of the competent authority, so-called “innovative packaging” (Art. 3(1)(8) PPWR).
Percentages of recycled plastics content in packaging. Any plastic part of packaging placed on the market, in future, must contain a minimum percentage of recycled content, recovered from post-consumer plastic waste, and calculated as an average per manufacturing plant and year (Art. 7 PPWR). The minimum percentages differ depending on packaging type, such as:
The minimum percentages will increase significantly from 2040 onwards—for example to 25%, 50% and 65%, respectively, for the above forms of packaging.
Article 7(3) PPWR requires that packaging and packaged products imported into the EU from third countries must also comply with the minimum recycled content requirements. In addition, imports may enter the market only when originating from a country that has equivalent rules concerning the prevention and reduction of emissions into air, water and land associated with recycling operations. It remains to be seen, whether third countries see these requirements as violating World Trade Organization (WTO) rules, and seek to challenge them in WTO dispute settlement against the EU.
PFAS in food contact packaging. The PPWR prohibits food contact packaging if it contains per- and polyfluorinated alkyl substances (PFAS) in a concentration at or above specific thresholds (Art. 5 PPWR). The definition of PFAS substances in scope and prohibitive concentration levels in question are adopted from the universal PFAS REACH restriction proposal currently under consideration within the ECHA. The aspects of potential PFAS REACH restrictions may still change during ECHA’s elaborations.
Packaging minimization by design and use. Aside from fostering recycling, the PPWR places a key emphasis on avoiding “unnecessary” packaging.
Harmonized labeling of packaging. The PPWR will require that packaging must be labeled with an EU-wide harmonized label (Art. 12 PPWR), in particular:
Green claims. Article 14 PPWR limits so-called “green claims”. Such statements on packaging may only be made if they go beyond the applicable minimum requirements set out in the PPWR. Any claims need to specify whether they relate to the packaging unit, part of the packaging unit or to all packaging placed on the market. Compliance with these requirements needs to be demonstrated by a technical declaration (Annex VII PPWR). It remains to be seen if these limitations will lead to increased legal action on unfair competition grounds, and as a result effective self-regulation that complements public enforcement. In any case, further legislation on the matter of “green claims” is looming at EU level. The proposed “Green Claims Directive” and the Directive on Empowering Consumers for the Green Transition (EU) 2024/825, which was adopted last month, will provide for tighter restrictions on “green claims”.
EU conformity declaration. The PPWR will require packaging manufacturers to issue a declaration of conformity for packaging before placing it on the market. That declaration requires an assessment that the packaging complies with Art. 5-12 PPWR (Art. 15, 39 PPWR). The declaration must follow a specific format and content and must be kept and provided to authorities upon request for 5 years after placing single-use packaging on the market and 10 years after reusable packaging is placed on the market.
Packaging bans. The PPWR implements vast bans on single-use packaging from January 1, 2030 (Art. 25 and Annex V PPWR), particularly on plastic packaging.
Far-reaching re-use targets. Art. 29 PPWR sets out re-use targets for different types of packaging. These will affect numerous sectors and packaging materials, in particular:
Notable exemptions exist for all re-use targets, e.g., cardboard boxes, packaging used for the transport of dangerous goods and certain food contact packaging are generally excluded from these re-use targets as well as packaging of certain beverages (in particular wine products). Further, final distributors having a sales area of not more than 100 m² are exempt.
Refill/re-use systems in the HORECA sector. The PPWR will require final distributors in the HORECA sector offering beverages or ready-prepared food in take-away packaging (of all materials) to provide the option of refill and re-use systems to consumers at no higher costs and no less favorable conditions than beverages and food in single-use packaging (Art. 32, 33 PPWR). Final distributors must inform end consumers about these possibilities at the point of sale. For German final distributors, this will lead to changes of the existing obligations under § 33 of the German Packaging Act (VerpackG), which already covers single-use beverage cups of all materials, but so far is limited to single-use plastic packaging for food.
National packaging registers and extended data reporting obligations on packaging. Packaging producers making available packaging for the first time on the German Market – which covers approximately 1 million companies as of April 2024 – are already familiar with the obligation to register in a national packaging register (§ 9 VerpackG). The PPWR now makes this measure compulsory (albeit with some significant alterations to the German provision) in all Member States. Moreover, packaging producers must comply with numerous new data reporting obligations. These reporting obligations will be highly complex, not least in light of 22 (!) relevant packaging categories set out in Annex II Table 1 PPWR. The PPWR provides for the option to entrust PROs or authorized representatives to fulfil these obligations. Note that the PPWR does not provide an exception for small and micro-enterprises.
Extended producer responsibility. Articles 44-47 PPWR introduce extended producer responsibility (EPR) for packaging producers, e.g., in the form of financial participation in the costs of collecting, sorting, and recycling packaging waste (Art. 8, 8a Waste Directive 2008/98/EG). Producers may delegate their EPR obligations to PROs. Reporting duties will become significantly more complex.
Return, collection and deposit return systems. Articles 48-50 PPWR require Member States to set up systems and infrastructure for the return and separate collection of all packaging waste from end users to facilitate its preparation for re-use and high-quality recycling.
Furthermore, every Member State is required to establish, by January 1, 2029, deposit and return systems to ensure the separate collection of single use plastic beverage bottles and single use metal beverage containers with a capacity of up to three liters. These deposit and return systems need to ensure the separate collection of at least 90% per year by weight of the respective packaging. Notable exemptions exist for wine products, alcohol-based spirituous beverages, milk, and milk products as well as the option for Member States to exempt packaging with capacities lower than 0,1 liters, as well as national deposit and return systems already established. Stakeholders in Germany are already familiar with such systems as nationwide return and collection systems as well as a nationwide deposit and return system are already established.
Green public procurement. Article 63 PPWR sets out minimum mandatory requirements for public contracts in which the packaging or packaged products represent more than 30% of the estimated contract value or of the value of products used by the services object of the contract. As the EU Commission is asked to adopt implementing acts specifying these minimum requirements, it remains to be seen how this measure will affect future public procurement procedures in the Member States.
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