PPWR: The Packaging and Packaging Waste Regulation Explained

PPWR: The Packaging and Packaging Waste Regulation Explained

As a leading provider of sustainable packaging solutions, we fully support the European Union's aim of promoting packaging circularity and reducing the impact of packaging on the environment. To help our customers navigate new rules shaping the future of packaging in the EU, we have outlined the latest information on the Packaging and Packaging Waste Regulation (PPWR), its importance, objectives, and the differences between existing rules and the key measures proposed.

Please note this information does not constitutelegal advice. This is a general summary of the PPWRbased on publicly available information. Customers should refer to publicly available information, shared byrelevant EU authoritiesand take advice on theirown positionas necessary.

This page was last updated on 26 March2024, based on information from the provisional agreement fromMarch 2024.

What is the PPWR?

Currently, the main regulatory framework for packaging and its end of life in the European Union is the Packaging and Packaging Waste Directive(PPWD), adopted in the 1990s and revised several times since.

In 2022, the European Commission decided to take a more ambitious approach to packaging and packaging waste as part of the EU Green Deal and Circular Economy Action Plan. The EU's aim is tofurther reduce the environmental impact of packaging in the contextof its ambition to reach net zero carbon emissions by 2050.

Is the PPWR already in force?

The PPWR is not yet in force. The European Parliament and the Council are currently in the final stages of the adoption process. We anticipate that the final text will be adopted in April 2024, and it will be published sometime in the coming months.

Willthe PPWR affect your business?

Certainly, the PPWR is set to significantly transform the way we create, use, and dispose of packaging in the EU, affecting all value chains. This will bring about a revolution in the packaging industry landscape within the EU.

As the measures contained in the PPWR will impact most packaging categories to some extent, it is crucial for all businesses to prepare themselves accordingly.

What are the key objectivesof the new Regulation?

The Regulationaims toreduce the environmental impact of packagingwhilst harmonisingpackagingrules throughout the EU to facilitatethe free movement of goods, by:

• Preventing the generation of packaging waste. The PPWR intends to reduce the amount of packaging waste generated in the EU, introduce restrictions on what packaging can be used, and promote reusable and refillable packaging solutions.

• Boosting high-quality recycling. The PPWR aims to make all packaging on the EU marketrecyclable in an economically viableway by 2030.

• Adopting harmonised rules.EU-wide rules on labelling, void space, and mandatory recycled content will promote a level-playing field across the EU, with the same rules applying to all.

What doesPPWR change compared to the existing rules?

A new, more ambitious approach to packaging waste

ThePPWR is a regulation designed to tackle the issue of increasing packaging waste in the European Union. Itsets targets for waste reduction for EU member states,as well as mandatory targets for businessesto reuse certain categories of packaging, bans on some types of single-usepackaging, and requirementsto minimise the amount of packaging used.

Wide-ranging rules across the EU market

The shift from a Directive to a Regulation is expected to bring greater harmonisation to packaging rules in the EU. Directives give greater leeway to European countries when implementing EU rules, allowing for national divergence. Conversely, regulations usually promote a "one-size-fits-all" approach and set rules to be implemented everywhere in the same way.

The Commission has decided to replace the Packaging Waste Directive with a Regulation to ensure greater harmonisation and enforceability of packaging rules across Europe, which is positive news for businesses operating across the EU.

What are the key measures proposed in the PPWR?

The measures described below are taken from the Parliament and Council's provisional agreement, reached in March 2024. Further details on how the measures will beimplemented will be made available in the coming months and years.

Waste reduction: EU countries will have to reduce the volume of packaging waste per capita by5% by 2030, 10% by 2035,and 15% by 2040(based on 2018 levels).

Labelling: Mandatory labels on packaging with:

• Material composition
• EU-harmonised sorting instructions, also to be used on bins
• Reuse instructions where applicable
• Mandatory QR code for reusable packaging.

Reuse & refill: Reuse targets and refill obligationsforseveral types of packaging (food & drink, grouped, transport, e-commerce). Cardboard packaging is excluded from all reuse targets, so these measures do not apply to cardboard.

From 1 January 2030:

• Only reusable packaging should be used for transport packaging used between different sites belonging to the same business, or between different businesses within the same EU country.
• For other transport packaging, including e-commerce: at least 40%reusable packaging should be used by 2030,and at least 70% by 2040.
• For grouped packaging(packaging used to group sales units together): at least 10% has tobe reusable by 2030, and at least 25% by 2040.
• For alcoholic and non-alcoholic drinks(except milk, wineand some spirits): at least 10% reusable packaging by 2030 and at least 40% by 2040.

The 2040 targets are aspirational and non-binding.

Bans on some packaging formats:

From 1 January 2030, ban on plastic packaging:

• In the shape of shrink wrap and collation film, when used to group products togetherto encourage joint purchase.
• For fresh fruit & vegetables below 1.5kg (with some exceptions to be determined).
• Usedfor food & beverages consumed in premises in the hospitality sector(e.g.plastic trays, plastic cups).

And bans on:

• Individual sachets for sauces, preserves, sugaretc.
• Packaging of miniature cosmetics, toiletries, hygiene products in the accommodation sector.
• Very lightweight plastic bags.
  
  

Recyclable Packaging:

• All packaging in the EU will need to be recyclable by 2030.
• All packaging will need to comply withDesign for Recycling criteria, to be defined in further legislation.
• Extended Producer Responsibility fees to be paid by businesses will be based on recyclability performance grades, ranging from A to C.

Recycled content:

Mandatory minimum recycled content for plastic packaging by 2030:

• 30% for contact sensitive packaging made from PET.
• 10% for contact sensitive packaging made from other plastic materials.
• 30% for single useplastic beverage bottles.
• 35% for other plastic packaging.

Targets increase in 2040.

Packaging minimisation:

By 1 January 2030:

• Packaging minimisation becomes the norm.
• Max 50% empty space ratio for grouped, transport, and e-commerce packaging.
• Packaging misleading consumers into thinking the product is larger than it actually is,will bebanned (e.g. double walls, false bottoms).

Compostable packaging

From 3 years after the entry into force of the Regulation, compostable packaging will be mandatory for:

• Tea/coffee bags and capsules.
• Sticky labels attached to fruit and vegetables.

What is DS Smith doing about the PPWR, and how can we help you?

As the leading sustainable packaging provider in Europe,DS Smith has been following the PPWR proposal from the outset. We are in a privilegedposition to help our customers and partners throughout the supply chain adapt to the new reality of packaging regulation in the EU.

We are taking steps to ensure our portfolio is best-in-class to deliver on the ambitions of the new Regulation and are wellpositionedto helpour customers make themost outof these regulatory changes.

Get in touch withus if you'dlike to see how we can help you navigate these changes and future-proof yourpackaging for a PPWR world.

References:

• Packaging: Council and Parliament strike a deal to make packaging more sustainable and reduce packaging waste in the EU - Consilium (europa.eu)
• Proposal Packaging and Packaging Waste - European Commission (europa.eu)

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