Michal Zimowski returns to our pages with a detailed analysis of the evolving landscape of plastic regulation across Europe, looking ahead to 2030. A veteran in the field of research and development for flexible packaging, Michal has dedicated over a decade to pioneering sustainable packaging solutions that align with consumer expectations and industry demands. In parallel, Michal is currently working on the development of vegan leather from citrus peels.
In this summary, he dissects the implications of new plastic regulations for businesses in Europe and offers strategic insights to stay ahead of the curve.
I. Overview of the important upcoming plastic regulations in Europe
The key regulations impacting the packaging industry include the Packaging and Packaging Waste Regulation (PPWR) and amendments to the Single-Use Plastics Directive.
1. Packaging and Packaging Waste Regulation (PPWR)
This regulation PPWR, expected to be finalised before the European parliamentary elections in June 2024, aims to overhaul how packaging waste is managed. It includes provisions for:
- Minimising the weight and volume of packaging without compromising its functionality.
- Increasing the use of recycled content in packaging, such as mandating specific recycled content percentages in plastic packaging.
- Setting ambitious targets for reducing packaging waste, including binding reduction targets for Member States (5% by 2030, 10% by 2035, and 15% by 2040).
- Establishing reuse targets for beverage and transport packaging to encourage systems that reduce the use of single-use packaging.
These measures are designed to support the transition to a circular economy where materials are reused and recycled to the greatest extent possible. The PPWR has been debated for its balance between fostering reuse and the practical implications for various types of packaging materials (Packaging Europe) (Packaging Gateway).
2. Single-Use Plastics (SUPs) Directive
Further amendments and stricter enforcement of this directive continue to phase out single-use plastics across the EU.
For example, specific products like plastic cutlery, plates, and beverage stirrers have been banned, and new requirements are set for items like PET bottles to contain a minimum of 25% recycled content by 2025, escalating to 30% by 2030. The directive also includes provisions for tethered bottle caps to become mandatory from July 2024 (CMS).
II. Overview of additional and important plastic regulations in Europe
There are additional upcoming plastic regulations that will significantly impact various industries, including the packaging sector:
1. Global Plastic Treaty
The European Union is actively participating in global efforts to formulate a legally binding treaty aimed at ending plastic pollution. This treaty, discussed under the UN's guidance, aims to establish international standards for plastic production, use, and disposal, promoting sustainable practices worldwide.
The EU is advocating for robust measures to reduce plastic pollution in all forms, including enhancing the sustainability of plastics used in the economy (Environment)(Reuters).
2. Plastic Tax Regulations
Several European countries are moving towards implementing or have already implemented plastic taxes to discourage the use of certain types of plastics, especially non-recyclable and single-use plastics. For instance:
- Italy plans to introduce a tax on the consumption of single-use plastic products starting July 2024 (ecosistant).
- Spain has already implemented an excise tax on non-reusable plastic packaging products as of January 2023 (ecosistant).
- The United Kingdom introduced a tax in April 2022 on plastic packaging components that contain less than 30% recycled plastic (KPMG).
3. Extended Producer Responsibility (EPR) Laws
These laws are being enhanced to hold producers accountable for the entire lifecycle of their products, particularly in terms of packaging waste management and recycling requirements. Producers may need to join a state-designated Producer Responsibility Organization (PRO) or develop an alternative compliance program. These laws aim to boost recycling rates and reduce the environmental impact of packaging (The National Law Review).
Note: Implications for the Packaging and Plastic Industry
The regulatory changes pose both challenges and opportunities for the packaging industry. On the one hand, they necessitate significant adjustments in production processes, sourcing of materials, and design of packaging. For instance, the move towards tethered caps requires changes to the capping machinery and could impact the overall design and functionality of beverage packaging (Euromonitor).
On the other hand, these regulations drive innovation within the industry. Companies are encouraged to explore new materials and designs that align with circular economy principles, such as increased recyclability, reduced material usage, and enhanced reusability. This shift is expected to stimulate investment in new technologies and materials that offer environmental benefits without compromising product quality or consumer experience (Packaging Gateway).
III. Overview of the labelling and marketing guidelines associated with eco-friendly packaging solutions
The upcoming European regulations on plastic packaging, including eco-friendly packaging solutions, place significant emphasis on labelling and marketing guidelines to ensure transparency and consumer awareness.
These guidelines are designed to prevent greenwashing and ensure that claims about sustainability are verifiable and based on standardised criteria.
Below is the summary of the key aspects:
1. Clear Labelling of Recycled Content
The upcoming regulations require that packaging must clearly indicate the proportion of recycled material it contains. This is part of the broader effort to increase the use of recycled plastics in new products, thereby promoting closed-loop recycling. As mentioned above, PET drink bottles will be required to contain a minimum of 25% recycled plastic by 2025, increasing to 30% by 2030, with clear labelling to reflect this content (CMS).
2. Harmonised Labelling for Proper Disposal
To facilitate correct disposal and enhance the effectiveness of recycling systems, there will be harmonised labelling of packaging and waste bins. This initiative aims to make it easier for consumers to identify which items need to be disposed of in which recycling streams, thereby increasing recycling rates and reducing contamination in the recycling process (Environment).
3. Restrictions on Marketing Claims
The regulations are expected to place restrictions on how eco-friendly and sustainability claims can be marketed. This includes eliminating marketing practices that can mislead consumers about the environmental benefits of a product. For example, the proposed rules will no longer permit ‘marketing’ and ‘consumer acceptance’ as legitimate packaging performance criteria if they contribute unnecessarily to packaging weight, thereby impacting the design and branding of packaging (beveragedaily.com).
4. Standardisation of Eco-Friendly Claims
There is a move towards standardising what constitutes "eco-friendly" packaging. This involves setting clear criteria for what can be considered biodegradable, compostable, or recyclable, and under what conditions. The aim is to prevent misleading claims and ensure that all marketed environmental benefits are backed by scientific evidence and adhere to agreed standards. On 17th of January 2024, The European Parliament voted in favour of a new directive that will combat greenwashing and misleading claims (Carmen Sorice Regulatory Affairs)
These guidelines are part of a broader European strategy to shift towards a circular economy, where materials are kept in use for as long as possible and the lifecycle environmental impact of products is minimised. They also reflect a growing recognition that consumer information through labelling and responsible marketing plays a crucial role in achieving environmental targets set by Europe.
IV. Overview of financial incentives in Europe to encourage the adoption of sustainable packaging practices
Europe offers a range of financial incentives and support programs to encourage the adoption of sustainable packaging practices, which are crucial for businesses transitioning towards greener operations.
1. EU Funding Programs
The EU provides various forms of financial support like grants, loans, and subsidies to promote sustainable projects, including those related to packaging. Grants are typically accessed by submitting project proposals in response to calls for proposals, which are managed directly by the European Commission or through shared management with national authorities.
For example, funds under the Recovery and Resilience Facility support green transformations in EU countries as part of broader recovery efforts (European Union).
2. Examples from the past of Specific Initiatives for Sustainable Packaging in Europe
Sustainability Accelerator Microgrants by Chatham House
Open to innovative thinkers and organisations proposing solutions that accelerate policy for a sustainable future, including sustainable packaging. The grants aim to support creative and impactful ideas (Chatham House).
Grants for Growth by Enterprise Nation
Specifically for restaurants in London, Madrid, and Paris, this program, in partnership with Uber Eats and Visa, offers credits to adopt more sustainable packaging solutions. The funding is designed to help small restaurants reduce environmental impact and enhance customer appeal by switching to sustainable packaging (Enterprise Nation).
Innovate UK's Smart Sustainable Plastic Packaging Challenge
This offers funding for projects aimed at reducing plastic waste through innovative packaging solutions. The fund supports early-stage projects, demonstrators, and feasibility studies, focusing on innovations like recyclable materials, design for recyclability, and new business models (Gov UK).
3. Strategic Investments and Incentives
The EU’s broader strategic initiatives, such as the Strategic Technologies for Europe Platform (STEP) and the Net-Zero Industry Act (NZIA), although not exclusively focused on packaging, provide financial incentives that can benefit the development of sustainable packaging solutions.
These programs aim to mobilise investments in clean technologies, including those applicable to sustainable packaging, and facilitate access to funding through mechanisms like the Sovereignty Seal (Norton Rose Fulbright).
V. Comments on measures to promote the use of alternative materials to plastic in packaging
The European Union has implemented several measures to promote the use of alternative materials to plastic in packaging, focusing on biodegradable and compostable plastics as part of broader efforts to achieve sustainability goals set by the European Green Deal and the Circular Economy Action Plan.
1. Policy Framework for Biobased, Biodegradable, and Compostable Plastics:
The EU has developed a policy framework that aims to enhance the understanding and use of biobased and biodegradable plastics.
This framework guides businesses, public authorities, and consumers on the environmental benefits and appropriate applications of these materials, ensuring they are used in ways that genuinely benefit the environment (Environment).
2. Standards and Certifications:
The EU emphasises the importance of clear labelling and certification to prevent market fragmentation and ensure consumer transparency.
Biobased plastics are not automatically biodegradable or compostable, and the EU supports standards that define the conditions under which these materials can decompose effectively, such as in industrial composting facilities (Environment).
3. Promotion of Compostable Plastics in Specific Applications:
The EU has recognised the role of compostable plastics in enhancing the quality and efficiency of biowaste collection and reducing contamination in organic waste streams.
Certain products, like tea bags, filter coffee pods, and very lightweight plastic bags, are mandated to be compostable under new EU regulations. This approach aims to facilitate organic recycling and support the transition to a circular economy (European Bioplastics e.V.).
4. Critiques and Ongoing Development
While the EU's measures have been generally well-received, there are criticisms regarding the limited support for biobased feedstocks and concerns about the potential risks of cross-contamination in waste streams.
These critiques highlight areas for improvement, such as increasing support for biobased products and addressing misconceptions about the environmental impact of bioplastics (European Bioplastics e.V.).
Overall, these measures are part of a strategic effort to reduce dependency on fossil-based plastics, minimise plastic waste, and enhance environmental sustainability across the EU. However, there's an acknowledgement that ongoing revisions and adaptations of these policies may be necessary to fully realise the potential of biobased, biodegradable, and compostable plastics in achieving the EU's rather ambitious sustainability goals.
VI. Comments on how upcoming European plastic regulations impact the import and export of packaging materials and products
The upcoming European plastic regulations, particularly those under the EU's Circular Economy Action Plan and the new Packaging and Packaging Waste Regulation (PPWR), will significantly impact the import and export of packaging materials and products in several ways:
1. Stricter Requirements for Packaging Materials
The regulations aim to ensure that all packaging in the EU market is reusable or recyclable in an economically viable way by 2030.
This directive means that manufacturers outside the EU must comply with these standards if they intend to export their products into the EU. Packaging that does not meet these sustainability criteria may be barred from entry, thereby forcing exporters to innovate or adapt their packaging solutions (Environment).
2. Increased Use of Recycled Content
New mandates requiring increased incorporation of recycled materials in packaging will affect both importers and exporters. Manufacturers outside the EU will also need to ensure their products meet these content thresholds if they wish to maintain their market access in the EU (CMS).
3. Export Market Challenges and Opportunities
EU-based companies might face challenges in exporting packaging materials that do not meet the environmental standards of other countries if those countries adopt similar or more stringent environmental standards.
Conversely, EU companies that lead in sustainable packaging technologies may find new export opportunities in markets that are also moving towards stricter packaging regulations.
4. Certification and Labelling Requirements
The new regulations will likely include more rigorous certification and labelling requirements to verify the recyclability and recycled content of packaging materials.
Exporters to the EU will need to ensure their products are correctly certified and labelled according to EU standards, which may involve additional compliance costs and procedural changes (Environment).
5. Impact on Import Costs
For companies importing packaging materials into the EU, there could be an increase in costs associated with compliance with these new regulations. These costs might stem from needing to source higher-quality recyclable materials or from investments in technology to meet recycling targets.
Additionally, the adjustment to new supply chain practices to ensure compliance can also add to operational expenses.
6. Regulatory Alignment and Trade Barriers
These regulations may serve as a template for other regions, leading to a more standardised global approach to packaging standards.
However, in the short term, they could also act as trade barriers, particularly for countries and companies that find it difficult to meet the EU's stringent standards. This could affect market dynamics, with some companies losing market access while others gain it based on their ability to adapt.
Overall, the impact of these regulations on the import and export of packaging materials hinges on the ability of companies to adapt to and comply with these new rules. While they present challenges, particularly in terms of compliance costs and operational adjustments, they also offer opportunities for innovation and leadership in sustainable packaging solutions.
Ultimately, proactive compliance not only avoids these consequences but can also position a company as a leader in sustainability, enhancing its competitive advantage in an increasingly eco-conscious market.
