The PPWR (Packaging and Packaging Waste Regulation) is close to adoption

• On 24th April 2024 the European Parliament adopted the proposal Procedure 2022/0396/COD on packaging and packaging waste, amending Regulation (EU) 2019/1020 and Directive (EU) 2019/904, and repealing Directive 94/62/EC.
  
  
• The rules, which have been provisionally agreed on with the Council, include packaging reduction targets (5% by 2030, 10% by 2035 and 15% by 2040) and require EU countries to reduce, in particular, the amount of plastic packaging waste.
  
  
• To reduce unnecessary packaging, a maximum empty space ratio of 50% is set for grouped, transport and e-commerce packaging; manufacturers and importers will also have to ensure that the weight and volume of packaging are minimised.
  
  
• Reduce packaging and restrict certain types:
  
• Certain single use plastic packaging types will be banned from 1 January 2030:
  – packaging for unprocessed fresh fruit and vegetables,
  – packaging for foods and beverages filled and consumed in cafés and restaurants
  – individual portions (for e.g. condiments, sauces, creamer, sugar)
  – accommodation miniature packaging for toiletry products and very lightweight plastic carrier bags (below 15 microns).
  
  
• The new rule includes a ban on the use of so called “forever chemicals” (per- and polyfluorinated alkyl substances or PFASs) above certain thresholds in food contact packaging.
  
  
• Encourage reuse and refill options for consumers:
  – Specific 2030 reuse targets are foreseen for alcoholic and non-alcoholic beverages packaging , transport and sales packaging, as well as grouped packaging. Member states may grant a five-year derogation from these requirements under certain conditions.
  – Final distributors of beverages and take-away food will have to offer consumers the option of bringing their own containers. They will also be required to endeavor to offer 10% of products in a reusable packaging format by 2030.
  
  
• Recyclable packaging, better waste collection and recycling:
  – Under the new rules, all packaging (except for lightweight wood, cork, textile, rubber, ceramic, porcelain and wax) will have to be recyclable by fulfilling strict criteria.
  – Measures also include minimum recycled content targets for plastic packaging and minimum recycling targets by weight of packaging waste.
  – By 2029, 90% of single use plastic and metal beverage containers (up to three liters) will have to be collected separately (via deposit-return systems or other solutions that ensure the collection target is met).
  

Next step:
once the EU Council formally approves the regulation, it enters into force as binding law in all EU Member States.

Take away:
The EPR schemes will be mandatory for commercial and industrial packaging as well, for which only few EU countries have a system in place. Managing packaging data will be important in the upcoming years.

Plastic packaging tax and CBAM

Germany: Plastic packaging tax postponed
The introduction of the plastic tax in Germany, which was planned for the year 2025, has been temporarily halted. Finance Minister Christian Lindner (FDP) informed his colleagues that the legislation could not be completed on time.

According to the report, the Ministry of Finance has not been able to present a workable model for the tax. Problems with data collection and the risk of excessive bureaucratic effort were central hurdles. Now, the search will continue for a functioning regulation so that the plastic tax can possibly be introduced from 2026 onwards. Updates will follow.

Italy: Plastic packaging tax postponed
The Italian Plastic Tax is proposed to be again postponed from 1st July 2024 to 1st July 2026. The draft law under discussion has already been approved by the at Italian Senate.

UK: Government consultation on design and administration of UK CBAM

• In December last year, the UK government announced that it would implement a UK Carbon Border Adjustment Mechanism (“CBAM”) from 2027. The UK CBAM is intended to place a carbon price on certain industrial goods imported to the UK including aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel sectors.
• The aim of the UK CBAM is to mitigate the risk of carbon leakage, which occurs when production shifts to jurisdictions with lower or no carbon pricing, and to support the UK’s transition to net zero emissions by 2050
• The government has released a public consultation on the design, implementation and administration of the UK CBAM and has set out some detailed proposal options. This consultation and the details within will be of interest to businesses who import energy intensive products into the UK. The consultation was open to responses until 13 June In a next step we expect the UK government to react on the responses submitted.

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