European packaging sector faces up to radical change through new EC waste rules

The European Commission (EC) has proposed a new set of EU-wide rules on packaging that it hopes will tackle “this constantly growing source of waste and consumer frustration”. The new rules will come at a serious cost to the huge European packaging industry and its supply chain. But the EC claims that the longer-term impact will be positive and lead to the creation of new jobs, and a saving in terms of environmental damage for the economy and society of some €6.4bn relative to the baseline by 2030. On the launch of the new proposal, the EC said that on average, each European citizen generates almost 180kg of packaging waste per year. It pointed out that packaging is one of the main users of virgin materials, as 40% of plastics and 50% of paper used in the EU is destined for packaging. Without action, the EC said Europe would see a further 19% increase in packaging waste by 2030, and for plastic packaging waste even a 46% increase. The new rules aim to stop this trend. For consumers, they will ensure reusable packaging options, get rid of unnecessary packaging, limit overpackaging, and provide clear labels to support correct recycling, claimed the EC. For the packaging industry, the new rules will create new business opportunities, especially for smaller companies, reduce the need for virgin materials and boost Europe's recycling capacity, as well as making it less dependent on primary resources and external suppliers, it said. The new set of rules will put the packaging sector on track for climate neutrality by 2050, said the EC. The Commission said it also brings clarity to consumers and industry on bio-based, compostable and biodegradable plastics. The rules explain for which applications such plastics are truly environmentally beneficial and how they should be designed, disposed of and recycled. The EC explained that the proposed revision of the legislation on packaging and packaging waste has three main objectives. First, to prevent the generation of packaging waste: reduce it in quantity, restrict unnecessary packaging, and promote reusable and refillable packaging solutions. Second, to boost high-quality (‘closed loop') recycling: make all packaging on the EU market recyclable in an economically viable way by 2030. And finally, to reduce the need for primary natural resources and create a well-functioning market for secondary raw materials, increase the use of recycled plastics in packaging through mandatory targets. The headline target is to reduce packaging waste by 15% by 2040 per member dtate per capita, compared to 2018. This would lead to an overall waste reduction in the EU of some 37%, compared to a scenario without changing the legislation. This will happen through both reuse and recycling, said the EC. The new rules will present a significant challenge to the European packaging industry and multinationals that supply the EU. For example, to foster reuse or refill of packaging, which has declined steeply in the last 20 years, companies will have to offer a certain percentage of their products to consumers in reusable or refillable packaging. Suppliers of takeaway drinks and meals or e-commerce deliveries face a challenge. There will also be some standardisation of packaging formats and clear labelling of reusable packaging. Another element of the new rules that will interest business travellers is the measures designed to address clearly unnecessary packaging. Certain forms of packaging will be banned, such as single-use packaging for food and beverages when consumed inside restaurants and cafes, single-use packaging for fruits and vegetables, miniature shampoo bottles and other miniature packaging in hotels. The new rules also introduce mandatory rates of recycled content that producers have to include in new plastic packaging. “This will help turn recycled plastic into a valuable raw material – as already shown by the example of PET bottles in the context of the Single-Use Plastics Directive,” said the EC. Struggling to work out which bin a waste product should be destined for will be a thing of the past, said the EC. “The proposal will clear up confusion on which packaging belongs to which recycling bin. Every piece of packaging will carry a label showing what the packaging is made of and in which waste stream it should go. Waste collection containers will carry the same labels. The same symbols will be used everywhere in the EU,” it explained. The calculated impact of these new rules on greenhouse gas emissions is quite impressive. “By 2030, the proposed measures would bring greenhouse gas emissions from packaging down to 43 million tonnes, compared to 66 million if the legislation is not changed – the reduction is about as much as the annual emissions of Croatia. Water use would be reduced by 1.1 million m3. The costs of environmental damage for the economy and society would be reduced by €6.4bn relative to the baseline 2030,” claimed the EC. As with all the major transition measures planed by the EU, they will come at a cost for European businesses. But the result will be positive in the long term, it said. “Single-use packaging industries will have to invest into a transition, but the overall economic and job creation impact in the EU is positive. Boosting reuse alone is expected to lead to more than 600,000 jobs in the reuse sector by 2030, many of them at local small and medium-sized companies. We expect much innovation in packaging solutions, making it convenient to reduce, reuse and recycle. Measures are also expected to save money: each European could save almost €100 per year, if businesses translate savings to consumers,” stated the EC. This proposal will now be considered by the European Parliament and European Council, in the ordinary legislative procedure, concluded the EC.

European packaging sector faces up to radical change through new EC waste rules

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