What is the EU Packaging Regulation (PPWR)?
The Packaging and Packaging Waste Regulation (PPWR) is an European Union (EU) regulation that stipulates provisions for packaging and packaging waste in the Member States of the EU and is intended to create a standardised legal framework. We have outlined the main provisions of the PPWR – that will replace and supplement the existing Packaging Directive 94/62/EC (the "existing Directive") – in the following note.
The European Parliament adopted the PPWR on 24 April 2024. The next step is the formal adoption by the Council and the PPWR will then apply eighteen months later, i.e., expected at the end of 2025 or the beginning of 2026.
What is the existing packaging framework?
Packaging and packaging waste material is already regulated in the EU. The existing Directive requires producers to participate in a compliance process which is implemented by domestic legislation of the Member States. Under the existing Directive producers are those entities that produce packaging materials and import packaged goods or sell packaged goods to the customer. All types of packaging materials are regulated (e.g. materials used for the containment, protection, handling, delivery or presentation of goods).
The compliance process under the existing Directive requires three steps to be taken by a producer: (a) registration as a producer with the Member State's environmental regulator; (b) annual reporting on the amount of packaging placed on the market; and (c) funding the recycling and/or recovery at end of life by purchasing "Packaging Recovery Notes", the cost of which is determined by the packaging reported in (b).
What is the aim of the PPWR?
Changing from an EU directive to an EU regulation means the PPWR will be directly effective throughout all Member States rather than being implemented by a Member State's domestic legislation. There will therefore be greater harmonization of measures among the EU Member States. The same annual compliance regime will apply for existing Member State producers, but in addition the PPWR will introduce significant changes in the legislative framework and define ambitious targets, boosting 'closed loop' recycling and reducing the use of primary natural resources.
The PPWR will introduce a national registration obligation for producers prior to placing packaging on the market of each Member State. Further, it is expected that the European Commission will publish implementing acts setting out the registration requirements, again to improve consistency between Member States. In addition, the PPWR will introduce various constraints and obligations relating to packaging design, material use and recyclability which are set out below. Strict targets for the reduction of packaging waste will be introduced rising to at least 15% by 2040 compared to 2018 figures.
To whom does the PPWR apply?
Comparable to the existing Directive, the PPWR applies to all forms of packaging regardless of the materials utilised and to all packaging waste regardless of its point of origin.
In this regard, the PPWR affects all companies based in the EU but also companies that import packaging products into the EU. The PPWR therefore has wider application than the existing Directive as it imposes a compliance obligation for packaging being imported from companies outside the EU. How this will work in practice will only become clear once official guidance material to the PPWR is published, but it is anticipated that the EU importing company will be prevented from accepting or marketing non-compliant packaging from outside the EU.
Which provisions of the PPWR apply in each individual case and which obligations arise therefrom largely depends on the role the company plays within the supply chain. The PPWR primarily differentiates between the "supplier", "manufacturer", "distributor", "producer", "importer", and "fulfilment service provider".
- Supplier comprises anyone who supplies packaging or packaging material to a manufacturer. The supplier is subject to extensive information and documentation obligations and must provide the "manufacturer" with all information and documentation that is required to provide proof of conformity (see below) of the delivered products.
- Manufacturer means anyone who manufactures packaging or a packaged product and is responsible for the design and labelling of packaging. To prove that the manufacturer complies with the requirements of the PPWR, it must also submit a declaration of conformity.
- Distributor is who makes a packaging, or a packaged product, available on the market and is primarily subject to inspection and information obligations.
- Producer can be any manufacturer, importer or distributor who is in addition – depending of its origin – involved in product packaging and packaging services. Producers must ensure that they fulfill all key requirements of the PPWR and, in particular, the new Extended Producer Responsibility (EPR) must be observed, which also relates to special registration obligations.
- Importer means any natural or legal person established within the EU who places packaging, or a packaged product, from a third country on the EU market. Importers shall only place on the market packaging which is in conformity with the key requirements.
- Fulfilment service provider means anyone offering at least two of the following services: warehousing, packaging, addressing and dispatching (excluding postal/parcel services). Fulfilment service providers must ensure that their services do not jeopardise the conformity of the packaging they handle. They also have an obligation to check whether the information provided by the producer is in alignment with the PPWR.
What are the key requirements of the PPWR?
- Recycling Capability – Packaging should be made recycling-orientated so that the components of the packaging can be separated for recycling and can also be recycled individually. The PPWR will require that all packaging is recyclable in the future, starting with design criteria for recycling by 1 January 2028 and then actual recyclability at scale by 1 January 2030.
- From 1 January 2030, packaging may only be placed on the market if it is recyclable according to grades A (higher or equal to 95% recyclability), B (higher or equal to 80% recyclability) or C (higher or equal to 70% recyclability). If the "Recyclability Performance Grade" is lower than 70%, the packaging will be considered technically non-recyclable, and its placing on the market will be restricted.
- From 1 January 2038, packaging may only be placed on the market if it is recyclable according to grades A or B.
- Use of post-consumer recycled material – The PPWR stipulates that, with a few exceptions, all packaging containing plastic must contain a minimum proportion of post-consumer recycled material (PCR) by 2030. PCR comes from plastic waste disposed of by end consumers at the end of its life cycle. The percentage of PCR varies depending on the type of plastic material used.
- Minimisation of packaging – Packaging must be reduced to the minimum necessary to ensure its functionality. This means that packaging that has no packaging function or is intended to increase the perceived size of the product (e.g., through double walls, false bottoms, etc.) is not permitted. As of 1 January 2030, the empty space ratio must not exceed 50%.
- Standards for materials in packaging – Packaging that is placed on the market needs to be manufactured in such a way that it contains no or only a minimal amount of potentially toxic substances. This includes the actual packaging material as well as all parts that make up the packaging, i.e., labelling or lettering. In particular, stricter restrictions apply to packaging that comes into contact with food and contains perfluorinated and polyfluorinated alkyl substances (PFAS) above certain threshold values. This is to align with the PFAS restriction proposals currently being considered by the European Chemicals Agency.
- Reusability – There are new requirements in the PPWR which are intended to promote re-use or re-fill solutions for food and drink, including a percentage requirement for products to be offered in re-usable/re-fillable packaging.
- Packaging bans – The PPWR includes a planned ban on certain single-use packaging from 1 January 2030 such as packaging for unprocessed fruit and vegetables and plastic food and drink packaging.
- Labelling – The PPWR will stipulate certain labelling requirements. In future, packaging will be required to carry a label with information on the material composition. In practice, the business must use a labelling that enables the end consumer to recognise what is contained in the packaging and how to dispose of it or on the availability of a reuse system and collection points for example by means of a QR code or other digital data carrier.
- Extended Producer Responsibility (EPR) - Packaging producers must designate an authorised representative in writing in each Member State in which they make packaging available for the first time. Producers must also enrol in a register provided by each Member State and bear extended producer responsibility for the entire life cycle of a product.
- Furthermore, within the framework of the EPR systems, producers will be required to make a financial contribution to the collection, sorting and recycling of used packaging waste.
- As the financial contribution scheme is aligned with the existing Directive, it is expected that these compliance scheme obligations will apply only to EU companies, although this will affect the nature of the packaging on products imported from outside the EU if these do not comply with the other requirements under the PPWR.
What will be the consequences if companies disregard the regulation?
The PPWR includes provisions that require Member States to incorporate sanctions for non-compliance into their national law. These are to be adopted within 24 months of the PPWR coming into force. For certain offences (obligations in connection with excessive packaging, reusable packaging or refilling), the PPWR prescribes the imposition of fines on producers who are not compliant with the PPWR.
Example compliance scheme – supplier
Before supplying packaging products or material to a manufacturer
The supplier is subject to extensive information and documentation obligations, meaning that the supplier must provide the manufacturer with all information and documentation that is required to provide a proof of conformity of the delivered products. In addition, further information and documentation obligations may arise in individual cases if the packaging is considered as contact sensitive.
There is no mandatory time frame for the provision of this information. But since the manufacturer must demonstrate the compliance of the packaging using such information, it is recommended to provide the relevant information as soon as possible.
At this stage, it is not yet possible to determine what information must be provided in detail. However, the required minimum content of the technical documentation that the manufacturer must provide can serve as a guide. This must include information on the materials from which the packaging was manufactured.
After supplying packaging products or material to a manufacturer
Retention obligations as well as information obligations regarding the responsible authority are not explicitly stated in the PPWR. Nevertheless, it is recommended to keep the information provided to the manufacturer in accordance with the retention obligations concerning manufacturers to be able to provide any required proof at any time.
Example compliance scheme – distributor
Before placing packaging on the market
The distributor must verify that the producer (that is subject to the obligations of the EPR) is registered in the register of producers, that the packaging is labelled correctly and that the manufacturer and the importer complied with their identification requirements.
In case the distributor considers or has reason to believe that the packaging is not conform to PPWR or that the manufacturer or importer is not complying with its requirements, the distributor must not make the packaging available on the market.
Furthermore, the distributors must ensure that, while the packaging is under their responsibility, storage or transport conditions do not jeopardise its compliance with the key requirements.
After placing the packaging on the market
In case distributors consider or have reason to believe that packaging, which they have made available on the market, is not in conformity must make sure that the corrective measures necessary to bring that packaging into conformity, to withdraw it or recall it, are taken. In addition, they must immediately inform the responsible market surveillance authorities of the relevant Member States.
Information obligations towards the national authority
Distributors must, further to a reasoned request from a national authority, provide that authority with all the information and documentation to which they have access and that is relevant for demonstrating the conformity of a packaging. They must provide the information and documentation in electronic form and, on request, in paper form.
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.