Despite the existence of a European directive on packaging and packaging waste dating from 1994, EU member states have established numerous national regulations governing the handling of packaging and packaging waste. This increases and complicates the administrative and logistical burden on companies, as there are different requirements for packaging labeling, packaging waste, and packaging design across the 27 EU member states.

At the end of November 2022, the European Commission opted for the first time to use a regulation—which takes effect directly in all member states—to ensure harmonized rules for packaging cycles in the EU. The specific aim is to minimize packaging waste through requirements for reuse, sustainable packaging design, standardized packaging labeling, minimum recycled content in plastic packaging, bans on certain single-use plastic packaging, and the closure of material loops.

We are on the right path toward a circular economy

The BDI Initiative Circular Economy asked two of its members why we need a uniform regulation for packaging and packaging waste in the EU to achieve circular packaging management: Herwart Wilms, Managing Director of REMONDIS Sustainable Services GmbH and a member of the Executive Board of the BDI Initiative Circular Economy: “The foundation of circular packaging management is recyclable design, which is why it is long overdue that only packaging that can actually be recycled be allowed on the European market. The minimum recycled content requirements will provide investment certainty and a level playing field for European recyclers, but many consumers are willing to go beyond these minimum requirements. Customers need information so they can base their purchasing decisions on the recyclability of packaging. In the European single market, goods do not stop at national borders. It is therefore a positive step that this information will in the future be provided in a uniform and easily accessible manner across Europe in the form of harmonized labels.”

Martin Engelmann, CEO and attorney at the German Plastics Packaging Industry Association: “EU-wide uniform packaging regulations are the most important prerequisite for transforming the packaging industry toward a circular economy. Plastic packaging manufacturers have invested in the recyclability of their products and are ready to offer innovative solutions that combine high material efficiency with a high degree of recyclability and the use of recycled materials. The national packaging regulations enacted in recent years have led to a patchwork of packaging regulations in the EU single market, which significantly hinders this transformation. Yet there can only be one EU circular economy—not 27 different ones. An EU regulation with immediate effect, based on the EU’s single market competence, would guarantee this.”

Establishing Rules for Sustainable Circular Economies and Fair Competition

The Commission’s initiative to further develop the legal framework for packaging and packaging waste can be summed up as “very much appreciated.” Companies now need a clear outlook for the future regarding investments in the European single market. However, the Commission’s proposal requires further clarification and/or correction by the Council and Parliament in numerous areas. While there is no question that the proposed regulation can make an important contribution toward the creation of high-quality material cycles, It remains to be seen, however, how future requirements regarding the use of recycled materials will affect prices and material flows in the EU. There will also need to be further discussion on how to develop a uniform, EU-wide, and scientifically based tool for assessing the sustainability performance of packaging. Furthermore, the proposed regulation has so far often applied the same regulatory approaches to industrial/commercial packaging (B2B) as to consumer packaging (B2C). However, this contradicts real-world conditions, as, for example, barrels or pallets used in commercial settings have completely different product life cycles than yogurt cups and beverage packaging.

Meanwhile, the legislative process is moving forward rapidly, and the regulation is set to be adopted before the 2024 European Parliament elections. It is therefore crucial now to engage in dialogue with all stakeholders to shape the right decisions for sustainable packaging cycles in the EU.