On the way to a circular economy: Update on the PPWR

189 kilograms per person per year – that’s the average amount of packaging waste generated in the European Union according to the EU statistics authority Eurostat.¹ The authorities (and probably also most environmentally conscious consumers) think this is too much, so they have introduced measures to gradually reduce the amount of packaging in the EU. The aim is to move from a linear economic model towards a circular one. The PPWR, the Packaging and Packaging Waste Regulation, is considered a milestone on the path to more sustainable packaging and less packaging waste in the EU. The regulation, approved by the European Parliament’s plenary session in April 2024, aims to drive the circular economy. Reusable and recyclable packaging should become the standard. The regulation also aims to harmonize packaging standards and requirements across the EU and improve environmental protection.

[1] https://ec.europa.eu/eurostat/databrowser/view/env_waspac/default/table?lang=de

The specific targets are to reduce waste per state and per capita by 5% by 2030, 10% by 2035, and 15% by 2040 (compared to 2018). The aim is to halt the predicted rise in packaging waste by 2030, achieve greater independence from primary raw materials, and lead Europe towards a more sustainable future.

But what does the regulation mean for producers and suppliers? In the future, only packaging that complies with the defined regulations in the respective categories may be placed on the market. The planned reusable quotas and the ban on certain single-use packaging will affect some sectors in particular. In addition to the food industry, this will also affect the catering and hotel industries. Packaging manufacturers such as Greiner Packaging are obliged to support their customers with the new requirements and provide all information and necessary documentation.

In the following, we would like to provide an overview of three critical topics addressed by the PPWR:

The regulation includes core targets for 2030 and 2040 with regard to minimum recycled content in plastic packaging and refers exclusively to post-consumer recycled (PCR) materials. PCR material is recycled plastic made from consumer plastic waste. These must either have been collected within the EU or – if outside the EU – according to the same standards that apply in the EU. The regulation is technology-neutral, meaning there are no restrictions on specific recycling technologies. All standard mechanical, solvent-based, and chemical recycling processes are permitted.

The minimum recyclate content is the annual average for each production plant and packaging category (e.g., PP rigid, PS rigid, etc., àlisted in the annex to the regulation). These average values should be met by the “manufacturer,” i.e., the user of the packaging. In the case of Greiner Packaging, these are the customers, such as dairies, food producers, etc. The level of R content is divided into four categories (see graphic below).

Starting in 2030, all packaging will have to be recyclable, with a distinction made according to the degree of recyclability: Grade A packaging must be at least 95% recyclable, Grade B at least 80%, and Grade C at least 70%. Starting in 2038, only Grade A or B packaging will be permitted on the market, although there will be exceptions for specific product segments (such as medical devices). Greiner Packaging has already adapted a large part of its packaging portfolio to these new requirements or is in the process of making the necessary changes. For example, the separability of individual packaging components has been improved (see K3^Ò r100 on page xx), and decorations and adhesives used have also been improved in terms of their sustainability. Greiner Packaging offers a fully home-compostable alternative for coffee capsules.

Recyclability and optional PCR content are to be included in the calculation of license fees and influence the level of fees (keyword: ecomodulation²)

[2] https://www.ecologic.eu/de/18066

In general, the PPWR’s goal is to reduce plastic waste – this also includes using reusable packaging solutions wherever possible:

• Transport packaging: Reusable packaging for pallets, buckets, crates, boxes, and canisters should be established as the norm for online retail and industrial and commercial logistics. The aim is to achieve a reusable packaging quota of 40% by 2030. Reusable packaging should generally be used for transportation between company locations within the EU and between companies within a member state. Exceptions are planned for hazardous goods and – hotly debated – cardboard boxes.
• Beverage packaging: The reusable quota also applies to drink sales packaging. This is nothing new in German-speaking countries, but most EU member states are breaking new ground with its introduction. The first stage of the quota will be 10% starting in 2030 and will increase to 40% starting in 2040. There are exceptions for wine, spirits, and milk.
• Take-out:  Take-out businesses are required to offer customers the option of filling their own containers with cold or hot beverages or ready-prepared food, free of charge. Additionally, by 2030, take-out activities should strive to offer 10% of products in packaging formats suitable for re-use. Together with the ban on single-use packaging for food and beverages for on-site consumption, the quota for reusable packaging will significantly impact catering businesses: They will have to find the right professional system of reusable packaging for themselves.

All reusable packaging should be clearly labeled as such so that it can be clearly distinguished from disposable packaging. The mandatory information is also intended to standardize the many different and country-specific labels in the EU. The exact labeling requirements have not yet been determined and will only be developed after the new regulation comes into force.

Greiner Packaging has demonstrated considerable innovative prowess in recent months, particularly in the area of reusable packaging: Customers can access sustainable coffee-to-go cups, drinking bottles, cups for dairy products and beverage dispensers, and take-out silverware. All reusable variants can also be equipped with an RFID chip upon request and thus used as a “smart” solution.

On April 24, 2024, the European Parliament approved the current draft of the new PPWR. The regulation is currently being translated into the 24 official languages. The final adoption by the new Parliament and the Council of the European Union is planned for fall 2024. Following a transitional period of 18 months after publication and its entry into force, the new EU Packaging Regulation could then apply throughout Europe at the end of 2025 / beginning of 2026 and take effect.

• End of 2025 / beginning of 2026: 
  Start of implementation of secondary legislation Further delegated acts (such as “D4R 2028”) will follow at a later date.
• 2030: 
  Targets for the proportion of post-consumer recycled materials in plastic packaging and requirements for recyclability – only grades A, B, C may be marketed.
• 2035: 
  Most packaging should not only be recyclable but also demonstrably comprehensively recycled.