The EU's newly revised Packaging and Packaging Waste Regulation (PPWR) is a far-reaching environmental policy, the implementation of which will have a significant impact on a number of industries:
Impact Analysis:
Increased compliance pressure on businesses
Target requirements: by 2030, all packaging must meet recyclability standards; by 2029, 90 per cent of packaging materials will need to be sorted for recycling. Companies must redesign packaging materials and product supply chains to meet the new standards.
Restrictions on chemical use: Bans on perfluorinated and polyfluoroalkyl substances (PFAS) and bisphenol A (BPA) have had the greatest impact on the food packaging industry, forcing companies to look for safer alternatives.
Promoting green innovation
Circular economy: regulations emphasise reducing the use of single-use plastics, promoting the use of recycled plastics and creating economic incentives to use biodegradable and reusable packaging.
Eco-design: Companies need to incorporate eco-design at the product development stage and develop more sustainable packaging solutions, such as paper-based or biomaterial packaging.
Short-term increases in operating costs
Rising production costs: The adoption of recycled and reclaimed materials may require additional investment in technology.
EPR extended liability: producers need to pay more for packaging waste disposal, adding to the financial burden of the business.
Changes in the market landscape
Challenges for SMEs: Large companies may have the resources to adapt quickly to regulations, but SMEs face additional technical and financial pressures.
Competitive advantage: Businesses that comply with the new standards may gain a first-mover advantage in the market, attracting environmentally conscious consumers and investors.
Explain the core elements of the regulations:
Overall reduction target
Reduce packaging use by 5 per cent by 2030, 10 per cent by 2035 and 15 per cent by 2040. There are similar targets for plastic packaging.
Renewable and Recyclable
All packaging must be recyclable, with PET products containing 30% recycled plastic and other food contact plastics containing 7.5% recycled content.
Prohibition of Hazardous Substances
Prohibit the use of PFAS and BPA in food contact packaging to protect consumer health and reduce environmental pollution.
Promote Reuse
The food service industry is required to support consumers to use self-contained containers and encourage the reduction of single-use packaging.
EPR (Extended Producer Responsibility)
Enterprises are required to bear the cost of disposal of packaging waste and to obtain concessions for environmental protection actions.
Summary
The ultimate goal of the regulation is to create a low-carbon, circular economy that reduces packaging waste and improves resource utilisation. Although the new rules may put short-term pressure on enterprises, in the long run, it will promote green transformation and lay the foundation for sustainable development. Enterprises should assess their packaging policies as soon as possible and plan ahead to adapt to the changes brought about by the new regulation.
