Packaging Regulation Update

Issue 76 l Eka’s Weekly Roundup (24 May 2024)

May 24, 2024

The EU published new rules to reduce, reuse, and recycle packaging. The key changes are (1) more measures to cover the full life cycle impact of packaging, (2) less packaging, less waste, restrictions on certain packaging formats, (3) certain single use plastic packaging types will be banned from 1 January 2030.

Policy Wrap: How Packaging is Changing 🗞️

Setting the Scene: Packaging in Europe

In 2018, the packaging industry generated a turnover of €355 billion in the EU. Packaging waste has been increasing, from 66m tonnes in 2009 to 84m tonnes in 2021. Each European generated 189 kg of packaging waste in 2021. This is expected to rise to 209 kg by 2030 without additional measures.

This latest policy update is part of the broader EU Green Deal’s initiative to make Europe the first net zero continent by 2050.

So, what’s changing?

These are a few key points out of the new policy paper (original here).

Recycling rate targets. There is a push for increased recycling rates (below) across various packaging components. For example, plastic recycling would go from a 25% today to a 55% target by 2030. Paper and cardboard would increase from a 60% target today to 85% target in 2030.

Packaging waste is coming down per capita. By 2030, EU member states must decrease packaging waste per capita by 5%, followed by reductions of 10% by 2035 and 15% by 2040, relative to 2018 levels. You can see the historic trend line below.

Reuse and refill become more prominent. New targets set for reusable packaging across various sectors, with different timelines for implementation. Notably, transport packaging used within the same business or between different businesses within the EU must be exclusively reusable. And for other transport packaging, a minimum of 40% reusable packaging is required by 2030, increasing to at least 70% by 2040.
New packaging format restrictions, especially on cosmetics. Bans on certain packaging formats by 2030, including packaging of miniature cosmetics, plastic packaging for fresh fruits and vegetables under 1.5 kg (with exceptions), and for food and beverages consumed on hospitality premises. This would include the ban of single-use plastics for small cosmetics and toiletry products in the accommodation sector.
Packaging minimisation to optimise for fit. Manufacturers and importers must minimise the weight and volume of packaging, ensuring a maximum empty space ratio of 50% in grouped, transport and e-commerce packaging, by 2030. Exceptions may apply to protected designs or trademarks if they were implemented before the PPWR’s entry into force.
Improved labelling. Obligatory labels on packaging, detailing material composition, sorting instructions, and reuse guidelines. This includes a mandatory QR code for reusable packaging.
Limitations on green claims: Limitations for making “green claims” regarding packaging to guarantee more accuracy and transparency. Eka’s portfolio company Sourceful is a great example of a player innovating here and helping brands better understand their packaging carbon footprint.

Case Studies: Sourceful & UseAgain

Sourceful: A supply chain platform that enables consumer brands to access and manage sustainable and ethically sourced packaging at scale. They are combining technology, sourcing expertise and logistics to provide a technology enabled service. Sourceful calculates the carbon footprint of their packaging and provides benchmarks of the carbon saving vs using a traditional provider

Sourceful helps clients understand their packaging supply chains and emissions by production step, from materials, end-of-life, to transport. The output of this is a lifecycle analysis (LCA) for each packaging SKU.

UseAgain: UseAgain is creating a network of advanced packaging cleaning facilities that can clean reusable packaging at high speed and low cost. Today, the packaging system currently operates in a linear model due to the speed and cost associated with processing reusable packaging. This leads to high carbon emissions in the manufacturing of plastics and ecosystem degradation associated with waste in and out of the waste management system. UseAgain increases re-use per item and packaging longevity.