Packaging associations call on EU to preserve single market legal basis of PPWR

18 Apr 2023 --- Over 120 packaging industry associations have written to the co-legislators of the EU in a bid to safeguard the single market under the European Commission’s (EC) proposal for a Packaging and Packaging Waste Regulation (PPWR). Signatories of the letter voice concerns over divergent policies in different member states, which they say could lead to fragmentation in the bloc’s economic trade.

“With broad stakeholder support across Europe, we urge co-legislators to preserve in its entirety the internal market legal basis, which is best suited to serve the environmental and economic objectives of the proposed Regulation,” the joint letter reads.

“We strongly believe that the introduction of Article 192 Treaty on the Functioning of the EU (environmental protection) as a legal basis for some or all the Articles of the PPWR will further exacerbate the current situation, create legal uncertainty about the residual responsibilities of member states and adversely impact the free movement of packaged goods within the EU and consequently the EU’s transition to a circular and climate-neutral economy.”

European Brands Association (AIM), one of the signatories, explains that while the EC’s decision to transform the packaging directive into a regulation is a necessary step, it must rely on a single market as circular economy solutions require scale for investment and roll-out.

“The maintenance of the single market legal basis and the achievement of maximum harmonization of the PPWR measures is also paramount to put an end to the current fragmentation of the EU internal market due to a patchwork of the divergent national legislations adopted over the past years, which have negatively affected consumers, environmental protection and the competitiveness of the European industry,” shares AIM.

The packaging value chain has been under pressure due to an increase of unilateral and divergent national packaging requirements.Value chain protection
The European Organisation for Packaging and the Environment (EUROPEN) highlights that in recent years, the packaging value chain has been under pressure due to an increase of unilateral and divergent national packaging requirements, such as packaging bans, reuse and recycled content targets and labeling requirements.

“The internal market legal basis serves to address the differences among the various national rules on the management of packaging and packaging waste and resulting internal market barriers, while providing a high level of environmental protection,” EUROPEN details.

The association furthermore states that as co-legislators discuss moving away from an internal market legal basis, or opting for a dual one, the packaging industry with the joint letter is stressing that taking this route would intensify pressures on the industry thus undermining the objective of creating one circular economy comprising all member states.

“Europe needs just one circular economy covering the whole bloc, not 27 miniature ones,” it emphasizes.

Threat to single market
The letter elaborates how divergent national packaging requirements within the EU have led to internal market barriers, environmental trade-offs, losses in economies of scale and diversion of investments and R&D.Europe needs just one circular economy covering the whole bloc, not 27 miniature ones, says EUROPEN.

“The introduction of the internal market legal basis in the 1994 PPWD was intended to address differences among the various national rules on the management of packaging and packaging waste and consequent internal market barriers, while providing a high level of environmental protection,” it informs.

The letter writes that several of the provisions included in the PPWR proposal already allow member states to maintain or introduce additional national sustainability and information requirements. 

“Should those or other provisions be based on an environmental legal basis, the potential for harmonization would be weakened by a patchwork of national packaging legislations, to the detriment of consumers, environmental protection and the competitiveness of European industry.”

The signatories underscore that a robust EU single market is key to achieving the free movement of packaging materials and packaged goods, “ensuring that packaging waste is duly collected and makes its way into recycling allows valuable raw materials to come back in the value chain and be used across the single market.”

Additionally, the associations elucidate a strengthened market for secondary materials and a strong and resilient EU single market represent “fundamental enablers of circularity, which will create greater economies of scale and underpin the investment needed to realize a circular and climate-neutral economy in Europe.”

“Its continued functioning remains crucial to Europe’s global competitiveness and green transition.” 

By Radhika Sikaria