“PPWR will sink or swim”: EU industry sounds alarm on Single Market risks ahead of environment council vote today

18 Dec 2023 --- Over 100 associations representing Europe’s packaging industry have jointly warned EU member states about the potential risks associated with the current approach to the Packaging and Packaging Waste Regulation (PPWR). The signatories urgently call on member states to reconsider their stance or face huge supply chain disruptions to the Single Market and setbacks to the Green Deal.

The joint statement comes as EU environment ministers are set to meet today to reach an agreement on a proposal for a regulation on packaging and packaging waste that will serve as the negotiating mandate to start talks with the European Parliament.

Francesca Stevens, Europen (European organization for packaging and the environment) secretary-general, emphasizes the critical need for regulations on packaging waste reduction to align with business needs. “Rules to cut packaging waste and clean up the environment will only succeed if they are workable for business — which means protecting the integrity of the Single Market,” she states.

The associations are concerned that the current approach could unravel the Single Market by permitting member states to introduce unique restrictions independently. This potential fragmentation poses a significant threat to supply chains and could discourage investments in essential technologies for circular packaging and waste management.

Stevens underscores the PPWR’s pivotal role in attracting investments and transforming packaging value chains continent-wide. Abandoning the Single Market, she warns, would lead to the imposition of national barriers across Europe, hindering investor confidence and impeding financing for innovative technologies needed for sustainable packaging.

“The PPWR will sink or swim on its ability to draw investment into circular packaging and waste management on a continent-wide scale,” says Stevens. 

The associations are concerned that the current approach could unravel the Single Market by permitting member states to introduce unique restrictions independently.“This is crucial not only for the PPWR but also, given the ubiquity of packaging, for Europe’s circular economy and environmental targets. If governments go it alone, abandoning the EU’s Single Market, national barriers will spring up across Europe. This will scare investors away from financing the new technologies needed to transform packaging value chains, process waste and convert it into a tradable commodity.”

Patchwork of rules
The associations argue that national measures restricting the availability or free movement of packaging solutions and materials would create a patchwork of rules and red tape, causing severe economic side effects.

“We are determined to see the PPWR succeed. But it must be based on science, a strong Single Market, and the industry’s need for a clear roadmap to full circularity,” stresses Stevens.

“Disrupting supply chains across Europe, by granting carte blanche to governments to introduce unilateral restrictions, will severely impact jobs, growth and competitiveness, setting the clock back on the Green Deal.”

The associations call on EU member states to align with the European Parliament’s negotiating position and uphold Single Market principles when adopting the General Approach on PPWR. They argue that the PPWR’s success depends on striking a balance between environmental objectives and the principles of a unified European market.

“The European Parliament’s negotiating position adopted last month is a step toward eliminating arbitrary measures not anchored in thorough impact assessment and ensuring a gradual approach to packaging waste prevention and minimization. Yet serious concerns remain as to the ability of the regulation to deliver on its intended goal of greater harmonization of packaging sustainability rules across the EU,” reads the joint statement.

“In recent years, our industries have witnessed an increase in national trade barriers in the form of divergent packaging requirements imposed by several member states. We now face the greater risk that new trade barriers will be legitimized by the regulation itself.”

Summary of proposals by the signatories
The joint statement is annexed with a document outlining concerns and proposed improvements to the PPWR to prevent internal market fragmentation. The document points at language used in different articles of the current PPWR. Key points include:The signatories flag language used in different articles of the current PPWR.

1. Free Movement:
- Concerns: The replacement of “placing on the market” with “making available on the market within the territory of a member state” could allow a member state to block compliant products.
- Proposal: Delete the replacement wording. Member states should not introduce additional national sustainability requirements to avoid fragmentation.

2. Reuse and Refill Targets:
- Concerns: The addition of “at least” implies minimum targets, allowing member states to diverge and hinder economies of scale.
- Proposal: Remove references to “at least” throughout the article to maintain flexibility for economic operators.

3. Reuse and Refill Targets:
- Concerns: Member states should not be allowed to set higher targets than those defined in the regulation.
- Proposal: Member states may set higher targets only under specific conditions.

4. Prevention of Packaging Waste:
- Concerns: The addition of “at least” implies minimum targets, potentially leading to divergence at the national level.
- Proposal: Remove “at least” and establish specific percentage reductions in packaging waste generated per capita by certain deadlines.

5. Prevention of Packaging Waste:
- Concerns: Paragraph three could lead to diverging national targets, causing fragmentation in the internal market.
- Proposal: Remove paragraph three to prevent member states from introducing measures that exceed minimum targets.

6. Reuse and Refill:
- Concerns: Member states should not introduce additional requirements beyond those in the regulation.
- Proposal: Specify conditions for final distributors to make reusable packaging available, ensuring no distortions in the internal market or trade barriers for products from other member states.

These proposed improvements address potential fragmentation, diverging targets and additional national requirements, ensuring a harmonized approach to packaging regulations within the EU.

By Radhika Sikaria