The European Commission announced the adoption of a series of news rules that are aimed at significantly reducing the generation of packaging waste by setting binding reuse targets. The targets include restricting certain types of single-use packaging, requiring the operators to minimize the packaging used and all the packaging on the market to be recyclable by 2030.
The new packaging and waste regulation of the EU has the potential to drive changes for private market investors, asset managers, and impact investors, as they will need to adapt their portfolios to align with new regulatory standards that prioritize sustainability and circular economy practices.
Let's discuss the new sustainable packaging regulation in detail.
Key measures on the sustainable packaging regulation
- Packaging:
- New targets for a minimum amount of recycled content in 2030 and 2040 ( up to 65% by 2040 for single-use plastic bottles).
- Minimize the weight and volume of packaging and avoid unnecessary packaging.
- Reduce substances of concern, including restricting placing on market food contact packaging that contains per- and polyfluorinated alkyl substances (PFAs) if their levels exceed certain limits.
- Additionally, the labelling, marking and information requirements should be clear and facilitate consumer choices.
- Single-use plastic packaging: The rules restrict:
- Packaging of prepacked vegetables and fruit of less than 1.5kg
- Food and drinks that are served and consumed in restaurants, bars and hotels.
- Individual servings of sugar, milk creamer, sauces, and condiments in lodging facilities, pubs, and dining establishments.
- Small, single-use toiletries and cosmetic items used in the lodging industry, such as bottles of body lotion or shampoo.
- Lightweight plastic bags such as the ones sold at the marketplace for groceries.
- Reuse and re-fill obligations: The rule establishes indicative reuse goals for 2040 and new, legally obligatory targets for 2030. The goals change based on the kind of packaging that operators employ. For instance, the reuse target is 10% for grouped packaging and 40% for transport and sales packaging. Additionally, the new regulations require takeout establishments to allow customers to bring their containers, which must be filled with hot or cold liquids or cooked meals, at no extra cost.
Next steps
The European Council's official adoption is the last step in the regular legislative process. The regulation will now go into force after being published in the EU's Official Journal and it will be applied 18 months from its date of entrance into force.
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