Council approves EU Packaging Regulation ‒ introduction of standardised legal framework for entire packaging life cycle and new challenges for market participants

On 16 December 2024, the Council of the European Union formally approved the new Packaging and Packaging Waste Regulation (PPWR), following its adoption by the European Parliament on 24 April 2024. The Regulation will be published in the Official Journal of the European Union, entering into force 20 days later and becoming applicable across the EU 18 months after that, i.e. probably in mid-2026. As with the Batteries Regulation, EU legislators are again increasingly using the instrument of delegated acts for the new Packaging Regulation, significantly influencing the application dates and scope of regulatory content. Each provision must therefore be assessed on a case-by-case basis to determine whether and to what extent it already applies.

The Regulation introduces several new or expanded provisions compared to the previous legal framework under Packaging Directive 94/62/EC, which Germany largely implemented through the German Packaging Act (Verpackungsgesetz). Requirements now extend beyond packaging waste at end-of-life to encompass provisions for the entire packaging life cycle. As with other areas of product-related environmental legislation, the EU is establishing comprehensive product-focussed provisions. The following section highlights a few key aspects of the new Packaging Regulation that will be particularly relevant for its practical implementation.

I. Sustainability and design requirements for packaging

The EU Packaging Regulation introduces specifications on the sustainability and design of packaging that exceed the previous requirements.

According to the new legal framework, packaging must be designed to be recyclable in the future. This means that packaging waste must be of sufficient quality to replace primary raw materials during further processing. Additionally, packaging must be designed to be easily separable without compromising the recyclability of other waste streams and must support large-scale recycling. The Packaging Regulation also establishes minimum recycled content requirements for plastic packaging, such as up to 65% for single-use plastic bottles by 2040. In the future, packaging that fails to meet the specified recyclability standards may no longer be placed on the market.

In addition, the weight and volume of packaging must be reduced to the minimum necessary to maintain its functionality. Packaging deemed unnecessary or designed solely to increase the perceived volume of a product may no longer be placed on the market. Furthermore, specific requirements are introduced for the compostability of certain types of packaging.

In addition, the new Regulation contains rules on the use of certain categories of substances in packaging. While some provisions build on existing regulations, most are significantly tightened. The Packaging Regulation specifically requires that the use and concentration of substances of concern (SoC) in packaging materials or components be minimised during production. The total concentration of lead, cadmium, mercury and hexavalent chromium from substances in packaging or packaging components must not exceed 100 mg/kg. Furthermore, the placing on the market of packaging in contact with food is restricted if it exceeds certain limit values for per- and polyfluoroalkyl substances (PFAS).

II. Labelling and information requirements

In addition to design and sustainability requirements, the Regulation introduces labelling and information obligations for packaging. In the future, packaging must be labelled with information about its material composition to make waste separation easier for consumers. Packaging covered by deposit and return systems must be clearly and unambiguously labelled. Member States may also require that such packaging feature a harmonised label, which will be introduced through a delegated act.

Finally, reusable packaging must carry a distinct label. Further information on reusability, including the availability of reuse systems and information about collection points, will be provided by means of a QR code or other digital data carriers.

III. Obligations for manufacturers, suppliers and fulfilment service providers

The Regulation introduces dedicated verification and conformity obligations for all market participants throughout the life cycle of packaging. As a result, packaging legislation, like battery legislation before it, is shifting from a focus on waste management to encompassing comprehensive product regulation.

Manufacturers of packaging must comply with the design and labelling obligations outlined in the Packaging Regulation from the moment it comes into force if they intend to place packaging on the market. To demonstrate compliance with the requirements of the Packaging Regulation, market participants must submit a declaration of conformity. Suppliers are obliged to provide manufacturers with all necessary information and documents to enable them to demonstrate compliance with the Packaging Regulation. Importers must ensure that the packaging they import meets the requirements of the Regulation.

To be distinguished from manufacturers of packaging are distributors and fulfilment service providers. Distributors must verify that the manufacturer of the products they distribute comply with the requirements. Fulfilment service providers, on the other hand, are only responsible for ensuring that their services do not compromise the conformity of the packaging they handle. In addition, they are obliged to verify the accuracy of the information provided by the manufacturer.

IV. Reusable obligations and quotas

The Regulation introduces new binding reuse obligations and quotas to be met by 2030 and establishes indicative targets starting in 2040. The goals set vary depending on the type of packaging used by businesses. For example, final distributors of certain alcoholic and non-alcoholic beverages must meet a reuse quota of 10% from 1 January 2030. Similar rules apply to transport packaging, sales packaging and crates. To help achieve these quotas, the European legislature allows Member States to implement pooling systems for market participants. In the future, special reuse and refill obligations will also apply in restaurants, especially in the take-away area. Businesses offering food or drinks in take-away packaging must provide consumers with the option of bringing their own containers for filling with hot or cold drinks or prepared meals, without incurring additional costs.

V. Restriction of packaging formats

Certain packaging formats and purposes will no longer be permitted in the market in the future. These will, for example, include single-use plastic packaging for unprocessed fresh fruit and vegetables, single-use plastic packaging for food and drinks that are filled and consumed on the premises of a catering business and very lightweight plastic carrier bags.

VI. Deposit systems

The Regulation introduces a deposit and return system for the entire EU, similar to the one already established in Germany, for certain single-use beverage bottles made of plastic as well as specific single-use beverage containers made of metal or aluminium. Member States may also include glass in these deposit and return systems. Furthermore, they are required to ensure that deposit and return systems for single-use packaging, in particular for single-use glass beverage bottles, are equally available for reusable packaging where technically and economically feasible.

VII. Extended producer responsibility

As with the Battery Regulation, the Waste Electrical and Electronic Equipment Directive (WEEE) and the German Packaging Act, the Packaging Regulation further shifts responsibility within the value chain to manufacturers. It is important to distinguish between the terms “producer” and “manufacturer”: under the Packaging Regulation manufacturers as well as importers or distributors can qualify as producers.

In the future, these packaging producers will have to register in registers of producers provided by Member States. They will bear extended producer responsibility (EPR) for the packaging or packaged products that they place on a Member State’s market for the first time. As part of this requirement, online platforms will also be subject to verification obligations regarding the registration of producers, similar to the requirements outlined in the Battery Regulation, the German Electrical and Electronic Equipment Act (Gesetz über das Inverkehrbringen, die Rücknahme und die umweltverträgliche Entsorgung von Elektro- und Elektronikgeräten ‒ ElektroG) and the Packaging Act.

VIII. Greenwashing

The Regulation supports the European Union’s greenwashing prevention initiatives, such as the Green Claims Directive, by introducing specific rules for environmental claims related to packaging. Claims about packaging properties may only be made if these properties exceed the minimum requirements laid down in the Regulation. Additionally, any such claim must specify whether it applies to part of the packaging, the entire packaging unit or all packaging placed on the market by the economic operator.

IX. Conclusion

These brief highlights demonstrate that all market participants involved in the packaging life cycle are facing new, far-reaching obligations under the Packaging Regulation. While the exact details of some provisions will remain unclear until the adoption of delegated acts, their impact is already becoming evident. However, companies affected, whether manufacturers, suppliers, distributors, online platform operators or fulfilment service providers, are strongly encouraged to act early and carefully evaluate the requirements of the Packaging Regulation, particularly with regard to their existing processes, previous production and procurement. It is important to note that failure to comply with the new requirements may even mean that the packaging in question cannot be placed on the market. Additionally, breaches of the Regulation will be subject to penalties in the future. It will be up to individual Member States to establish rules governing such penalties. However, the Packaging Regulation stipulates that penalties must be effective, proportionate and dissuasive. Based on comparable legal acts of product-related environmental law, it can therefore be assumed that legislators will establish comprehensive provisions on fines. For example, a framework of up to €200,000 per offence, as seen in the current Packaging Act, appears quite plausible.