The EU Regulation on Packaging and Packaging Waste – what is coming, what will remain, and for whom? – Part 1

The aim of the regulation is to establish a uniform regulatory approach to ensure smooth functioning of the packaging market. It is intended to reduce legal uncertainties for companies due to different national regulations and thus also promote an incentive to invest in innovative and environmentally friendly packaging and circular business models – not least because packaging is also a central issue in terms of environmental protection.

The requirements of the Regulation on Packaging and Packaging Waste will directly apply to companies who are so-called economic operators within the meaning of the regulation. This covers both manufacturers and suppliers of packaging, importers, distributors, final distributors and fulfilment service providers who are involved in placing packaging on the market.

Packaging is subject to various (new) sustainability requirements and performance criteria, including the type of packaging and the substances it contains, as well as threshold values for sustainable substances and materials in the packaging. There are also labeling and information requirements for packaging. New packaging must therefore include information on the material composition of the packaging to make it easier for the end customer to separate waste. This should be possible via label or by a QR Code.

 

The regulation also provides for new requirements to reduce packaging waste, the reuse of packaging and the recycling of packaging waste. Moving forward, only separable packaging components that do not impair the recyclability of other waste streams or ensure recycling on a large scale will be permitted.

The regulation sets out extended requirements for placing packaging on the market within the EU. Moving forward, these requirements are to be verified by a Declaration of Conformity from the relevant market participant. In addition to producers, this also applies to their suppliers and importers – the entire supply chain in case of doubt. This is also intended to ensure that packaging from third countries, for example, meets the requirements of the regulation.

The EU regulation extends the responsibility of. In addition, from now on producers will be obliged to register in a register of producers, which will be used to monitor compliance with the requirements of packaging manufacturers.

The above (very abbreviated) description of the changes already shows that all companies operating in the packaging industry should prepare themselves for new, extended obligations. As the new EU regulation is due to come into force throughout the EU, some of these companies have already launched their first implementation projects. Other companies concerned should now be sensitized to the foreseeable additional requirements and take appropriate compliance measures. 

It can be assumed that the EU-wide regulations, and compliance with them, will become a value-forming criterion for companies involved in the life cycle of packaging. In any case, in future, compliance with the new requirements should not be masked out as part of legal and regulatory due diligence audits.

We will deal with the details of the changes, in particular the new, extended obligations and their relevance for M&A practice, in the second part of this article series.