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The Upcoming EU Packaging and Packaging Waste Regulation

03/24/2024

If the new regulation is adopted, it will be directly applicable in all member states without the need or even the possibility of any divergent domestic legal adjustments. If everything goes as planned, it is expected to come into force on January 1, 2029. An agreement on the new proposed wording of the regulation was reached between the Council of the EU and the European Parliament in early March 2024. The European Commission has reservations against this agreement but reportedly will not block it to allow its adoption before the European Parliament elections this June. You will learn about the brief content of the regulation and its controversial or debated points in the article.

Czech context

To make things specifically Czech-like complicated, the Ministry of the Environment has decided to propose a comprehensive amendment to the Packaging Act in the meantime, which overlaps significantly with the EU regulation. For example, in introducing a deposit system for plastic packaging. The effectiveness of the Czech amendment was proposed for January 1, 2026. However, since it was unclear whether the proposed system according to the amendment would align with the proposed EU regulation and for several other reasons, the amendment faced opposition from both the Association of Commerce and Tourism and the Chamber of Commerce but also municipalities and several ministries. Therefore, the fate of the amendment is uncertain.

But back to the EU regulation on packaging and packaging waste.

The new EU regulation covers several key areas:

  • Recyclability of packaging;
  • Ban on certain types of packaging;
  • Rules for deposit systems and reuse systems;
  • Rules for the possibility of customers using their own packaging (both in stores and when picking up food from catering establishments).

The discussion among representatives of the member states and the European Parliament intensified regarding the rules for depositing (Article 26) and the ban on certain packaging (Article 22). The member states also requested certain flexibility at the national level to maintain existing deposit and reuse systems.

The text is also criticized for the fact that new legal norms focus predominantly on limiting and banning plastic packaging compared to other packaging materials. According to some European associations, this constitutes a violation of the principle of equal treatment in the EU. For example, the proposal for single-use packaging for fresh fruits and vegetables bans only plastic packaging, while those made from other materials are allowed. Another example is the ban on single-use packaging for food and beverages for consumption on the premises of restaurants or refreshments. This also applies only to plastic packaging.

According to the associations, this strong focus solely on banning plastic packaging will lead to the replacement of plastics primarily with composite paper packaging with a plastic impermeable membrane. This will result in a transition from highly regulated plastic packaging to unregulated single-use packaging. Moreover, composite paper packaging with a plastic component is more difficult to recycle and heavier than plastic packaging alone.

What regulation of deposit-return systems does the proposed EU regulation likely contain?

Domestic sellers will be most affected by the proposed Article 26, which establishes rules for deposit-return systems.

According to the proposed regulation, a preliminary agreement between the European Council and the European Parliament stipulates that the deposit-return of plastic beverage containers must be carried out by all sellers, as the final distributors of containers, with a sales area greater than 100 m². The Czech amendment also included gas stations, and there was a dispute over what should be counted towards the 100 m² area.

According to the latest version of the EU regulation, final distributors will be required to accept all reusable containers of the same type, shape, and size as the containers they themselves put on the market, within this specific reuse system at the point of sale, and ensure their return and recovery throughout the distribution chain.

End users, due to the EU regulation, should be able to return containers at the place where they are handed over, or in its immediate vicinity. The final distributor must fully settle the associated deposits or take steps to notify the return of containers according to the rules of the specific reuse system, which may involve settling the associated deposits. In the case of the amendment to the Czech law, it was also discussed whether it would be possible to provide points and discounts to the customer system of the respective recipient as a reward for returning the deposit-return container.

To ensure the collection of containers, pooling companies may be established. However, according to the proposed EU wording, these pooling companies may not exceed a 40% market share in the relevant beverage category and should not include more than 5 main final distributors.

The draft of the Czech amendment to the Packaging Act fundamentally only counts on a single dominant pooling system for the entire Czech Republic.

From the perspective of the Czech Republic, it will therefore be important whether it will be possible to have a different domestic system adopted before the EU regulation. Otherwise, adopting its own system, which would have to be abolished immediately after introduction, would make no sense.

Other EU Regulation requirements in brief

Sustainability requirements for packaging:

  • All packaging introduced to the market must be recyclable by 2030, and by 2035, recyclable packaging must be recycled on a large scale.
  • A ban on food packaging containing per- and polyfluoroalkyl substances (PFAS) above certain limits. This ban will be reassessed 4 years after the regulation's application date.

Packaging minimization:

  • To reduce unnecessary packaging, a maximum empty space ratio of 50% is established for grouped, transport, and e-commerce packaging, which is to be applied from January 1, 2030, or 36 months after the entry into force of the relevant delegated acts.
  • Manufacturers and importers are required to ensure that the weight and volume of packaging are minimized.

Recycled plastic content in packaging:

  • A minimum recycled content of 35% for reusable plastic packaging, and at least 30% for single-use by the years 2030 and 2040.
  • By January 1, 2040, any plastic part of the packaging placed on the market must contain up to 65% recycled content obtained from post-consumer waste.
  • The Commission will review the implementation of the targets for the year 2030 and assess the feasibility of the targets for the year 2040. Three years after the regulation comes into effect, the Commission must evaluate the state of technological development of bio-based plastic packaging.

 

For more info see EU web

 

Do you have any further questions? Do you need help or advice?

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Mgr. Beata Sabolová, LL.M., Attorney - contact: sabolova@chslegal.eu

Mgr. David Cigánek, Attorney and Partner - contact: ciganek@chslegal.eu