The European Union’s latest legislation on packaging waste regulation represents a watershed moment in the battle against environmental degradation. It proposes a far-reaching overhaul that seeks to reduce packaging waste by a significant 15% by the year 2040. This ambitious initiative, unanimously agreed upon in Brussels on the 4th of March, not only underscores the urgency of addressing packaging waste but also delineates the contours of a more sustainable future for the Fast-Moving Consumer Goods (FMCG) industry and beyond.

At the heart of Europe’s packaging dilemma lies a stark reality: a €370 billion industry grappling with an escalating waste production rate, which has surged by 25% over the past decade. Predictions had indicated a trajectory towards a further 19% increase by 2030, painting a dire picture of environmental sustainability. The EU’s legislative response, therefore, aims not merely at curtailment but at a transformative shift in how packaging is perceived, utilised, and disposed of.

Belgian EU lawmaker Frédérique Ries, representing the liberal Renew group in the negotiations, highlighted the groundbreaking nature of the law, stating, “For the first time in an environmental law, the EU is setting targets to reduce packaging consumption, regardless of the material used.” This marks a pivotal step in regulatory approaches to environmental legislation, broadening the scope beyond mere waste management to include a reduction in packaging consumption at its source.

Specifically, the legislation introduces targeted measures aimed at curtailing the use of single-use plastics, a significant pollutant. From 2030 onward, restrictions will be placed on the plastic packaging of fruits and vegetables, the shrink-wrapping of luggage at airports, and notably, the ban on plastic sauce cachets, though their paper counterparts will be permitted. This nuanced approach to regulation reflects a pragmatic stance, as noted by EU lawmaker Peter Liese, who hails from Germany and coordinates the centre-right EPP in environmental matters. Liese emphasised the importance of a balanced, realistic framework that accommodates various stakeholder interests while advancing environmental goals.

Moreover, the regulation takes a firm stand against PFAS (per- and polyfluoroalkyl substances), commonly referred to as “forever chemicals,” banning their use in food contact packaging. This move, celebrated by Delara Burkhardt of the centre-left S&D Group as a “great victory for the health of European consumers,” underscores the EU’s commitment to safeguarding public health alongside environmental protection.

It’s not a done deal

However, the path to formal adoption of this legislation is fraught with challenges, including the necessity of approval by the European Parliament’s plenary assembly and EU countries. With the backdrop of looming EU elections and expressed concerns from member states like Italy regarding specific bans, the legislation’s future remains uncertain.

The debate surrounding the new packaging rules has been intense, characterised by what has been termed “lobby trench warfare.” The packaging industry, along with entities such as fast-food giant McDonald’s, has mounted vigorous campaigns to influence the legislation’s final form. Despite this opposition, concessions have been made, such as the stipulation that reusable packaging need not be mandatory across the board, but rather, a minimum of 10% of menus must be offered in reusable containers—a testament to the complex negotiations and compromises inherent in legislative processes.

Crucially, the legislation introduces a pan-European mandate for deposit return schemes (DRS), aimed at significantly boosting the return rates of plastic bottles and drink cans. Countries lacking such schemes, including Italy and Spain, are now tasked with implementing them by 2029 to meet the 90% return target, signaling a unified approach to tackling packaging waste across the EU.

For the FMCG sector, which spans a wide array of everyday products from food and beverages to personal care and household cleaning items, the new regulation presents both a formidable challenge and a unique opportunity. As an industry at the forefront of consumer goods, FMCG companies must now navigate the intricacies of compliance, embracing innovation and sustainability as core components of their business strategies.

The EU’s new packaging waste regulation stands as a testament to the bloc’s dedication to environmental stewardship and public health. While the road ahead may be complex, marked by negotiation and adaptation, the legislation’s ultimate aim is clear: to foster a more sustainable, responsible approach to packaging that benefits both people and the planet. As the FMCG industry and other stakeholders prepare for the changes ahead, the collective effort towards reducing packaging waste heralds a new era of environmental consciousness and responsibility.