Packaging Regulations: EU vs USA

Packaging waste is a global concern. But there's a distinct difference in the regulation pushed by the EU and the US. Let's talk about it.

The EU's Comprehensive Approach

In 2022, the EU generated 186.5 kg of packaging waste per inhabitant. This is expected to increase by 19% by 2030.

The European Union has adopted a pretty comprehensive and ambitious strategy to tackle packaging waste with the new Packaging and Packaging Waste Regulation (PPWR). This regulation sets clear targets and unified standards across all Member States.

Key features of the EU's packaging regulations include:

1. Waste Reduction Targets: Compared to 2018, the EU aims to reduce packaging waste per capita by: 5% by 2030, 10% by 2035, 15% by 2040.
2. Recyclability Requirements: All packaging must be recyclable by 2030, with few exceptions (lightweight wood, cork, textile, rubber, ceramic, porcelain and wax).
3. Recycling Targets: Material-specific targets have been set at 55% for plastic and 85% for paper and cardboard by 2030.
4. Extended Producer Responsibility (EPR): Producers are fully responsible for the entire lifecycle of their products and packaging.
5. Reuse and Recycled Content: The EU has set specific targets for reusable packaging and minimum recycled content in plastic packaging:

• 40% of most packaging types used to transport goods in the EU will have to be reusable.
• 10% of distribution packaging—except cardboard boxes—will have to be reusable.
• 10% of most alcoholic and non-alcoholic beverages will have to be sold in reusable packaging.

The USA's Fragmented Landscape

In 2021, Americans discarded 51 m tons of wrappers, bottles and bags totalling 140 kg of plastic per person. According to a Greenpeace study, only 5% of the plastic waste generated by US households was recycled.

The United States takes a more decentralised approach to packaging regulations, a patchwork of state-specific programmes and federal guidelines.

Key features of the US approach include:

1. Fair Packaging and Labelling Act (FPLA): This federal law focuses on accurate labelling and packaging of consumer goods, rather than sustainability targets.
2. State-Level EPR Laws: As of 2024, only seven states have implemented Extended Producer Responsibility or similar packaging laws.
3. Varied Recycling Targets: Recycling goals in the US vary by state, leading to inconsistent nationwide standards.
4. Material Coverage: US regulations primarily focus on plastics, paper, cardboard, glass, and metals, while EU regulations cover a broader range of materials.

Implications for Business and Trade

The divergent approaches between the EU and the USA have big implications for businesses operating in both markets:

1. Compliance Complexity: Companies exporting to both regions have to adapt to two distinct regulatory landscapes.
2. Trade Tensions: Some US industries have raised concerns about the EU's proposed packaging regulations and the strict requirements on recycled content and reuse, potentially impacting transatlantic trade relations.
3. Market Access: Stricter EU regulations create barriers for US companies seeking to enter or expand in European markets.

Upcoming Events

?????Packaging & Sustainability Roundtable

A vendor-free event for sustainability and packaging professionals in the Food & Beverage industry. Featuring an expert panel and peer-to-peer workshops, we’ll explore Product Carbon Footprints (PCFs) and the pivotal role packaging will play as a key collaborator for sustainability teams in 2025.

?? Date: 5th December

??Location: Chicago

Register

Recommended Listen: Ep 15 The Scope 3 Podcast

The latest episode of The Scope 3 Podcast hosted by Oliver Hurrey and Tom Idle , features insights from Saif Hameed , CEO of Altruistiq , and David Croft , Global Sustainability Lead at 利洁时 .

In this episode, Saif shares his journey from founding a waste management programme in Pakistan to founding Altruistiq, while David discusses how Reckitt is using data and innovation to transform its supply chain and product offerings.

Listen now! ??

Regulatory TLDR: The EU's Proposed Updates to ESG Reporting Standards

Is it streamlined or watered down?

European Commission President Ursula von der Leyen has announced plans to consolidate key EU ESG reporting obligations into a single omnibus* regulation to be published in 2025. The aim is to simplify the regulatory landscape and reduce reporting burdens for companies (hallelujah).

Key points of the proposed consolidation:

• Reducing overlapping and redundant reporting requirements by merging requirements from:

-Corporate Sustainability Reporting Directive (CSRD).

-EU Taxonomy Regulation.

-Corporate Sustainability Due Diligence Directive (CS3D).

• Aligning with the Budapest Declaration (8th November 2024), which outlines the stepping stones of a “simplification revolution” for a “clear, simple and smart regulatory framework” in the EU.

While the Commission aims to maintain the core content of these laws, the consolidation could cut both ways. Potential negative effects include:

1. Weakening of Standards: The legislative process may allow amendments to the existing reporting requirements.
2. Complexity of Integration: The three regulations have different scopes and apply to different sets of companies, making their consolidation ticky.
3. Risk of Reopening Established Laws: Creating a new omnibus regulation means reopening and potentially replacing existing laws, which could undermine previous sustainability efforts of companies in scope.
4. Uncertainty for Companies: The lack of clarity around the consolidation creates uncertainty for businesses that have already begun preparing for individual directives.
5. Impact on International Alignment: The consolidation could hinder efforts to align EU sustainability reporting standards with international frameworks and regulations.

Regulatory Recap

*Omnibus consists of consolidating a series of EU laws into a single legislation. Its use is not common.

Other News

• ??????????US and India lead G20 in climate progress amidst rising emissions concerns?(The Guardian): A recent study commissioned by the Guardian reveals that the United States and India have made the most significant progress among G20 nations in implementing climate policies since the 2016 Paris Agreement. While global emissions are still rising, the G20's collective efforts are projected to reduce CO2 emissions by 6.9 gigatons by 2030 - going back to 2015 levels by the end of this decade.
• ??????Triodos Bank commits to invest at least €500 million in nature-based solutions by the end of 2030 (Euronews): The funds aim to support projects to boost biodiversity, carbon capture, water purification and soil fertility. Did you know that switching to green pensions could be 21x more effective than other lifestyle changes such as reducing air travel or adopting a vegetarian diet when fighting climate change?
• ??????Norway's Powerhouse buildings are leading the way in energy-positive architecture (Bloomberg): "Powerhouse" buildings in Norway are designed to be energy-positive, generating more solar energy than they consume over their lifetime. These structures, featuring optimised roofs for maximum solar capture, not only meet their energy needs but also contribute excess energy back to the grid, showcasing a significant advancement in sustainable architecture.
• ?????? Wildflowers in urban settlings are just as good to natural meadows to enhance biodiversity (The Guardian): A study conducted in Warsaw, Poland, shows the potential of urban wildflower initiatives to support biodiversity and mitigate the adverse effects of urbanisation on insect populations.
• ??????COP29 comes to an end - Wealthy nations to provide $300 billion per year in support by 2035 (The New York Times): The climate deal aims to support developing countries combat climate change.?While this represents a significant increase from the previous $100 billion target, developing nations and experts argue the sum is inadequate, with some suggesting a need for up to $1.3 trillion annually to effectively address global warming.

Receive this newsletter straight to your inbox

?? Subscribe here