Packaging sustainability: bans, taxes, and discouraging images

When it comes to sustainability, there is no doubt that changes are a global necessity. This time I will review the most important new laws in the countries of the European Union and beyond, together with packaging use and recycling goals that have been set. I will also discuss measures oriented toward combatting consumer deception and greenwashing. Whether a business is following the latest regulatory trends simply because it wants to pay less tax, or is actually interested in what legislators and experts around the world are discussing on this topic due to a true desire to be more sustainable - the most important thing to know is what lies ahead as well as to be informed about the possibilities - then it is possible to make mature, well thought out decisions and apply them to your strategy.

The vawe of changes and bans

In the last few years, legislators have taken the most action to eliminate plastics in the categories of single-use straws, bags, cups, and cutlery. The most famous ban, which was impossible to ignore is the European Commission's "Single-use Plastics Directive", which came into force in 2021 July. The directive includes the ban on single-use plastic straws, plates, cutlery, ear picks, expanded polystyrene packaging for food and drinks (ironically, it is still possible to find them in Lithuania sometimes), and other single-use plastic products. The directive also lists new packaging labelling (for example, a dead turtle lying in the water next to the garbage) used to warn of the presence of plastic in the object. These markings apply to non-prohibited single-use products made of plastic or mixed materials: exposed to the environment they cause serious damage, however, there are no other, simpler alternatives yet. In 2022 summer, Scotland introduced similar regulations, while the United Kingdom followed the example in the second week of this year - the new order will enter into force in October 2023. In addition, in March 2022 the United Kingdom taxed plastic packaging at ￡200 per tonne if it is not at least 30% recycled. Since the beginning of 2022, France has banned plastic packaging for fruits and vegetables if the total weight is less than 1.5 kg. The law will be applied gradually until June 30th, 2026 – therefore, manufacturers have time to find new packaging solutions. France expects this ban to reduce packaging by 1 billion pcs per year (now 37% of fresh fruit and vegetables are packed in plastic). Exceptions apply to perishable fruits (very ripe), berries (raspberries, strawberries, currants, blueberries), and vegetables. Since the beginning of this year, Spain and Canada have followed a similar path as France.

The Netherlands has decided that it‘s not enough to solely provide discounts for those using their food containers or reusable bottles: from now on cafes will no longer have free single-use plastic packaging, and since upcoming July it will be charged additionally.?

Changes are also taking place in other countries of the world: in the summer of 2022, India introduced restrictions similar to the “Single Use Plastics Directive” ban in Europe. The mentioned bans cover thin bags, film on candy boxes, balloon sticks, plastic envelopes for greeting cards, and other objects. The Indian government singles these items out as having little benefit while posing a high risk of pollution to terrestrial and aquatic ecosystems. California is moving towards a ban on polystyrene in food packaging, with a shocking number showing that only 3.6% of the material is recycled across the US.?

When it comes to introducing reusable packaging, the German government has taken the boldest actions. Since January 2023 the new Reusable Packaging law came into effect. It obliges fast food and other restaurants, cafes, and other institutions selling takeaway food to find more sustainable (reusable) alternatives to disposable packaging. Interestingly, future packaging solutions cannot be more expensive for the consumer. Therefore, it is not enough to simply sell reusable packaging and thus "slip through” the new regime. The exception, however, is small cafes, snack bars, and night food outlets. Their owners are exempt from the obligation of reusable packaging but must allow consumers to take out food in their own containers. Restaurants whose units are considered small but are part of a larger chain (so the company itself has more outlets and employees) will have to offer reusable packaging. This is a very strong and bold step and a great experiment from which other countries can learn and, after improving this model, apply it to themselves.

There are also upcoming changes in Lithuania: thin, disposable bags made of plastic will be taxed. In November 2022, the Lithuanian unicameral parliament Seimas approved a ban on shops handing out these light, "innocent" plastic bags free of charge (the tax exception will be applied for the meat and fish packaging). This procedure will enter into force in July 2023. It is hoped that the misunderstanding, when two bananas are carried in one plastic bag, three cucumbers in another, and a separate bag is taken for onion and garlic, will occur much less frequently. In 2019, the average Lithuanian resident consumed 294 pcs. of light plastic bags. This is the highest number in the EU! Therefore, taxation is good news, as a tax will help some consumers realize that everything has an ecological price, even things that until recently were free. No doubt this change will bring even more advertised purchasable alternatives of reusable bags. That being the case, we await the introduction of the new order to see if new alternatives will appear that we should be sceptical of. The scenario of using combined packaging (paper outside, plastic inside) would be very bad. In response to this ban, some traders may start to pack their products with plastic in advance. It would probably cause even more damage; hence such decisions should also be banned. Once we do this, we will follow the example of France, Spain, or other countries prohibiting plastic packaging for fruits and vegetables if the quantity of products does not reach a certain weight. Most EU countries intend to charge plastic bags, and this is not surprising, as the Directive of the European Parliament and the Council provides countries with two options to reduce the use of plastic bags. The first proposal is to educate people and strive to ensure that on average residents would use up to 90 plastic bags per year, and by 2026 – up to 40 pieces. The second option is to ban the distribution of plastic bags for free. Since the goals of the first option are out of reach for Lithuania at this moment, the second option seems more reasonable.

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Waste recycling and reusable packaging: EU targets?

In the future there will be more and more laws related to sustainability, therefore it will increase the need for and promotion of more sustainable alternatives. To get an impression of the upcoming changes, it is enough to look at the goals being discussed in the EU.

The packaging recycling goals until 2025:

All packaging in total: 65%

Plastic and aluminium: 50 %

Glass, iron, and steel: 70%

Paper and cardboard: 75 %?

Wood: 25 %

Recycling goals until 2030:?

All packaging in total: 70%

Plastic: 55 %

Aluminium: 60%

Iron and steel: 80 %

Glass: 75 %

Paper and cardboard: 85 %

Wood: 30 %

Beverage bottles: 50 % (65 % until 2040)

The use of reusable packaging:

Take away drinks: 20 % until 2030, 80 % until 2040.?

Take away food: 10 % until 2030, 40 % until 2040.?

E-commerce: 10 % until 2030, 50 % until 2040.?

Packaging waste export outside the EU

It will be necessary to demonstrate that the materials have been recycled under appropriate conditions.

Reducing the packaging size?

From 2030 “<…> each packaging unit will have to be reduced to a minimum size and resolution in terms of weight, volume, and packaging layers. In the case of cosmetics and electronic products, it is planned that free space can be up to 15%”. All this is aimed at reducing the amount of unnecessary packaging, encouraging the abandonment of non-recyclable packaging, expanding the use of recycled materials and reusable models, and addressing other important issues.

Compostable packaging?

Nowadays the majority of compostable packaging is one of the things that confuses consumers the most when it comes to sustainability. For example, we see slogans on food, drinks, and e-commerce packaging stating it is compostable, but without having a separate container for composting such waste near your home even more questions may arise. For example: should it be sorted together with mixed waste, or should it be thrown into a plastic or maybe a paper container? This confusion stems from the fact that compostable packaging often resembles plastic (e-commerce bags) or paper (food, and beverage containers). The rest of the consumers who responsibly compost their food waste at home may question whether compostable packaging is suitable to be thrown into the home compost. And with good reason: it is often possible to process such containers only in an industrial way (special temperature, humidity, and other nuances are applied).

The described situation should change little by little: from 2024 The EU will enter into force a procedure that biodegradable waste is either separated and recycled at the place of its generation or sorted separately and not mixed with other types of waste. In other words, municipal waste will not be disposed of together with banana peels and other organic waste. Then technically truly compostable packaging can have a great purpose. Excerpt from the European directive: "Member States may allow the co-collection of biodegradable waste together with the waste of similar biodegradability and compostability, as long as it meets the European standards and any equivalent national standards, applicable for packaging that can be reused due to its biodegradability and compostability". The concept of "waste with similar biodegradability and compostability” mentioned in the European directive can also include packaging. Such an opportunity will be especially relevant in the food sector: there the packaging is highly contaminated and can hardly be recycled. All in all, it will be necessary to ascertain which packages can be composted together with biological waste, and which are just extraneous to this stream.

In the latest proposals, compostable plastics will be allowed to be used only when there is a clear benefit of such packaging to the environment or human health. If it is a fashionable solution that has no real value or benefit, it will not be available on the market. The draft of the proposed new regulation provides that tea bags; containers for filter coffee that are thrown away together with used coffee products; adhesive labels stuck on fruits and vegetables - will have to be composted in the future under industrial composting conditions.

Together with these innovations, packaging labelling will also have to be improved to make it clear to consumers. The change will not happen overnight, but let's hope that in 2023 we will already see the preparation for them. A great example is the salad bar "Fresh Post". In collaboration, we have developed a packaging that does not have a plastic laminate and is suitable for recycling with paper waste (the remaining part contaminated with food is fully compostable together with industrial waste). All the information on how to sort such containers is clearly presented in an infographic on the packaging: so that the customer knows which part needs to go where.

Transparency, education and alarming images?

Inevitably, some EU companies are already starting to prepare sustainability reports this year, and soon, even more, businesses will be required to do the same, due to the 2022 “Corporate Sustainability Reporting Directive (CSRD)”. More detailed information on the standards of this new directive will be provided in the summer of 2023. It is now known that from 2024 more information will have to be disclosed by the largest companies operating in the EU (about 50,000 companies fall into this category). However, in the next few years, these requirements will come into effect for smaller companies as well. Thus, it will become more difficult to speculate on slogans of supposed sustainability and unclear, self-generated standards. The value of some brands will fall in the eyes of both investors and consumers.

In addition, we can expect discussions about a universal packaging labelling system that would confirm whether the packaging is indeed recycled and/or can be recycled. Canada is currently planning to ban the use of the associative recycling symbol - three rotating green arrows - if at least 80% of the country's waste management facilities cannot send this waste for recycling. The mentioned changes will not happen in a year; however, we are moving in this direction. Later, we may even have dire warning signs about the environmental damage on the packaging, as we have today on tobacco products. Their goal will be to discourage consumers from purchasing these items. Seems impossible? Five years ago, I predicted the emergence of terrible labeling, and now we can already find such graphic information on some products and packaging (for example, the turtle in the trash mentioned earlier). Therefore, if businesses are not forced to change by higher taxes and increasingly more responsible consumers, they will have to spoil the appearance of the packaging.

Already in the first half of this year, we should hear more about the new directive, which has been prepared and discussed for a long time in the European Commission and is focused on fighting against “green” brainwashing and misleading consumers with wrong or imprecise information. Just in 2020, The European Commission shared its research that in the European Economic Area, as many as 53% of product sustainability claims are at least dubious: they use misleading and include unsubstantiated information. What will change? Companies will have to back up everything they brag about. Of course, this strategy will apply to a very wide range of products and services: business models that can ironically be described as "sustainable disposable brands" and farms of “happy, slaughtered animals" will suffer. In addition, the frequent use of packaging slogans such as: "recycled packaging", "CO2 neutral", "recyclable" and so on will immediately decrease. It will be necessary to state exactly what percentage is recycled. It will also be necessary to show whether (and how) the company itself improves to reduce the amount of CO2 emitted into the environment (or uses specific CO2 compensation credits). The benefits of the new order are unquestionable: it will be easier for buyers to choose sustainable brands, the chaos of sustainability communication in the economic space will decrease, and those producers who have really put effort to improve will finally be able to enjoy the attention they deserve. We'll hear some news this year, but the order itself will likely take effect within a few years: we can expect a lot of debate about what claims can be stated, what counts as strong evidence, and/or what graphical system we should use to communicate it all.

We can all agree on one thing: we want to live comfortably and have safe quality products, but we don't want a pile of waste together with houses and oceans full of garbage. The means to achieve this can be various: we have a part of consumers who try to consume responsibly; we have businesses willing to innovate and try to provide their products to consumers as sustainably as possible. But most of us understand that this is not enough, that everyone else needs to be moved as well - whether they want it or not. In this case, we are helped by legislators who punish those who misbehave and reward those who try to improve. Various global alliances, the European Union, and individual countries are setting measurable goals and discussing the means to achieve them. This is the most interesting thing: some of the measures directly reduce the amount of waste, others promote better alternatives, still, others increase public or business awareness, and the rest do not allow businesses to share sustainability-related lies with the customers and the public. The goals, the means, and the subsequent compliance checks can be debated - that's how our society works. Therefore, my question is: what do you think could be improved in the discussed picture?

Article:?Juozas Baranauskas / Illustrations:?Indr? Vaiciukait??/?This article is written in order of “Gamtos ateitis” established “Ateities pakuot?s” club.