3. Role of Extended Producer Responsibility (EPR) schemes
New ERA welcomes the proposal to switch legal instruments from a Directive to a Regulation implying greater homogeneity and avoiding fragmentation of the single market. However, the PPWR proposal misses the opportunity to create homogeneity within systems for Extended Producer Responsibility resulting in a significant fragmentation of the EU single market. As one of the main financial instruments to incentivise reuse, this is critical to address in order to bring more legal certainty to economic operators across the EU. This is in particular a challenge for European SMEs that must invest significant resources understanding multiple different EPR systems.
Furthermore, the PPWR proposal does not sufficiently address the importance of EPR schemes to incentivise reuse, as the focus is currently on design for recycling and recycled content. In our view this is a missed opportunity. We therefore recommend the PPWR be strengthened by:
● ensuring that economic operators switching from single use to reusable packaging could get a reuse bonus within the eco modulation requirements.
● requiring EPR schemes to use a proportion of the funds generated to provide a fund to accelerate the transition on reduction and reusability. An example is the French model established with the Food waste prevention and circular economy Law, which gives a mandate to Citeo (French EPR for household packaging) to invest 5% of their annual budget towards this goal.
● requiring closely aligned EPR systems to avoid fragmentation of EU single market, for example, defining the magnitude of eco-modulation (% increase or decrease for reuse, design for recycling and recycled content).
4. Design for recycling
New ERA strongly supports the requirement specified in article 6 that all packaging should be recyclable, including reusable packaging. Only in this way can we ensure that packaging can be recycled to provide the raw material required to meet the recycled content targets specified in article 7, including for reusable packaging.
However, we are concerned that the current approach will not deliver this objective. Although the proposed PPWR specifies that all packaging must be recyclable, the target level of recyclability (70%) is low and imprecise. We propose to tighten the recyclability requirement by raising the minimum recyclability performance grade to Grade C (>80% recyclability).
5. Standardisation of reusable packaging
The proposed PPWR barely refers to standardisation when announcing that the European Commission will ask the European standardisation organisations to come forward with harmonised standards for reusable packaging. Today, there are no existing standards for reusable packaging at EU level, although there are some ongoing discussions within CEN-CENELEC to establish rules for reusable plastic tableware (e.g. plates, trays, cups, dishes, glasses, bowls, etc.).
The diversity of packaging formats and materials is so large that asking the competent authorities to develop mandatory standards of reusable containers is nothing but a cyclopean task. Rather, the European standardisation bodies should focus on elaborating standards on the characteristics for well functioning reuse systems. It is important that they do not start the work from scratch, but consider the dialogues on the topic that are taking place among public-private stakeholders at international level (e.g. PR3 Standards).
Voluntary standards on certain reusable packaging systems will also play an
important role in supporting the scale up of reuse systems at local and EU level. The agreements made between industry players should not leave none behind, and hence, SMEs must participate in the discussions to avoid the standards being a burden instead of an opportunity. For instance, Citeo published guidelines to develop standards of reusable packaging for the HORECA, fresh products and beverage sectors in October 2021. Besides, operators of reusable packaging shall be given the choice -and not the obligation- to apply the standards, as long as interoperability of the systems and fair access to all players is guaranteed.
6. Deposit-return systems
As underlined by the OECD in its last circular economy report, DRS has proven effective in increasing collection rates and reducing littering. DRS is the reference scenario to reach the 90% recycling target for plastic bottles and cans. It is one way of increasing performance, not the only one. Indeed, DRS is one way to implement an EPR policy and can lead to synergies, as it can improve the quality and quantity of recycling, enable reuse systems and incentivise eco-design. DRS also helps to address littering and influence consumer behaviour, which is difficult to address with other mandatory EPR policy instruments.
For example, in Estonia, after the introduction of a DRS for beverage containers, the share of beverage containers amongst littered items along roadsides dropped from 80% to below 10% (Global Deposit Book, Reloop, 2022). In Germany, the share of beverage containers amongst total litter dropped from 20% in 1998 to “almost zero” two years after the introduction of a DRS on one-way beverage containers in 2005.
In this perspective, minimum requirements on DRS within the PPWR should help to achieve the targets on recycling, reuse and recycled content by material or type of packaging.
DRS can be helpful for enabling reuse of packaging by giving consumers an incentive to return products, thus facilitating the necessary physical movement between consumers and producers. In addition, the return of products needs to be made easy and possible by adequate and accessible logistics for consumers. We therefore ask to include a mandatory measure on DRS and reusable packaging with a clear timeline to move to systems which accept reusable packaging.
Finally, regulation should clearly define the scope of a DRS in the context of other EPR instruments and establish which products are subject to which programme, to avoid potential “double coverage” or unintended substitution effects. Policies that define the scope of a DRS based on certain materials leave more opportunity for producers to change materials in product design to avoid participation. Policies that instead specify the scope based on product groups may be better suited to avoiding possible substitution effects.
7. Labelling of packaging
New ERA supports harmonisation of labelling requirements as laid out in Chapter III of the proposed PPWR. However, we believe that transport packaging should not be exempted from this requirement. Although transport packaging does not end up in the municipal waste stream, challenges remain in the adequate separation of business waste streams. Harmonised labelling requirements will help to address this.
As an example, one of our members is providing reuse solutions for transport using packaging made from recycled materials. Making the recycled material of the correct quality is undermined by a lack of information regarding the material composition of such packaging from other suppliers. A requirement to indicate the material composition on all packaging, including transport packaging, will address this challenge.