In recent years, we’ve seen an extraordinary wave of regulatory initiatives. At a fundamental level, this is welcome. Strong, predictable, and coherent regulation can be a powerful driver of progress, accelerating the shift to circularity and enabling the de-fossilisation of materials and the energy sector. However, to truly succeed, the operating landscape should be predictable, despite shifting policies or geopolitical factors such as tariffs.
A framework is only as strong as its details
As new laws take shape in the EU, especially the Packaging and Packaging Waste Regulation (PPWR), the real impact will depend on what comes next. The delegated and implementing acts, known as the secondary legislation, will define what counts as recyclable, how packaging should be designed, and how it must be labelled. In other words, they will set the rules that matter most in practice.
Some details are still under development, and clarifying them will be important for a smooth transition. The European Committee for Standardization (CEN) is developing technical requirements, including recyclability criteria, for various packaging materials. The work is progressing toward the classification of performance classes (A, B, C) that reflect recyclability under real-world conditions, with the lowest packaging grade (C) being banned in 2038.
The PPWR also leaves some open questions. It still remains unclear how single-use plastic packaging will be defined, and some single-use plastic packages will be banned from the EU market by 2030. Fibre-based packaging is an excellent alternative to plastics, and PPWR can provide growth opportunities.
Uncertainty risks slowing down circularity
Uncertainty risks undermining the goals that regulation is meant to achieve. Currently, the European Commission is assessing what environmental laws should be amended via the so-called Omnibus process. The aim, which is strongly supported, is to simplify and reduce the administrative burdens that companies face, for example, by reducing overlapping regulatory requirements.
Our sector is getting ready to comply with the PPWR requirements. Changing the PPWR would undermine predictability, create legal uncertainty, and penalise those who have already taken actions to align with the new requirements.
The EU Deforestation Regulation (EUDR) simplification proposal has created significant uncertainty. The implementation of the EUDR is expected to start at the end of December for large companies; however, we still do not know the final requirements as of November. This uncertainty creates an additional burden for companies like Metsä Group, which have already invested heavily to comply.
Value chain collaboration delivers real results
Through the 4evergreen alliance, where I currently serve as co-chair, companies across the value chain are collaborating to improve the recyclability of fibre-based packaging by providing practical tools for the industry and sharing expertise with regulators. Value chain collaboration is more critical than ever, and I believe 4evergreen is already making a real difference.
Eurostat recently released new data confirming that fibre-based packaging is leading the way in Europe’s circular economy with an 87% recycling rate in 2023. This is a significant milestone on the road to achieving 4evergreen’s ambition of 90% by 2030.
At Metsä Group and Metsä Board, we remain firmly committed to our sustainability agenda. Paper and paperboard packaging can serve as circular alternatives to plastic packaging, and the new regulations are an opportunity to drive change and accelerate the transition to circular packaging made from renewable raw materials.
DID YOU KNOW?According to Eurostat, fibre-based packaging leads the way in Europe’s circular economy with an 87% recycling rate in 2023. |