Day 1 of the PPWR is Here; Five Recommended Near-term Compliance Program Enhancements

The EU’s Packaging and Packaging Waste Regulation (PPWR) took effect today. It took a lot of work for companies to get to Day 1 readiness, but much work still lies ahead. Most PPWR compliance programs are in a nascent stage and still being built out to address current requirements. In addition, PPWR requirements will continue to increase and change over time as additional portions of the PPWR take effect and market practice evolves. This post discusses five near-term compliance recommendations to meet these challenges.

Most companies are familiar with at least the basics of the PPWR since they have been preparing for compliance, in some cases for more than a year. This post therefore dispenses with an overview of the PPWR. Readers can find information about the PPWR on the European Commission’s Packaging Waste page here. 

On to our near-term compliance recommendations:

Firm Up Compliance Processes 

Many companies have been running at full speed to meet the minimum Day 1 PPWR compliance requirements. Time has been spent on building out the compliance team, upskilling, determining Day 1 in-scope packaging and packaged products, meeting initial packaging-related information requirements, compiling technical documentation and preparing Declarations of Conformity, among other things. With that initial work (largely) done, many companies now need to put in place durable processes that support ongoing compliance.

The PPWR is technical and detailed. Packaging and packaged products also change. It will therefore be difficult to maintain consistency in compliance without a clear, documented process tailored to the company, its packaging and packaged products and its place in the value chain. 

However, processes should be flexible and scalable to take into account new PPWR requirements, evolving market practice and lessons learned. 

Develop Training Materials 

Now is also the time to build out tailored training materials and training processes to ensure that new team members understand both current PPWR requirements and new requirements they will need to plan for and address.

In our experience, the original compliance team usually has in-depth working knowledge of new sustainability-related product compliance requirements since that team has been tasked with figuring out the requirements and standing up the initial compliance program. However, as team members leave or cycle off, new team members rarely have the same level of knowledge or the luxury of time to immerse themselves in the underlying regulations or the details and decisions that went into the compliance program. These knowledge gaps usually grow as programs get to the third and fourth generations of program management (and beyond), which creates both legal and commercial risk. Effective training mitigates these risks.

Begin Developing a Longer-Term Compliance Plan

Significant additional PPWR requirements will take effect over time. Not everything needs to be tackled now or at once. However, given the long lead-time needed to prepare for some PPWR compliance requirements, companies should have a thoughtful, proactive, longer-term compliance plan that has appropriate internal visibility and buy-in.

Additional PPWR requirements that will phase in over time include the following, among others (timing may change depending upon when applicable delegated and implementing acts are adopted):

• Packaging will be required to include harmonized sorting labels starting in 2028.

• All packaging must be recyclable in an economically viable way by 2030. 

• Reuse targets will apply to transport, e-commerce and beverage packaging starting in 2030. 

• Certain single-use packaging formats will be banned starting in 2030. 

• A maximum 50% empty space threshold will apply to grouped, transport and e-commerce packaging starting in 2030.

Monitor Evolving Requirements, FAQs and Guidance

As noted above, a substantial portion of the PPWR regulatory framework is still to come. The European Commission is tasked with preparing and adopting numerous delegated and implementing acts over the next several years to address future PPWR compliance requirements. Among other things, these relate to harmonized registration and reporting formats for extended producer responsibility, labeling for waste sorting by consumers, recycled content in plastic packaging and recyclability criteria.

Companies will need to stay on top of the regulatory rollout of the PPWR given the long lead-times needed to prepare for compliance. In addition, pending and proposed PPWR requirements may inform aspects of current compliance. Larger companies in particular also may want to comment on regulatory proposals directly or through trade associations. 

Other Commission materials will inform compliance and also should be monitored. The Commission has adopted FAQs that address a wide range of practical issues raised by stakeholders since the adoption of the PPWR.

The Commission has indicated it will continue to update its FAQ document as needed. The most recent update on August 1, which is approximately 60 pages, included more than 30 new and updated FAQs. The Commission also has adopted guidelines on the implementation of the PPWR to facilitate its uniform application across the EU and simplify compliance for economic actors and Member States. The PPWR requires the Commission to adopt additional guidelines by early 2027 on restrictions relating to certain packaging formats and re-use targets.

Don’t Sweat the Small Stuff For Now?

The PPWR will be a learning experience for both companies and market surveillance authorities. Where the PPWR allows for flexibility, companies are likely to be given the space for a range of good faith compliance approaches.

In one of its new FAQs, the Commission expresses the view that PPWR enforcement should not disrupt trade flows, supply chains or consumer access to goods. The Commission encourages market surveillance authorities to support compliance by the responsible economic operators, such as through awareness-raising, requests for information or requests for corrective action with a reasonable timeline for adaptation, rather than following a sanction-oriented approach. 

The Commission also noted that, if a Member State becomes aware of non-compliance, the PPWR requires the Member State to first require the relevant economic operator to put an end to the non-compliance. The FAQ indicates that, in other words, the economic operator should first receive a warning that non-compliance has been identified, and an opportunity to take corrective action, before any other action is taken by the Member State. The Commission goes on to note that, only where the non-compliance is not rectified by the economic operator, but instead persists, will Member States be within their rights to take further action, such as prohibiting, recalling or withdrawing non-compliant packaging. 

Member State market surveillance authorities may think about enforcement differently than the Commission, but most are likely to at least initially have a similar enforcement philosophy.  

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