What to expect from the upcoming Circular Economy Package

Speaking at the Circular Economy Stakeholder Conference earlier this year, Commissioner Timmermans, the lead Commissioner on the EU Green Deal, explained how half of total greenhouse gas emissions come from resource extraction and processing and “more than 90% of biodiversity loss and water stress comes from resource extraction and processing”. These statistics demonstrate just how important it is that the necessary legislation is put in place to ensure the products we use and the way we use them support, rather than hinder, our global efforts towards a green transition. New products, both in the EU and further afield, should be durable, chemically safe, and fully recyclable. This, in essence, sums up the core objectives of the EU’s so-called Circular Economy Package. 

First adopted in March 2020, the Commission’s new circular economy action plan, is one of the main pillars of the EU Green Deal. The action plan, which includes initiatives along the entire life cycle of products, targets how products are designed, promotes circular economy processes, encourages sustainable consumption and seeks to ensure waste is prevented and resources used are kept in the EU economy for as long as possible. The core objectives of the plan include making sustainable products the norm in the EU, ensuring less waste and making circularity work for people, regions and cities. 

In March 2022, the Commission proposed the first part of the Circular Economy package with the publication of various proposals which seek to make sustainable products the norm in the EU, boost circular business models and help empower consumers towards a green transition. The second set of proposals under the Circular Economy Package are now expected to be published later this month, on 30 November. 

The highly anticipated package is expected to consist of the following four files:

1. Proposal for a Regulation on substantiating environmental claims using the product/ organisation environmental footprint methods
2. Policy framework for bio-based, biodegradable and compostable plastics
3. Review of the Packaging and Packaging Waste Directive to reinforce the essential requirements for packaging and establish EU-level packaging waste prevention measures and targets
4. Carbon removal certification.

A draft of the new EU sustainable packaging rules, “Review of the Packaging and Packaging Waste Directive” was leaked to the press earlier this month and caused a great stir within the industry, leaving many businesses alarmed at the new rules they could be subjected to. The leak suggests that the Commission is planning to introduce very ambitious targets for reusable packaging. The hospitality sector would be particularly impacted under the draft proposals, for instance. Under the proposed rules, businesses offering take away food and drinks would have to serve products in reusable packaging or with customers’ own containers. At least 30% of takeaway beverage sales would have to meet these criteria, with this increasing to 95% in January 2040. Industry representatives are arguing that such measures would involve very complicated logistics, high costs and hygiene issues. 

Another key part of the anticipated package relates to rules for the production of bioplastics. Global bioplastics production capacities currently stand at approximately 2.42 million tonnes. Furthermore, according to the Environmental Coalition on Standards, ECOS, a 315% increase in production volumes for bioplastics is estimated between 2021-2026. Thus, the Commission’s proposal for a policy framework for bio-based, biodegradable and compostable plastics represents a crucial part of the overall package and is likely to cause great debate among policymakers and industry actors. Under this framework, the Commission will present measures for biobased (BBP), biodegradable and compostable plastics (BDCP). According to the Commission, if utilised and produced in an appropriate way, BBP and BDCP have the potential to be a more sustainable alternative to fossil-based plastics. Therefore, with these new measures, the Commission will establish clear criteria and definitions to ensure clarity on the biodegradability of BDCP and clarity on the biomass content of BBP. 

With the Commission is scheduled to publish its proposals on 30 November, many in Brussels and further afield are eagerly waiting to see if the proposed measures will manage to find a balance between meeting industry demands and securing a successful green transition.