The amount of waste generated from packaging is growing faster than the amount that we can recycle. Think about this: in 2022, the EU generated nearly 186.5 kilograms of packaging waste per person, with 36 kilograms of that being plastic—equating to half a kilogram of packaging waste per person every single day.

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Even though recycling rates have improved over the years, the growing volume of packaging waste has become an urgent environmental problem. In response to this pressing issue, the European Union has introduced a new regulation aimed at reducing packaging waste across its member states.

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On December 16, 2024, the European Council adopted the new EU Packaging and Packaging Waste Regulation, replacing the long-standing packaging and packaging waste directive and setting out more ambitious targets and measures. 

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Here’s the key difference: unlike the previous directive, which required each country to implement its own legislation, the new regulation is directly applicable across all EU member states and introduces binding re-use targets, restrictions on single-use packaging, and requirements to minimize packaging use throughout its entire life cycle. With these changes, the EU aims to create a more sustainable and circular economy while addressing the growing environmental impact of packaging waste.

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THE EMERGENCE OF SUSTAINABILITY IN PACKAGING

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As consumer awareness grows, sustainability has become a trend reshaping global industries —with the packaging sector being no exception. The PPWR aligns with the European Green Deal and supports the Circular Economy Action Plan, ensuring that sustainability is at the heart of EU policy.

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In parallel, the Ecodesign for Sustainable Products Regulation (ESPR) further strengthens these efforts. This regulation sets out a framework for enhancing product durability, reusability, and energy efficiency, while boosting recycled content and simplifying recycling processes. It focuses on reducing substances that hinder circularity and ensures that products have a lower environmental footprint across their lifecycle. 

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Together, these regulations are part of the EU’s broader strategy to foster a circular economy—one where resources are conserved, waste is minimized, and sustainability is embedded in every stage of a product’s lifecycle.

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PPWR’S SCOPE:

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This regulation will have significant consequences for businesses that place packaged products on the EU market. It expands the list of hazardous substances in packaging and aims to reduce the overall amount of packaging used within the EU. Its primary objective is to make all packaging in the EU recyclable.

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These are the new measures:

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a. Safe, sustainable, and recyclable packaging:

• Targets for 2030 and 2040 to ensure a minimum percentage of recycled content (up to 65% for single-use plastic bottles by 2040).
• Reducing the weight and volume of packaging, and avoiding unnecessary packaging.
• Limiting harmful substances and restricting food-contact packaging containing per- and polyfluorinated alkyl substances (PFAS) if they exceed specified thresholds.
• Labeling, marking, and informational requirements (e.g., recycled content) to aid in decision-making.

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b. Single-use plastic packaging restrictions:

• Pre-packaged fruit and vegetables weighing less than 1.5 kg.
• Food and beverages filled and consumed in hotels, bars, and restaurants.
• Individual portions of condiments, sauces, milk creamers, and sugar in hotels, bars, and restaurants.
• Small, single-use cosmetic and toiletry products in the accommodation sector (e.g., shampoo).
• Very light plastic bags

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c. Re-use targets and refill obligations:

• Re-use targets for 2030 and indicative targets for 2040. These targets differ depending on the type of packaging used (e.g., 40% for transport and sales packaging and 10% for grouped packaging).
• Additionally, businesses offering take-away services must allow customers to bring their own containers to fill with hot or cold beverages or ready-to-eat food, free of charge.

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The constant evolution of this regulation will require packaging value-chain companies to keep track of changes in order to remain compliant. They will also need to develop capabilities to acquire an understanding of regulatory measures, their scope, and application (as well as the implications for their own businesses and customers).

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Here are 3 critical questions for packaging companies to consider:

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1. Does our organization have a market intelligence team monitoring regulatory changes and competitor actions in our key markets related to sustainability? 
2. Are our internal processes agile enough to ensure quick regulatory compliance and adaptation?
3. What technology investments should we prioritize in packaging to enhance product sustainability and leverage digital traceability for transparency?

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PPWR’S TIMELINE:

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Here's a brief timeline outlining the key milestones for the EU Packaging and Packaging Waste Regulation (PPWR):

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• 1994: The EU Packaging and Packaging Waste Directive was adopted.
• 2020: The Circular Action Plan was adopted.
• 2022: The European Commission proposed a regulation on packaging and packaging waste, aiming to replace the existing directive.
• Dic 2024: The EU Packaging and Packaging Waste Regulation entered into force.
• 2030: Packaging must be designed for recycling. It should be separable, sortable into specific waste streams, and recyclable on a large scale. Also, recyclability grades (A, B, or C) will be assigned, and packaging below grade C will be considered non-recyclable, with limited market availability.

• 2035: Recyclability criteria will include both design for recycling and recycled-at-scale criteria. Packaging categories will be evaluated, and performance grades A, B, or C will be applied.

• 2038: All packaging placed on the market must meet at least grade B recyclability.
• 2040: The targets will increase.

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EMBRACING FINBOOT TECHNOLOGY FOR COMPLIANCE

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To keep pace with the evolving landscape of packaging regulations, organizations must embrace digital transformation and innovative approaches to stay ahead. Among these, Finboot’s MARCO Track & Trace platform, powered by blockchain technology, emerges as a game-changing tool not only for compliance, but also for transparency and sustainability.

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MARCO Track & Trace harnesses blockchain to give companies a detailed view of a product’s entire lifecycle. This transparency allows businesses to track waste generation and how it’s reintegrated into the value chain. By verifying the authenticity of recyclable materials and ensuring sustainable practices, companies can drive the circular economy, stay compliant with regulations, and make informed, eco-conscious decisions.

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Real-World Implementation: Batch-level Traceability from Waste to Packaging

Finboot recently participated in the PETCORE EUROPE Annual Conference. Noslen Suárez, Account Manager at Finboot presented a case study on circular packaging. Klöckner Pentaplast and the Ecosense Foundation joined us to highlight the transformative impact of MARCO Track & Trace —more specifically, the Digital Product Passport solution— in connecting the RPET value chain and delivering exceptional value. Key features of the case study included:

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• Raw Material traceability: Connecting suppliers and accessing detailed raw material information, such as:

• % of PET bottle, % of PET tray, and % of other raw materials.
• Details on recycling facilities, waste CO, batch numbers, and TDS.

• Production traceability: Comprehensive documentation of production (Bill of Materials) and sustainability material, including sustainability certifications (e.g., ISO, RETRAY), client details and tray weight.
• Filling info and chain of custody: Detailed freight and logistics documentation covering production date, product type, filling time, and sustainability declarations.
• Digital Product Passport: A chemical product passport containing all relevant documentation, including certifications and full supply chain visibility, from raw materials to the final product.

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A SUSTAINABLE FUTURE FOR PACKAGING

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The European Union's packaging regulation represents a pivotal shift in the global packaging industry. Companies must proactively track regulatory changes in their target markets and implement systems like MARCO Track & Trace to address these requirements effectively.

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While the new regulations pose challenges, they also unlock opportunities for innovation, fostering a sustainable, circular economy. With solutions like MARCO Track & Trace, the packaging industry can embrace the future with confidence, leveraging technology to ensure compliance, build trust, and drive impactful change.

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Watch our Green Supply Chain Insight video on monetizing green supply chains to learn how to turn sustainability challenges into opportunities for growth and impact.

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