What is the significance of the EU Green Deal for packaging?

The EU's Green Deal is a hot topic, and rightly so. According to a survey by Deloitte, up to 94 % consumers consider it the responsibility of brands to create products that are environmentally friendly, so it was only a matter of time before environmental initiatives made their way into legislation. The EU Green Deal, adopted in 2020, aims to make Europe the first "climate neutral" continent by 2050. This document includes various strategies, including reducing emissions by 55 % by 2030, with a planned reduction of 90 % by 2040.

The Green Deal is based on five main pillars that guide its implementation: climate action, circular economy, protection of biodiversity, fight against pollution and sustainable food systems. Together, these pillars shape a sustainable and green future for the EU.

In the following text, we will focus on the second pillar - the circular economy, because it is a key area of activity for Smurfit Westrock. We will look at the issues of waste, recycling, sustainable production and efficient use of resources.

Packaging and waste regulation framework

The Packaging and Packaging Waste Regulation (PPWR) belongs to the circular economy and its main objective is to promote sustainability through the use of renewable resources, reuse and recycling, while minimizing the negative impact on the environment.

PPWR covers the entire life cycle of packaging and aims to reduce packaging waste and limit certain types of packaging. For example, from January 1, 2030, specific single-use plastic packaging will be banned. This approach is important because Europeans currently produce almost 190 kg of packaging waste per capita per year. PPWR aims to minimize waste and support the creation of a sustainable environment, which are key aspects of the Green Deal.

The EU Green Deal and its impact on the world of packaging

With packaging waste increasing by 20 % in the last ten years, it is understandable that the EU Green Deal focuses on packaging and the need for greener materials and approaches.

– Climate neutrality of packaging: All packaging must be climate neutral, meaning that carbon emissions must be balanced by removing the same amount from the atmosphere to achieve a net zero carbon footprint.

– Sustainable packaging: When packaging reaches its reuse limit, it must be biodegradable and able to disappear in the environment without negative impacts.

– Extended producer responsibility: the EU places greater responsibility on businesses for the entire life cycle of their packaging, from production to recycling and disposal.

– No pollution and export ban: Legislation prohibits the production of polluting packaging waste and the export of such materials outside the EU.

Consequences of non-compliance

Businesses that fail to comply with packaging regulations are at risk, including product recalls. These steps are not only costly but also damaging to brand reputation and consumer trust.

In addition, brands that do not meet the requirements may be banned from selling products in the EU. Packaging restrictions can lead to lost revenue and a shrinking market.

Nowadays, sustainability is an expectation of consumers, and businesses that do not consider the protection of the planet can experience negative publicity and lose competitiveness.

New trend: biodegradable packaging

There are several steps businesses can take to prepare for packaging changes:

– Integrating recycled materials into packaging to reduce the demand for new raw materials.

– Replacing packaging that does not comply with the Green Deal with more sustainable alternatives.

– Using biodegradable packaging that decomposes without leaving traces in case of pollution.

– Choosing recyclable packaging that is easy for consumers to recycle.

Advantages of ecological packaging

The EU Green Deal was designed to protect the environment. By reducing packaging waste and supporting ecological materials, it is possible to protect natural resources and reduce greenhouse gas emissions that affect climate change. The transition to ecological packaging also supports innovation.

Brands that invest in sustainable packaging solutions can gain a competitive advantage and appeal to environmentally conscious consumers. Up to 75 % consumers prefer brands with green products and 49 % are willing to pay more for sustainable packaging and delivery (Deloitte). By adapting green solutions, brands can strengthen their image, gain customer trust and meet their expectations. (Co2AI)