In just a few months, a deposit system will start operating in Poland. In view of the impending revolution in the packaging market, Delloite contacted all stakeholders and estimated the costs of implementing and operating the system in our country.

In the 2024 published in September. Report Bail system in Poland - costs, prospects, opportunities Delloite experts have calculated the cost of implementation of the bail-in system for more than PLN 37 billion over the first 10 years functioning.

• By 2034. the investment cost alone will amount to PLN 14.2 billion. More than 60% of this amount will be spent on building work to make the shops suitable for collection. Another item in the cost structure is the purchase of bottle machines, which will consume more than 20% of the amount indicated.

The authors of the report assumed that the collection of all types of packaging covered by the Polish deposit system would be carried out in a mixed way, both manually (using bag systems) and automatically, using verification and destruction machines for the deposit system (e.g. Sielaff bottle machines). Estimated the cost of implementing automatic collection will amount to PLN 12.5 billion and manual collection to PLN 0.9 billion.

• The 10-year cost of the Polish bail system will turn out to be even higher, which may amount to PLN 24.3 billion in the optimistic scenario and PLN 21.7 billion in the pessimistic one. For the time being, experts assume that the intermediate, realistic scenario will come true, and the The operating cost of the bail-in system between 2025 and 2034 will close at PLN 23.1 billion.

From 2025 onwards, the annual cost of operating the bail system will gradually increase. In the most likely scenario in the first year of the system's operation it will be 0.9 billion, and after 10 years it will be 2.9 billion. According to Delloite specialists' estimates, by 2034 total operating costs will reach £23.1bn, of which:

• 38,91% will be earmarked for automatic collection in shops,
• 26.5% will cover the cost of manual collection at logistics and counting centres,
• 20,24% will go to a manual collection run in shops,
• 14,17% will be allocated for automatic collection at counting and logistics centres.

Estimated in the report the operating costs of the deposit scheme may in fact change and quite significantly. The final amount will depend, among other things, on the level of collection, the amount of unclaimed deposit for packaging and the rate at which the employees operating the bottle and bag systems and those working in the logistics centres are introduced to their new responsibilities. Importantly, the macroeconomic assumptions of the presented forecast may also change. For the purposes of the report, it has been assumed that the consumer price index (CPI) will decline from 11.4% in 2023 to 2.9% in 2027, with fluctuations of no more than 0.2 pp in subsequent years. Nominal wage growth will also decelerate, as assumed, from 11.9% in 2023 to 5.4% in 2027-2034.

The referenced Delloite report also presents the investment costs of implementing a deposit system, broken down by the types of packaging covered. As it turns out, more than half of the expenditure (7.5 billion over 10 years) will be related to the collection of plastic bottles. Much less, 3.6 billion, will be invested in the collection of metal cans. Reusable glass bottles will not be included in the deposit system until 2026, one year later than other types of packaging. Investment outlays for their collection are the lowest - according to Delloite estimates, they will total PLN 3.1 billion by 2034.

To read more about the costs, opportunities and prospects of the bail system, read in the latest Delloite report.

Packaging Day was established in 2007 by the Polish Chamber of Packaging. Its aim was to spread awareness of the different types of packaging and to emphasise their role not only in everyday life, but also in the economy. Let us therefore take a moment to summarise the most important changes that have taken place in the past year in the packaging industry and beyond.

Adopted in 2019. Directive (EU) 2019/904 of the European Parliament and of the Council on the reduction of the environmental impact of certain plastic products (so-called SUP Directive) will not be implemented in Poland until 2023. From May 2023 onwards. further obligations entered into force, the effects of which were felt not only by packaging producers, but also by consumers:

• 24 May 2023. 9 categories of plastic products and packaging were banned from the market and mandatory labelling of single-use products containing plastic was introduced,
• 1 January 2024. charges have been introduced of £0.25 per unit for disposable cups and takeaway food packaging and
• On 1 July 2024, businesses were obliged to provide reusable alternatives to disposable packaging of plastics. Even before these changes came into force, Interzero had started offering customers a service Made4Loop, a deposit system for reusable packaging,
• From 1 July 2024, the following were also introduced obligation to affix nuts permanently attached to bottles or cartons.

In August 2023, it came into force an act setting out the legal framework for the operation of the bail system in Poland. Since then, multi-faceted work on the implementation of the system in our country has begun, which has included, among other things, the creation of further representative entities, the setting of deposit amounts for the various types of beverage packaging, the implementation of collection, logistics and deposit accounting systems, and the popularisation and installation of .

Every now and then, there were discussions in the packaging and bottling industry about the need for changes to the system even before it took off. These resulted in, among other things. delaying the inclusion of reusable glass bottles in the deposit system and excluding milk bottles from the system and other dairy products.

At Interzero, we have also been counting down the days until the start of the bail system. So that we can continue to provide our customers with comprehensive waste management solutions, we have entered into cooperation with the manufacturer of bottle dispensers, the Sielaff brandbecoming its exclusive representative in Poland. We have also expanded our portfolio of services to include comprehensive service of bail systemsh addressed to retailers, introducers and representative entities.

The annual Environmental Conference organised by Interzero is a a great opportunity to take stock of the past yearbut also to prepare for the future that the legislator has in store for the entire packaging industry.

Already on 18-20 September 2024 at the Sopot Sheraton Among other things, we will talk about the latest preparations for the implementation of the deposit system, innovative circular business solutions and the PPWR packaging regulationwhich could soon turn the functioning of the packaging industry upside down. On the second day of the Conference, we will hear a discussion on the costs of implementing PPWR and about the biggest challenges in the design, production and recycling of packaging. Interzero's representative will be Vice President Paweł Lesiak, who will share, among other things, the experience gained in designing ecological packaging for Interzero's customers as part of the Made4Circle services.

For the full agenda of the Interzero 2024 Environmental Conference and a link to registration, see event page.

Under EU rules, all phones, tablets and cameras sold in the EU will have to have a USB Type-C port by the end of 2024, and from spring 2026 the requirement will also be extended to laptops.

From this article you will learn:

• what type of chargers dominate the market and why EU demands for devices with a charging port have arisen;
• which mobile devices will be affected and when the new rules will come into force;
• what direction the European Parliament is going in with regard to waste and ecology in general.

Among the regulated devices were mobile phones, tablets, games consoles, electronic readers and others portable equipment. All those devices that charge by wire and that operate at up to 100 watts will have to be equipped with a USB Type C port - regardless of the manufacturer. This is a landmark decision that aims both to simplify the lives of consumers and to reduce the negative impact of electrical and electronic waste on the environment. The European Commission and the European Parliament have unanimously recognised that this solution will have a positive impact on the ecosphere and allow for a minimal reduction in consumerism.

Customers are to choose for themselves whether to purchase a new device with or without a charger. This should reduce the accumulation of electro-waste in homes and thus the dumping of electro-waste in inappropriate bins. The EU estimates that broken and unused chargers account for around 11,000 tonnes of waste. This is an intimidating amount - but the next question begs to be asked - what about chargers with other terminals when the EU's USB-C recommendations come into force?

Research by the European Commission shows that half of all chargers sold in 2018 in the community countries used a USB micro-B connector. Only 29% had a USB-C type connector and 21% had a Lightning connector, used by Apple since 2012. Unifying chargers to one standard will result in many patented charging ports (such as Lightning from Apple) going out of use in Europe. Manufacturers are therefore making the argument that once chargers are standardised to USB-C, all other chargers that are already in consumers' homes will go in the bin. Researchers in an issue of the Northwestern Journal of International Law & Business examined the issue. In fact, as of 2019, only 29% phones sold in the European Union used USB-C chargers. Therefore, forcing a switch to USB-C would render nearly 71% chargers useless to consumers. Customers who buy newer devices with a USB-C port would no longer be able to reuse their older chargers with a different input.

However, if we look at the issue in a broader, long-term perspective, European citizens could save up to €250 million a year by standardising the charging standard, according to European Commission analyses. In addition to the economic benefits, the new regulations aim to reduce the quantities of waste electronics, which is an important step towards sustainability. Guidelines on charging requirements for products are to appear on device labels. Perhaps in a few years' time we will only need one charger for all the equipment in the home or office?

Click yet here! You can see how paper recycling is growing in Europe!♻️

Sources: [1] [2] [3]

In the Polish deposit system, the amount of the deposit will depend on the type of packaging. According to the latest regulation, from 2025. deposit rates for bottles and cans will be as follows:

• disposable plastic bottles up to 3 l - PLN 0.50,
• metal cans up to 1 l - PLN 0.50,
• reusable glass bottles up to 1.5 litres - PLN 1.00.

The regulation was issued on the basis of the delegation contained in Article 40m(2) of the Packaging and Packaging Waste Management Act (OJ. 2013 item 888). According to its provisions, the amount of the deposit should provide an incentive to return packaging and packaging waste by consumers, while being set at a socially acceptable level. The maximum amount of the deposit specified in the law can be PLN 2. Therefore, the Ministry should monitor the situation in the first months and years of the bail system and react on an ongoing basis by updating the amount of the deposit.

The referenced regulation comes into force 14 days after promulgation and will become effective in the last days of July 2024.

Let us recall that the first draft of the regulation assumed the adoption of a uniform rate of PLN 0.50 for all packages covered by the deposit scheme. However, it was met with numerous objections from bottlers and representatives of the waste industry, who pointed out that the proposed deposit rate for reusable glass bottles is lower than the deposit currently used in private return schemes (£1).

The final determination of deposit amounts for the different types of packaging covered by the deposit system is not the only news in the polish bail systemwhich have been presented to the public in recent weeks.

• The following entered the game another third bail system operator. On 17 July 2024, the Minister of Climate and Environment authorised the Entity representing OK Operator Bailout S.A. to set up a bailout system covering single-use plastic bottles and metal beverage cans.
• About a year the date for the mandatory inclusion of glass bottles in the deposit system has been postponed reusable packaging. Thus, the private collection systems currently in place for such packaging can legally operate until 2026.
• Milk containers have been excluded from the deposit system and other dairy products, which coincides with the demands of the dairy industry. Initially, the deadline for inclusion in the deposit scheme was to be postponed by one year (until 2026), but eventually the Ministry of Climate and Environment dropped the idea altogether.
• Logo of the bail system unveiledwhich will be affixed to all packaging covered by the Polish deposit system.

Interzero is the only official distributor in Poland that cooperates with the renowned German manufacturer of bottle dispensers, Sielaff. Thanks to this cooperation, we offer our customers equipment of the highest quality, designed for durability, efficiency and advanced technology.

We offer full support - from advice and installation of the equipment to servicing and integration with IT systems. Our team of experts ensures that the implementation of bottle machines runs smoothly and that your company gains a modern tool tailored to your customers' needs. Check out the range of equipment at the link. 

On 9 July 2024, the CEPI's latest report was released, providing production statistics for the European paper sector for 2023. Data from the report shows a deepening decline in paper and board production. At the same time, the recycling rate of raw material is increasing, reaching almost 80% last year.

The year 2023 was marked by declines in the paper industry. As much as by 13% compared to 2022, the production of paper and board has decreased. It seems that recent years have been a downward slope for the paper industry - paper consumption (down 13.5% vs 2022) and pulp production (0 17.5% vs 2022) are also falling significantly. However, this is not a localised problem - in the corresponding period we are witnessing a global slowdown, which, however, is not as great as in Europe. The EU economy as a whole has lost momentum in the face of the high cost of living (including energy prices), tighter monetary policy and weak external demand.

The dynamics of the production of individual types of paper and board products in 2023 varied considerably. Compared to the previous year, the amount of cardboard packaging produced decreased by 11%, and newsprint volumes by 20.6%. The largest production decreases of 23.7% were recorded in the graphic paper category. Sanitary and household paper was the most resilient to the market turmoil, with this segment declining by only 3.4%.

From the point of view of the paper industry, the figures presented in the CEPI report are quite pessimistic. A breath of optimism, however, comes from the waste and recycling industry - in 2023. The average recycling rate for the EU-27, Norway, Switzerland and the UK was as high as 79.3% (an increase of 8.2 pp compared to 2022). Thus, 6 years ahead of schedule, the goal of the signatories of the European Declaration on Paper Recycling to achieve a 76% paper recycling rate by 2030 has materialised. The record high annual recycling rate shows the autonomy of the industry and brings it closer to becoming a reality. closed loop economy.

Interestingly, the recorded increase in 2023 is due to a significant - 12% - decrease in paper and board consumption. This means that not only the industry, but also consumers are becoming more aware and starting to reduce their consumption of paper products and cardboard and paper packaging.

Despite a number of results under the radar, the paper sector also has reason to be satisfied. For many years The decarbonisation of the industry is progressing gradually. In 2023, CO2 emissions fell by a further 5.8%, which means that a total of more than 46% of carbon emission reductions have already been achieved since 2005.

As the CEPI Director General's message reads:

"Given the context, the pulp and paper industry in Europe can be proud of what it has achieved in terms of climate action and closed loop. In a more conducive and predictable regulatory environment, our prospects could be very positive and our contribution to the EU Green Deal even greater."

In view of the decarbonisation targets set by the European Commission, it is estimated that emissions will be reduced even faster in the coming years. The condition, however, is to continue to increase investment, which, in the current difficult market situation, is one of the biggest challenges.

Source: European pulp & paper industry. Key statistics 2023, CEPI, https://www.cepi.org/wp-content/uploads/2024/07/Key-Statistics-2023-FINAL.pdf

The primary production of paper in Poland and throughout Europe uses softwood (75% production) and hardwood (25% production). It mainly comes from managed forests, where there is planned silviculture of trees to be felled. Another source of wood is the so-called maintenance felling of the remaining forests carried out in order to provide the neighbouring trees with optimal conditions for growth and crown development.

The most popular wood species for paper production are:

• Spruce - 40.5%,
• pine (so-called pulpwood) - 35%,
• birch - 11.4%,
• eucalyptus - 9.1%,
• Beech - 1.5%,
• aspen - 1.2%
• others (hornbeam, ash, maple, acacia, oak, alder, poplar, willow, chestnut) - 1.3%.

The decline in paper production recorded in recent years also translates into less interest in virgin raw material. In 2023, the volume consumption of softwoods is down by 1.1% and hardwoods by 5.7%.

According to the CEPI report, as much as 91% of the wood used for paper production in CEPI countries comes from their native forests. This is the highest rate since 2000 and a slight increase from 2022 (by 1 pp). Another 6.5 % is timber imported from EU countries that do not m. belong to CEPI. Thus, only 2.5% of wood comes from outside Europe. This means that Europe is almost self-sufficient in terms of raw material for paper production.

The role of recycled paper as a raw material should also be highlighted here. In 2023, in CEPI countries more than 53 million tonnes of waste paper and other paper waste were recycledthat have been reused in the manufacture of paper products. The leader here is cardboard - as much as 95% of cardboard and cardboard packaging is made from recycled paper.

Check, How paper is made in the first and subsequent circuits.

In addition to the wood in the logs, wood chips are also used in paper production. These are small pieces of wood that arise as post-production waste from the furniture, lumber, packaging and joinery industries, among others. The scale of their use may surprise you - in 2023. as much as 21.4% of the total wood destined for the paper industry was wood chips.

According to the authors of the CEPI report, the use of industrial waste in the form of woodchips to produce paper is an important contribution to a circular economy. Although traditionally not considered as recycling by CEPI, this use of woodchips falls within its definition commonly accepted in the waste industry. Given the highest ever rate of paper recycling (almost 80%), it can be concluded that the CEPI countries have done their homework on circularity and are well on the way to creating a circular economy.

Source: European pulp & paper industry. Key statistics 2023, CEPI, https://www.cepi.org/wp-content/uploads/2024/07/Key-Statistics-2023-FINAL.pdf