Ecomodulation in the PPWR - what will modulated packaging charges look like?

The PPWR is the first Community legislation to introduce an eco-modulation mechanism. From 1 January 2030, Member States are required to apply modulated levies to all packaging and packaged products. What do we currently know about ecomodulation?

PPWR: mandatory ecomodulation, optional criteria

Ecomodulation is a mechanism that makes the amount of extended producer responsibility (ROP) payments conditional on the amount of the ROP. EPR) on the environmental impact of the product or packaging in question. Under the term environmental impact, there are various criteria on the basis of which charge rates are set. The PPWR provides for an obligation to modulate producers' financial contributions based on the criterion of recyclability of packaging. This is a minimum requirement to be applied by Member States as early as 1 January 2030. 5 years later, the assessment of recycling performance will also be joined by a mandatory assessment of large-scale recycling.

The PPWR provides for the possibility of applying additional eco-modulation criteria. The EU system of modulated charges can therefore take into account:

• recycled content,
• reusability of packaging,
• presence of hazardous substances,
• other criteria, where these are in accordance with Directive 2008/98/EC.

If these criteria are used to develop a Community ecomodulation system, entrepreneurs introducing packaging and packaged products will need to high-quality secondary raw materials, such as those produced by the Recycled-Resource process.

The preamble of the PPWR regulation makes it clear that the criteria applicable in individual EU countries should be harmonised. Importantly, only the criteria themselves will be harmonised, not the rates of packaging fees. This is because the fees paid by producers are intended to cover the costs of separate collection, transport and treatment of packaging waste, labelling of packaging waste containers, analysis of the composition of mixed waste and information and reporting obligations, and these may vary from one Member State to another.

Fees depending on recycling efficiency class

From 1 January 2030. all packaging put on the Community market will undergo an assessment of its recyclabilitywhich will enable them to be assigned to one of the recycling efficiency classes:

• Class A - rating 95% or higher,
• Class B - rating 80% or higher,
• Class C - rating 70% or higher,
• technically unsuitable for recycling - rating below 70%.

Extended producer responsibility fees will be modulated according to this classification, i.e. Class A packaging will be subject to the lowest fee and Class C packaging to the highest fee.. Packaging that does not meet the requirements of the recycling performance classes and scores below 70% will not be allowed to reach the market. In this way, the EU wants to encourage manufacturers and marketers to eco-design of packaging. The manufacturer of the packaging will be responsible for carrying out the assessment of recyclability and will also have to draw up a written declaration of conformity for each type of packaging.

The PPWR regulation makes it clear that introducers cannot be exempted from paying packaging levies - This means that no packaging, even of the highest recyclability standards, will be zero-rated.

Criteria for assessing recyclability according to PPWR

The appendix to the PPWR contains a non-exhaustive list of parameters on the basis of which design criteria for recycling will be established:

• additives - Their presence can contribute to incorrect sorting of waste in the sorting plant and contaminate the secondary raw materials obtained,
• labelling - The material of the label, the impact of the label size on the sorting process of the packaging waste and the type of adhesive or binder used will be assessed, among other things,
• wristbands - bands that cover a large part of the packaging, are difficult to separate and are made of a material other than packaging can make waste sorting and recycling difficult,
• closures and other small packaging items - can make sorting and recycling more difficult if they are not made of the same material as the packaging; in addition, unattached items can increase litter and be lost at the sorting or recycling stage,
• binders - should not affect the ability to separate the fasteners from the packaging; the presence of non-removable binders may contaminate the recovered raw materials,
• dyes - heavily coloured paper and plastic packaging can be difficult to sort and adversely affect the quality of recyclables,
• material composition - monomaterials or combinations of materials that are easily separable and do not affect the recovery process are preferred,
• barriers and coatings - can make recycling difficult, so barriers and coatings that ensure high recovery will be preferred,
• inks, varnishes, method of printing and application of codes - paints and varnishes may prevent recycling, contaminate the raw material or impair the transparency of the recycling stream,
• ease of emptying - the packaging should be capable of being completely emptied,
• ease of disassembly - understood as the ability to easily separate components made of different materials.

Read also: What kind of packaging do consumers want? Find out the key findings of the EKObarometer report >>.

In addition, from 2030, all packaging must be:

• recyclable in a cost-effective manner,
• designed with material recycling in mind,
• collected separately and sorted for specific waste streams,
• without affecting the recyclability of other waste streams

The development of detailed design criteria for recycling will be handled by the European Commission, taking into account standards developed by European standardisation organisations. These criteria will then be used to develop the calculation methodology determining the different recycling performance classes. Both the criteria and the methodology will be known no later than 1 January 2028. - within this timeframe, the EC will issue the relevant delegated acts to supplement the provisions of the PPWR.

Tightening of criteria: scale recycling and a ban on class C packaging

From 1 January 2035, packaging entering the Community market must not only be recyclable, but also recycled on a large scale. Recycling of scale will become another criterion on the basis of which ROP charges will be modulated. Implementing acts establishing the methodology for assessing large-scale recycling will be issued no later than 1 January 2030. The PPWR assumes that a separate methodology will be developed for each of the packaging materials.

At this point, we know that the three-tier classification of recycling efficiency will still apply between 2035 and 2037 - only the criteria will change. In addition to the parameters mentioned above, preference will be given to packaging that can be recycled using existing infrastructure and proven methods and technologies. Consideration will be given to methods and technologies that are capable of ensuring EU-wide recycling of 30% or more by weight of wood packaging waste and 55% or more by weight of packaging waste of other materials. The exact thresholds for each material will coincide with the recycling targets set by the Regulation.

From 1 January 2038, the assessment criteria will remain the same (However, the minimum thresholds for individual packaging and packaging materials may change). However, packaging meeting the requirements of class C will be removed from the catalogue of recyclable packaging. This means that all packaging placed on the EU market will have to achieve a recycling efficiency rating of 80% or higher (equivalent to class B or better). Other packaging will be banned.