The widely debated regulation, which has caused significant division within the EU, is a fairly good result for the forest industry. However, the regulation introduces numerous substantial changes for the sector and fibre-based packaging.

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On Monday, 16 December, EU member states formally approved the revised versions of the Packaging and Packaging Waste Regulation (PPWR), based on the agreement reached during trilogue negotiations in April. The European Parliament had already given its approval to the linguistically and legally revised versions at the end of November during its plenary session in Strasbourg.

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In line with its original objective, the regulation aims to reduce packaging waste by 5% by 2030, 10% by 2035, and 15% by 2040 (compared to 2018 levels). It seeks to achieve this through measures such as improving packaging recyclability and reusability and reducing plastic packaging use. Perhaps the most significant goal relates to recyclability and recycling requirements: all packaging placed on the market must be recyclable by 2030 and verifiably recycled at scale by 2035.

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While the regulation poses significant challenges for the forest industry and its products, the outcome can be considered relatively good for the sector and fibre-based packaging after extensive negotiations. A key achievement is the regulation’s establishment of a more balanced approach between recycling and reuse.

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New Frameworks for Plastic Use

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One of the central tools of the regulation is limiting plastic use. Consequently, the share of recycled plastic in plastic packaging will increase. By 2030, plastic packaging must contain 35% recycled plastic, rising to 65% by 2040. Packaging used for food contact materials has its own specific requirements. For example, non-PET plastic food contact packaging must include 10% recycled plastic by 2030 and 25% by 2040. Importantly, the recycled plastic requirements also apply to plastic components of packaging if these make up more than 5% of the total weight of the packaging. This could therefore impact fibre-based packaging.

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Thanks to successful advocacy by the forest industry, the European Commission will examine the use of bio-based plastics alongside recycled plastics. This opens the possibility that bio-based plastics may eventually complement or even replace recycled plastics in meeting these requirements.

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From 2030 onwards, the regulation will ban certain single-use plastic packaging, such as plastic packaging for fruits and vegetables under 1.5 kg and plastic group packaging in retail. These bans are expected to increase demand for fibre-based alternatives, but the regulation also prohibits single-use plastic packaging in restaurants. However, single-use plastic packaging is not defined in the regulation, and further details on the specific packaging types affected will be defined in the coming years as the Commission develops detailed guidelines.

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Reuse Targets Vary by Packaging Type

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Various packaging groups and materials will be subject to specific reuse targets under the regulation. For instance, by 2030, 10% of beverages must be sold in reusable packaging, with the target visioned to increase to 40% by 2040. These targets do not apply to packaging for perishable goods, such as dairy products, wine, and spirits. Group packaging, except for cardboard boxes, will also gradually transition to reusable alternatives.

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Transport packaging, including e-commerce, must achieve a reuse rate of 40% by 2030, aiming for 75% by 2040. However, all transport packaging used in intra-company and intra-member state logistics must be reusable. Exemptions apply to transport packaging for hazardous materials, large machinery, equipment, or customised goods. Notably, cardboard boxes are excluded from these requirements.

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In the HORECA sector, reuse will take on special significance. Businesses offering takeaway products must, within two years of the regulation’s entry into force, provide consumers with the option to use their own containers. One year later, businesses will be required to offer products in reusable packaging. This effort includes a tentative target of 10% reuse by 2030.

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Implementation to Begin in early autumn 2026

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The Packaging and Packaging Waste Regulation will replace the current Packaging Waste Directive upon its entry into force. Alongside numerous detailed requirements, it includes various exemptions. For example, member states may be exempted from certain reuse targets if they meet specific conditions. However, in Finland’s case, achieving these conditions may be challenging due to the low recycling rate of plastic packaging and the steady growth in overall packaging waste volumes.

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Overall, the regulation will significantly increase the reporting obligations of member states and companies to the EU and consumers. For instance, businesses will need to include QR codes on packaging to indicate reusability. The regulation also aims to harmonise recycling symbols, also called pictograms, for packaging and waste bins across the EU.

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The regulation will be published next in the Official Journal of the European Union, coming into force 20 days later. Its actual application will commence 18 months thereafter, in autumn 2026. Preparations for secondary legislation are already underway. The Finnish Forest Industries Federation is contributing to this work in collaboration with, among others, its European umbrella organisation, Cepi.