How next-gen packaging can help achieve the EU’s climate goals

As part of the European Green Deal and the new Circular Economy Action Plan, the European Commission has shown its intention to further tackle the issues concerning packaging and packaging waste. The Packaging and Packaging Waste Directive (PPWD) will be revised in 2021, with the aim of making all packaging recyclable or reusable by 2030. Overall, the objective of the reform is also for the sector to contribute to the EU’s 2050 climate neutrality goal.  

In this context, FIPRA Public Affairs organised an Intelligence Series webinar around the future of packaging. Named “How next-gen packaging can help achieve the EU’s climate goals,” the online event was moderated by FIPRA Chairman Robert Madelin.  

Addressing the webinar, Mattia Pellegrini, Head of Unit at the European Commission’s DG Environment, recalled the necessity for all stakeholders to participate in the policy process through the ongoing public consultation.   

Dominic Hogg, Chairman of EUNOMIA, pointed to an important dimension that is often undervalued during the policy process — the significance of time. “If you set your targets too early, then you can end up introducing unnecessary costs in seeking to meet your objective,” he said.  

On the decarbonisation of the economy, he underlined that a key tool for the EU to deal with carbon leakage will be the Carbon Border Adjustment Mechanism (CBAM). This system would put a price on material that are more carbon intensive, which could lead to a substantial price difference between primary and secondary materials.  

Hogg stressed that while switching the source of energy used in the packaging sector will contribute to the decarbonisation of the sector, the use of recycled content would, in addition, reduce demand for energy used in making packaging: this might be important at a ‘system level’ as a means to increase the pace at which the economy moves to a net zero position. 

Francesca Stevens, the Managing Director of EUROPEN, emphasised that the targets should not be set in isolation. She advocated for a systemic approach through coherent policies along the value chain. 

Stevens also underlined that new measures should support the uptake of innovation, as new technologies and solutions (i.e. new recycling technologies, digital solutions to improve sorting, etc.) will contribute at different level to decarbonise the sector. 

In addition to innovative solutions, she recalled the need to deploy circular solutions at scale and, the development of a Single Market for secondary raw materials. 

Sabine von Wirén Lehr, Tetra Pak Director of EU Public Affairs, outlined that packaging is part of the problem but also part of the solution. In that sense, the role of innovation is key to make next generation packaging circular and climate neutral.  

She recalled that Tetra Pak, as a leading provider of food processing and food packaging solutions, has committed to achieve net zero greenhouse gas emissions in its operations by 2030 and for the whole value chain by 2050. To achieve these objectives, Von Wirén Lehr underlined the importance of using recyclable and renewable materials that are low carbon, as recycling alone will not be enough.  

Indeed, the greenhouse gases emissions that come from the production of packaging materials are currently comparable to emissions of the aviation and shipment sectors combined.  

As regards the revision of the PPWD, Von Wirén Lehr stressed that the new policy framework should set long-term targets with clear criteria, without restricting the use of certain innovative packaging materials which could form part of the solution. The revision of the legislation is an opportunity to substitute high carbon with low carbon materials.  

Stevens and Von Wirén Lehr recalled that innovation should not be hampered as it would impose costly constraints on the industry and would risk deviating from the decarbonisation objective.    

Overall, the discussion brought to light some key factors that will be essential in order to allow the packaging sector to operate its green transition smoothly and efficiently. Different sets of solutions will be needed, such as the increasing use of recycled and renewable materials and the development of a secondary raw materials market.  

Among these elements, timing will also be essential, as well as innovation. As summarised by Madelin, finding the right balance between ambitious targets and realistic objectives has never seemed as important to avoid unbearable costs for businesses, society and the environment.