EU weighs packaging rule exemptions for microbusinesses

The European Union is considering more flexible packaging requirements for micro and small businesses selling to other member states, ERR reported. Patrick Child, deputy director-general of the European Commission’s environment directorate, said the new extended producer responsibility requirements could otherwise make cross-border sales too expensive and bureaucratic for very small companies.

The EU Packaging Regulation aims to reduce excessive packaging and packaging waste, encourage reusable packaging and improve recycling. It also seeks to harmonise standards between member states, reduce packaging’s climate and environmental impact, support the single market and reduce Europe’s dependence on imported raw materials.

The rules will enter into force gradually. Provisions concerning hazardous substances in packaging that comes into contact with food took effect in August, while most requirements will apply from 2030.

The precise content of several requirements, including a ban on plastic packaging for fruit and vegetables weighing less than 1.5 kilograms, will be set out in implementing acts that the European Commission is preparing with input from member states, companies and other stakeholders.

“We must carefully ensure that the regulation does not hinder the functioning of the single market. On the contrary, we want the rules across Europe to be more uniform,” Child said.

Child visited Estonia this week to discuss the European Commission’s circular economy proposals and the implementation of the Nature Restoration Regulation with Estonian authorities and interest groups. The talks also addressed how the new packaging rules would affect small and medium-sized businesses operating in other member states, including how companies would contribute to waste management costs.

Some provisions have raised concerns about excessive administrative burdens and costs for businesses. “We are currently discussing this issue with the aim of reaching an outcome that would stimulate economic activity in European countries and create more jobs,” Child said.

Businesses preparing for changes

Child said the new EU Packaging Regulation had been preceded by lengthy preparations and discussions with businesses. The agreed requirements would not take effect overnight, he said, adding that the aim was to ensure a smooth and controlled transition.

Companies that invest in new technologies and more sustainable packaging solutions, or develop them, are already anticipating market developments and creating future business opportunities, Child said.

He acknowledged, however, that the system needed greater flexibility so that micro and small businesses seeking to export to other member states, for example through online platforms, would not face excessive costs or administrative burdens.

The European Commission proposed a year ago suspending the requirement for companies to appoint and pay for an extended producer responsibility representative in another member state. Child said he understood that this could be too costly for microbusinesses.

He said the system should either be based on mutual recognition between member states or exempt small businesses from certain requirements. The Commission’s proposal is currently being discussed by the member states.