News
08 Jul 2024

Circular Economy: Latest Updates

Green Claims and Waste Framework Directives: get ready for trilogues  

Since our last update on the files, discussions on the Green Claims Directive (GCD) and a targeted revision of the Waste Framework Directive (WFD) have mainly continued in the EU Council. In a final rush before handing over the baton to Hungarian colleagues, the Belgian Presidency has hit the finish line with the adoption of a General Approach on both dossiers. For non-Brussels’ bubble English speakers, that’s the Council’s position on a file.  

Let’s have a deeper look at both mandates, starting from the GCD:  

  • The Council’s mandate retains the principle of ex-ante verification, meaning that most explicit voluntary environmental claims will have to be verified by third-party independent audit; a simplified procedure has also been introduced for claims that are of a less complex nature. In such cases, and before the claim is made public, traders will be required to demonstrate compliance with certain substantiation requirements via self-declaration; 
  • EN ISO 14024 type 1 ecolabeling schemes will also be exempt from verification if they are officially recognised in a Member State, which will make the claim valid for the whole EU market; 
  • On climate-related claims, the approach introduces a distinction between contribution and offset claims and includes the obligation to provide information about the type and quality of carbon credits. 

In relation to packaging, and despite several industry calls for the adoption of a clear and workable framework (see here and here), both the Parliament's and Council’s positions fail to clarify the prevalence of the PPWR requirements when it comes to substantiating claims on packaging characteristics. Unless rectified, this could create uncertainty for economic operators and national authorities regarding the rules to be applied and enforced, undermining the objective of clearly communicating environmental claims to consumers.  

Regarding the WFD, EU Member States decided to: 

  • confirm national food waste reduction targets of at least 10% and 30% for, respectively, processing and manufacturing, as well as retail and other distribution of food, in restaurants and food service and in households. The targets are set to be achieved by 31 December 2030, and to be calculated in comparison to amounts generated in 2020; 
  • provide the possibility to also use 2021, 2022 or 2023 as reference years, to account for any possible variation in food waste generation; 
  • empower the Commission to review, by 31 December 2027, the targets set for 2030 and, if appropriate, modify and/or extend them to other stages of the food supply chain, and to consider new targets beyond 2030 by means of a legislative proposal; 
  • confirm the introduction of harmonised extended producer responsibility (EPR) schemes that would require fashion brands and textile producers to pay fees to help fund the textile waste collection and treatment costs. 

While EUROPEN fully supports the adoption of food waste prevention targets, it is important that the text recognises the key role of packaging in reducing food wastage. In view of the trilogues, we will also advocate to remove from the text the reference to State-run Producers Responsibility Organisations (PROs), a principle that does not guarantee the reinvestment of Extended Producers Responsibility (EPR) fees in waste management operations.  

WHAT DID YOU MISS ON GCD?  

  • 12 March 2024: EU Parliament adopted its negotiating position on the dossier  
  • 05 June 2024: EU Council adopted its negotiating position on the file 
  • 02 July 2024: Working Party on Environment discussed the EU Parliament’s amendments on the file  

WHAT'S NEXT ON GCD? 

  • Q3/ Q4 2024: Trilogues negotiations to start between the co-legislators 

WHAT DID YOU MISS ON WFD?  

  • 13 March 2024: EU Parliament adopted its negotiating position on the dossier  
  • 17 June 2024: EU Council adopted its negotiating position on the file

WHAT'S NEXT ON WFD?    

  • Q3/ Q4 2024: Trilogues negotiations to start between the co-legislators 

ESPR Updates 

Remember the avalanche of secondary legislation we mentioned above regarding PPWR? That’s probably nothing compared to what’s in the pipeline for the implementation of the Ecodesign for Sustainable Products Regulation (ESPR). 

Officially published in the EU Journal on 28 June 2024, the Regulation establishes a framework for the setting of ecodesign requirements for different product categories. A soon-to-be-adopted Working Plan, covering a period of at least three years, will outline which product groups will be prioritised under the Regulation. However, the adopted text already indicates that products such as, for instance, iron and steel, aluminium, chemicals, paints and lubricants shall be prioritised by the EU Commission. 

Several delegated acts on the Digital Product Passport (DPP) are also expected to be presented by the EU Commission in late 2025. 

Any overlap with the PPWR? Unfortunately, yes, as Annex I to the ESPR on product parameters retains references to packaging waste minimisation and product-to-packaging ratio. At this stage, however, it is not clear how these parameters will interplay with upcoming packaging rules. In principle, the ESPR should only be used to potentially complement PPWR requirements. 

WHAT DID YOU MISS ON ESPR?   

  • June 2024: ESPR text published in the EU Official Journal 

WHAT'S NEXT ON ESPR:   

  • Q3/ Q4 2024: Expected establishment of the Ecodesign Forum 
  • Q1/ Q2 2025: Expected adoption of first ESPR Working Plan