New Regulation in Effect: Full Rollout of Producer Responsibility
Starting from August 12, the highly anticipated European Packaging and Packaging Waste Regulation (PPWR) has entered a phased implementation period across the EU. According to the new rules, all manufacturers and packaging companies must register with an official body, or their products will face a sales ban. Distributors and supermarkets are also responsible for ensuring their suppliers comply with the regulations.
The core of the new legislation is ‘Extended Producer Responsibility’ (EPR). Companies are now financially responsible for the collection and treatment of the waste generated by their product packaging. Through a mechanism called ‘eco-modulation,’ the design of the packaging will directly impact a company’s costs: the heavier and more difficult to recycle the packaging material, the higher the fee the company must pay into the recycling system. A representative from the environmental organization Ecoembes pointed out that although eco-friendly packaging design can save companies money in the future, the initial investment in R&D and production line upgrades poses a significant challenge for many businesses, especially small and medium-sized enterprises.
Beverage Deposit System: Spain Likely to Implement Early
For consumers, the most noticeable change in the future will be the introduction of the Deposit-Return System (DRS). The EU requires all member states to establish this mechanism for single-use plastic beverage bottles and metal cans with a capacity of up to 3 liters by January 2029 at the latest.
Spain’s plan may be more aggressive. According to a Royal Decree approved in late 2022, if the separate collection rate for plastic bottles fails to meet preset targets, a deposit-return system must be activated. Official data shows that Spain’s relevant recycling rate in 2023 was only 41%, far below the national target of 70%. Therefore, under the current legal framework, Spain is expected to officially launch the system this November. At that time, when purchasing designated beverages, consumers will be charged an additional deposit of at least 10 cents per container. The deposit can only be reclaimed by returning the empty bottle or can to a designated collection point.
Retailer’s Dilemma and Concerns Over Cost Passthrough
The implementation of the deposit-return system will put immense pressure on retailers. The Spanish Association of Distributors, Self-Service Stores and Supermarkets (Asedas) has already issued a warning, pointing out that logistics and space are the biggest challenges. Merchants will not only need to manage the return process but also have to free up valuable space to store large quantities of returned empty bottles and cans. This is particularly difficult for small urban stores with limited space, and some may even need to invest in automated reverse vending machines.
Although the changes brought by the new regulation will not be fully and immediately visible to consumers, the ripple effects have already begun. The increased investment by companies in packaging redesign, logistics updates, and recycling fees to meet compliance requirements is bound to happen. Whether these new operational costs will ultimately be passed on to consumers through higher prices for goods and services has become a key point of concern for the market and the public. Consumer organizations, for their part, have stated that the government should take measures to monitor and ensure that companies do not pass all additional costs onto the end consumer.
