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[BUSINESS] · Germany, United Kingdom · 6 sources

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European Union implements new environmental and packaging regulations

The European Union is rolling out several major environmental regulations that impose new compliance requirements on businesses. Under the Packaging and Packaging Waste Regulation (PPWR), which entered into force in February 2025, companies must adhere to new standards regarding packaging recyclability, labeling, and reuse starting August 12, 2026. The regulation requires businesses to identify their specific roles in the supply chain, such as manufacturer, producer, or distributor, to determine their legal responsibilities.

Additionally, the EU Deforestation Regulation (EUDR) introduces obligations for market participants to ensure products are not linked to deforestation. While major entities face deadlines starting December 30, 2026, micro and small enterprises may have an extended deadline until June 30, 2027. Compliance depends on product type, raw materials, and the specific position within the supply chain.

Furthermore, new greenwashing regulations, based on the Empowering Consumers for the Green Transition directive, have begun affecting markets. These rules prohibit generic environmental claims like “green” or “eco” unless backed by independent third-party certification. They also restrict claims of climate neutrality based solely on carbon offsetting, aiming to increase the credibility of sustainability labels.

Entities

European Union · KPMG · KPMG Law · Umweltbundesamt

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