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[BUSINESS] · EU · 2 sources

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European Union implements new packaging and deforestation regulations

The European Union is introducing significant regulatory frameworks aimed at environmental sustainability, specifically through the Packaging and Packaging Waste Regulation (PPWR) and the EU Deforestation Regulation (EUDR).

The PPWR, which entered into force on February 11, 2025, will see its primary application starting August 12, 2026. The regulation seeks to reduce packaging waste, strengthen the circular economy, and harmonize requirements across the European single market. It covers packaging composition, recyclability, labeling, and reuse. Implementation will be phased, with harmonized material labeling expected no earlier than 2028 and additional recyclability criteria appearing around 2030.

Simultaneously, the EUDR requires companies to collect comprehensive due diligence data regarding the origins of products to ensure compliance. Experts suggest that software alone is insufficient for EUDR compliance; instead, companies must integrate these requirements into holistic business processes, including procurement, supplier management, and logistics, to manage the complex documentation and digital filing required by the Traces NT information system.

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