Ranpak Holdings Corporation

11/01/2024 | Press release | Distributed by Public on 11/01/2024 12:23

Sustainable Packaging Regulations to Watch in 2025

Sustainability, biodiversity, and the plastic crisis are all top of mind in the global logistics industry as it plans for another year of growth, and these critical issues are at the forefront of legislation around the world as well. Anticipating how these rules will impact the future of packaging can help position businesses for success, as well as direct their energies towards the most meaningful sustainability changes that they can make in the immediate and long-term. It's an exciting time for sustainability action on the world stage, as countries across the globe work to identify a path forward to preserve natural resources, manage waste streams, and reduce reliance on harmful materials.

International coordination culminates around a global plastics treaty

Compliance deadlines that are arriving in 2025 include the results of the final round of negotiations for an internationally binding global plastics treaty put forth by the UN. Held in Busan through the end of 2024, these sessions are meant to put a capstone onto work that began in 2022, when in March of that year the United Nations Environmental Assembly agreed to develop a legally binding instrument to curb plastic pollution by the end of 2024. The results of these negotiations are eagerly awaited by members of the environmental advocacy community around the world, and regardless of the outcomes it is likely that the 175 nations that originally put the process in motion will have to react with their own legislative work in the years that follow. While the outcomes of the treaty are yet to be settled, examining areas in the supply chain where plastic is not necessary will likely be a first step taken by many nations seeking to align with the legal agreements that emerge after the final session.

Continued pushes towards right-size packaging

Regulatory frameworks that are being updated around the world include the European Packaging Directive, in force across the countries of the EU. Among the deadlines set by the directive is the need for packaging to contain no more than 50% voids by 2030. In other words, if more than half of the volume that is being shipped is air, brands could be penalized for non-compliance. The target date is rapidly approaching and given the complexities of outfitting sites with new solutions, it's no surprise that businesses are motivated to start right sizing their packaging as soon as possible.

Automation can serve as a key to unlocking greater efficiencies. Ranpak's Cut'it! EVO automated height reduction machines are able to reduce up to 25% of the volume of a box before sealing it at the point of highest filling, making compliance with a 50% target simple to achieve.

Learn more about right-size packaging

Asia Pacific sees significant movement to reduce wasted packaging materials

Countries across the region are motivated to address sustainability, with natural resources including globally critical waterways and ecologically unique environments that require active protection. Some of the largest have put forward national frameworks to address plastic waste, a global issue that was underlined in 2017 when China launched their "National Sword" policy program, which put a stop to the large-scale export of plastic waste to the country that many other nations had been relying on as a method for disposing of their own waste. China has put targets in place to update express delivery packaging, hoping to reduce waste and put new rules into effect by the end of 2025.

Australia has also put National Packaging Targets in place to be achieved by 2025, including 100% of packaging to be reusable, recyclable, or compostable and unnecessary single-use plastics to be phased out. Currently, the country has planned a large-scale reform to their current packaging regulation frameworks, hoping to address issues including the low 20% recovery rate for plastic packaging.

Korea has its own 2025 legislative target for a 20% reduction of plastic waste from the time of legislation, with other complementary waste reduction initiatives in place. Overall, the goal date of 2025 has been set for compliance in many countries around the world, putting the Asian market in alignment with the challenges experienced by Western businesses as they seek to prioritize sustainable packaging.

Learn more about Ranpak's work in Asia Pacific

States in the US are working to protect their natural environments and establish packaging rules, with many modeled on existing Extended Producer Responsibility (EPR) laws.

EPR rules put financial stakes on producers and users of packaging to help finance end-of-life collection and recycling. For products like plastic films that have low recycling rates, the likelihood of being impacted by EPR price increases is high, incentivizing businesses to adopt more sustainable alternatives for their packaging. So far, 5 US States have already ratified EPR into law for packaging.

Maine Maine's packaging EPR policy was implemented in 2021 through LD 1541, "An Act To Support and Improve Municipal Recycling Programs and Save Taxpayer Money." The Maine Department of Environmental Protection oversees implementation and compliance.
Oregon Oregon's paper and packaging EPR law, the Plastic Pollution and Recycling Modernization Act (Senate Bill 582), was passed in 2021 and is overseen by the Oregon Department of Environmental Quality (DEQ). Producers must join a Producer Responsibility Organization (PRO) that manages the collections, recycling, and reporting process.
Colorado Colorado's EPR law for packaging is House Bill 22-1355, which became law in 2022 and is overseen by the Colorado Department of Public Health and Environment (CDPHE). Producers must join a Producer Responsibility Organization (CAA), which will fund and manage the recycling of packaging materials and printed paper.
California California's packaging EPR law, Senate Bill 54 (SB 54), also known as the Plastic Pollution Prevention and Packaging Producer Responsibility Act, passed in 2022 and is overseen by California's Department of Resources Recycling and Recovery (CalRecycle).
Minnesota Minnesota's packaging EPR policy is enforced through the Packaging Waste & Cost Reduction Act (HF HF 3911 / SF 3877), which was passed in 2024 and is overseen by the Minnesota Pollution Control Agency. Producers must join or create a Producer Responsibility Organization (PRO) to fund and manage recycling and waste disposal processes.

Apart from these states, proposed legislation has been on the docket in at least nine other states. As a new year of legislation begins in 2025, count on more packaging rules to be developed.