Joint proposal for an effective mirror clause under Article 7(10) of PPWR

FEAD, PRE and Recycling Europe recommend introducing under Article 7(10) of the Packaging and Packaging Waste Regulation (PPWR) a clear Made in Europe preference for plastic recycled content (RC) targets:

• For packaging produced or filled in the EU: compliance with recycled content targets should rely on recycled plastics originating from post-consumer waste collected & recycled in Europe (EU, EFTA, UK).
• For packaging produced and filled outside the EU: For those packaging placed on the EU market, recycled plastics should only count towards RC targets where compliance with requirements and standards equivalent to those applicable in the EU can be demonstrated, or European recyclates can be used.

This document outlines proposals for a robust and effective mirror clause for packaging produced and filled outside the EU, in line with Article 7 of the PPWR. Indeed, Article 7 provides safeguards to ensure fair competition between non-European and European operators, and the equivalent application of EU sustainability, health, and safety rules and standards to non-EU operators. Ensuring efficient and effective implementation of this mirror clause will be key to maintaining a level playing field and protecting the future of the European plastics recycling industry, while allowing for the entire plastic packaging value chain to fulfil its obligations.

I. Regulatory context

Article 7 of the PPWR opened the EU post-consumer plastic waste (PCPW) to non-EU imports to participate in the recycled content targets for plastics packaging laid down in Article 7 (1,2) and detailed below.

To ensure fair competition between European and non-European operators, Article 7(3) of the PPWR provides that recycled content shall be recovered from European recyclates or post-consumer plastics waste that:

• Has been collected in a third country in accordance with standards for separate collection to promote high-quality recycling equivalent to those referred to in this Regulation and in the Waste Framework Directive (WFD) and the Single-Use Plastic Directive (SUPD); and/or
• Has been recycled in an installation located in a third country to which rules concerning the prevention and reduction of emissions into air, water and land associated to the recycling operations apply, and those rules are equivalent to those concerning emissions limits and environmental performance levels established in accordance with the Industrial Emissions Directive that are applicable to an installation located in the Union carrying out the same activity.

The Article 7(10) adds that the assessment of equivalence of rules, in cases where the recycled content recovered from PCPW is recycled or collected in a third country, shall consider the standards of protection of environment and human health, including standards to ensure that recycling is performed in an environmentally sound manner, and standards on high-quality recycling, such as on resource efficiency and quality standards for the recycling sector.

By December of this year, the European Commission will adopt implementing acts establishing the mirror clause mechanism, i.e., to assess, verify and certify the equivalence of the rules applied for PCPW collected or recycled in a third country. This document aims to propose a mechanism to perform such assessment, verification and certification, in a way that is feasible and efficient for European and Member States authorities, while limiting burden on economic operators.

II. Proposal for a robust verification mechanism

1. Framework overview:

FEAD, PRE and Recycling Europe advocate for a European prioritisation with the introduction of a clear Made in Europe preference for plastic recycled content targets.  In fact, the Implementing Act under Article 7 should prioritise European recyclates by requiring:

1. “Made in Europe” recyclates for packaging produced or filled in the EU e.g. compliance with recycled content targets should rely on recycled plastics originating from post-consumer waste collected & recycled in Europe (EU, EFTA, UK)[1].

• For packaging produced and filled outside the EU, the robust mirror clause mechanism described in this document should apply, unless European recyclates are used.

For the mirror clause mechanism applying only to packaging produced and filled outside the EU (point 2 above) and not using European recyclates, FEAD, PRE and Recycling Europe propose a two-step process, inspired by the rules established under Articles 44 and 46 of the 2024/1157 Waste Shipment Regulation:

1. Step 1 – The Country level-equivalence assessment: Assessment, by European authorities, of countries from which recyclates from post-consumer plastic waste can account for recycled content targets. Such assessment shall focus on establishing if national legislations applying to waste collection and recycling can be considered as equivalent to the standards referred in the PPWR, the Waste Framework Directive (WFD), the Single-Use Plastics Directive (SUPD) and other relevant legislation, and if equivalent rules on emissions to environment, as those set in the Industrial Emissions Directive (IED) for recycling installation, do exist and apply in the national legislative framework.
   
   
2. Step 2 – The facility certification scheme: Verification, via a third-party audit, that the installation performing the recycling is compliant with the relevant national legislation and applicable equivalent European standards on high-quality recycling, such as on resource efficiency and quality standards for the recycling sectors.

Figure 1 – Proposed made in Europe & mirror clause mechanism

• Framework in depth:

Step 1 – Country level equivalence assessment:

Third country exporters would be required to apply to the European Commission to be part of the list of countries of origin that qualify to provide recyclates that can be accounted for the recycled content under the Article 7 of PPWR. The Commission would set a deadline for third countries to send out their applications, and a deadline to publish the official list of qualified applicants, in a dedicated register (see more details below).

We recommend inserting an intermediary deadline for the countries to apply,in order to give European services sufficient time for the assessment of the documentation provided for the eligibility of the country’s exports to count towards the PPWR recycled content target, while allowing sufficient time for packaging producers to adapt their supply chain to the outcomes of this assessment. Such timely approach is needed to ensure that mirror clause processes can be completed and that compliant material supply chains are in place by the time the recycled content targets are implemented in January 2030.

The system would be similar to what has been introduced in the Waste Shipment Regulation (WSR) for non-OECD countries to receive non-hazardous plastic waste (Annex VIII), except that instead of applying to receive waste from the EU, countries would apply for their PCPW to be accounted for the recycled content targets under the PPWR. Applicant countries who do not meet the eligibility criteria, and therefore from which PCPW would not be allowed to account for the PPWR recycled content targets, will be granted a three-year period to address the specific requirement(s) they failed to comply with. To reapply, they must provide evidence demonstrating full compliance with these criteria.

How will it work in practice? Third country will submit to the European Commission a detailed report outlining the country’s recycling, sorting, and collection systems (excluding hand-picking) and related legislations, along with other relevant data regarding national waste management infrastructure. The required information will be based on the data already mandated under the WSR for authorising a certain third country to receive non-hazardous waste from the EU (Annex VIII), with additional requirements specific to packaging waste and recycling.  Based on this report, the European Commission can assess whether or not the equivalent conditions set in Article 7 are met.

Once the third country A is authorised according to the mechanism above, PCPW from this country A can account for the recycled content targets (only for packaging produced and filled outside the EU) if:

1. The recycling facility outside the EU carrying the recycling operation is located in country A and the facility is certified according to the step 2 below; or
2. The recycling facility outside the EU carrying the recycling operation is located in a country B that is authorised according to the mechanism above and the facility is certified according to the step 2 below.

Step 2 – Recycling facility certification scheme:

Once a country is approved according to Step 1 to provide recyclates that can account for the PPWR recycled content targets, individual recycling facilities within that country can apply for certification to provide plastic recyclates that can account for the targets. Such a step applies only to recycling facility. The certification step is necessary to ensure that recycling facilities outside of Europe operate in equivalent conditions and meet European standards for recycled materials, which will be verified through audits on a yearly basis.

The PCPW recycled by the recycling facility may only originate from waste collected in the country in which the recycling facility is located, or in another approved country, or in the EU. Here the question of traceability and origin of the waste is crucial, as the recycling facility should be able to treat waste from several origins, as long as the origin is approved in step 1. For this purpose, adequate documentation must be passed on along the value chain to ensure that origin of the recycled content can be verified at any step.

To keep the same level of proof of compliance compared with EU recyclates, the certification of traceability should be based on EU standards already established and widely in place on the worldwide market like EN15343, at its best when paired with an accreditation of the scheme and certification bodies via EN17065. Furthermore, the accredited certification bodies issuing the certificates should be registered in the EU. To further ensure enforceability and consistency, in addition to facilitating the implementation of verification activities, having a legal structure in the EU will allow legal certainty and ensure compliance. Audits conducted outside of the EU may rely on local auditors, but certificates must be issued by EU-based accredited certification bodies. As standard practices can be different within and outside of the EU, it is necessary to have an audit done with the same level of thoroughness in all audited plants.

How will it work in practice? In a country approved according to Step 1, a recycling facility that complies with the requirements can apply for certification. Such a facility must demonstrate that it operates in accordance with standards equivalent to European standards for the protection of the environment and human health, and for high-quality recycling, and that it achieves adequate emission and environmental performance levels, equivalent to those set for a recycling facility under Industrial Emissions Directive. Such performance and levels of compliance must be verified by a third party via on-site audit. Certification is valid for one year and facility must be verified by a third party on a yearly basis. Once the facility is certified, it enters a European register of authorised facilities, which will facilitate verification of compliance for both the competent authorities and for packaging producers located in third countries. As a result, recyclates from this facility can account for the recycled content targets, as long as the PCPW originates from a country approved in step 1.

From then, adequate documentation must be passed on along the value chain to ensure that origin of the recycled content can be verified at any step. Importers of packaged products must demonstrate the complete chain of custody, tracking the material from the original waste stream to the final packaging, and document it as part of the technical documentation referred to in Annex VII of PPWR and accompanying the packaging.

III. Register and monitoring:

FEAD, PRE and Recycling Europe recommend establishing a European register listing the status of third countries applying to supply waste and recyclates to the EU market that can count towards PPWR recycled content targets. The register should specify whether a country is authorised to supply recyclates eligible to contribute to these targets.

Once a country is approved, the register should also allow access to information on the approved facilities within that country as per step 2 of the proposed mirror clause mechanism. This register should be established similarly to the register introduced in Regulation EU 2022/1616 for recycled plastics in food contact, thus including a platform to streamline application management, allowing competent authorities and recycling operators to submit the required documentation electronically.

The information included in the register would also be essential for downstream users to identify the origin of the waste or recyclates they use and to verify whether it comes from an approved country and certified facility.

IV. Enforcement

FEAD, PRE and Recycling Europe advocate for effective enforcement, market surveillance and transparency throughout the value chain. Strong enforcement is crucial to preserve the integrity of the RC targets and maintain fair competition.

The mirror clause will only be effective if accompanied by robust enforcement. The Implementing Act should establish harmonised verification procedures, while Member States should ensure effective and regular controls on imported packaging, and introduce dissuasive harmonised sanctions. Clear consequences for serious or repeated non-compliance should also be envisaged.

The Implementing Act should also ensure robust traceability and transparency throughout international value chains, so that the origin of post-consumer plastic waste and recycled plastics can be verified at every stage, potentially via a chain of custody model. Appropriate documentation and independent third-party verification should support effective enforcement. The European Commission should directly carry out the third-country verification to ensure it is credible and harmonised. Unannounced on-site audits to verify the certification should also be envisaged, where the risk of non-compliance is high.

Finally, it is key to prevent fraud at recycling facility level by ensuring that claimed recycled output is consistent with verified waste inputs, realistic recycling yields and actual output volumes. Traceability of the value chain up to the recycling facility should help ensure that the amount of recycled content claimed from a specific facility is realistic.

[1] References to Europe or European-made include EU+UK+EFTA