ESG Daily, PACKAGING SIMPLIFICATION—EU Council backs lighter EPR requirements for small packaging producers, (Oct 26, 2026)
The Council of the EU has agreed on its negotiating position on temporarily easing extended producer responsibility (EPR) requirements for small packaging producers, seeking to eliminate disproportionate administrative costs while preserving environmental obligations.
PPWR Amendments. On 21 October, the Council endorsed a targeted amendment to the Packaging and Packaging Waste Regulation (PPWR), allowing EU-established producers to avoid appointing an authorised EPR representative in another member state where they place less than one tonne of packaging, including packaging of packaged products, on the market annually.
The proposal responds to concerns that fragmented national EPR schemes create substantial barriers to cross-border trade. Producers operating in several member states may currently face separate representation requirements in up to 26 jurisdictions, generating costs that disproportionately affect SMEs and micro-enterprises.
Under the Council's mandate, the exemption would apply individually to each destination member state until 1 January 2032. The threshold would therefore be assessed separately for each national market rather than against a producer's total EU-wide packaging volumes. Producers could also retain existing representatives voluntarily, allowing businesses to preserve established compliance arrangements.
Crucially, the Council introduced a safeguard linking administrative relief to continued compliance. Where national competent authorities identify breaches of EPR obligations, they could require an otherwise exempt producer to appoint an authorised representative. The suspension would therefore not remove substantive waste-management responsibilities.
The Council also draws a distinction between EU and third-country operators. Existing representation rules would remain applicable to producers established outside the EU, whose obligations are more difficult to enforce through European administrative and judicial cooperation mechanisms.
Legal Context. The amendment would suspend the application of Article 45(3) of Regulation (EU) 2025/40, which governs the appointment of EPR representatives for EU-established producers supplying packaging or packaged products directly to end users in another member state.
The proposal forms part of Omnibus VIII, presented in December 2025 to simplify environmental legislation without compromising protection standards. It builds on the Commission's 2025 Single Market Strategy, which identifies inconsistent national EPR arrangements as a major obstacle to cross-border business.
The measure also reflects the EU's broader competitiveness agenda, informed by the Letta and Draghi reports, and anticipates more comprehensive harmonisation under the forthcoming Circular Economy Act.
Outlook. The Council presidency will now enter negotiations with the European Parliament, aiming to secure an agreement as quickly as possible. The Commission must review the duration of the proposed suspension by 31 December 2030, ahead of its scheduled expiry in 2032. A more comprehensive reform of EPR schemes is expected under the forthcoming Circular Economy Act.
The negotiations will determine the final scope of the exemption and the safeguards accompanying it. The outcome will also indicate how far EU lawmakers are prepared to simplify environmental legislation while preserving existing compliance and enforcement standards.
Source: European Council.
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