Dear Reader,
Happy New Year and welcome to the latest edition of Publyon’s Sustainability Newsletter! Think of this as your new Brussels bestie. First up, our Spotlight section will dish on the hottest, most unmissable buzz in the EU bubble this month. Then there’s our Policy Updates —your cheat sheet for steering your business or organisation through the EU’s regulatory storm without breaking a sweat as well as our insights on the key legislative files such as the Packaging and Packaging Waste Regulation (PPWR), the postponed EU Deforestation Regulation (EUDR), and the Circular Economy Act.
But wait, there’s more! We’ve lined up events you’ll want on your calendar and a blog post so good, it’ll become your go-to read.
Scroll down, get inspired, and let’s make this year a power move for you and your organisation.
Europe’s bold plan for sustainable growth, the “Clean Industrial Deal”, represents a major shift for EU businesses, especially in energy-intensive sectors. Don’t miss your chance to engage with the Commission to shape this deal and influence the policy direction for the next five years.
The spotlight
What to expect in 2025: Poland’s EU Presidency and the Competitiveness Compass
As Poland takes over the Council of the EU Presidency, the focus shifts to balancing economic growth with public support for green policies. In its work programme, the Polish presidency has emphasised incentives over penalties, aiming to rally public and business support for the green transition while fostering competitiveness. Priorities include advancing discussions on the Multiannual Financial Framework (MFF) and promoting energy security with a broader definition that includes affordability and independence for businesses and citizens.
Simultaneously, the European Commission is set to unveil the Competitiveness Compass, a strategic initiative to drive sustainable prosperity. Key elements include reducing administrative burdens by 25%, deepening the Single Market, and fostering investment in clean and digital technologies. This ambitious roadmap builds on the Draghi report, aiming to strengthen Europe’s industrial and innovation capabilities.
Policy update
Packaging and Packaging Waste Regulation: what’s next?
The Packaging and Packaging Waste Regulation (PPWR), is a cornerstone of the EU’s Circular Economy strategy, designed to significantly reduce packaging waste, enhance recyclability, and promote reusable solutions.
Current status
The PPWR was formally adopted by the Council of Ministers on 16 December 2024, marking a major milestone in EU environmental policy. Its publication in the Official Journal of the EU is expected in early 2025, solidifying its legal framework.
Implementation timeline
- Q1 2025: Official publication in the Official Journal.
- Mid-2026: Regulation enters into force following an 18-month transition period.
- 2030: Binding targets for reuse, including 40% for transport and sales packaging and 10% for grouped packaging, come into effect.
- 2040: Additional indicative reuse targets for broader packaging categories.
Essential insights for businesses
- Ensure Compliance: Businesses must document recyclability and reuse from 2025.
- Prepare for Costs: Transitioning to sustainable packaging systems requires investments in technology and supply chain modifications.
- Seize Opportunities: Early adoption will strengthen market competitiveness and cater to growing consumer demand for sustainability.
- Navigate Complexity: Adapting to diverse regulations across EU Member States requires strategic planning for consistent compliance.
- Prepare for Implementation: To ensure a smooth implementation process, the European Commission is now developing secondary acts
The PPWR presents both challenges and opportunities for businesses. Compliance demands significant investment, but early adoption positions companies as leaders in sustainability. By embracing the circular economy, businesses can meet regulatory requirements and tap into the growing market for eco-conscious products.
The EUDR postponement: less than 365 days left
The EU Deforestation Regulation (EUDR), is a critical element of the EU’s efforts to combat global deforestation by ensuring commodities linked to forest degradation meet traceability standards. Originally slated for enforcement in late 2024, its application has been postponed following logistical and readiness challenges.
Current status
On 17 December 2024, the European Parliament approved a 12-month postponement, shifting enforcement to 30 December 2025. The EUDR Information System, operational since 6 December 2024, is designed to streamline compliance by managing due diligence statements.
Implementation timeline
- 30 December 2025: Enforcement for large operators and traders.
- 30 June 2026: Compliance deadline for micro- and small enterprises.
- 30 June 2028: Scheduled review of the regulation.
Essential insights for businesses
- Invest in Traceability Systems: Implement tools for transparent supply chains to meet deforestation-free criteria.
- Mitigate Risks: Early compliance reduces exposure to fines and reputational damage.
- Gain Strategic Advantage: Proactive businesses will enhance their position as sustainable sourcing leaders.
The EUDR postponement offers businesses a critical opportunity to strengthen compliance systems. Early investment in traceability tools and supply chain transparency will help mitigate risks and align with increasing global sustainability demands.
The Circular Economy Act postponed until 2026
The Circular Economy Act (CEA) is set to unify EU circular economy policies, focusing on resource efficiency and waste reduction. Delayed until 2026, the Act reflects the EU’s commitment to refining its scope and aligning with existing directives, such as the PPWR and the Waste Framework Directive (WFD).
Current status
The delay provides industries with an opportunity to prepare and engage with policymakers, influencing legislation to address sector-specific challenges.
Implementation timeline
- 2026: Formal adoption and phased implementation.
Essential insights for businesses
- Innovation in Design: Focus on durability, reparability, and recyclability in product offerings.
- Economic Adjustments: Grants and incentives will offset initial costs of compliance.
- Engagement Opportunities: Active collaboration with policymakers during the preparatory phase can shape favourable regulations.
- Strategic Shifts: Circular business models, like product-as-a-service (PAAS), will benefit from streamlined standards and regulations.
The CEA is an opportunity for forward-thinking businesses to influence policy and prepare for transformative changes. Proactively adopting circular economy principles will position companies as sustainability leaders in the evolving European market.
The Omnibus Simplification Package
The Omnibus Simplification Package, announced by President Ursula von der Leyen in November 2024, aims to integrate the CSRD, CSDDD, and EU Taxonomy (into a unified reporting framework. This approach seeks to reduce redundant reporting while maintaining the EU’s sustainability objectives.
Current status
Announced after the Budapest Declaration on competitiveness, the package focuses on reducing bureaucratic burdens without altering the substantive content of the laws. However, significant uncertainties remain about the specific changes proposed and potential amendments during the legislative process, which could create further challenges for businesses and investors navigating compliance.
Implementation timeline
- 26 February 2025: Draft proposal presented.
- 2026: Expected adoption and implementation.
Essential insights for businesses
- Simplified Compliance: Reduced duplication in reporting will lower administrative costs.
- Strategic Engagement: Businesses can advocate for regulations that align with operational needs.
- Long-Term Benefits: Efficient reporting processes will allow companies to focus on achieving sustainability goals.
The Omnibus offers businesses an opportunity to streamline reporting obligations. By engaging with policymakers and adapting early, companies can shape a regulatory framework that balances operational efficiency with sustainability objectives.
Battery Regulation: a cornerstone of sustainability
The new Batteries Regulation, operational since 17 August 2023, focuses on sustainability across the battery lifecycle, replacing the Batteries Directive. It reflects the EU’s ambition to lead in green energy through stringent sustainability standards.
Current status
- Batteries Directive: To be repealed by the New Batteries Regulation in 2025.
- New Batteries Regulation: Incorporates updated sustainability and safety criteria to align with the European Green Deal.
Implementation timeline
- 18 February 2024: Certain provisions become applicable.
- 2025: Full enforcement of extended producer responsibility.
- 2026–2030: Gradual implementation of ambitious recycling and performance targets.
Essential insights for businesses
- Compliance Standards: Meeting sourcing and recycling criteria is mandatory, supported by tools like the Battery Passport.
- Economic Impact: While costs may rise initially, long-term savings from resource efficiency and incentives are expected.
- Innovation Opportunities: Developing advanced technologies can open new markets and drive growth.
- Risk Management: Early compliance mitigates reputational and financial risks.
- Market Leadership: Early adopters will secure a competitive edge in the growing clean energy sector.
The Battery Regulation sets a new benchmark for sustainability, challenging businesses to innovate while ensuring compliance. Companies that align early will not only mitigate risks but also capture significant market opportunities in the transition to clean energy.
The Clean Industrial Deal
The Clean Industrial Deal, spearheaded by European Commission President Ursula von der Leyen, is a pivotal strategy designed to position the EU as a global leader in industrial decarbonisation while ensuring competitiveness and fostering economic growth.
Current status
The Clean Industrial Deal is expected to be unveiled on 26 February 2025, with a comprehensive framework addressing decarbonisation, industrial growth, and sustainability.
Key Objectives
- Decarbonisation of Industry: Aiming for a 90% reduction in greenhouse gas emissions by 2040.
- Infrastructure Investment: Establishing clean industrial hubs and promoting access to sustainable energy and raw materials.
- Innovation and Technology: Supporting clean technologies such as hydrogen and renewable energy solutions.
Essential insights for businesses
- Access Funding: Leverage initiatives like the European Clean Industrial Bond for decarbonisation investments.
- Enhance Competitiveness: Align operations with green industrial policies to maintain market relevance.
- Adapt to Demand-Driven Growth: Meet increasing demand for clean technologies through strategic investments.
The Clean Industrial Deal is a transformative initiative that reshapes industrial practices while enhancing the EU’s global competitiveness. Businesses should act swiftly to capitalise on funding opportunities and align with evolving regulatory frameworks.
Blog
Packaging and Packaging Waste Regulation: is your business ready for new packaging requirements?
The Packaging and Packaging Waste Regulation presents challenges and opportunities for businesses, requiring shifts in packaging strategies and adoption of sustainable models.
READ ARTICLE
Events
- 13 January, from 19.00: Trump 2025: Decoding the New Mandate with US Deputy Chief of Mission Tim Richardson; Location: The Nine, Brussels
- 16 January, from 13.00: Clean Industrial Deal: a conversation with EVP Teresa Ribera; Location: Bruegel, Brussels
- 20 January, from 18:30: KinArmat Talks on the Future of Healthcare Innovation; Location: The Nine, Brussels
Eliza Druta
Hi, my name is Eliza and I am curating this newsletter to bring Brussels’ main sustainability insights to your inbox, every month. Do not hesitate to reach out should you need more information on the newsletter’s content or if you have suggestions for our next editions.
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