Written by Marc Lütz
Dear reader,
Spring is in full bloom and so too is a fresh edition of the Publyon Sustainability Newsletter, bringing you the latest developments shaping the EU sustainability agenda. As momentum builds across the European institutions, policymakers are advancing circularity, resource security and climate objectives, while navigating increasing geopolitical and industrial pressures.
In this edition, we cover the Council’s push to scale the bioeconomy and unlock investment, evolving transatlantic tensions around deforestation rules, and progress on critical raw materials to strengthen supply security. We also look at the next phase of negotiations on Extended Producer Responsibility (EPR) under the environmental omnibus, alongside continued industry engagement on the Packaging and Packaging Waste Regulation (PPWR), where questions of feasibility and implementation remain front and centre.
The spotlight
Growing strategic certainty for a circular market
On 30 March, the European Commission published its Guidance and first set of FAQs supporting the implementation of the Packaging and Packaging Waste Regulation. This marks an important step in the transition from political agreement to practical application as the EU moves towards the August 2026 application date. At a time when industry has been seeking greater clarity, the package reinforces the role of sustainability within the EU’s broader industrial strategy and supports the objective of a more harmonised and predictable Single Market framework.
The publication responds to the complexity and novelty of the PPWR by providing interpretative direction on key provisions, supporting a more consistent understanding across Member States and economic operators. It offers useful clarification on scope and the allocation of responsibilities across the value chain, helping to align legal obligations with operational realities and enabling companies across sectors such as retail, logistics, manufacturing and transport to begin preparing for implementation.
At the same time, the Guidance reflects the evolving nature of the framework. Certain methodologies, definitions and technical specifications will be further developed through delegated and implementing acts, as well as through continued engagement with stakeholders. For many sectors, this means that the coming phase will be important in ensuring that the Regulation is translated into practical and workable solutions.
Supporting a level playing field across the Union
The March 2026 package underlines the EU’s objective of combining environmental ambition with a well-functioning internal market. By providing additional clarity and supporting a more uniform application of the rules, the Guidance contributes to greater legal certainty and helps create the conditions for investment in circular and sustainable packaging solutions.
The process leading to the publication, including consultation with Member States and relevant Commission services, reflects a collaborative approach aimed at ensuring a consistent interpretative baseline across the Union. At the same time, areas such as Extended Producer Responsibility continue to be implemented at national level, making continued coordination and dialogue important to support a smooth and coherent rollout across Member States. For businesses, the focus is now on translating the Regulation into operational practices, with the coming months playing a key role in shaping how the PPWR is applied across Europe’s supply chains.
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Policy updates
Council backs bioeconomy strategy to scale innovation
On 17 March, the Council of the European Union approved updated conclusions on the EU Bioeconomy Strategy, emphasising the role of bio-based and circular solutions as alternatives to fossil-based systems. The conclusions call for stronger support for innovation and investment, alongside more predictable demand to attract private capital, and invite Member States to align national actions and identify new high-potential “lead markets”, including textiles, footwear, paper and the blue bioeconomy. The Council also stresses that ensuring sustainable biomass supply, promoting resource efficiency and maintaining environmental safeguards will be critical to the bioeconomy’s long-term viability, signalling a push to scale deployment and market uptake across sectors.
US delegation lobbies EU on deforestation rules
On 10 March, officials from the United States Department of Agriculture and the Office of the United States Trade Representative began a tour of EU capitals to lobby governments on the EU Deforestation Regulation (EUDR). The initiative seeks simplifications ahead of the upcoming review, including the possible introduction of a “negligible risk” category that could ease compliance requirements for certain exporters. In parallel, companies in the chocolate, coffee and timber sectors, including Ferrero and Nestlé, warned in a letter to Environment Commissioner Jessika Roswall that reopening the framework could undermine investments already made and create regulatory uncertainty. The developments highlight ongoing tensions around the EUDR and signal potential adjustments to its implementation, with implications for commodity supply chains ahead of its phased application from late 2026.
Council adopts position on CRMA amendments
On 4 March, the Council of the European Union agreed its negotiating position on proposed changes to the EU Critical Raw Materials Act (CRMA). The amendments would transfer responsibility for identifying large users of critical raw materials from Member States to the European Commission and introduce measures to strengthen supply security, including increased recycling of permanent magnets. The Council also added safeguards requiring the Commission to share company-specific information with Member States and the European Critical Raw Materials Board, while clarifying that risk-mitigation measures would be proposed on a “best efforts” basis, signalling a calibrated approach to implementation and coordination.
Parliament gears up negotiators for omnibus talks on EPR schemes
As discussions on the environmental omnibus advance, attention is now shifting to the appointment of rapporteurs and shadow rapporteurs who will steer negotiations on key files, including proposed revisions to Extended Producer Responsibility (EPR) schemes across EU waste and product legislation. Dutch MEP Ingeborg ter Laak (EPP, NL) will lead negotiations on EPR-related provisions, with Delara Burkhardt (S&D, DE), Ana Vasconcelos (Renew, PT) and Pietro Fiocchi (ECR, IT) appointed as shadow rapporteurs.
Industry calls for exemption of pallet wrapping from reuse targets
On 10 March, European Plastics Converters (EuPC) published a joint industry statement urging the European Commission to exempt pallet wrapping films and straps from the 40% reuse target under the proposed Packaging and Packaging Waste Regulation (PPWR). The request builds on the Commission’s earlier decision to exclude these formats from 100% reuse targets, with industry arguing that no viable reusable alternatives currently exist at scale.
According to the statement, pallet wrapping materials are inherently single-use and lose structural integrity once removed, making them unsuitable for ensuring load stability, transport safety and product protection. Industry stakeholders also warn that applying reuse targets would reintroduce previously acknowledged operational and safety risks, particularly in high-load and long-distance logistics environments. Supported by a broad coalition across packaging, manufacturing, retail and logistics, the initiative calls for a targeted exemption under Article 29(1), prioritising recyclability and recycled content where reuse is not technically feasible.
