EU policy discussions impacting Steel for Packaging

 

by Metka Cavka Luciani, Head of EU Affairs

EU policy has a direct effect on businesses, as it is directly applicable through legislations in EU Member States. Future EU policy impacting steel will be heavily influenced by the institutional turnover. The new composition of the European Parliament as well as emerging coalitions, around the centre-right, liberal and centre-left blocs, indicate continued commitment to the EU Green Deal. It is also poised to reinforce competitiveness of EU industries including the steel packaging sector, particularly versus the US and China.

A shift in sustainability policy

Within sustainability policy, the EU focus is shifting with decarbonisation now also being increasingly viewed through the lens of strategic autonomy. At the same time, we see a much bigger focus on circularity, with the appointment of Stephane Séjourné as the Industry Vice-President, Jessika Roswall as the Circular Economy Commissioner and Teresa Ribera as the Clean Transition Vice-President.

Packaging and Packaging Waste Regulation (PPWR)

The Packaging and Packaging Waste Regulation (PPWR) must still be formally adopted, as a corrigendum text, which is foreseen by the end of November for the European Parliament and confirmed by the Council of the EU in December. Businesses will need to comply by mid-2026. In the coming months regulatory focus will shape norms for packaging recyclability.

Under the PPWR’s mandated recycling performance grades system, steel is positioned as one of the highest performing materials, which is where the key opportunity lies for the sector. On the other hand, materials that are not 70% recyclable will not be allowed on the EU market by 2030 while others will need to pay taxes or fees.

A new Circular Economy Act

Going forward, the Commission President von der Leyen has announced plans for a new Circular Economy Act, aimed at creating market demand for secondary materials and a single market for waste, notably in relation to critical raw materials. For packaging it will be critical to phase out landfilling of recyclable packaging and increase the ambition on separate collection of packaging waste.

A key challenge for the industry going forward will be to reconcile the European Green Deal’s goal of net zero emissions by 2040. The industry has already taken strides towards this objective but a prerequisite for keeping a competitive, circular and green steel industry will be a level-playing field between EU-produced steel for packaging and imports from China.

Steel for Packaging Europe has outlined these points as key industry priorities  in its ’EU Vision paper for the EU term 2024 – 2029,’ presented to EU policymakers at the stakeholder event ‘New circular Economy act: What should the priorities be?’ last 5th November 2024 in the European Parliament.

Read more about the event here