EU packaging rules face growing criticism from SMEs

The European Union's new packaging rules are facing renewed criticism from small and medium-sized businesses, with European Parliament President Roberta Metsola acknowledging that some requirements may create disproportionate and counterproductive burdens for SMEs. Her intervention comes only weeks after the Packaging and Packaging Waste Regulation (PPWR) began partially applying across the European Union.

The PPWR is intended to reduce packaging waste, increase recyclability and encourage greater reuse across the European market. However, smaller companies have warned that the administrative requirements associated with the regulation could be difficult to manage, particularly for businesses without dedicated compliance, sustainability or regulatory teams.

Authorised representatives create particular concerns

One of the most controversial requirements concerns companies selling products across multiple EU markets. Businesses may be required to register with national producer registers and appoint an authorised representative in each country where they sell products, creating additional administrative responsibilities for smaller businesses operating across borders.

For a multinational company, these obligations can be incorporated into established compliance departments and supply-chain systems. For a micro-business, however, managing several national registrations and representatives can represent a significant additional cost and administrative workload.

Parliament considers changes to the rules

Metsola has indicated that the European Parliament intends to address the issue in the coming weeks. One possibility under consideration is postponing the authorised-representative requirement until 2035, giving businesses considerably more time to prepare for the obligation.

Parliament is also considering possible exemptions for micro and small companies. Such proposals would represent a significant adjustment to the way some PPWR obligations are applied, although any changes would still need to be agreed with the Council of the European Union.

Finding the balance between compliance and competitiveness

The debate highlights a difficult policy challenge. The PPWR aims to create common environmental standards across the EU, but applying identical administrative requirements to companies of very different sizes can produce very different economic consequences.

Large manufacturers can distribute compliance costs across substantial production volumes and dedicate employees to regulatory management. Smaller businesses may need to rely on external consultants or spend significant amounts of employee time collecting packaging information, completing registrations and understanding different national requirements.

Exemptions could create new concerns

While exemptions could reduce the burden on smaller companies, EU countries have raised concerns about the possibility of products entering their markets without the corresponding extended producer responsibility contributions being paid. These payments help finance waste collection and management systems, meaning broad exemptions could potentially create funding gaps.

For this reason, proposals are not currently expected to remove every obligation affecting small businesses. Environmental levies linked to the quantity of packaging waste placed on the market, for example, could remain applicable even if certain administrative requirements are simplified.

PPWR implementation enters a critical phase

The discussion comes at an important moment for the packaging industry. The PPWR entered partially into force on 12 August 2026 and will progressively introduce requirements covering packaging design, waste prevention, recyclability, reuse and producer responsibility.

Any changes aimed at reducing the burden on SMEs will therefore need to preserve the regulation's environmental objectives while making compliance more proportionate. For packaging businesses, the outcome of the discussions in Parliament and the subsequent negotiations with EU member states could determine how some of the most demanding PPWR obligations are implemented.

SMEs become central to the PPWR debate

Metsola's intervention demonstrates that the concerns raised by smaller businesses are increasingly reaching the highest levels of European policymaking. The challenge now will be to establish a framework that maintains pressure for better packaging while ensuring that compliance does not become an obstacle to entrepreneurship and cross-border trade.

As Parliament considers possible amendments, the packaging sector will be watching closely to see whether the EU can find a more proportionate approach. The outcome could have significant implications for how smaller companies across Europe adapt to the new packaging regulatory environment.