Foreign Investors Council

…1 | The Foreign Investors Council – FIC 11 Ion Câmpineanu St., Sector 1, 010031, Bucharest, Romania Tel: 021 222 1931 | Email: [email protected] | www.fic.ro 24 April 2023 Position paper of the Foreign Investors Council (FIC) on the European Commission’s proposal for a Regulation on packaging and packaging waste, amending Regulation (EU) 2019/1020 and Directive (EU) 2019/904 and repealing Directive 94/62/EC We, the Foreign Investors Council (FIC) and its members, support the objective of the European Commission’s proposal for a Regulation on packaging and packaging waste, amending Regulation (EU) 2019/1020 and Directive (EU) 2019/904 and repealing Directive 94/62/EC (the "Regulation") to contribute to the efficient functioning of the internal market for packaged products, while preventing or reducing the negative impacts of packaging and packaging waste on the environment and human health.

…while preventing or reducing the negative impacts of packaging and packaging waste on the environment and human health. The choice of a Regulation as the legal instrument is appropriate to ensure the efficient functioning of the internal market and to enhance the potential for regulatory harmonization across Member States. However, there are several concerns about the provisions of the Regulation. For example, certain provisions, such as those in Articles 4(4), 11(7), and 45 of the Regulation, allow Member States to introduce or maintain specific national requirements, which may lead to divergent measures that jeopardize the free movement of packaging and packaged products. At the same time, certain provisions of the Regulation could affect the priorities of the beverage industry in Romania, and more broadly, at the EU level.

…of the Regulation could affect the priorities of the beverage industry in Romania, and more broadly, at the EU level. The beverage industry in Romania has innovated and invested over time to ensure that packaging becomes increasingly sustainable, which is why we support the overall objectives of the Regulation to reduce packaging waste. However, we are concerned that the provisions of the Regulation could be extremely burdensome, even for a sector that has managed to maintain a significant proportion of reusable packaging in its portfolio, such as reusable bottles and kegs for serving beer by the pint or home reusable solutions developed by the soft drinks industry.

…bottles and kegs for serving beer by the pint or home reusable solutions developed by the soft drinks industry. In order to support the Romanian competent authorities in developing national positions to be promoted within the legislative process for the adoption of the Regulation, we present below the main concerns regarding the Regulation and the related proposals we kindly ask the European Commission to take into consideration as part of the feedback that the European Commission will present to the European Parliament and Council with the aim of feeding into the legislative debate in relation to the Regulation. A.

European Parliament and Council with the aim of feeding into the legislative debate in relation to the Regulation. A. In brief, the concerns relate to the following provisions of the Regulation: • minimum recycled content targets for plastic packaging; • labeling requirements; • re-use and refill targets of sales packaging; • targets for packaging waste reduction; • deposit and return systems. B. Detailing the issues on which there are concerns and proposals: 1) Minimum recycled content targets for plastic packaging (Article 7 of the Regulation) We support high minimum recycled content targets for plastic packaging if the beverage industry has priority access to recycled content. We believe it is important that the Regulation includes requirements to Ref.

…has priority access to recycled content. We believe it is important that the Regulation includes requirements to Ref. Ares(2023)2878150 - 24/04/2023 2 | The Foreign Investors Council – FIC 11 Ion Câmpineanu St., Sector 1, 010031, Bucharest, Romania Tel: 021 222 1931 | Email: [email protected] | www.fic.ro ensure that the beverage industry has priority access to recycled material from PET bottles, aluminum cans, and single-use glass since the beverage industry provides funding for the collection and recycling of packaging waste and is obliged to use recycled material in new packaging placed on the market.

…and recycling of packaging waste and is obliged to use recycled material in new packaging placed on the market. In this regard, we request that the Regulation be amended to include a right of preemption in favor of the industry for recyclable materials returned through the deposit and return system in Romania so that they can be used by the beverage industry in new packaging to be placed on the market, thus closing the loop in a circular economy. This will lead to circular outcomes, such as improved PET by creating container-to-container recycling loops and avoiding the loss of high-value PET by converting it to low-value plastic. In addition to avoiding free-riding, priority access would encourage investment in the different loops of other industries and create a larger scale, which is currently not the case.

…investment in the different loops of other industries and create a larger scale, which is currently not the case. We, therefore, agree with the proposal that Member States should ensure that systems are in place for the return and separate collection of all packaging waste in a way that facilitates preparation for re-use and high- quality recycling (Article 43(1)). However, the Regulation does not include a definition of high-quality recycling or any measure that would ensure that high-quality recycled materials suitable for food use are used primarily for food purposes. This means that high-quality materials (meeting EU food safety requirements) may be reduced and used for non- food purposes that do not require the same level of quality. There is also no requirement to ensure that the obligated industry has priority access to the recycled materials required for food contact packaging.

…ensure that the obligated industry has priority access to the recycled materials required for food contact packaging. Moreover, it is unrealistic to assume that increasing separate collection requirements and targets will ensure the necessary quantities and quality of recycled raw materials. This could lead to apparent competition, which could generate a scramble for raw materials and an increase in the price of the materials, which would be contrary to the Regulation objectives, without being the result of the competitive strategies of individual companies. Moreover, we support calculating the minimum recycled content as an average for all such packaging placed on the market on the territory of a Member State and not per unit of packaging, as proposed in Article 7 of the Regulation.

…market on the territory of a Member State and not per unit of packaging, as proposed in Article 7 of the Regulation. Whereas Directive (EU) 2019/904 on the reduction of the impact of certain plastic products on the environment (transposed into Romanian legislation by the Government Emergency Ordinance 6/2021 on the reduction of the impact of certain plastic products on the environment) proposes that the 30% recycled plastic content target be calculated as an average for all packaging placed on the market in a Member State, the Regulation proposes to calculate the recycled content per packaging unit. This is a contradiction that needs to be corrected. There is no environmental benefit to calculating recycled content per unit of packaging. The amount of recycled content an operator can use on average in its portfolio remains the same.

…per unit of packaging. The amount of recycled content an operator can use on average in its portfolio remains the same. In addition, an average approach helps the producer to manage the use of raw materials according to availability and the seasonal demand for products and other market realities. Calculating recycled content, on average, at the Member State level, protects the EU’s circular economy from unpredictable external geopolitical events that can impact value chains. Proposals for the European Commission to present to the European Parliament and the Council: a.

…impact value chains. Proposals for the European Commission to present to the European Parliament and the Council: a. Article 3 of the Regulation should be amended to define high-quality recycling as ″any recovery operation, as referred to in Article 3 (17) of Directive 2008/98/EC, which ensures the preservation or recovery of the specific quality of waste collected during such recovery operation to allow for further 3 | The Foreign Investors Council – FIC 11 Ion Câmpineanu St., Sector 1, 010031, Bucharest, Romania Tel: 021 222 1931 | Email: [email protected] | www.fic.ro recycling and to be re-used in the same way and for the same category of products from which it originates, with minimal loss of quantity, quality, or function”. b. Article 43(1) of the Regulation should be amended to mandate Member States to ensure the establishment of a system that prioritizes high-quality recycling.

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