EU launches plan to unify labelling and recycling rules
On 21 May 2025, the European Commission unveiled its latest Single Market Strategy, targeting the 10 most significant obstacles to cross-border trade and investment within the EU.
Among these, fragmented packaging and labelling rules emerged as a key barrier, contributing to rising compliance costs, supply chain inefficiencies and inconsistent consumer information across Member States.
Diverging national rules on packaging, labelling and waste are creating major challenges for companies operating within the European Union.
According to the Commission, manufacturers often need to relabel or even repackage products to meet varying national standards. This adds complexity to logistics and increases costs, especially for small and medium-sized enterprises (SMEs).
The new Packaging and Packaging Waste Regulation aims to establish harmonised labelling requirements, including standardised consumer sorting labels. These will be implemented through upcoming legislative acts.
The Commission is also preparing to review the existing Textile Labelling Regulation, with plans to streamline current practices and introduce both physical and digital labelling formats to support environmental transparency and facilitate market access.
As part of its wider digitalisation efforts, the Commission will roll out the Digital Product Passport (DPP), which will act as a digital repository for product-related information.
By incorporating digital labelling, such as QR codes, the DPP is expected to ease compliance for businesses and improve information access for consumers. However, essential safety details will continue to be printed directly on packaging.
The DPP will initially apply to sectors covered by existing EU regulations, such as construction products, before being extended to other industries.
This approach is expected to promote sustainability and improve tracking of products across their life cycle, supporting the EU's broader goals under the Circular Economy Action Plan.
The Commission also identified fragmented Extended Producer Responsibility (EPR) schemes as a major hindrance to the functioning of the Single Market. EPR requires producers to fund the disposal and recycling of their products.
However, the absence of uniform rules has led to a patchwork of national schemes with separate registration, reporting and payment obligations. A company selling electrical goods in three large Member States, for instance, may face up to 16 different EPR-related registrations.
To address these burdens, the Commission will propose legislation by the end of 2025 to reduce redundant authorised representative requirements and harmonise reporting obligations across the EU.
Plans also include the creation of a digital one-stop shop for EPR-related information and compliance tasks.
Furthermore, the Commission will seek to harmonise criteria for determining when waste can be reclassified as a product or by-product. The current lack of EU-wide definitions restricts the circulation of secondary raw materials and impedes recycling efforts.
Proposed changes under the forthcoming Circular Economy Act, expected in late 2026, aim to facilitate cross-border waste shipments and increase the availability of recyclable materials within the internal market.
By tackling these regulatory discrepancies, the Commission hopes to unlock the full potential of the Single Market, strengthen environmental policy alignment and improve competitiveness for EU-based businesses.
"EU launches plan to unify labelling and recycling rules" was originally created and published by Packaging Gateway, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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