Today, the European Parliament will undertake a second reading of a regulation addressing plastic pellet losses across the supply chain. Organizations like the Rethink Plastic Alliance have praised its ultimate goal, but questioned its slow implementation and exemptions for SMEs.
According to the European Commission, plastic pellet losses to the environment are the third most prominent source of unintentional microplastic releases in the European Union – an outcome it blames on ‘poor handling practices’ at every stage in the plastics supply chain. Once such tiny plastics have leaked into the environment, they are considered ‘almost impossible’ to retrieve.
As such, the proposal for a regulation to prevent plastic pellet losses and reduce microplastic pollution – 2023/0373(COD) – aims to set out a mandatory and standardised methodology for measuring pellet losses.
This is set to apply to economic operators that have, in the previous calendar year, handled over five tonnes of plastic pellets in the EU. Both EU and non-EU carriers transporting pellets within the Union will also be subject to the rules, which would include reporting pellet-related operations to a competent authority and taking ‘immediate action’ to clean up any losses.
However, lighter requirements are set to apply for SMEs that make and handle pellets in quantities lower than 5 tonnes. For example, smaller enterprises will not be obliged to carry out internal assessments or establish an awareness and training programme and will be allowed to operate under a self-declaration of conformity, valid for five years.
The derogation is expected to mitigate high compliance costs that would have ‘very limited’ benefits for pellet loss reduction, as well as avoid impacting their operations. However, the Rethink Plastic Alliance considers this allowance “a major loophole that risks undermining ambition in the new Regulation.”
“We’ve documented pollution coming from small and medium-sized companies,” adds Lucie Padovani, Marine Litter lobbying officer for Surfrider Foundation Europe, “and although EU decision-makers haven’t fully reflected this reality in the final text, the responsibility will now fall on national and regional authorities. If the rules themselves aren’t strict enough, the on-the-ground inspections will have to be.”
As a whole, the Commission believes that its proposal would result in a 54-74% reduction in pellet losses compared to the baseline – equating this to a 6% reduction in the total amount of unintentional microplastic releases.
In turn, it expects to align with the Commission’s wider goal to slash microplastic leakages into the environment by 30%. This is hoped to avoid human health impacts, protect ecosystems and biodiversity, and benefit local economic activities.
Additionally, the regulation is anticipated to improve information on the amount of plastic pellets lost throughout the supply chain – and its estimated costs are only projected to impact about 0.13% of the EU plastics sector’s turnover, representing a ‘minor negative impact’ on its competitiveness.
Various organizations have reacted to the news, with environmental charity Fidra considering it a “huge win” in preventing pellet pollution.
Amy Youngman, legal and policy specialist for the Environmental Investigation Agency, describes the measure as a “vital benchmark for accountability” for producers and handlers of plastic pellets.
“It is frankly ridiculous that pellet producers, handlers and shippers have been allowed to pollute without accountability for decades,” she continues in a LinkedIn post. “This Regulation begins to change that, making prevention, containment and reporting finally mandatory across the supply chain.
Nevertheless, she fears that “loopholes and delayed implementation risk weakening its impact, allowing tonnes more pellets to slip through the cracks.”
Seas At Risk’s senior marine litter policy officer, Frédérique Mongodin, also considers the regulation’s progress a “huge relief”, stating: “The Commission got it right by choosing a supply chain approach, ensuring a uniform implementation of prevention and clean-up measures.”
Even so, she notes its “unjustified” three-year delay, with the Commission first proposing the text in October 2023 and the current draft set to apply eighteen months after entry into force. Describing the timeframe as “disappointing”, she adds: “It is high time such binding rules replaced existing voluntary initiatives to ensure pellets are finally treated as the hazardous pollutant they are, not just another cargo.”
The news comes after Nestlé, Mars Wrigley, Ferrero, and Tony’s Chocolonely signed an open letter urging the Commission not to postpone the EU Deforestation Regulation for a second time. They point to the simplification measures introduced earlier this year, arguing that a longer pause “would introduce considerable uncertainty and stakeholder disengagement and result in additional compliance expenses for businesses”.
After a proposal was presented to the European Council, European Plastics Converters (EuPC), Plastics Europe, and Petcore Europe have argued that the Commission should maintain its €0.80/kg levy for non-recycled plastic packaging and earmark the proceeds to fund a circular economy for the plastics sector.
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