March 26, 2024 – NWPCA has announced a significant victory for wooden pallet manufacturers worldwide following the finalization of the European Union’s (EU) Packaging and Packaging Waste Regulation (PPWR). NWPCA’s successful advocacy efforts secured an exemption from the regulation’s reuse requirements for wooden pallets entering and leaving the EU under load.
There was previously some speculation that restrictive requirements would have left shippers scrambling to embrace reusable pool pallets already used in Europe, such as EPAL, CP pallets or accepted rental pallets, for example, at risk of significant disruption to international trade.
The PPWR aims to tackle the pressing issue of packaging waste by introducing rules for all packaging injected into the EU market. Key objectives of the regulation include reducing packaging waste through recycling and reuse initiatives. As wood is a natural and fully recyclable material, NWPCA fully supported the PPWR’s aims to reduce waste and promote recycling. However, concerns arose regarding the prioritization of reusability over recyclability and the interpretation and implementation of the pallet reuse requirements, which posed a significant challenge to manufacturers and stakeholders.
Recognizing the potential impact on the wooden pallet industry and its users, the NWPCA engaged extensively with EU decision-makers, including the European Commission, the European Parliament, and member states in the Council of the EU. NWPCA explained the logistical issues with managing a reuse system of imported pallets and advocated for a targeted exemption to alleviate these burdensome requirements for wooden pallets entering and leaving the EU under load. Through consistent communication and collaboration with key stakeholders, NWPCA actively built support for this critical exemption.
“This exemption is a clear win for wooden pallet manufacturers globally,” stated Jason Ortega, Vice President of Public Affairs at NWPCA. “Any company shipping goods into or out of the EU on a pallet will be exempt from challenging and costly reuse requirements. Wood pallets are made from a natural, renewable resource, and billions of them serve as the backbone of the supply chain. We know that in the United States, they are recovered and recycled 95% of the time, more than any other packaging product. We do not contribute to the growing global landfill problem. Our successful engagement on this issue minimizes supply chain disruptions and safeguards the pallet industry’s vitality.”
NWPCA stated that its success in securing the inclusion of the “within the territory of the Union” language in the final negotiated text is a testament to the organization’s steadfast dedication and collaborative approach. NWPCA acknowledges the invaluable support of its partners, including the international membership of the Global Wood Packaging Forum, the Canadian Wood Pallet and Container Association, the UK Timber Packaging and Pallet Confederation, and allies in the Canadian and United States governments, whose collective efforts helped raise awareness and advocate for the exemption.
The final adoption of the negotiated text by each branch of the EU institutions is anticipated to proceed smoothly, paving the way for the regulation’s implementation phase. NWPCA states that it remains committed to supporting sustainable solutions within the transport packaging sector and celebrates this milestone achievement as a testament to the power of collaboration and advocacy.
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Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
