European paper and packaging manufacturers have raised serious concerns over the European Commission’s latest Emissions Trading System (ETS) proposals. Industry representatives warn that the planned changes to carbon benchmark rules could "curtail investments in new and existing mills", ultimately stalling progress on circular economy goals.
The core of the issue lies in how the EU intends to recalculate free allocation benchmarks. Packaging producers argue that the proposed methodology fails to reward early adopters of low-carbon technologies. Instead of incentivising transition, the sector fears the rules will lead to a shortage of free allowances, driving up operational costs and diverting capital away from crucial sustainability upgrades.
While the immediate outcry comes from the paper and board sector, the development carries significant weight for the wider packaging and recycling industries. As the EU tightens its carbon accounting, all manufacturing sectors—including plastics and polymers—are facing stricter emissions boundaries.
For UK waste companies and Turkish recyclers, these EU policy shifts are highly consequential. Turkish recyclers exporting post-consumer resins to the European market must closely monitor EU carbon policies. As the EU refines its ETS and prepares to fully implement the Carbon Border Adjustment Mechanism (CBAM), Turkish exporters will face increasing pressure to provide precise, low-carbon credentials for their materials to remain competitive. Similarly, UK converters exporting to the continent must navigate these shifting regulatory baselines, which ultimately dictate the cost competitiveness of recycled versus virgin materials.
A key practical takeaway for businesses is the urgent need to audit and document facility-level carbon intensity. As European carbon regulations tighten, recyclers and converters who can prove a low-carbon footprint will secure a distinct market advantage, safeguarding their supply chains against rising compliance costs.
