EU diplomats endorse PPWR deal
EU diplomats today endorsed the EU parliament and council of EU member states' compromise agreement on the Packaging and Packaging Waste Regulation (PPWR), which will — among other things — implement mandatory requirements for recycled content across almost all plastic packaging in the single market.
Parliament and member states provisionally agreed to the compromise on 5 March, but it was not agreed at the time by the European Commission. A particular sticking point centred around whether and how imported recyclates would be allowed to count towards the recycled content requirements, with the compromise saying that imports should be "subject to equivalent conditions with regard to emissions and separate collection and sustainability criteria for recycling technologies".
The commission said today it would not stand in the way of an agreement, an unnamed official told Argus. Some EU member states also expressed concerns, but none opposed and only two expressed reservation or had not reached an official position.
European recycling industry association Euric called the outcome of discussions a "significant milestone for the European recycling industry and circular value chains".
"Setting equivalent conditions that guarantee that imported recycled plastics meet equivalent standards to those set in the EU is vital for ensuring European industrial sovereignty and competitiveness", Euric president Olivier Francois said.
But it raised concerns about a clause granting member states freedom to prioritise access to recycled plastics "for use in applications where the distinct quality of the recycled material is preserved or recovered in such a way that it can be recycled further and used in the same way and for a similar application". This "risks disrupting the well-functioning internal market", Euric said.
It said that the focus should instead be on improving recyclability and collection rates to ensure access to recycled plastics. A similar debate has occurred with respect to the Single Use Plastics Directive which mandates recycled content in PET bottles in the EU from next year.
Concerns have also been raised about bans focussing primarily on plastic packaging, with exemptions for other packaging materials. German plastic packaging association IK's director-general Martin Engelmann highlighted single-use packaging for fresh fruit and vegetables. The commission initially proposed a material-neutral ban on these products, but the provisional compromise proposal narrows the ban to only plastic packaging, he said.
Special rules for plastic packaging, for instance, could be challenged as discriminatory in the European Court of Justice, he told Argus last week.
Engelmann also raised concerns this week about 100pc reuse requirement for industrial packaging used to transport goods between one company's sites within the EU, and 40pc reuse requirement for all other industrial packaging. Such a high level of reuse is "impossible to achieve for many packaging formats because, for example, it is not technically possible to reuse stretch film for pallet wrapping", he said.
Following today's meeting of EU diplomats, the provisional deal will be formally adopted first by parliament's environment committee and then the whole parliament. Following formal approval by EU ministers, the text could be on the EU statute books in the summer.
Related news posts
Norfolk Southern replaces CEO with CFO
Norfolk Southern replaces CEO with CFO
Washington, 12 September (Argus) — Eastern Class I railroad Norfolk Southern (NS) has appointed a new chief executive, replacing former executive Alan Shaw after determining he violated company policies by having a consensual relationship with the company's chief legal officer. NS' board announced late Wednesday that it had promoted chief financial officer Mark George to replace Shaw. The board said Monday it was investigating Shaw for potential misconduct in actions not consistent with NS' code of ethics and policies, but did not provide details. The railroad yesterday clarified that Shaw's departure was not related to the railroad's "performance, financial reporting and results of operations". Instead, the board voted unanimously to terminate Shaw with cause, effective immediately, for violating policies by engaging in a consensual relationship chief legal officer Nabanita Nag. She was also dismissed by NS. Shaw worked at NS for 30 years and was appointed chief executive in May 2021, following six years as chief marketing officer. Earlier this year he led NS through a proxy fight with a group of activist investors that sought his replacement. The overall effort failed but the challengers secured three seats on the board . The investors had been displeased with the railroad's financial performance and "tone deaf response" to the February 2023 derailment in East Palestine, Ohio . New chief executive George had served as NS' chief financial officer since 2019. Prior to that, he held roles at several companies including United Technologies Corporation and its subsidiaries. "The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," NS chairman and former Canadian National chief executive Claude Mongeau said. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
SEC fines Keurig $1.5mn for recyclability claims
SEC fines Keurig $1.5mn for recyclability claims
Houston, 10 September (Argus) — The US Securities and Exchange Commission has fined Keurig Dr Pepper $1.5mn for inaccurately claiming that its plastic coffee pods were recyclable in two of its annual financial reports. In its 2019 and 2020 annual reports, Keurig Dr Pepper claimed that it had verified that K-Cup pods could be recycled through testing. According to the SEC, Keurig did not disclose to investors that two of the largest recycling companies in the US said that they would not accept K-Cup pod waste, and believed that curbside recycling of the pods was unfeasible. The small size of coffee pods makes them difficult to sort at many older material recovery facilities (MRFs), which can prevent recycling. The SEC argued that Keurig therefore violated Section 13 of the Securities Exchange Act of 1934. Keurig agreed to a cease-and-desist order from the SEC and to pay a civil penalty of $1.5mn, without admitting or denying the SEC's findings. "Public companies must ensure that the reports they file with the SEC are complete and accurate," Boston Regional Associate Director of the SEC John Dugan said. In 2022, Keurig Dr Pepper settled a $10mn lawsuit with a California resident after the plaintiff alleged that marketing about the recyclability of its signature K-Cups was false or misleading. The plaintiff said that the pods were "inevitably" contaminated by foil and food waste, and that municipal recycling facilities could not effectively recycle the pods. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US August ethylene contract settles higher
US August ethylene contract settles higher
Houston, 4 September (Argus) — The US August ethylene contract price settled at 33¢/lb, the highest recorded settlement since November 2022. The contract price rose by 0.75¢/lb from the prior month, or 2.33pc, which marks a fifth consecutive monthly increase. An uptick in the contract price was supported by higher US spot ethylene prices. Maintenance at Enterprise Products Partners' (EPC) cavern in Mont Belvieu, Texas, coupled with lower inventories in the second quarter, placed upward pressure on spot prices this summer. US spot EPC ethylene averaged higher month-over-month. The August spot average for front-month ethylene increased to 30¢/lb from 26.59¢/lb in July. On 3 September, Argus assessed US spot EPC ethylene at 30.31¢/lb. The US ethylene contract price is a 50/50 formula accounting for ethylene spot prices and ethane feedstock costs. The average of spot ethane prices was lower in August at 13.95¢/USG, down from 15.43¢/USG in July. Prompt month EPC ethane traded higher in September alongside natural gas. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more