Achieving a Circular Economy with Steel Packaging

Steve Claus, secretary general of Steel for Packaging Europe, discusses the impact of the new Packaging & Packaging Waste Regulation (PPWR) and the role of steel packaging in delivering a sustainable European packaging industry

By Steve Claus

Steve Claus is the Secretary General of Steel for Packaging Europe (formerly APEAL)

19 Jul 2024

In April, after long and complex discussions, the European Parliament endorsed the formal adoption of the Packaging & Packaging Waste Regulation (PPWR). 

The PPWR aims to reduce the amount of packaging waste generated in the EU and promote higher rates of recycling. The new rules, particularly the introduction of new recyclability performance grades, have transformed the landscape, signifying a major shift towards transparency and circularity. 

At Steel for Packaging Europe, we have been actively involved in helping shape the PPWR as we passionately believe that steel packaging can play a vital role in helping create a sustainable European packaging industry. As the model material for a circular economy, steel is ideally positioned to help the EU transition to a more circular and environmentally conscious future. 

We were particularly pleased that the new PPWR includes the establishment of design for recycling criteria, applicable to all packaging, and the introduction of a performance grading system with clear criteria – the first of its kind. Three grades of defined recyclability percentages – A (95%), B (80%), and C (70%) – must now be complied with by 2030, and all packaging will need to meet either grade A or B by 2038. This is an essential measure to remove any material that is less than 80% recyclable from the market and ensure that packaging materials are not only designed for recycling, but effectively collected, sorted, and recycled at scale. Steel for packaging, with all formats graded A or B, already excels in this area, and demonstrates a superior performance compared to other materials such as plastics and laminated cartons. 

Steel for Packaging Europe is also pleased that the eco-modulation of fees based on the recyclability performance grades has been adopted. This measure recognises the value of permanent materials and rewards materials such as steel, that can be recycled multiple times and feed into a closed material loop scheme. 

However, we would have liked to see a more explicit recognition of permanent materials such as steel in design for recycling criteria at this stage. We look forward to further dialogue with EU institutions regarding setting the criteria for design for recycling per each grade. 

We would also have liked to have seen a more rapid adoption of the regulations, currently set for 2030, and a greater legal push towards the materials that can be recycled multiple times without loss of quality. The quality of recycling still poses issues for many other materials – not steel -, leading to resource inefficiencies. 

Leading the way 

Offering a strong and versatile solution for the secure packaging of food and other goods, steel packaging plays a vital role in preserving products without need for refrigeration, extending shelf life for up to 5 years and reducing waste. 

With the highest recycling rate of all primary packaging materials in the EU, steel stands out as a beacon of circularity. Unique magnetic properties means that steel is easily and economically separated from any waste stream. As steel scrap is a component needed in the manufacture of new steel, over 200 steel recycling plants in Europe are available to recycle used steel into new steel products – a train, a wind turbine or even a new item of steel packaging. 

In fact, the steel packaging sector continues to set the pace on sustainability, and recycling of steel packaging in Europe has hit another all-time high of 80,5% (2022 figures). It is an increase of 2% and followed news last year that the steel packaging sector had surpassed its 2025 EU recycling rate target, four years ahead of the target date. Notably, these milestones are based on the new, harmonised method for calculating recycling rates across the EU, that considers the amount of packaging ‘really recycled’ and not just collected or sorted. 

While some other packaging materials continue to report only their collection rates, I am proud that our figures align with this progressive new methodology, ensuring accuracy and transparency and that steel packaging remains the most widely recycled sales packaging material in Europe. 

As we move towards the introduction of the PPWR, Steel for Packaging Europe will continue to collaborate with all relevant stakeholders to reach the EU’s circular economy objectives and remains committed to enhancing, wherever possible, the recyclability and real recycling of steel packaging throughout the EU. 

Our industry has made some incredibly impressive achievements over the years to reduce carbon emissions and adopting best sustainability practices. Our focus remains on encouraging best practices in the separate collection, sorting, and recycling of steel for packaging across Europe. It is important that we continue this work and maintain our progress towards closing the material loop and meeting the circular economy objectives of the Circular Economy Action Plan (CEAP) and EU Green Deal. 

In our recycling report ‘Why steel recycles forever’, we outline six policy recommendations to further improve steel recycling, including optimised separate collection, consumer involvement, and a second overband in sorting plants to ensure that smaller steel packaging items, such as recyclable caps, lids, and closures, are not sent to landfill. We believe that no steel packaging should go to waste; all should be collected, sorted and recycled back into new steel products, over and over again. 

In the months ahead, we will continue to work with our stakeholders and those throughout the value chain to fully close the material loop, promote resource efficiency and shape a sustainable packaging landscape, together. 

About Steel for Packaging Europe

Steel for Packaging Europe is the new identity of APEAL (The Association of European Producers of Steel for Packaging)

Founded in 1986, the association represents the five major European producers of packaging steel: Acciaierie d’Italia A.S., ArcelorMittal, Tata Steel, thyssenkrupp Rasselstein and U.S. Steel Košice.

steel for packaging europe

The new identity marks a significant milestone in the organisation's journey. Accompanying this change is a fresh logo, capturing the essence of steel's circularity and its inherent multiple recyclability within a closed material loop.

Our new website www.steelforpackagingeurope.eu showcases the circularity, design flexibility, and versatility of steel packaging. It also highlights recent industry innovations, including the Chromium-free Passivation Alternative, and provides insights into the industry’s position on a range of policy and environmental issues, as well as the collective EU steel industry’s bold vision to achieve a carbon-neutral future by 2050.