THE “BRUSSELS EFFECT” IN PRACTICE HOW EUROPEAN REGULATION IS ALREADY SHAPING THE DOMESTIC PACKAGING MARKET

Although the European Regulation on Packaging and Packaging Waste (PPWR) entered into force in the first half of the year, it has already brought a number of substantial changes in EU member states, ranging from packaging design and material selection to the management of the packaging life cycle. In addition to extensive documentation requirements and new administrative obligations, the PPWR is expected to significantly redefine the rules of the game in the packaging industry.

Full implementation is expected only in the second half of next year, but its impact is already gradually extending beyond EU borders. As a result, innovations in packaging are increasingly visible on the domestic market today, from bottles with tethered caps and packaging containing recycled materials to so called lightweight packaging solutions designed to reduce plastic content while preserving product quality.

Although Serbia is not a member of the European Union, European rules often indirectly affect local market conditions, setting new standards and accelerating reforms that lie ahead.

What is the Brussels effect and how does it influence the operations of large companies

The concept of the so called “Brussels effect” is already well established in discussions about the influence of European Union regulation on global developments, particularly in areas where the EU sets strict standards that often become de facto global norms beyond its borders. The reasons are clear. The EU has a strong regulatory export capacity and clearly defined rules, especially in areas of protection, from consumer protection and data protection to environmental protection. For companies, compliance with EU standards is not only a regulatory obligation, but also a strategic advantage in the global marketplace.

The importance of large company expertise in implementing regulations

Coca-Cola HBC Serbia has for many years been leading the industry in transforming business operations toward a more sustainable model through investments in innovation, dialogue with decision makers, and active participation in reforms of the packaging waste management system. 

“When legislation is adopted at the European Union level, even if it is not directly applicable, it has a substantial impact on countries that are not EU members. Although Serbia does not have a direct obligation to align with the PPWR regulation, as part of a multinational company operating in EU markets we strive for the highest level of alignment in our approach. This very often means that we bring expertise and knowledge to markets such as ours well before local legislation requires it. In this way, we do not wait for change, we actively implement it,” explained Tisa Čaušević, Acting Director of Corporate Affairs and Sustainability at Coca-Cola HBC Serbia and Montenegro.

As part of a group operating in European Union markets, Coca-Cola HBC Serbia aims to fully align its practices and standards with European frameworks long before they are formally introduced by local regulation.

Speaking at this year’s Ambipak Conference, held under the slogan “The Dynamic World of Packaging Creative Responsible”, Čaušević emphasized that innovation, dialogue, and reform are the key drivers of progress in responsible packaging management. This, she noted, is “the way the company ensures competitiveness, development, and long term value for the community”.

Cross sector cooperation as the foundation for more efficient packaging waste management

Addressing the need for dialogue between the private and public sectors in the process of improving the existing extended producer responsibility system, it was emphasized during the panel discussion that cross sector cooperation can become a strong foundation for more efficient collection, sorting, and recycling of packaging waste.

“If we want to improve the system, joint action is necessary, involving legislative bodies, industry, local governments, and consumers. Our experience from other markets shows that only partnerships among all stakeholders deliver results that last,” Čaušević emphasized.

The new EU regulation, among other things, requires EU member states to introduce a deposit return system for single use plastic bottles and cans by January 1, 2029, in order to ensure high collection and recycling targets.

Čaušević pointed out that a well designed deposit return system, supported by continuous improvements and consumer communication, can achieve high return rates of up to 90 percent. At the same time, it must be part of an integrated approach that also includes improvements to the extended producer responsibility system, strengthened infrastructure, and clearly defined local targets. 

“Together with partners from the beverage industry, we conducted a comprehensive study on how a deposit system in Serbia should be designed, tailored to our specific market characteristics,” she said.

She stressed that changes to the legislative framework are necessary to improve the waste management system and enable more effective implementation of the circular economy.

“That legislative framework is extremely important. These are strategic documents that should be viewed in the long term, as they define where we want to be in five or ten years and who should be involved in the process. The task ahead of us is to build a system that is efficient, fair, and sustainable for all market participants. Dialogue and cooperation are the only way to achieve this,” Čaušević concluded.