From Taxation to Circularity: Assessing the Impact of Plastic Packaging Taxes on the Food Packaging Production in the UK, Spain, and Portugal

De Boe, Grégory [UCL]

Plastic's affordability and versatility have made it ubiquitous in daily life, yet its linear “take-make-dispose” model of production and consumption poses significant environmental challenges. Projected data indicates a fourfold increase in plastic use by 2050, amplifying the demand for plastic packaging. Consequently, the European Union (EU) grapples with plastic pollution, habitat loss, and greenhouse gas emissions, leading to the implementation of policies like the Single-Use Plastics Directive and the Plastic Levy to transition towards a circular economy. This regulatory framework has prompted certain European nations to enact plastic packaging taxes, addressing challenges in plastic circularity. The UK, Spain, and Portugal have each implemented distinct plastic packaging taxes, yet the effects on circular practices among packaging producers and importers remain unclear. This essay delves into the influence of these taxes on the circularity of food packaging production in Europe. Through interviews with producers and importers in the food packaging industry, the research explores motivations, impediments, and tax-related factors shaping circular practices in the packaging design process. Findings expose a spectrum of circular practices across material selection, conceptual design, design development, and design validation phases, driven by plastic packaging taxes. Additionally, the study examines how stakeholders in the food packaging industry transfer cost increments resulting from the plastic packaging tax. Contributing to the environmental policy discourse, this research yields practical insights into tax design elements maximizing outcomes in promoting sustainable approaches within the private sector. Beyond evaluating the direct impact of plastic packaging taxes, the study illuminates broader contextual factors influencing tax effectiveness, providing a comprehensive understanding of the interplay between tax policies and industry dynamics. This nuanced exploration advances comprehension of the capabilities and constraints of EU and national state actors in fostering circular practices among food packaging producers and importers, addressing the pressing challenge of non-recycled plastic packaging waste.