This report assesses the role of bio-based feedstocks in plastic packaging under the EU’s Packaging and Packaging Waste Regulation (PPWR), with a focus on technological development and environmental performance. Although seventeen bio-based polymers are commercially available, they represent only ~1% of the global plastics market and account for just 4–5% of biogenic carbon in the EU chemical sector. Production capacity is concentrated in Asia (55%), followed by North America (17%) and the EU27+3 (14%). Despite their limited market share, there are no fundamental technical barriers to using them in packaging.
Bio-based plastics offer a 30–70% reduction in greenhouse gas emissions compared to fossil-based alternatives, which supports the EU’s decarbonisation and circular economy goals. The report also evaluates the feasibility of setting targets for the use of bio-based materials, their equivalence with recycled materials and how sustainability criteria can be aligned with the
Renewable Energy Directive (RED). Key recommendations include setting binding targets for bio-based content, establishing harmonised sustainability criteria, and adapting recycling infrastructure. Leveraging the complementarity of bio-based and recycled content could help to accelerate the EU’s transition to a climate-neutral packaging sector.
Conclusion
A fully circular plastics system will require virgin non-fossil carbon. Bio-based plastics offer a viable way to reduce the packaging sector’s reliance on fossil fuels, but this will depend on supportive policies, sustainable sourcing of feedstocks and development of the necessary infrastructure. The technology is market-ready, but market demand and cost competitiveness to fossil alternatives are critical for scaling to the market.
Environmental benefits, in particular climate change mitigation, are clear, but trade-offs must be managed carefully. Sustainability criteria can provide reliable transparency, should be based (and adapted) on the RED framework, and linked to incentives. Here, the EU can accelerate the transition to a circular, climateneutral economy by integrating bio-based content targets with recycled content requirements. This will require adaptations and development of recycling infrastructure, mainly for dedicated bio-based plastics.
A principle equivalence between bio-based and recycled content exists, and such equivalence in the PPWR would strengthen circularity of carbon and defossilisation.
Authors: Michael Carus, Christopher vom Berg, Pia Skoczinski, Olaf Porc, Narendar Poranki, Gillian Tweddle, Matthias Stratmann, Lara Dammer and Ángel Puente (all nova-Institute)