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# EU Council agrees negotiating stance for small business EPR exemptions
- URL: https://www.packagingeurope.com/eu-council-agrees-negotiating-stance-for-small-business-epr-exemptions/
- Published: 2026-10-23T07:00:00.000Z
- Updated: 2026-10-23T07:47:41.000Z
- Author: Packaging Europe staff writers
- Tags: Regulation & Compliance, Business, Sustainability

**The** [**European Council**](https://www.consilium.europa.eu/?ref=packagingeurope.com) **has set its position on a proposal to exempt businesses producing less than one tonne of packaging per year from appointing authorized representatives in every Member State.**

Under the existing rules, any packaging producer is required to appoint an authorized representative in every Member State where their products are sold – enabling them to comply with Extended Producer Responsibility in every end market.

Small and medium-sized businesses have raised concerns that they are disproportionately affected by the registration fees, which could cost between [€200 and €800](https://packagingeurope.com/comment/are-ppwr-requirements-pricing-small-traders-out-of-the-single-market/14660.article?ref=packagingeurope.com) per country. Some smaller market players are opting to withdraw their products from the EU market altogether.

Responses have ranged from MEP Regina Doherty [writing](https://www.packagingeurope.com/mep-implores-eu-to-simplify-international-sales-for-online-smes-under-ppwr/) to EU Commissioner Jessika Roswall and requesting ‘urgent action, simpler rules and proper protections’ for European SMEs, to the [German Federal Ministry for the Environment](https://www.bundesumweltministerium.de/en/?ref=packagingeurope.com) presenting an [amendment proposal](https://www.packagingeurope.com/german-federal-government-backs-registration-exemptions-for-eu-smes/) at a preparatory meeting for the Environmental Omnibus.

Most MEPs critiqued the bureaucracy of the existing framework in a recent [debate](https://www.packagingeurope.com/what-do-meps-have-to-say-about-the-ppwrs-administrative-burden-for-smes/), but solutions ranged from scrapping the Regulation altogether to introducing exemptions via the upcoming Circular Economy Act.

Earlier this week, the [European Parliament](https://www.europarl.europa.eu/?ref=packagingeurope.com) [adopted its position](https://www.packagingeurope.com/eu-parliament-votes-to-exempt-small-businesses-from-representative-rules-until-2035/) on exempting small and micro-businesses with fewer than 50 employees and an annual turnover of balance sheet of under €10 million from appointing authorized representatives. This would apply until 2035, or until a comprehensive Circular Economy Act is adopted. 

The Council’s mandate will exempt businesses with a quantity of packaging **lower than one tonne per calendar year**. It also introduces a **safeguard clause** in case a producer is found in breach with Extended Producer Responsibility obligations.

Additionally, the mandate includes a **review clause** for the Commission to **review the duration of the suspension by 31 December 2030** before its scheduled expiry in 2032.

Now that the Council has adopted its position, negotiations on the final form of the law can begin. A comprehensive solution for Extended Producer Responsibility schemes is set to be agreed under the upcoming legislative proposal on a Circular Economy Act.

“Today’s agreement is an important example of our efforts to reduce disproportionate regulatory burdens, particularly on small and medium-sized businesses,” says Helen McEntee, minister for foreign affairs and trade. “It is a significant achievement for the Irish presidency and yet another deliverable under our broader competitiveness agenda.”

“I welcome the agreement reached in Council today, which is an important step towards much-needed relief for small producers of packaging and packaged products across the EU, pending the outcome of negotiations on the forthcoming Circular Economy Act,” continues Darragh O’Brien, minister for climate, energy and the environment.

“Extended producer responsibility remains a core principle of EU environmental law and it is important that requirements are proportionate and do not create cumbersome single market barriers for small businesses.”

“The Irish presidency is working to deliver the implementation of the ‘One Europe, One Market’ roadmap,” adds Thomas Byrne, Minister of State for European affairs and defence of Ireland. “In responding to the concerns of small packaging producers in Europe, we have taken another step to deliver simpler rules that reduce unnecessary burdens for businesses operating in the single market. The Council is ready to reach an agreement with the European Parliament on this proposal.”

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