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You may believe you're ready for AGEC law, but are you truly prepared for 2025 when the French government mandates companies to adopt reusable packaging solutions to replace some of their single-use options, such as cardboard and plastic packaging?
Before reviewing the different requirements, let’s examine what AGEC law entails and its objectives.
AGEC aims to transform the French economy and facilitate the transition from a linear to a circular packaging economy. To achieve this, the French government focuses on five key areas:
Additionally, fight against planned obsolescence and focus on producing higher quality items.
We won't go into details here, but you can find more information on the French website. The goal is to assess our current position regarding the reduction of single-use plastics and to understand the milestones set for the period from 2021 to 2025.
As you may know, the AGEC law has already been implemented, but it has not yet focused on e-commerce. For example, this law is why supermarkets have stopped using single-use plastic for vegetables and why McDonald's has changed the packaging of their fries from recyclable cardboard to reusable plastic.
Now, let's focus on the specific requirements you need to comply with by next year and explore how RePack can assist you.
The AGEC law mandates that companies implement between 5% and 7% reusable packaging by next year, depending on their turnover:
- If your turnover is below €20 million, you are not required to implement reusable packaging by next year. However, you can still make the choice to do so for environmental reasons. You will need to comply with this requirement by 2027.
- If your turnover is between €20 million and €50 million, you are required to implement 5% reusable packaging. This means that 5% of your total packaging must be reusable and reused.
- If your turnover exceeds €50 million, you must implement 7% reusable packaging, meaning that 7% of your shipments must be reusable and reused.
By 2027, all companies will be required to implement 10% reusable packaging among their shipments.
At RePack, we provide reusable solutions for your e-commerce shipments. Our service offers an innovative and unique packaging design to deliver your products to customers.
After receiving their orders, your customers can return the empty RePack packaging for free to any La Poste mailbox. We at RePack take responsibility for the reverse logistics, ensuring that the bag is returned back to our warehouse in France. Once we receive it, we clean and inspect the packaging for quality before it is put back into circulation.
Most companies we are speaking with believe they are already complying with the AGEC law and are prepared for it because they use recycled solutions. While this is not a criticism, it's important to clarify the difference between recyclable packaging and reusable packaging.
Recyclable Packaging
Recyclable packaging is designed to be disposed of in the yellow bin and sorted, marking the end of its journey. In this case, the packaging is used only once—it is produced, used, and ultimately thrown away. This type of packaging is not reusable.
Reusable Packaging
In contrast, reusable packaging is designed to be used multiple times before being recycled once it is completely damaged. This type of packaging circulates in a continuous loop and is also recycled at the end of its life cycle.
While recycling is a valuable method for managing waste rather than allowing it to pollute the environment, creating circular systems is far more efficient and relevant for our economy and culture, especially in combating single-use items.
Therefore, if you see a Triman logo on your packaging, it does not necessarily mean that it is a reusable and circular solution.
One final note: for reusable packaging to be effective, it must be returned. That's why at RePack, we focus on making it easy to return bags through various return points, alongside a simple design for users to understand intuitively.
Now that you understand the difference between recyclable and reusable packaging, let's move on to the declaration to the government.
Once you have decided to opt for reusable packaging, it's important to ensure that the amount of reusable packaging you use is declared accurately.
To do this, your company should be affiliated with an eco-organism, also known as EPR (Extended Producer Responsibility). This is a public body responsible for managing the packaging waste that you introduce to the market, such as Léko, CITEO, or Re-Fashion.
These eco-organisms charge you an eco-contribution, which is a fee used to manage the waste you generate. This tax funds waste sorting, investments in reusable solutions, and supports the employees working within the public body.
Consequently, you will need to declare the percentage of reusable packaging you are using to your EPR. For this, you require packaging that can be tracked to ensure it is returned properly.
This is where we can assist you at RePack by providing tracked packaging and reusable solutions.
Additionally, keep in mind that your EPR may also offer funding for pilot programs involving reusable solutions or for developing new packaging stations.
The AGEC law will introduce penalties for companies that do not comply with its regulations. In France, this penalty is expected to be around €30,000, although the exact implications are still unclear. This creates a strong incentive to adopt reusable solutions and act swiftly.
Going into 2025, it is crucial to take action. Here are some steps to consider:
1. Evaluate your current packaging solutions and begin planning how to integrate reusable options into your business model.
2. Don’t wait until it’s too late—be proactive in ensuring compliance with the AGEC law.
3. Connect with experts, explore partnerships, and make the necessary changes to stay ahead of the curve.
