Behind the Tech
Europe's new Packaging and Packaging Waste Regulation demands full traceability for reusable transport packaging. Here's why active IoT tracking is the most efficient path to compliance.
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The EU’s Packaging and Packaging Waste Regulation (PPWR) entered into force in February 2025, and its general provisions become legally binding from 12 August 2026. For anyone managing reusable transport packaging — pallets, crates, foldable boxes, bulk containers — this regulation changes the game entirely. It’s no longer enough to simply own reusable assets. You now need to prove they’re actually being reused, tracked, and managed within a compliant system.
If you’re already thinking about visibility across your packaging fleet, you’re ahead of the curve. Active tracking technology turns what looks like a regulatory burden into a genuine operational advantage.
The PPWR is part of the EU’s broader Circular Economy Action Plan, and it represents a fundamental shift in how Europe approaches packaging waste. For the first time, the regulation gives reuse the same priority as recycling; a move that directly impacts every company moving goods across the EU with reusable transport packaging.
The headline numbers are clear. By January 2030, economic operators using transport packaging within the EU must ensure that at least 40% of that packaging is reusable and part of a functioning reuse system. By 2040, that target rises to an aspirational target of 70%. These targets apply to pallets, foldable plastic boxes, trays, crates, drums, and bulk containers of any size or material.
But the targets are only part of the story. The regulation defines what “reusable” actually means in practice, and the bar is quite high. Packaging must be designed for multiple rotations, it must be traceable, and it must allow for the provision of information on its properties — including data relevant to safety, adequate use, and traceability. By February 2029, reusable packaging must carry QR codes or other digital data carriers linking to information about the reuse system, collection points, and deposit schemes.
Perhaps most importantly for day-to-day operations, the regulation requires reuse systems to have reporting rules that allow access to data on the number of rotations per category, collection rates, return rates, and the number of units handled through end-of-life processes. In other words, you need hard data on how your packaging is performing — not estimates or assumptions.
The obligation to have a functioning reuse system in place applies from 12 August 2026 — not 2030. The 2030 date refers to the reuse percentage targets, but the system infrastructure must be ready from day one.
For more information, the European Organisation for Packaging and the Environment (EUROPEN) has created a guidebook for businesses that require to adhere to the PPWR.
- Frederik Dejans, Head of Channel, Sensolus
Many companies today rely on manual counting, barcode scanning at fixed points, or simple deposit-and-return models to manage their reusable packaging. These methods have served well enough in a world where tracking was optional. Under the PPWR, they become inadequate.
The regulation requires proof of actual reuse cycles and rotation counts. A barcode scanned at a warehouse door tells you the asset arrived, but it doesn’t tell you where it spent the previous three weeks, whether it completed its intended route, or how many times it has cycled through the system this year. Manual processes also break down at scale, particularly for companies operating across multiple countries within the EU where packaging moves between sites, customers, and third-party logistics partners.
The PPWR also introduces Extended Producer Responsibility (EPR) obligations that make producers financially responsible for the entire lifecycle of their packaging. Demonstrating compliance with EPR schemes will require documentation retained for 10 years for reusable packaging; far longer than the 5-year requirement for single-use alternatives. This is a data challenge, not just a logistics challenge.
At Sensolus, we’ve spent over a decade building active IoT tracking technology specifically designed for non-powered assets like pallets, crates, containers, and roll cages. With more than a million connected assets in the field, we understand the reality of managing reusable transport packaging at scale across borders, between partners, and through complex reverse logistics loops.
Our tracking solution maps directly onto the PPWR’s requirements in three key areas:
- Laurence Claeys, Co-founder & Product Manager, Sensolus
- Laurence Claeys, Co-founder & Product Manager, Sensolus
- Laurence Claeys, Co-founder & Product Manager, Sensolus
Meeting the PPWR requirements is the immediate driver, but the operational benefits of tracking your RTP fleet go well beyond regulatory checkboxes.
Asset loss is the single biggest cost leak in reusable packaging operations. Industry figures suggest that RTP loss rates typically range from 5% to 15% annually, and for high-value assets like foldable bulk containers or specialized pallets, that adds up fast. Active tracking dramatically reduces loss by making every asset visible and alerting operators when assets deviate from expected routes or dwell too long at a location.
Utilization rates improve as well. Most companies discover that a significant portion of their RTP fleet is sitting idle at any given time; either at customer sites awaiting return, in storage depots, or stuck in transit bottlenecks. With location data and movement analytics, you can right-size your fleet, improve turnaround times, and reduce the capital locked up in packaging that isn’t doing any work.
There’s also a direct connection to the geopolitical context that’s reshaping European supply chains. As Dr. Lars Kleeberg of Germany’s BME (Federal Association for Materials Management, Purchasing and Logistics) has argued, supply chain management must become a strategic priority for European competitiveness. In a world of trade conflicts and increasing protectionism, companies need resilient, transparent supply chains. That includes the packaging that moves goods through them.
The PPWR timeline is staggered, but the first binding obligations arrive in August 2026. Waiting until then to start building tracking capabilities means scrambling under pressure. Companies that begin now have the advantage of implementing tracking incrementally, learning from data, and refining their reuse systems before the compliance clock starts ticking.
The PPWR isn’t just another reporting requirement to manage. It’s a structural shift toward circularity that will reshape how European businesses think about packaging. For companies that rely on reusable transport packaging, the regulation creates a clear mandate: know where your assets are, prove they’re being reused, and report on it with real data.
Active tracking is the most efficient way to meet that mandate. It provides the continuous, automated visibility that the regulation demands, while simultaneously reducing loss, improving utilization, and strengthening the resilience of your packaging operations. In a regulatory landscape where traceability is no longer optional, the companies that invest in tracking today will be the ones best positioned for what comes next.
We are experts: ask us anything, from the battery in the tracker to inventory reports and asset journeys.
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