U.S.-EU trade tensions get new packaging

Presented by Prologis:

Sep 19, 2023 View in browser   By Jordan Wolman Presented by Prologis THE BIG IDEA U.S. trade groups are speaking out against a new European effort to cut packaging waste. The U.S. government appears to be taking up the cause as well. | Mario Tama/Getty Images UP IN ARMS — New packaging regulations under debate in the European Union could become the next flash point in trade relations between Washington and Brussels. American industry groups have the attention of U.S. government agencies in their campaign against the European effort to cut down on the waste from packaging for consumer products ranging from fresh produce to mini shampoo bottles in hotel rooms, Jordan and Leonie Cater report. The U.S. trade groups are warning that the legislation, which would place strict recycled content and reuse requirements on both domestic and imported products, could force them to curb their exports to Europe. “It could be a huge trade issue,” said Jennifer Turner, director of the China Environment Forum at the Wilson Center, a nonpartisan think tank that specializes in international affairs. “Other countries trying to sell into the EU will be concerned as well.” U.S. officials at the Agriculture and Commerce departments have made the trek to Brussels to wade into the frenzy. The U.S. mission to the EU earlier this year co-hosted an event in the European Parliament — a “US-EU Dialogue on Sustainable Packaging” — alongside conservative Italian lawmaker Pietro Fiocchi, a vocal skeptic on the proposal’s reusable packaging targets. Among the concerns from U.S. businesses: The American Chamber of Commerce to the EU has said the restrictions could have “negative impacts on international trade in products.” The U.S. Dairy Export Council is demanding exemptions from the reusable packaging and recycled content requirements, arguing that it would be logistically difficult and carbon-intensive to have used packaging sent back to U.S. producers to refill. The Distilled Spirits Council of the U.S. expressed concern that a provision forcing companies to scrap “superfluous” packaging used solely for branding purposes “prohibits brands and eliminates competition” – and could enable counterfeiters. European lawmakers were meant to vote on the proposal this week; that’s been postponed to next month amid deep divisions in the parliamentary committee responsible as a heavy U.S. lobbying presence takes shape. Green groups are pushing lawmakers to forge ahead. The measures are "more than necessary to fulfill their intended environmental objectives," said Marco Musso of the European Environmental Bureau. It’s not the first time in recent memory that Brussels’ long regulatory arm is spooking American business. But this latest chapter underscores the deep economic concerns associated with Europe’s attempt to thread the needle between the environment and international trade — as officials try to hold together a Western economic alliance to combat China. “There is a real potential” for the regulations to negatively impact exports to Europe for food growers and distributors, said Max Teplitski, the chief science officer at the International Fresh Product Association, whose membership includes U.S.-based and global exporters to Europe as well as European producers. “We’re certainly determined, and we’re active on this issue.”   A message from Prologis: Join us for GROUNDBREAKERS 2023, where we bring together some of the foremost visionaries and leaders to the stage to explore the revolutionary breakthroughs profoundly changing the world of logistics. This livestream forum will explore the latest innovations in supply chain transformation spanning AI, workforce, energy and mobility. You won’t want to miss this groundbreaking experience. Register today. [Join us: September 27, 9AM PT]   WASHINGTON WATCH CARROTS, NOT STICKS — The Treasury Department has released principles for net-zero financing and investment to highlight best practices among financial firms implementing decarbonization plans. It’s an effort to promote consistency and credibility for net-zero claims made by banks and money managers, especially for “financed emissions” that make up the bulk of their pollution. The principles announced earlier today include aligning net-zero targets with limiting global warming to 1.5 degrees Celsius and considering a “managed phaseout” of fossil fuel financing. Treasury hyped outside commitments from philanthropic organizations such as Bloomberg Philanthropies and the Bezos Earth Fund, which are shelling out $340 million over the next three years to boost resources for financial firms to execute net-zero targets. The Glasgow Financial Alliance for Net Zero announced that more than 50 U.S. financial firms will publish net-zero transition plans over the next year. And the Partnership for Carbon Accounting Financials will train as many as 2,500 people on greenhouse gas accounting methodologies. “There’s increasing demand for technologies, products and services that will reduce greenhouse gas emissions and support a clean energy future,” Treasury Secretary Janet Yellen says in remarks prepared for a speech in New York later today. “This demand is fueling growth in new industries and business models.” Treasury officials were far more sanguine during a press call with reporters to discuss the net-zero principles: "This is not meant to create new resources or materials or guidance that don't already exist," they said, later adding: "We're not suggesting anyone needs to do anything."   A message from Prologis:   AROUND THE NATION NEWSOM SPEAKS — California Gov. Gavin Newsom says he’s planning to sign a pair of landmark corporate climate disclosure bills that promise to reshape the landscape both for how large corporations report on their carbon footprint and how climate change is impacting their bottom line. While speaking on a panel Sunday on the opening day of Climate Week NYC, Newsom announced his intention to back SB253 and SB261, which cleared California’s legislature last week. The bills would require large corporations doing business in the state to disclose their emissions, including those from their supply chains, along with their climate-related financial risks. Some 5,400 companies would be affected. Together, the California bills go beyond U.S. Securities and Exchange Commission rules proposed more than a year ago that have yet to be finalized amid speculation that the agency might back away from requiring supply chain disclosures and the near-certainty of legal challenges no matter what it comes out with. For his part, Newsom noted that the California bills might require some kind of “clean up,” Ry Rivard reports from the scene. That’s music to the ears of the California Chamber of Commerce, which lobbied against the measures and might propose cleanup legislation next year.   A message from Prologis: Reboot. Renew. Reimagine. GROUNDBREAKERS 2023 brings together some of the supply chain's foremost visionaries to the stage to peel back the layers of complexities and possibilities that AI and other revolutionary innovations bring to the world of logistics. The vital areas of workforce, energy and mobility are evolving quickly as a confluence of people, purpose and productivity accelerate transformation. As the supply chain moves beyond the standards of the past, adopting and adapting to the velocity of change, GROUNDBREAKERS 2023 welcomes the next generation of innovators. The Future is Here: Is Your Supply Chain Ready? Join two leading visionaries at the forefront of supply chain infrastructure as they share insights into the future of commerce and sustainable logistics. Energy Transition and Renewable Energy: Is the World Prepared? Groundbreaking companies in the energy sector are leading the transformation to cleaner solutions. Register today. Join us: September 27, 9AM PT   WORKPLACE MUSK’S NEXT WIN — The strike roiling Detroit’s Big Three automakers could hand Elon Musk another major victory over U.S. competitors looking for ways to eat into non-union Tesla’s electric vehicle dominance. The financial gains UAW workers are seeking could widen Tesla’s labor-cost advantage over Ford, General Motors and Stellantis, and Tesla — cutting against President Joe Biden’s goal of shaping the green transition around union-friendly policies. The strike comes as the White House has already found itself having to warm to the staunchly anti-union Musk by embracing Tesla’s charging system as the industry standard after having previously kept him at arm’s length. The Big Three were already facing a situation where they needed to lower prices and roll out new models to win market share. A lengthy strike or a big win for unionized workers could help to ensure Tesla’s continued market dominance, James Bikales reports. Tesla, by the way, is getting courted to open new factories overseas — with Turkey being the latest suitor, Claudia Chiappa reports.   GO INSIDE THE CAPITOL DOME: From the outset, POLITICO has been your eyes and ears on Capitol Hill, providing the most thorough Congress coverage — from political characters and emerging leaders to leadership squabbles and policy nuggets during committee markups and hearings. We're stepping up our game to ensure you’re fully informed on every key detail inside the Capitol Dome, all day, every day. Start your day with Playbook AM, refuel at midday with our Playbook PM halftime report and enrich your evening discussions with Huddle. Plus, stay updated with real-time buzz all day through our brand new Inside Congress Live feature. Learn more and subscribe here.     YOU TELL US GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. Join us every Tuesday as we keep you in the loop on the world of sustainability. Team Sustainability is editor Greg Mott and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, jwolman@politico.com and aprang@politico.com. Sign up for the Long Game. It's free!   Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.     WHAT WE'RE CLICKING — Here's something that could raise the profile the fight over PFAS: NFL players are concerned, the Philadelphia Inquirer reports. — Environmental activists warn that the U.N. may be embracing plastics industry arguments, according to Pro Publica. — U.S. special presidential climate envoy John Kerry argues in the Washington Post that it's time to stop building coal plants.   Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman Allison Prang @AllisonPrang   Follow us

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