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40% of plastics and 50% of paper used in the EU is destined for packaging. The increased use of packaging coupled with low re-use and recycling rates hamper the development of a low-carbon circular economy. Barriers that prevent operators and the broader public from benefiting fully from the internal market include restrictive and complex national rules, limited administrative capacities, imperfect transposition of EU rules and their inadequate enforcement. A circular economy of packaging will help decouple economic development from the use of natural resources, contribute to achieving climate neutrality by 2050.