Circular Economy
Will New Ecodesign Regulation Make Sustainable Products the Norm for EU Consumers?

A new piece of regulation making its way across Europe could make sustainable products the norm for consumers everywhere. At least that’s the intention of the Ecodesign for Sustainable Products Regulation (ESPR), which came into force last week.

“We’re setting the bar higher to ensure that resource- and energy-efficient products become the norm on the EU market,” says Maroš Šefčovič, Executive VP for the European Green Deal.

The ESPR, which will have to be adopted into national laws across EU countries, sets out a series of environmental design requirements for almost all products (with a few exceptions, such as food and medicines). The idea is to force designers of everything from clothing and furniture to electronics and tires to make sure the products being put on the market are easier to repair, recycle and reuse as part of a circular economy. According to policymakers, around 80 percent of a product’s environmental impact is determined by how it is designed. The legislation includes criteria centered on improving product durability, reducing energy consumption, increasing recycled content, facilitating remanufacture and recycling, and increasing the availability of information on just how sustainable a product might be.

It is a puzzle European lawmakers have been working on for many years, and the ESPR forms a key element of the EU’s 2020 Circular Economy Action Plan. But the new laws, although formally introduced, will not apply for some time yet. The European Commission is set to adopt the first working plan, which outlines the initial set of products for which eco-design requirements will be developed, in March 2025. These requirements will then be adopted towards the end of 2026 and will apply from 2027 onward; this will give manufacturers time to make changes to their product design and use of materials — for products to be more durable and recyclable, for example. Changes to production and manufacturing processes might also be necessary.

The first working plan is likely to establish a list of “priority products” — the preliminary list of products included textiles, furniture, mattresses, tires, detergents, paints and lubricants — that the legislation will target first.

Affecting brands everywhere, not just in Europe

This is legislation that will impact companies all around the world — applying to all products that are sold in Europe, not just manufactured in the region — including manufacturers, importers, distributors, retailers and sellers. It is a law that will affect a hugely diverse array of products that stretches well beyond consumer goods, to encompass sectors such as textiles and transport.

One of the more interesting aspects of the ESPR is a stipulation to improve product sustainability communications. It introduces the concept of a Digital Product Passport (DPP) — a mechanism designed to give consumers more clear information about the journey of a product. While the exact details of this are still being ironed out, it will likely take the form of a QR code linked to a database of information that will make it easier for consumers to make eco-conscious purchasing decisions — or at least be confident that a brand’s marketing is not creeping into greenwashing territory.

Brands will have to acquire this data from their suppliers, with a DPP presenting information — such as environmental impact, recycling potential, and any compliance documents for regulatory bodies — in a way that has rarely been seen before.

Textile and apparel brands should pay special attention

The ESPR will be of special interest to fashion and apparel brands — not least because it bans the destruction of unsold products, such as trainers and t-shirts. It is an inclusion designed to reduce the huge burden of textile waste, which adds up to almost 100 million tons a year.

The regulation defines “destruction” as goods that are damaged or discarded as a waste; this won’t apply to goods that have been discarded so they can be reused, refurbished or remanufactured. In a nutshell, brands will be able to cut a t-shirt apart to make a new garment from it; but they won’t be able to destroy it simply to recycle it and recover fibers. The EU wants brands to stop the practice of overproducing goods and then just shredding their excess inventory, even if those raw materials are being recycled — a process that still requires energy consumption.

“For many industries, the ESPR will be a gamechanger with respect to the handling of their products,” says Sascha Arnold, an advisor with leading global law firm Freshfields Bruckhaus Deringer. For example, the textiles sector will be heavily affected by the new rules — requiring a rethink of traditional business models and operations. “That said, more stringent ecodesign requirements will not apply overnight. Nevertheless, given design and production cycles, manufacturers of products … should begin to familiarize themselves with the ESPR’s requirements now and assess what needs to be done to ensure their products are compliant. Otherwise, they could risk losing access to the EU market.”

Circular Economy

Innovation & Technology

Circular Economy

Systems Shift

Apparel/Fashion/Textiles

Government

Manufacturing

Responsible Consumption

Published Jul 23, 2024 8am EDT / 5am PDT / 1pm BST / 2pm CEST

Tom Idle

Content creator extraordinaire.

Tom is founder of storytelling strategy firm Narrative Matters — which helps organizations develop content that truly engages audiences around issues of global social, environmental and economic importance. He also provides strategic editorial insight and support to help organisations – from large corporates, to NGOs – build content strategies that focus on editorial that is accessible, shareable, intelligent and conversation-driving.

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