EU Proposal for an Ecodesign for Sustainable Products Regulation (ESPR)
Governmental Agency: European Commission
Jurisdiction: European Union
Ref no: 2022/0095(COD)
Status: ADOPTED
The Eco-Design for Sustainable Products Regulation (ESPR) is a piece of legislation significantly expanding the remit of the original 2009 Eco-Design Directive (which focused purely on energy-related products).
The ESPR proposal was released in March 2022, identifying a range of measures in support of circularity, energy performance and other environmental sustainability aspects. Textiles are recognized as a specific product category to be targeted by the regulation to support the delivery of the Strategy for Sustainable and Circular Textiles.
Requirements proposed include:
- Eco-design requirements, which could include aspects such as durability, repairability, removal of substances inhibiting circularity, energy and resource efficiency, recycled content, remanufacturability and recyclability, carbon and environmental footprint, and information provision.
- Implementation of Digital Product Passports, on-product data carriers (for example a QR code or RFID tag) that provide information about products’ environmental sustainability.
- Oversight on Unsold Goods, through a requirement to report on quantities of unsold goods and what happens to them (i.e. the percentage donated, remanufactured, recycled).
- The Power to Ban on Unsold Stock Destruction, making it illegal to intentionally damage or discard products as waste.
The EU Council adopted its general position in May 2023, while EU Parliament adopted its ENVI Committee's proposed amendments in July 2023. On 5 December 2023, the two institutions reached a provisional agreement on the proposed regulation.
Agreements include:
- Its application across almost all product categories, eco-design considering durability, reliability, reusability, upgradability, repairability, recyclability and ease of maintenance. The Commission will be empowered to introduce specific design and reporting requirements 2 years after entering into force. Companies will then have 18 months to comply with these requirements.
- Alignment on the need for a digital product passport.
- A specific direct ban on the destruction of textiles and footwear, excluding small/micro-size companies. Medium-sized companies will have a 6-year exemption.
- Harmonized criteria for penalties in cases of non-compliance.
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The regulation will impact all businesses that place goods on the EU market that are in scope of the regulation. It is not clear who will be obligated by the regulation, but it could be anticipated that it will be those entities that place the item on the market. This could constitute manufacturers, brands and retailers (be they inside or outside the EU) as well as those distributing products onto the market place such as online marketplaces.
These businesses will need to ensure that:
- Their products meet the mandatory ecodesign requirements set out in the regulation
- Their products have a product passport, as well as the necessary hardware, software and traceability to capture and provide the data.
- Systems to quantify levels of unsold stock, and traceability systems to evidence what is done with these products.
The ban on the destruction of unsold textiles and footwear is applicable within 2 years for large companies and 6 years for medium-sized companies (enterprises that employ between 50 and 250 people and have an annual revenue of €10-50 million). -
The regulation entered into force on July 18, 2024.