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Many consumers are unaware that the everyday products they purchase - from smartphones to clothing - often contribute to environmental degradation, resource depletion, and greenhouse gas emissions throughout their lifecycle. With the EU's ambitious environmental goals, such as the European Green Deal, a regulatory shift was inevitable to ensure that products entering the EU market are designed with sustainability at their core. This is where the Ecodesign for Sustainable Products Regulation (ESPR) comes into play. Entering into force in July 2024, the ESPR aims to ensure that products sold in the EU are durable, energy-efficient, repairable, and recyclable.
Unlike its predecessor, the 2009 Ecodesign Directive, which mainly targeted energy efficiency in products like fridges and washing machines, the ESPR expands the scope to almost all product categories, placing strong emphasis on circularity. The regulation introduces robust measures to improve product sustainability, including the Digital Product Passport (DPP) and a ban on the destruction of unsold consumer goods.
By mandating these changes, the ESPR aims to reduce the environmental footprint of products at every stage of their lifecycle - from raw material extraction to end-of-life disposal.
👉 In this article, we will explore how the ESPR sets new benchmarks for sustainable product design, what key requirements are involved, and how it will impact businesses across the EU and beyond.
The Ecodesign for Sustainable Products Regulation (ESPR) represents a significant evolution from the earlier Ecodesign Directive (2009/125/EC), which mainly focused on the energy efficiency of certain product groups, such as household appliances.
💡 In 2021, the Ecodesign Directive (2009/125/EC) was responsible for a 10% reduction in energy consumption of regulated products, resulting in energy savings of €120 billion for consumers.
However, the European Commission recognised that products have broader environmental impacts beyond energy use, and so they proposed the ESPR as part of its Circular Economy Action Plan, which forms a cornerstone of the European Green Deal. This regulation is designed to cover a wider variety of product categories and introduce sustainability measures that go beyond energy efficiency. The ESPR introduces stricter rules on durability, repairability, and recyclability, while also addressing issues such as the presence of harmful substances and product lifecycle management.
The ESPR also shifts the focus from just reducing energy consumption to fostering a circular economy. This transition means that products placed on the EU market must be designed with their entire lifecycle in mind, promoting reuse, upgrading, and recycling.
Crucially, the ESPR introduces the Digital Product Passport (DPP), which provides detailed, accessible information on a product’s sustainability performance, materials, and end-of-life handling. This transparency will help businesses, consumers, and authorities track a product’s environmental impact, ensuring greater accountability throughout the supply chain.
The ESPR is not just a continuation of the EU’s previous sustainability efforts but also a leap forward, aimed at transforming how products are designed, used, and disposed of within the European market. Its core objectives extend beyond energy efficiency to encompass a broad range of environmental concerns, including:
One of the most significant shifts introduced by the ESPR is its focus on enhancing the circularity of products. This means designing products to be:
By focusing on these aspects, the ESPR aims to reduce the overall demand for raw materials, reducing environmental impacts linked to resource extraction, including deforestation and pollution.
The ESPR sets rules that push manufacturers to minimise both the carbon footprint and the broader environmental impacts of their products. This includes reducing the use of hazardous chemicals, improving resource efficiency, and ensuring that more recycled content is used in products. By promoting these design changes, the regulation contributes to the EU’s ambitious climate goals under the European Green Deal, including reaching climate neutrality by 2050.
Another important objective of the ESPR is to combat waste through its ban on the destruction of unsold goods. Many companies, particularly in the fashion industry, have been criticised for destroying unsold inventory. The ESPR introduces rules that will phase out the destruction of unsold products, starting with textiles and footwear, which must either be reused or recycled.
To enhance transparency and traceability, the ESPR introduces the Digital Product Passport (DPP), which will store essential information about a product’s sustainability performance, materials, origin, and recycling options. The DPP will be accessible electronically and will help both consumers and authorities make informed decisions about product sustainability. It also supports regulatory compliance by making it easier to track the life cycle of products from production to disposal
The ESPR is part of the broader Circular Economy Action Plan under the European Green Deal. By introducing measures that address the environmental impact of products throughout their entire lifecycle, the ESPR supports the EU’s efforts to decouple economic growth from resource use, reducing environmental pressure while supporting innovation in sustainable product design.
One of the main features of the Ecodesign for Sustainable Products Regulation (ESPR) is the introduction of the Digital Product Passport (DPP). This new tool is designed to improve transparency, traceability, and sustainability in the supply chain by storing and sharing critical product information in an accessible digital format. The DPP is a key element in ensuring that both consumers and authorities have the information they need to make more sustainable choices and enforce regulatory compliance.
The Digital Product Passport (DPP) is essentially a digital profile assigned to products, components, or materials, which includes information on the product's sustainability performance, composition, and lifecycle. The DPP will act as a comprehensive resource for stakeholders at all levels of the supply chain - manufacturers, regulators, and consumers - to access important data about a product's environmental impact.
This passport will include details such as:
The DPP aims to create a closed-loop system, where the environmental impact of a product is tracked and minimised from the design stage to its end-of-life management.
The DPP will be linked to products via a scannable code (QR code), giving consumers and authorities access to sustainability data. Information stored in the passport will be centrally available through a DPP registry, enabling easy verification by customs authorities, market surveillance authorities, and other stakeholders. This will be particularly useful for ensuring compliance with the ESPR across different product categories.
The DPP will include:
The Digital Product Passport offers a number of advantages, including:
Another important aspect of the Ecodesign for Sustainable Products Regulation (ESPR) is the framework for establishing ecodesign requirements. These requirements ensure that products sold in the EU meet stringent environmental standards throughout their entire lifecycle. The ESPR adopts a dual approach by setting both product-specific requirements and general sustainability rules that apply across different product categories.
The ESPR allows the European Commission to set specific environmental rules for particular product categories through detailed regulations known as “delegated acts”. These regulations are based on impact assessments and consultations with key stakeholders to ensure they align with the EU's sustainability goals. Priority products include textiles, electronics, and energy-related products.
The performance requirements for these products may elements such as include:
💡 In the electronics industry, for example, the ESPR could enforce strict guidelines on making devices like smartphones or laptops easier to disassemble for repair or recycling. This could include requirements for manufacturers to use standardised screws and avoid excessive use of adhesives that make devices difficult to open. Not only would this help to extend the lifespan of devices as consumers would be able to simply replace faulty or aging components but it would also allow recycling facilities to separate valuable materials, such as rare earth metals and plastics, which would improve the efficiency of recycling processes and reduce the environmental impact of discarded electronics.
In addition to product-specific rules, the ESPR also introduces general sustainability standards that apply to a wide range of product categories. These cross-cutting measures address environmental concerns common to various industries and types of products. Examples of general requirements include:
The ecodesign requirements - both product-specific and general - will be implemented gradually. The timeline and product priorities will be determined by the Ecodesign Forum and the ESPR Working Plan. The first plan, due by April 2025, will outline which products will be prioritised and when the requirements will come into effect.
One of the boldest measures introduced by the ESPR is its ban on the destruction of unsold consumer goods. This regulation addresses a significant issue in industries - particularly in fashion, electronics, and retail - where unsold inventory is often destroyed to avoid costs related to storage, discounting, or recycling. This results in enormous waste, as valuable resources are discarded rather than being reused or recycled.
The fashion industry is one of the primary targets of this ban. Fast fashion brands often face excess inventory that is unsold due to overproduction, trends changing rapidly, or seasonal changes. Instead of selling items at a discount or donating them, many companies opt to destroy unsold clothing and accessories to maintain their brand’s image or avoid paying to store them. Under the ESPR, starting in 2026, large companies will no longer be able to destroy unsold textiles and footwear. Instead, they will be required to either recycle, donate, or repurpose these items, reducing unnecessary waste and saving resources.
Although the initial focus is on textiles and footwear, the ESPR leaves room for expanding the ban to other sectors in the future. Electronics, for example, is another industry where unsold goods are often destroyed due to rapid product cycles, with newer models replacing older ones before all stock is sold. With the ESPR in place, companies in these sectors will be required to find sustainable alternatives to destroying unsold items, either through refurbishment, recycling, or donation.
The ESPR also mandates that companies be transparent about the disposal of unsold goods. Large businesses will be required to disclose how many unsold products they discard each year, as well as the reasons for discarding them. This information must be made public on their websites, holding companies accountable for their waste practices and providing consumers with greater transparency.
Medium-sized enterprises will have until 2030 to comply with this ban, giving them more time to adapt to the new rules. Smaller companies, due to their limited resources, are currently exempt from the ban, although they are encouraged to adopt more sustainable practices.
The ESPR doesn’t just impact products made within the EU, it also affects those imported into the EU market. As one of the world’s largest trading blocs, the EU’s environmental standards have significant global consequences. Under the ESPR, any products sold in the EU - whether manufactured domestically or abroad - must meet the same sustainability and circular economy requirements.
The ESPR aligns with international trade rules but raises the bar on what is required for products to enter the EU market. For manufacturers outside the EU, this means adapting their products to meet EU sustainability standards, such as ensuring durability, repairability, and recyclability, as well as complying with the new Digital Product Passport (DPP) system. The DPP will track the sustainability performance of products and materials, which could make compliance more complex for companies that rely on global supply chains.
For developing countries that export large quantities of textiles, electronics, and other products to the EU, these new requirements may pose challenges. However, the EU has committed to supporting its trade partners, providing assistance to help align their production processes with the ESPR's standards.
The Ecodesign for Sustainable Products Regulation (ESPR) presents both challenges and opportunities for businesses operating within the EU and those exporting to the EU market. The regulation raises the bar for product design, sustainability, and transparency, which will require companies to make significant adjustments to their operations, but also opens new avenues for innovation and market competitiveness.
The main challenges faced by companies include:
| Business Challenge | Description (Why) | Tip to Overcome It |
|---|---|---|
| Product redesign for durability, reparability, and recyclability | New standards require businesses to design products that last longer, are easier to repair, and can be recycled, which requires rethinking traditional product designs. | Invest in R&D for innovative, modular product designs, and partner with sustainability experts to ensure compliance. |
| Compliance with the Digital Product Passport (DPP) system | The DPP demands tracking and sharing detailed lifecycle data, which can be technically complex and costly to implement for large-scale or global operations. | Develop or adopt digital tools to track lifecycle information, and work with tech providers to streamline DPP integration. |
| Managing complex global supply chains | Global supply chains often involve many suppliers and regions, making it difficult to ensure that all parts of the chain comply with the ESPR standards. | Enhance communication with suppliers, conduct regular assessments, and adopt lifecycle assessment tools to maintain compliance. |
| Substance transparency and reducing hazardous materials | The ESPR mandates the reduction of harmful substances, requiring companies to audit materials used and find eco-friendly alternatives. | Conduct thorough audits of materials used and actively research or invest in alternative materials to replace harmful substances. |
| Cost of implementing new technologies and processes | Implementing the necessary changes requires significant investment in new technologies and processes, which can be particularly challenging for smaller businesses. | Take advantage of available EU and government grants to help offset costs, and focus on long-term savings through improved resource efficiency. |
However, the ESPR also provides opportunities for companies willing to adapt. Businesses that embrace sustainable product design can gain a competitive advantage by meeting the growing demand for eco-friendly products. As consumer awareness of environmental issues continues to rise, offering sustainable products can enhance brand reputation and attract a sustainability-conscious customer base.
The ESPR also encourages innovation. Companies that invest in research and development to create more durable, repairable, and recyclable products will not only reduce their environmental impact but could also lower long-term production costs. By optimising resource use and minimising waste, businesses can improve efficiency and potentially save on materials.
In the long run, the ESPR may help companies future-proof their operations, as stricter environmental regulations become more common worldwide. Adopting ESPR standards now can prepare businesses for similar regulations in other markets, making them more resilient to future policy changes.
The ESPR marks a major shift in how products are designed, produced, and managed within the EU, pushing for higher sustainability standards across industries. As the regulation continues to roll out over the coming years, it is set to evolve in response to new challenges and innovations in the market.
With time the scope of the ESPR will likely be expanded to include other product categories and industries. While the initial focus is on textiles, electronics, and energy-related products, other sectors like construction materials or food packaging could eventually fall under the regulation.
At its core, the ESPR is about moving towards a circular economy. By promoting products that are more durable, repairable, and recyclable, the regulation seeks to minimise waste, reduce the consumption of finite resources, and lower carbon emissions. As more businesses adopt these practices, the EU market will see a significant reduction in its environmental footprint.
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Greenly empowers businesses to measure, track, and reduce their carbon emissions across the entire supply chain, helping you move toward a more sustainable future. While the ESPR focuses on sustainable product design, we focus on helping you understand and manage the carbon footprint of your operations.
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