ECO-DESIGN

The Eco-design for Sustainable Products Regulation (ESPR), which the EU entered into force in July, aims to reduce environmental impacts and increase energy efficiency. Central to achieving the goals of the EU's 2020 Circular Economy Action Plan, the Eco-design Regulation is designed to support the Union's environmental policies and sustainable development goals. The regulation will contribute to achieving energy efficiency targets by 2030 by doubling the rate of circularity in material use.

It will come into effect after 24 months.

Published in the Official Journal of the European Union on June 28, 2024, the Eco-design Regulation entered into force on July 18, 2024. It will come into effect after 24 months.

The regulation also aims to reduce the environmental impact of products and increase the circularity of products on the EU market. The ESPR (Environmental, Social, and Cultural Heritage Protection Regulation), which will play a critical role in achieving the EU's environmental and climate goals, aims to significantly improve the circularity, energy performance, and other environmental sustainability aspects of products on the EU market. This step also supports the protection of the planet, the promotion of sustainable business models, and the enhancement of the overall competitiveness and resilience of the EU economy. Under the regulation, products are targeted to use less energy, have a longer lifespan, be easy to repair, have easily disassembled and reusable parts, contain fewer harmful substances, include more recycled content, and have a lower carbon and environmental footprint throughout their life cycle.

The regulation also introduces new tools and measures such as a digital product passport, preventing the destruction of unsold consumer goods, and green public procurement.

Digital Product Passport to be Implemented

The regulation envisages the establishment of a digital system to make product information traceable. This system will store the necessary information to support the sustainability, circularity, and legal compliance of products. The first digital product passports are planned to become operational by 2027/2028, focusing on high-impact categories such as batteries for electric vehicles, textiles and apparel, and furniture. The aim of the digital product passport is to enable actors along the value chain to easily access relevant product information, facilitate product compliance verification by competent national authorities, and increase product traceability throughout the value chain.

Prevention of unsold product destruction

The Eco-design Directive introduces rules to prevent the destruction of unsold consumer goods. Under the current system, many unsold products are destroyed in the EU, leading to a waste of valuable resources. The ESPR addresses this practice by introducing a ban on the destruction of unsold textiles and apparel, as well as footwear, for the first time. To ensure proportionality and prevent the indefinite storage of unsold products, the Commission will adopt a follow-on directive outlining exceptions 12 months after entry into force.

Businesses that dispose of or destroy unsold consumer goods directly will be required to disclose the reasons for destruction, the annual number and weight of items destroyed, the waste processing procedures, and the measures taken to prevent destruction. This information will be published clearly and visibly on the businesses' websites. The regulation will apply for the first year after its entry into force for large businesses, and for six years after its entry into force for medium-sized businesses, while micro and small businesses will be exempt from this notification. Unsold consumer goods prohibited from destruction include leather clothing and accessories, knitwear, straw hats, lace or felt hair accessories, and waterproof shoes made of leather, rubber, or plastic.

Textiles, Apparel, and Footwear to be Included in the Initial Work Plan

The ESPR (Ecodesign Practices Regulation), a framework law that will establish rules on a product basis or on a group basis with similar characteristics, will begin with a prioritization process. Textile products, particularly apparel and footwear, are among the product groups to be prioritized in the initial work plan. Product rules will be developed based on comprehensive planning, detailed impact assessments, and regular stakeholder consultations. These studies will be conducted through the Ecodesign Forum.

Regulations are also coming to labels

Labels are also highlighted in the regulation. The content, layout, visibility, and readability of product labels will be controlled under the new regulation. The regulation will also regulate how labels are displayed to customers and, where necessary, tools for creating labels electronically. Products with labels containing any information that could mislead or confuse customers will not be allowed on the market.

The inclusion of "premature obsolescence" as a requirement in the ecodesign regulation is also noteworthy. The issue of design flaws arises when a product becomes dysfunctional or performs less well without being a result of normal wear and tear. To prevent premature product obsolescence, attention must be paid to design choices, the use of durable components, making disassembly of key components difficult, and ensuring the availability of repair or spare parts. Another eco-design requirement is “performance and information requirements.”

The regulation will introduce green public procurement, ensuring that environmentally sustainable products are prioritized in public procurement. The regulation also imposes various obligations on manufacturers, authorized representatives, importers, distributors, dealers, online marketplaces, and search engines.