New EU Ecodesign Rules for Unsold Consumer Products: Key Points from Jonas Köster & Tobias Klatt

The European Union is intensifying its sustainability efforts with forthcoming implementing rules under the EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781 (ESPR). These rules focus on enhancing transparency and prohibiting the destruction of unsold consumer products, impacting businesses inside and outside the EU.

Background and Purpose

• Launch of ESPR: The regulation has been in force since 18 July 2024.
• Environmental Concern: The EU targets the growing environmental problem from widespread destruction of unsold goods — seen as wasteful and resource-draining.
• Market Harmonization: Multiple Member State laws addressing product destruction created inconsistent market conditions; ESPR aims for uniform rules and incentives across the EU.

Timeline and Scope

• Applicable to All Products Placed on the EU Market: Whether or not the company is based in the EU.
• Deadlines:
  • 2026: Audited disclosure obligations commence for large enterprises (reporting on 2025 data).
  • 19 July 2026: Ban on unsold product destruction enforced.
  • 19 July 2030: Disclosure obligations extend to medium-sized enterprises.

Key Regulatory Acts in Progress

1. Implementing Act on Disclosure Requirements (Article 24 ESPR)
2. Delegated Regulation on Exceptions to Destruction Ban (Article 25 ESPR)

Both are expected by Q3 2025 and will provide common standards for transparency, reporting formats, and justified exceptions.

Transparency and Disclosure Requirements (Article 24 ESPR)

Enterprises must annually disclose detailed data about unsold consumer products they discard, including:

• Quantity: Number and weight by product type or category.
• Reasons: Reasons for discarding and applicable exemptions.
• Waste Treatment: Breakdown of reuse, recycling, other recovery, or disposal methods.
• Preventive Actions: Current and planned measures to avoid destruction of unsold products.

Disclosure Format

• Information must be accessible on the company’s website or within sustainability reports compliant with Articles 19a or 29a of the EU Accounting Directive 2013/34/EU.
• Consolidated reporting by a parent company for subsidiaries is permitted.
• Standardized formats will be mandated for better comparability, outlined in the draft implementing act (three sections covering organizational details, product and waste info, preventive measures).

Verification

• Enterprises already producing sustainability reports must obtain limited assurance from statutory auditors or accredited assurance providers on the accuracy of disclosures.

Penalties and Enforcement

• EU Member States will impose national penalties for non-compliance; for example, Germany previously fined up to €50,000 per incident under older rules, potentially higher under ESPR.

Practical Implications for Businesses

• Enterprises trading consumer products on the EU market should prepare robust systems to:

  • Track unsold inventory and disposal methods.
  • Transparently report annually in the approved format.
  • Implement and document preventive strategies.
  • Ensure auditing readiness.

• Early engagement with these requirements is critical, especially as detailed rules are finalized.

Conclusion

The new EU Ecodesign rules represent a significant step in embedding sustainability into product life cycles by curbing waste from unsold goods. Businesses targeting the EU consumer market must closely monitor these developments to ensure compliance, contribute to sustainability goals, and avoid penalties under the ESPR framework starting mid-2026. —

For a detailed breakdown and latest updates, follow our ongoing coverage of EU sustainable product regulations.

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