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New EU Ecodesign Rules Targeting Unsold Consumer Products under ESPR

The EU is strengthening its commitment to sustainability through new rules under the EU Ecodesign Regulation for Sustainable Products (EU) 2024/1781 (ESPR). Central to these changes are stricter transparency requirements and a ban on the destruction of certain unsold consumer products—a growing environmental and economic concern.

Overview of New Requirements

• Applicability: Rules apply to all products placed on the EU market, irrespective of whether companies are located inside or outside the EU.
• Key Deadlines:
  • Audit-backed disclosure obligations start in 2026, reporting on 2025 data.
  • Destruction ban takes effect from 19 July 2026.
• Scope: Initially targets large enterprises, with medium-sized enterprises covered starting 19 July 2030. #### Goals of the ESPR Measures

The new framework addresses the widespread and environmentally harmful practice of destroying unsold consumer products, exacerbated by the surge of online sales. Beyond environmental damage, the destruction represents a significant waste of valuable resources. The EU aims to harmonize regulations to prevent market distortions caused by varying Member State laws, ensuring a level playing field and promoting more sustainable practices.

Transparency and Disclosure – Article 24 ESPR

Enterprises must annually disclose detailed information on unsold consumer products that are discarded:

• Quantity: Number and weight of discarded products, categorized by type.
• Reasons: Explanation for product disposal, including any applicable exceptions.
• Waste Treatment: Breakdown of products prepared for reuse, recycling, recovery, or disposal.
• Prevention: Measures taken or planned to avoid future destruction.

Disclosures must be made either on an accessible company webpage or within mandated sustainability reports. Large enterprises must secure limited assurance from an auditor or accredited provider to verify disclosures.

Draft Implementing Acts and Timeline

The EU Commission is preparing two critical legal acts:

1. Implementing Act on Disclosure (Article 24 ESPR): Sets specific disclosure details, including standardized reporting formats for comparability and product category classifications based on the Combined Nomenclature.

2. Delegated Regulation on Exceptions to the Destruction Ban (Article 25 ESPR): Defines justified derogations from the destruction prohibition.

These acts are expected to be finalized by Q3 2025, providing clarity on transparency obligations and the scope of exceptions. Non-compliance penalties will be nationally enforced, with examples such as Germany imposing fines up to EUR 50,000 per violation.

Implications for Businesses

• Businesses operating in or selling to the EU face stringent new reporting and operational requirements regarding unsold stock.
• The regulation encourages enterprises to adopt sustainable inventory management strategies to minimize waste.
• Enterprises must prepare to integrate sustainability and transparency into their core business processes with audited reporting playing a significant role.

In summary, the EU’s upcoming Ecodesign rules under ESPR mark a pivotal step in curbing resource waste and environmental harm linked to unsold consumer products. By mandating transparency, banning destruction, and encouraging preventative measures, the EU is fostering a circular economy mindset crucial for sustainable business practices and long-term ecological impact.

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