Eco-Design For Sustainable Products Regulation (ESPR)

On 28th June 2024, the European Commission officially published the Eco-design for Sustainable Products Regulation (ESPR), which will come into force on 18th July 2024 and will replace the existing Eco-design Directive (2009/125/EC). ESPR will replace the existing Eco-design Directive (2009/125/EC) and become an important tool to promote the EU's circular economy, aiming to make sustainable products the norm in the market. By 2027, the requirements of the regulation will be mandatory for products sold in the EU, including goods produced outside the EU.

Key elements and requirements:

Eco-design requirements:

the ESPR proposes 16 eco-design dimensions, including product durability, recyclability, energy efficiency and environmental impact, by setting product performance and disclosure requirements. Specific design criteria will be gradually clarified through the subsequent enabling bill, covering various categories such as textiles, furniture and electronic products. The requirements not only focus on the carbon footprint of the product, but also emphasise environmental performance throughout the life cycle.

Digital Product Passport (DPP):

ESPR introduces the Digital Product Passport as a centralised carrier of product information. The passport will contain data on a product's eco-design performance, traceability, etc., facilitating the repair and recycling of the product. 2026 will see the establishment of a centralised registration system for the DPP, which will serve as a barrier to entry for relevant products into the EU market.

Prohibition of destruction of unsold goods:

In response to the waste of resources caused by 'fast fashion' and e-commerce, the ESPR prohibits the destruction of unsold clothing, footwear and other goods from 2026 onwards. Large companies will be required to publicly disclose information on the disposal of unsold goods, medium-sized companies will be given a transition period, and micro and small companies will be exempted from this requirement.

Implementation Impacts and Challenges:

The ESPR will have a profound impact on the global supply chain, especially on major EU goods suppliers such as China. Companies will need to adjust their product design, material selection and production processes to comply with the new eco-design requirements. For key industries such as textiles, ESPR could become a technical barrier to trade, leading to an increase in associated costs and intensifying pressure for supply chain adjustments. Brands may scale back the number of suppliers and SMEs face greater compliance challenges.

Business Response Suggestions:

To cope with the changes brought about by ESPR, KITECH will take a number of measures. Firstly, we will further enhance the durability and recyclability of our products and continuously optimise equipment design. Secondly, KITECH will strengthen data management to ensure compliance with the Digital Product Passport. At the same time, we will optimise our supply chain management to ensure that upstream materials and components comply with the relevant regulations. In addition, KITECH will pay close attention to EU policy trends and adjust production and sales strategies in time to cope with the gradual implementation of regulations.