The new ESPR Regulation establishes a framework for setting Ecodesign requirements for sustainable products and replaces the previous Directive 2009/125/EC (which applied to a limited range of products). As you may know, a Regulation comes into force once it is approved by the European Commission.

The Regulation on Ecodesign for Sustainable Products (ESPR) officially came into effect on July 18, 2024. This groundbreaking regulation is part of the European Union’s ongoing efforts to transition towards a circular economy and achieve climate neutrality. The regulation is a part of the Circular Economy Action Plan and is also a key component under the European Green Deal.

Here’s what you need to know about the ESPR, its impact, and how to ensure compliance:

What is ESPR?

ESPR is a comprehensive framework designed to improve the sustainability of products sold in the EU market. It builds upon the existing Ecodesign Directive but goes further, covering a broader range of products and introducing stricter requirements. ESPR focuses on creating more environmentally friendly products throughout their entire lifecycle, from production to disposal.

Key Objectives of ESPR:

  • Reducing Resource Consumption: Encourages efficient use of materials and energy in product design.
  • Enhancing Durability and Repairability: Ensures that products are built to last longer and are easier to repair.
  • Promoting Recycling: Increases the use of recycled materials in products and improves their recyclability.
  • Improving Energy Efficiency: Sets stricter energy performance standards for products.

Who is Affected by ESPR?

ESPR has a broad impact, affecting all companies selling products in the EU, regardless of where they are manufactured. This includes:
  • Manufacturers: Must design products that meet the new sustainability criteria.
  • Importers: Are responsible for ensuring that imported products comply with ESPR requirements.
  • Retailers: Must ensure that the products they sell meet the necessary standards.
Global Impact Even companies based outside the EU will be affected if they wish to access the EU market. This regulation will influence global supply chains, forcing companies worldwide to reconsider product design and manufacturing processes to comply with EU standards.

The environment and the economy are really both sides of the same coin. If we cannot sustain the environment, we cannot sustain ourselves.

Wangari Maathai, Environmental and Political Activist – Quote

What Are the New Requirements?

  1. Ecodesign Framework: ESPR sets tailored performance and information requirements for specific product groups, aiming to enhance environmental performance and ensure consumers are properly informed about product sustainability.
  2. Digital Product Passports: One of the most innovative aspects of ESPR. These electronic records will provide detailed information about a product’s components, materials, repairability, and proper disposal. This will help consumers and businesses make informed decisions and increase transparency across the supply chain.
  3. Destruction of Unsold Products: ESPR introduces measures to prevent the destruction of unsold consumer products, a significant step towards waste reduction. For example, there is a ban on destroying unsold textiles and footwear. Large companies will be completely prohibited from destroying unsold clothing, accessories, and footwear within two years of the regulation’s publication. Small businesses, however, have been granted a derogation.
  4. Green Public Procurement: The regulation also establishes criteria to make public procurement more sustainable, encouraging governments to set an example by purchasing green products.

Timeline: When Does ESPR Come into Force?

ESPR officially came into force on July 18, 2024. However, it’s important to note that specific requirements will be introduced gradually through delegated acts targeting different product categories. This means that while the regulation became official two months ago, businesses will have some time to adapt to the new standards as they are implemented.

What Happens If You Don’t Comply?

Non-compliance with ESPR can have significant consequences, including:

  • Fines: Financial penalties for failing to meet the imposed standards.
  • Product Withdrawal from the Market: Non-compliant products may be removed from the market.
  • Ban on Selling in the EU: Companies that repeatedly fail to comply could be banned from selling in the EU.
  • Reputational Damage: Failing to meet sustainability standards could harm the company’s reputation, affecting customer trust and sales.

How Should Companies Prepare?

To ensure compliance and maintain access to the EU market, companies should start preparing now:

  • Review Product Design: Ensure that products meet the new ecodesign and sustainability criteria.
  • Evaluate Supply Chains: Assess and adjust supply chains to ensure alignment with ESPR requirements.
  • Update Information Systems: Implement systems to track and report the necessary information for Digital Product Passports.

ESPR represents a significant shift in how products are designed, produced, and sold in the EU. By preparing early, you can not only avoid penalties but also gain a competitive advantage in the market by being a leader in sustainability.

Need More Information or Have Questions?

If you have questions or need more information on how ESPR might affect you, don’t hesitate to contact us. We are here to help you navigate these changes and share best practices to ensure you are fully prepared for the new regulation.

By understanding and complying with ESPR, your business can contribute to a more sustainable future while maintaining a strong position in the EU market.

CONTACT US to understand how to go further and prepare to comply.