The fashion industry faces increasing scrutiny for its environmental impact and social conditions. It accounts for nearly 10% of all global carbon emissions – more than international flights and maritime shipping combined.[1] With over 100 to 150 billion garments produced annually, an estimated 4-9% of textiles in the European market are destroyed before use[2], amounting to 264,000 to 594,000 tonnes of textiles destroyed each year.[3] Only 1% of used clothes are recycled into new garments.[4]

At European level, the legislative climate is slowly moving towards increasing requirements with the goal of reducing environmental impact of products throughout their lifecycle and incentivizing production of durable products with recycling ability.

Driving change with the ESPR

In early 2022 the European Commission has proposed the Ecodesign for Sustainable Products Regulation (ESPR), an expansion upon the existing Ecodesign Directive.[5] Rooted in the European Commission’s Circular Economy Action Plan of March 2020 (CEAP) and the European Green Deal of 2019[6], the ESPR aims to significantly reduce the environmental impact of products throughout their lifecycle. With the European Parliament’s recent endorsement, the ESPR is set to take effect in July 2024.[7] 

Transforming fashion sustainability

The ESPR will empower EU member states in implementing ecodesign requirements for specific product groups to significantly improve their circularity, energy performance and other environmental sustainability aspects. Textiles (garments & footwear) being a priority product group.[8] As framework legislation, the ESPR will enable adoption of specific measures based on thorough impact assessment.[9] 

Its comprehensive scope covers all aspects of circularity, including product durability, reusability, reparability and refurbishment, recycled content, possibility of recycling; presence of chemical substances that inhibit reuse and recycling; energy use and efficiency and waste generation; etc.[10]

To whom will it apply?

The rules proposed under the ESPR will apply to all products placed on the EU market, whether produced within the EU or imported. This will affect manufacturers, brands and retailers (be they inside or outside the EU) as well as those distributing products through online marketplaces.[11]

Performance and information requirements

The ESPR introduces both performance and information requirements. Performance requirements set binding targets for material use and production, while information requirements mandate transparency about product sustainability. Companies will need to disclose information on the sustainability characteristics of products, including through a Digital Product Passport (DPP). The DPP will be an easily accessible tag on products giving instant access to information on the product's sustainability, guiding consumers and supply-chain businesses in making more sustainable product choices and also for customs and market surveillance authorities.[12]

Penalties for incompliance

EU member states are to lay down the rules applicable to infringements of the national provisions, such as penalties for non-compliance, including fines. While penalties may vary in the respective member states, fines and exclusion from public procurement will be established as a minimum requirement.

When can we expect sustainable transformation?

Before products will have to comply with information and performance requirements it will be 2027. When the main ESPR is formally approved, delegated acts will need to be adopted by the European Commission setting out specific requirements, with the first working plan expected in early 2025 for textiles (garments and footwear) as a priority sector.[13] Companies will have at least 18 months after a delegated act is adopted to transition into compliance, meaning the first date by which compliance may be required is likely to be 2027.[14] Standards for the DPP are foreseen to be finalized end of December 2025 with a transition period for the industry to adapt until 2027. Reporting obligations for the destruction of unsold goods begin in 2025 and compliance obligations will take effect from 2026 for apparel and footwear.[15]

The road ahead: sustainable by design

The ESPR promises a new era of circularity in the EU market. Future products will feature improved material and resource efficiency, durability and repairability, and a higher share of recycled content with less chemical substances. While the path towards regulating the fashion industry is lengthy, the ESPR encourages significant potential and impact both in the EU and globally. This regulation will empower consumers and businesses to make educated, sustainable choices on their purchases throughout textile supply chains, driving a greener future for the fashion industry.

[1]The impact of textile production and waste on the environment (infographics) | Topics | European Parliament (europa.eu).

[2] Through Global Fashion Industry Statistics (fashionunited.com): Sources: more than 100 billion according to McKinsey & the Ellen MacArthur Foundation. The World Economic Forum & ShareCloth state that 150 billion garments are produced in a year.

[3]The destruction of returned and unsold textiles in Europe’s circular economy — European Environment Agency (europa.eu).

[4]The impact of textile production and waste on the environment (infographics) | Topics | European Parliament (europa.eu).

[5] Ecodesign for Sustainable Products Regulation - European Commission (europa.eu).

[6] Circular economy action plan - European Commission (europa.eu) / Provisional agreement for more sustainable consumer products (europa.eu)

[7] The Ecodesign for Sustainable Products Regulation - REACHLaw.

[8] Provisional agreement for more sustainable consumer products (europa.eu)

[9] Ecodesign for Sustainable Products Regulation - European Commission (europa.eu).

[10] Recital 103 ESPR

[11] Ecodesign for Sustainable Products Regulation - European Commission (europa.eu)

[12] Provisional agreement for more sustainable consumer products (europa.eu)

[13] ESPR Guide – What is it & How to prepare (2024 Update) | Ecochain

[14] Green transition: Council gives its final approval to the ecodesign regulation - Consilium (europa.eu)

[15] Ecodesign for Sustainable Products Regulation (ESPR) (sustainablebrandplatform.com)