Ecodesign laws are one step closer, and they are going to affect anyone who does business in the EU. On July 12, 2023, EU Parliament MEPS in plenary adopted a report prepared by the EU Commission, which put forward a proposal for regulations to establish a framework for ecodesign requirements for sustainable products, the Ecodesign for Sustainable Products Regulation (ESPR). In the Commission’s words, “Ecodesign” means the “integration of environmental sustainability considerations into the characteristics of a product and into processes throughout its value chain.” But what does that mean in practice, especially for businesses? And what has been the industry reaction to ESPR? We find out.
- What is the Ecodesign for Sustainable Products Regulation?
- Industry responses to the Ecodesign for Sustainable Products Regulation
- What’s next for the Ecodesign for Sustainable Products Regulation?
Updated 17 July 2023
What is the Ecodesign for Sustainable Products Regulation?
The EU currently does not have any general sustainability or circularity requirements for all products on the internal market. The existing Ecodesign Framework Directive covers only energy-related products. In line with its drive towards a circular economy, the EU is looking to change that.
The proposed Ecodesign for Sustainable Products Regulation (ESPR) would lay down rules applying to all products on the internal EU market, with the aim of making them more durable, reusable, reparable, upgradable, recyclable and generally less harmful to the environment (so-called “performance requirements”). Product groups would be prioritized based on their potential contribution to EU climate, environmental and energy efficiency goals and their potential for improvement without disproportionate costs.
The regulation would also include “information requirements,” with rules on digital product passports and misleading labels, as well as requirements on green public procurement and banning the destruction of unsold goods, including textiles. The proposals build on the EU Green Deal and the circular economy action plan (CEAP).
In addition to rules relating to manufacturers, the regulations would also specify certain obligations for online marketplaces, which would be required to cooperate with market surveillance authorities to ensure effective market surveillance measures. This includes withdrawing non-compliant items.
Member States would be allowed to provide incentives for consumers to make sustainable choices, in particular when more sustainable products are not sufficiently affordable, by, for instance, introducing eco-vouchers and green taxation.
Business responses to the Ecodesign for Sustainable Products Regulation
In an EU briefing before the report was adopted, Euratex, representing the EU textile industry, is quoted as welcoming the provisions on the digital product passport, ecodesign requirements, SMEs and green public procurement but warns that implementation, especially market surveillance, is key.
They add, if the regulation is implemented wrongly, it “may cause a complete collapse of the European textile value chain under the burden of restrictions, requirements, costs and unlevel playing field.” However, Euratex believes that if implemented correctly, the changes could create a boom in the entire textile ecosystem.
With the EU estimating that 99 percent of all business in the European union is represented by small and medium-sized enterprises (SMEs), the Ecodesign for Sustainable Products Regulation is sure to affect many.
Whilst acknowledging the positive repercussions of a region-wide ESPR, SMEunited – the association of crafts and SMEs in Europe, with around 70 member organizations from over 30 European countries – said in September 2022 that the scope of ESPR concerned with SMEs is “insufficient and will not reply to the underlying structural problem: The new ecodesign framework will structurally disadvantage SMEs by creating disproportionate costs.”
Pointing to the fact that many SMEs are not used to working with, for example, Life Cycle Assessments (LCAs), SMEunited requests specific ecodesign support tools for SMEs. Furthermore, that the Commission should “guarantee the real participation of SMEs and of their representatives in the working groups establishing ecodesign measures […] in order to make sure that the result is applicable by SMEs without excessive costs and red tape.” They add that financial support for the participation of SMEs in the ESPR should be considered.
The European Fashion Alliance (EFA), founded in 2022, is a membership-based alliance gathering international fashion and textile organizations. They also gave a response to the proposal. Whilst supporting the “wide and ambitious regulation” objectives of the ESPR, it raised questions about legislating a creative-driven industry: “While we acknowledge that the textiles and footwear products have been identified as potentially suitable for first action under the ESPR, it is essential that […] specificities of the creativity-driven products are considered when establishing horizontal measures for textiles.”
The EFA instead calls for the “implementation of feasible, yet ambitious enough eco-design requirements established in cooperation with representatives of the industry, all along the value chain,” which take into account issues with the incorporation of recycled content, recyclability, and that “durability” is a holistic matter. It advocates for “the consideration of trade-offs between these eco-design requirements in order to achieve sustainability in a comprehensive and practical, yet ambitious manner.”
In a statement released after the July 12 adoption of the report, the Federation of European Sporting Goods Industry (FESI) released a statement welcoming the move. However, it raised concerns over elements concerning the destruction of unsold goods and how reporting requirements will affect safeguarding of sensitive commercial data.
Whilst fully supporting the objective of the ESPR proposal and particularly the need to make goods placed on the Union market more sustainable, FESI expressed some deep concerns regarding Parliament’s position on certain provisions around the ban on the destruction of unsold goods, stating: “While the destruction of unsold goods suitable for sale should, of course, be avoided, the current proposed scope remains unclear.” In particular, FESI argues that contrary to the proposal, recycling should not be considered as “destruction.”
What’s next for the Ecodesign for Sustainable Products Regulation?
The council adopted its position on the proposal on May 22, 2023. The report was adopted on June 15 and was voted on in plenary sessions on July 12, 2023 (passing 473 votes in favor, 100 against, and 69 abstentions).
As a next step, the EU parliament is now ready to begin talks with national governments on the final form of the law.
SGI Europe will continue to monitor the situation and keep you updated on any new developments. To be sure to stay in the loop, visit our comprehensive links collection, which contains links to organizations aimed at keeping textile and apparel businesses ahead of the curve, check out our legal and institutional news feed, and subscribe to SGI Europe today.
