Eight key aspects to know about the EU Ecodesign for Sustainable Products Regulation
10 min read
The new Ecodesign for Sustainable Products Regulation1 ("ESPR"), which entered into force on 18 July 2024, is set to significantly reshape the regulatory landscape for companies operating in the European Union ("EU"). As part of the European Green Deal,2 the ESPR introduces stringent sustainability and circular economy requirements that will directly impact product design, production and supply chains across multiple industries.
Key sectors likely to be most affected include electronics, fashion and textiles, furniture, batteries and construction materials such as iron, steel and aluminium, as the ESPR imposes new obligations related to durability, recyclability, energy efficiency and environmental impact disclosure. Companies in these industries - particularly those manufacturing, importing or distributing products within the EU - must prepare for increased compliance challenges and heightened scrutiny from regulators.
This summary outlines eight key aspects of the ESPR that companies should be aware of, helping legal and compliance teams anticipate risks and opportunities in the evolving regulatory landscape.
Almost all physical goods placed on the EU market or put into service are covered
The ESPR covers almost all physical goods placed on the EU market3 or put into service,4 including components and intermediate products. Only certain products including food, feed and medicinal products will be exempt.5
It is expected that some sectors with particularly high carbon dioxide emissions and other substances of concern within their product cycles, will be particularly affected by the ESPR.6 The requirements under the ESPR will provide substantial challenges for industries such as textiles and fashion, electronics and electrical equipment, automotive, batteries, furniture, packaging, and construction.
The European Commission will implement Ecodesign requirements
The ESPR does not establish specific sustainability requirements but provides a general framework for their implementation. It enables the European Commission (the "Commission") to adopt delegated acts7 to set detailed sustainability ("Ecodesign") requirements for specific product groups or horizontally across a broader group.
The ESPR outlines the performance and information requirements for the covered products, aiming to improve the product's characteristics relevant to environmental sustainability (i.e. durability, reusability, recyclability, repairability, etc.).8 The information obligations include the development of a new Digital Product Passport ("DPP") to ensure easy access to the product's information for customers and other stakeholders.
By 19 April 2025, the Commission will adopt a working plan on how to implement the ESPR. 11 product groups will be prioritised in the first working plan: (i) iron and steel; (ii) aluminium; (iii) textiles; (iv) furniture; (v) tyres; (vi) detergents; (vii) paints; (viii) lubricants; (ix) chemicals; (x) energy related products;9 and (xi) information and communication technology products and other electronics.10
Requirements include a DPP
Certain products may only be placed on the EU market if a DPP is available. These products will need to be registered in the new DPP registry managed by the Commission.11 The product passport will ensure the availability of reliable and standardised information on product traceability, enable informed consumer decisions, and present all relevant information to other economic operators across a product's supply chains.12 The product passport will include a summary on, amongst others, processed materials and chemical substances, a product's reparability, spares, or information on appropriate disposal.13 The necessary data carriers containing that information must be attached to the product and allow easy and free-of-charge access for consumers and economic operators.14
The destruction of certain unsold consumer products will be prohibited
The prohibition of the destruction of certain unsold consumer products is expected to have a strong impact on the textile industry starting in July 2026.15 To date, the annex only addresses the textile industry and its waste, as it only lists types of clothing materials.16
However, the ESPR also states that all (that is, not clothing related) economic operators must take the necessary steps to prevent the need to destroy unsold consumer products; they will be obliged to disclose certain information, including, but not limited to, the number and weight of the discarded products and the reasons for their destruction.17 It is expected that the disclosure of this information will support the annex's evaluation and lead to an extension by the Commission of the materials prohibited to be destroyed.18 According to the ESPR's recitals, some types of electronic devices may be the first products to be added to the annex.19
The ESPR will impact most of the value chain
Manufacturers, importers, and distributors (or their legal representatives)20 must comply with a wide range of obligations, including the need to (i) check compliance, (ii) assess conformity and prepare technical documentation, (iii) ensure product identification, (iv) provide clear contact details for customer inquiries, and (v) ensure that instructions are available, downloadable and accessible. If a product is non-compliant, they must take corrective actions, including withdrawal or recall, and inform the market surveillance authorities. Lastly, they must also provide a means of contacting them for any customer complaints or concerns. Importers and distributors are treated as manufacturers if (i) they place a product on the market under their own name or trademark, or (ii) they modify a product in a way that affects its compliance with the requirements.21
Dealers will be expected to ensure products have accurate labels as required, provide sufficient technical documentation to verify the accuracy of the label, and make certain that any advertisements only reflect the information contained in those labels so as to not confuse customers.22 Service providers will ensure that conditions during warehousing, packaging, addressing or dispatching do not compromise the product's compliance with applicable requirements.23
Online marketplace providers24 are expected to cooperate with market surveillance authorities and provide a single contact point for market surveillance for direct communication with Member State authorities,25 and they must provide clear information about the manufacturer, their contact details and product identification.26
Quantities of products must be reported to the Commission for monitoring, to minimise the administrative burden, especially for SMEs. Energy consumption or its performance relating to another facet of the product, also called its in-use data, may need to be recorded and reported to the Commission. Manufacturers may be required to collect and report non-personal in-use data for the review of Ecodesign requirements and to assist market surveillance, whilst avoiding an excessive administrative burden (especially for SMEs).27
Supply chain actors must provide relevant product information upon request from manufacturers, notified bodies or national authorities and allow manufacturers to assess the products they supply and provide documentation or facilities. They must also enable notified bodies or authorities to verify the relevant information related to their activities.28
The ESPR will be subject to public enforcement and to civil liability risks
Each EU Member State must include in its national market surveillance strategy29 activities to ensure that appropriate checks, such as physical and laboratory tests are carried out. Regular reporting and benchmarking will assess the effectiveness of market surveillance efforts. Every four years, the Commission will publish a report that includes information on checks, levels of non-compliance, penalties, indicative benchmarks and a list of priorities amongst other reporting.30
Member States must lay down rules on penalties applicable to infringements and take all measures necessary to ensure that they are implemented, which must be effective, proportionate and dissuasive. Member States will ensure that the penalties established consider (i) the nature, gravity and duration of the infringement, (ii) the economic benefits derived from the infringement, and (iii) the environmental damage caused by the infringement. The penalties will at least include fines and/or time-limited exclusion from public procurement procedures.31
In the event of non-compliance of a product with Ecodesign requirements, private enforcement is available to the consumer. The Directive's regime increases the civil liability risk for companies, especially since the product groups affected by the Directive can be expanded by the European Commission in the future. The liability for damage to the consumer falls on the manufacturer, the importer or other EU-based fulfilment service provider. Consumers should also be entitled to enforce possible claims by way of collective/representative action, which poses a considerable risk for companies.
The ESPR will also affect companies established in third countries
Ecodesign requirements will need to comply with international trade rules,32 and new measures such as the DPP will be developed in an open dialogue with international partners.33 In addition, delegated acts setting Ecodesign requirements will include an assessment of the international dimension and impacts on third countries.
Different timeline for each obligation
The ESPR entered into force on 18 July 2024. It provides different time horizons for the enforcement of the requirements:
- The prohibition of the destruction of unsold consumer products will enter into force on 19 July 2026 for major enterprises and on 19 July 2030 for medium-sized enterprises.34
- The DPP registry will be operational by 19 July 2026.35
- The obligations outlined in the previous Directive on Ecodesign36 will remain in effect:
- until 31 December 2026, for certain energy and heating devices, household and industrial appliances, electronics or specialised equipment and IT equipment; or
- until 31 December 2030, for products regulated by implementing measures related to the previous Directive insofar as technical amendments are required.37
- The first implementing actions will enter into force on 19 July 2025 with regards to disclosure requirements for major enterprises and will apply to medium-sized enterprises starting from 19 July 2030.38
- The ESPR states that its own first evaluation will be issued by 2030, with a further review every six years.39 It should also be noted that the ESPR explicitly orders the Commission to assess the potential benefits of setting requirements in relation to social aspects and to propose future amendments by 2028.40
Looking ahead, the ESPR will introduce far-reaching sustainability requirements that will demand strategic adjustments from businesses across multiple sectors. Therefore, it will be crucial for companies to address those topics early to ensure that they remain compliant and well-positioned for the future.
1 Regulation (EU) 2024/1781 of the European Parliament and of the Council of 13 June 2024 establishing a framework for the setting of Ecodesign requirements for sustainable products, amending Directive (EU) 2020/1828 and Regulation (EU) 2023/1542 and repealing Directive 2009/125/EC.
2 For more information about the European Green Deal, please consult: The European Green Deal - European Commission.
3 "Placing on the market" means the first making available of a product on the EU market (ESPR, Art. 2(40)). "Making available on the market" means any supply of a product for distribution, consumption or use on the EU market in the course of a commercial activity, whether in return for payment or free-of-charge (ESPR, Art. 2(39).
4 "Putting into service" means the first use, for its intended purpose, in the EU, of a product (ESPR, Art. 2(41)).
5 Article 1(2) of the ESPR.
6 Recital 49 and Article 18 of the ESPR.
7 Article 4, Article 8 and Articles 72-73 of the ESPR.
8 Recital 16, Article 5, 6 and 7 of the ESPR.
9 For energy-related products that do not already have Ecodesign requirements or where current measures under Directive 2009/125/EC are to be reviewed.
10 Article 18 of the ESPR.
11 Article 9, 12 and 13 of the ESPR.
12 See recital 32 and 33 of the preamble of the ESPR.
13 Article 9 of the ESPR.
14 Article 11 of the ESPR.
15 Article 25 and annex VII of the ESPR.
16 Annex VII of the ESPR.
17 Article 23 and 24 of the ESPR.
18 Recital 60 of the ESPR.
19 Recital 60 of the ESPR.
20 Articles 27 to 30 of the ESPR.
21 Article 34 of the ESPR.
22 Article 31 of the ESPR.
23 Article 33 of the ESPR.
24 As established in Regulation (EU) 2022/2065.
25 Article 35 of the ESPR.
26 Article 36 of the ESPR.
27 Article 37 of the ESPR.
28 Article 38 of the ESPR.
29 As required to be developed by Article 13 of the EU’s Market Surveillance Regulation (Regulation (EU) 2019/1020).
30 Articles 66 to 68 of the ESPR.
31 Articles 74 of the ESPR.
32 Recital 16 of the ESPR.
33 Recital 39 of the ESPR.
34 Article 25 para. 1 of the ESPR.
35 Article 13 of the ESPR.
36 Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of Ecodesign requirements for energy-related products (recast).
37 Article 79 of the ESPR.
38 Article 24 of the ESPR.
39 Article 75 of the ESPR.
40 Article 74 para. 4 of the ESPR.
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