Global challenges relating to environmental pollution and climate change mean regulatory frameworks which promote a circular economy are crucial. A circular economy system is aimed at reducing waste and the continual use of resources through principles of reuse, repair, refurbishment, and recycling to significantly lower greenhouse gas emissions associated with production and disposal processes. In this article, we consider the European Union's new Regulation (EU) 2024/1781 which establishes a framework for the setting of ecodesign requirements for sustainable products (ESPR).
The ESPR is part of the European Green Deal which aims to transform the EU into a competitive and climate-neutral circular economy. To achieve this, the ESPR provides for minimum criteria to be applied to products to improve their recyclability and energy efficiency. The ESPR will replace the Ecodesign Directive 2009/125/EC (Ecodesign Directive) and its respective national implementations. In this way, the ESPR aims to permanently reduce the EU's carbon and environmental footprint. The ESPR joins a series of other sustainability-motivated legislation, such as the Batteries Regulation (EU-Batt-R) and the Right to Repair Directive (R2RD), with more legislation in this area still to come, for example, a proposal for a Circular Economy Act expected in Q1 2026.
A closer look at the ESPR
The ESPR covers all physical goods that are placed on the market or put into service in the EU, including components and intermediate products (Products). Food, feed, medicinal products for human and veterinary use, living organisms and vehicles are excluded from the scope.
It applies to economic operators who place Products on the market or put them into service i.e. authorised representatives, importers, distributors, dealers and fulfilment service providers in addition to manufacturers. In some cases, the ESPR also applies to operators of online marketplaces and online search engines.
The ESPR makes significant changes to the Ecodesign Directive, including:
Extension of the scope of application to basically all goods
The ESPR has a significantly broader scope than the Ecodesign Directive and addresses as many Products as possible. Ecodesign requirements are no longer restricted to energy related products such as washing machines, refrigerators or motors but they will primarily apply to Products (or their raw materials) with a high environmental impact. This includes Products containing iron, steel or aluminium, but also Products such as textiles (especially garments and footwear), furniture (including mattresses), tyres, detergents and paints, lubricants, chemicals, energy related products and information and communication technology products and other electronics.
More sustainable product design
The ecodesign requirements cover the entire life cycle of a Product, from manufacture, transport and operation to disposal or recycling. Article 5 provides the framework for the specific ecodesign requirements.
Economic operators are entitled to a transitional period of 18 months from the date of entry into force of the relevant Member State implementing legislation. These acts come into force immediately unless the European Parliament or Council objects within two months. They are being adopted relatively quietly and without fanfare, which means care must be taken not to overlook them.
Extended information obligations and introduction of a digital product passport
The extension of the ecodesign requirements is accompanied by extended information obligations for economic operators (Article 7). For example, economic operators must provide information on the product parameters listed in Annex I (e.g. material composition, lifetime and upgradability indicators) on durability, repairability, carbon and environmental footprint and substances of concern. The aim is to make it easier for consumers and other stakeholders (authorised representatives, importers, distributors, dealers, fulfilment service providers) to make sustainable product decisions.
So as not to lose track of the numerous information obligations, the ESPR introduces the digital product passport (DPP) to enable stakeholders along the value chain and consumers to quickly and easily access relevant information regarding a Product. In addition to the above-mentioned criteria, the DPP will contain information on the environmental sustainability of Products, whereby the exact requirements will also be specified by the EC in a delegated act. A technical standard for a DPP is already available for the EU-Batt-R.
Framework for preventing the destruction of unsold consumer products
The ESPR also imposes a prohibition on destroying unsold consumer products (Article 25). This affects apparel, accessories and footwear. However, the EC can extend the list of Products by means of a delegated act. Accordingly, economic operators should monitor new delegated acts of the EC and take note of the relevant transitional measures.
Further, economic operators must in principle take the necessary measures to prevent unsold consumer products from being destroyed (Article 23). Operators are required to exercise reasonable judgment when assessing necessity, leaving a certain amount of leeway.
The information obligations regarding unsold consumer products are worded more precisely. Economic operators who destroy unsold consumer products or have them destroyed are obliged, among other things, to report on the number and weight of Products discarded per year and the reasons for discarding. The EC will specify the details for the disclosure of this information in an implementing act which will be in force by 19 June 2025 at the latest.
Future developments and transitional periods
Some of the key dates for obligations under circular economy laws which stakeholders ought to be aware of are as follows:
- 19 July 2025: product-related implementing acts according to ESPR possible. Every act will have an 18-month transitional period. New initiatives for acts can be found on the EC's published initiatives website.
- 18 August 2025: due diligence obligations under EU-Batt-R.
- 19 July 2026: obligation to refrain from destruction of unsold consumer products under ESPR.
- 31 July 2026: obligations under R2RD will apply.
- 31 December 2026: end of transitional period from Ecodesign Directive to ESPR for mainly electrical equipment and white goods (Products defined in Article 79(1)(a)(i) ESPR).
- 18 February 2027: obligation to design certain battery containing Products in such a way that batteries are easily replaceable. The EC has published guidance on the application of these provisions in the EU-Batt-R.
- 31 December 2030: end of transitional period from Ecodesign Directive to ESPR for other Products.
The ESPR was perceived as difficult to digest by industry stakeholders. The EC published FAQs in September 2024 and implemented the stipulations for the so-called Ecodesign Forum, which is a group to be comprised of experts for energy labelling. In the second quarter of 2025, the EC plans to adopt and publish the first ESPR working plan to set out details on further product-specific regulations under the ESPR.
What's happening in the UK?
The ESPR will not apply to products placed on the Great Britain market. However, the fact that the new legislation applies to any company placing products on the EU market means it has international reach and should be monitored closely by global product companies which should fully assess how their products will be caught and prepare accordingly.
Further, the UK government may adopt similar rules in future to enhance the UK's own sustainable product policies and achieve its aim of a fully circular economy, as well as to help meet net zero targets. We recommend that stakeholders should therefore consider the application of the ESPR and its impact on product design and manufacturing operations, product development strategy, procurement and supply chain management.
EU-Batt-R which introduces QR code labelling and CE marking for batteries will not apply in GB either. This will create a significant difference between what is required to place batteries on the EU and GB markets and could cause confusion for those importing/exporting batteries between the two markets, as well as for companies in third countries like the US which will have to grapple with different requirements.
Although we know that sustainability and the development of a fully circular economy remains high on the UK government's agenda, it remains to be seen whether new legislative proposals will be introduced any time soon to align UK requirements with those in the EU.
