Key Pillars of the EU Green Deal

Understanding the Timeline and Impact of the Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passports

Since it entered into force on July 18, 2024, the Ecodesign for Sustainable Products Regulation (ESPR) has sparked significant discussion across industries, with many wondering when it will start to apply to them. With numerous delegated acts on the horizon and Digital Product Passports (DPP) set to roll out progressively from 2025, businesses are preparing for a transformative wave of sustainability requirements by 2027/8. Replacing the Ecodesign Directive 2009/125/EC, the ESPR establishes a comprehensive framework for setting ecodesign requirements for physical goods, promoting sustainability, and fostering a circular economy within the European Union.

What is ESPR?

The ESPR is a game-changing piece of legislation created to improve the environmental sustainability of products sold within the EU. By setting strict ecodesign requirements, the regulation aims to improve the durability, reparability, and recyclability of products, and as a result, reducing their overall environmental footprint. Unlike the former Ecodesign Directive 2009/125/EC, which primarily focused on energy-related products, the ESPR's scope is much broader, encompassing a wide range of physical goods.

"The ESPR is a framework legislation, meaning concrete product rules will be decided progressively over time, on a product-by-product basis, or horizontally, on the basis of groups of products with similar characteristics." - European Commission, 2024

To implement these product-specific rules, the ESPR will utilize delegated acts. This approach breaks down legislation into manageable fragments, giving economic operators, including small and medium-sized enterprises (SMEs), the necessary time to adjust to new requirements. Furthermore, companies will have 18 months from a delegated act is adopted to begin compliance, so compliance is not expected until 2026.

"ESPR will be a giant step forward in regulating the textile industry for more sustainability and circularity. It will establish a clear roadmap on the targets to be achieved both on the key physical aspects of products' sustainability and on the information to be shared to enable product circularity and engage more directly with consumers. The materialisation of the textile ecodesign requirements will also require greater cooperation and exchanges among the industry and with the EU institutions. These efforts will seek to further solidify sustainability practices within the complex framework of the textile value chain." - Ohana Public Affairs, 2024

Digital Product Passports

"The ESPR will introduce a Digital Product Passport (DPP), a digital identity card for products, components, and materials, which will store relevant information to support products' sustainability, promote their circularity and strengthen legal compliance." - European Commission, 2024

The DPP is designed to simplify digital access to product-specific information related to sustainability, circularity, and legal compliance. It builds on existing best practices while allowing for the integration of new technologies and innovative approaches. Although the DPP itself is not a track and trace tool, it will enable traceability for complex products by creating a system for data sharing and availability.

The specifics about what kind of information must be included in the DPP will be determined by the EU Commission via delegated acts expected to be finalised by Q4 2025. The first Digital Product Passports are set to become operational by 2027/8, focusing on high-impact categories like batteries for electric vehicles, textiles, and furniture. However, proactive adoption by European brands is expected as early as 2025.

DPP Data

The specific information included in the DPP will be determined through the delegated acts process. This may encompass data on:

• Supply chain information and traceability
• Material information and recycled content
• Durability and Repairability
• Reusability and Recyclability
• Chemical substances of concern
• Environmental impact, carbon footprints
• Legal compliance

The methods for the calculation of the above product parameters, traceability requirements, as well the scope substances of concern, will be established in the ESPR delegated acts (to be finalised in Q4 2025).

Main Design Features of Digital Product Passports

• Decentralized Data Storage: Ensures data is stored securely and accessibly
• Unique Product Linkage: Each DPP is uniquely linked to a product via a persistent identifier embedded in a data carrier
• Access Management: Data access is based on a need-to-know basis, with both public and restricted data available
• Granularity Levels: DPPs can be detailed at three levels: model, batch, or item
• Required Identifiers: Four unique identifiers are mandatory: product identifier, economic operator identifier, facility identifier, and registration identifier (not public)
• Backup Copies: Economic operators must maintain a backup copy of the DPP through a certified independent third-party DPP service provider

Conclusion

The ESPR and the Digital Product Passport are essential parts of the EU's strategy to foster a sustainable and circular economy. By setting tough ecodesign requirements and creating a transparent, digital system for product information, the EU aims to significantly reduce the environmental impact of products, promote resource efficiency, and ensure compliance with sustainability standards. As the ESPR takes effect, it will progressively reshape the landscape of product design and consumption within the EU, driving the transition towards a more sustainable future.

Sources

Online information session on the new Ecodesign for Sustainable Products Regulation (ESPR) - Streaming Service of the European Commission

Ecodesign for Sustainable Products Regulation - European Commission

ESPR: Ecodesign Measures and The Impact on Fashion Brands