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ESPR Explained: What the EU Ban on Destroying Unsold Clothing Means for Business

Europe Large Enterprise Manufacture Regulation Retail
ESPR Explained: What the EU Ban on Destroying Unsold Clothing Means for Business
Article Summary

Introduction: The Regulatory Shift Ending the Destruction of Unsold Apparel in the EU

The European Commission has adopted new measures under the Ecodesign for Sustainable Products Regulation (ESPR) to stop the destruction of unsold clothes and shoes. Adopted on 9 February 2026, the delegated and implementing acts clarify how transparency obligations and prohibition rules will apply to unsold consumer products, particularly apparel and footwear. This development has accelerated interest in the ESPR among fashion brands, retailers, and e commerce companies operating in or exporting to the EU market.

The scale of the issue explains the urgency. An estimated 4 percent to 9 percent of textiles placed on the EU market are destroyed before being used. This practice generates approximately 5.6 million tons of CO2 equivalent emissions annually. The new measures signal a structural shift in EU product policy, moving from voluntary sustainability commitments to enforceable circular economy requirements.

What the ESPR Is

The Ecodesign for Sustainable Products Regulation is the EU’s framework legislation for sustainable products. It entered into force on 18 July 2024 and significantly expands the scope of ecodesign requirements beyond energy related products to almost all physical goods placed on the EU market, with limited exceptions such as food and medicines.

The regulation applies to products placed on the EU market regardless of where they are produced. As a result, the ESPR has strong extraterritorial implications for global manufacturers and retailers.

The ESPR allows the European Commission to establish product specific requirements through delegated acts. These requirements may address durability, reparability, recycled content, resource efficiency, substances of concern, and life cycle environmental impacts. A key feature is the Digital Product Passport, which will store structured sustainability data about products, components, and materials, including technical performance, materials origin, repair information, recyclability, and environmental footprint data.

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What Changes Under the Ban on Destroying Unsold Clothing

The ESPR introduces both disclosure obligations and a prohibition on destroying unsold apparel and footwear. Destruction is defined as the deliberate damaging or disposal of a product as waste. Preparatory steps intended for reuse, recycling, or remanufacturing are not considered destruction.

Unsold consumer products include goods that have not been sold as well as items returned by consumers under withdrawal rights. This definition is particularly relevant for online retail models with high return rates.

Large companies will be prohibited from destroying unsold clothing and footwear from 19 July 2026. Medium sized companies will follow in 2030. The Commission has clarified justified exemptions and introduced a standardized disclosure format to ensure consistent reporting.

In practice, companies must prioritize resale, donation, reuse, remanufacturing, or recycling instead of disposal. Reverse logistics and returns management become compliance critical functions rather than purely operational processes.

Timeline and Disclosure Obligations Under the ESPR Unsold Goods Rules

The ESPR entered into force on 18 July 2024. The first working plan covering 2025 to 2030 was adopted in April 2025. On 9 February 2026, the Commission adopted the delegated and implementing acts clarifying the destruction ban and disclosure requirements.

Regulatory Timeline

18 July 2024
ESPR enters into force
April 2025
First Working Plan adopted
9 February 2026
Acts on unsold goods adopted
19 July 2026
Ban applies to large companies
February 2027
Standard disclosure format applies
2030
Ban extends to medium sized companies

Source: European Commission, Ecodesign for Sustainable Products Regulation ; European Commission, News Release on unsold clothes and shoes (9 February 2026) .

Manufacturers and economic operators must disclose annually the number and weight of unsold products destroyed, reasons for destruction, exemptions used, waste treatment operations applied, and measures taken to prevent destruction. Micro and small enterprises are exempt from the disclosure obligation.

Disclosure Data Checklist

The information to be disclosed, in line with Article 24 of the ESPR, includes:

  • The number of unsold consumer products destroyed
  • The weight of unsold consumer products destroyed
  • The reasons for destruction
  • The applicable exemptions
  • The waste treatment operations applied
  • The measures taken or planned to prevent destruction

Conclusion: Preparing for Compliance and Competitive Advantage Under the ESPR

The prohibition on destroying unsold clothes and shoes under the ESPR represents a decisive shift in EU product policy. The regulation extends ecodesign principles to nearly all physical products and introduces structured sustainability transparency through the Digital Product Passport.

For fashion and retail companies, the ban is not only an environmental requirement but also a governance and operational challenge. Inventory strategy, reverse logistics, data management, and ESG reporting systems must align with EU regulatory expectations.

Companies that act early can transform compliance into competitive advantage by improving demand forecasting, strengthening resale and repair channels, and building robust product level data infrastructure. ASUENE supports organizations in structuring emissions and supply chain data to prepare for evolving EU sustainability regulations and ensure proactive compliance.

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ASUENE supports companies in achieving net-zero goals through advanced technology, consulting services, and an extensive network.

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