Ecodesign for Sustainable Products Regulation – what will this new legislation mean for your business?

• Does your business manufacture goods which are sold into the EU?
• Does your business supply or distribute goods into the EU?
• Are you a dealer offering or displaying goods in the EU?
• Are you an online marketplace offering goods for sale in the EU?

If the answer to any of these questions is yes, then you need to know about the Ecodesign for Sustainable Products Regulation.

What do you need to know about the Ecodesign for Sustainable Products Regulation?

The Ecodesign for Sustainable Products Regulation (the Regulation) is legislation that applies in the EU. It forms part of the European Green Deal and the Circular Economy Action Plan. 

The Regulation creates an extended framework concerning the ecodesign requirements of specific product groups. It aims to improve the longevity, repairability, recyclability and energy performance of products placed on the EU market, and to ensure the free movement of sustainable products within the EU.

The Regulation can be considered part of a group of other EU legislation aimed at giving consumers access to more sustainable products. Together, the new legislation aims to cover the entire lifecycle of a product:

The Regulation repeals Directive 2009/125/EC, which relates to ecodesign requirements for energy-related products, with effect from 18 July 2024. It also amends two other pieces of EU legislation. The Regulation is an EU regulation which means that it does not need to be transposed into member states' national laws, it is a binding legislative act which applies 'as is' across the EU.

The Regulation was published in the Official Journal of the European Union on 28 June 2024. It will come into force on 18 July 2024 and will apply from 24 months after that date. This means that businesses will need to start complying with the Regulation from mid-July 2026.

What changes does the Regulation make?

• The 'old' regime: The previous ecodesign legislation only covered energy-related products (such as fridges and water pumps).
• The new framework: The Regulation establishes a framework for setting ecodesign requirements on specific product groups. This means that rules will be set over time on either a product by product basis or on the basis of groups of similar products.
• Scope: The Regulation will apply to most physical goods sold in the EU, though food and feed are excluded. Ecodesign requirements will also not be set for products which have the sole purpose of serving defence or national security.
• Priority products: The Regulation lists a number of product types which will be prioritised. This includes iron, steel, aluminium, textiles (in particular garments and footwear), furniture (including mattresses), tyres, detergents, paints, lubricants, chemicals, information and communication technology products and other electronics, and energy-related products (including products not previously covered under the 'old' regime and updates to products previously caught under the 'old' regime).
• *New* Digital Product Passport: The Regulation introduces a new Digital Product Passport for products, components and materials. The Digital Product Passport will hold information about the product's sustainability. The exact information held will vary according to product type and will be set by the European Commission in consultation with stakeholders. The Digital Product Passport will be accessible to all in the supply chain from consumers to customs authorities and is intended to enhance the end-to-end traceability of products. Dealers (which includes distributors) will need to make the Passport accessible to their customers. The Commission will set up a publicly available web portal where the data held in the Passport can be accessed. As with other EU sustainability legislation, this is all about helping consumers to make informed purchasing choices.
• *New* rules concerning the destruction of unsold consumer products: The recitals to the Regulation say that the destruction of products such as textiles and footwear is an environmental problem across the EU, linked to the increase in online sales. The Regulation requires manufacturers and others in the supply chain to take necessary measures to prevent the need to destroy unsold consumer products, and imposes a ban on the destruction of unsold textiles and footwear. The ban does not apply to micro and small enterprises, and medium sized enterprises are not caught until July 2030. Other bans, relating to other product types, will be possible in the future. The Regulation also requires companies that dispose of unsold consumer goods, either directly or indirectly, to provide information about this practice on their website. Again, the size of the business impacts on when these information requirements kick in.
• *New* rules for online marketplaces: providers of online marketplaces and search engines are required to take responsibility for the sale of products which do not comply with the ecodesign requirements of the Regulation. The Regulation also requires them to cooperate with market surveillance authorities and they may be required to remove non-compliant products from their platform. The new rules build upon the framework in the EU's Digital Services Act which contains provisions relating to the traceability of traders and illegal content.
• Green public procurement: The Regulation provides for the setting of new, mandatory, green public procurement requirements by the European Commission. This will help ensure demand for more environmentally sustainable products by leveraging public spending by EU authorities.
• Ecodesign Forum: A new Ecodesign Forum will consult with stakeholders to develop the new product rules.
• Commission's working plans: The Regulation requires the European Commission to publish a working plan within 9 months of the Regulation coming into force (this will be in quarter 2 of 2025). The working plan will set out lists of products and measures that will be assessed.

What do businesses that supply goods to the EU need to do next?

The new rules won't apply until July 2026 so there is time for businesses to get used to the changes and to factor them into their compliance plans and processes.

Much of the Regulation will be implemented by delegated acts so businesses should keep a watch on what the Commission is doing in this space.

The Regulation will apply to all products on the EU market, regardless of origin. Guidance issued by the European Commission on the Regulation indicates that the EU will collaborate with international partners in order to achieve the goal of increased product sustainability and to remove trade barriers.

Businesses will be aware that the UK already has established ecodesign legislation, much of which is retained from EU law. In 2021, the UK Government implemented new ecodesign standards for various industrial appliances, white goods, electronic displays, and lighting products. References to ecodesign requirements can also be found throughout Defra’s recently updated waste prevention programme for England. Key industries for the net zero transition like renewables are also looking ahead to integrate circularity in the supply chains. With iron, steel and aluminium being priorities, the ecodesign requirements will be soon felt in the energy and infrastructure sectors. Furthermore, the Labour party manifesto included a pledge to reduce waste by transitioning to a circular economy. Therefore, it’s clear that ecodesign is not just a passing trend in the UK, but a concept that businesses will continue to encounter.

Where can you read more about the Regulation?

If you want to read the full text of the Regulation then you can access it from the EUR-Lex website.

The European Commission web pages give a good overview of the Regulation and its objectives.

Do you want to know more about how the Regulation might impact on your contracts and your trading relationships in Europe?

Simply reach out to Ashley Borthwick or Francesca Hodgson.