In December, the European Parliament and Council agreed a deal on a new regulation making products in the bloc more sustainable. The Ecodesign for Sustainable Products Regulation (ESPR), sets out a range of new laws which will ensure producers create goods improving energy efficiency, reusability and other environmental and circularity qualities.
What is the Ecodesign for Sustainable Products Regulation?
The EU has committed to creating a modern, resource-efficient and competitive economy. Aligned to this commitment, ESPR will direct companies creating products for the bloc to improve the reliability, energy efficiency and ability to recycle their products.
This new law is one of the key policies under the European Green Deal, contributing to circular economy objectives. The policy expands on existing ecodesign regulation, which focused on energy efficiency and labelling for electrical appliances.
Key Elements
The policy covers a significant area of product design. In total there are seven key elements to ESPR which businesses will need to adhere to.
durability, reusability, upgradability and reparability
Across the regulation, there are many elements which are focused on making products more reliable, repairable and recyclable. These are all in support of the broader circular economy strategy which the EU agreed to under the Green Deal.
Chemical Substances
The chemical safety of products is recognised as a material element in its sustainability. There are already significant regulations in the EU on chemical and food safety which ESPR will complement. The focus in ESPR is on the embedded nature of chemicals in products or used in their manufacture outside of these regulations. In particular ESPR looks to the overall sustainability of a product during its life time.
energy and resource efficiency
As with other elements of ESPR, energy efficiency is covered in other regulations. Subsequently, the EU is using ESPR to support its targets in overall energy use reduction and extending this into products. The text details a requirement to improve energy efficiency by 36% in line with 2030 targets. Improving energy efficiency will also have a positive impact on protecting consumers from energy price fluctuations.
recycled content
One of the aims of ESPR is to ensure producers increase the volume of recycled content in the design of products. This will support the aim of the regulation to decouple the economy from the use of natural resources. For many sectors, this will required significant work to redefine the value chain and will require significant collaboration to achieve the objectives.
carbon and environmental footprints
The broader goals of the Green Deal related to decarbonising the EU economy are deeply embedded in ESPR. Many products in the EU are manufactured outside of the bloc, pushing carbon intensive production to 3rd parties. The CBAM is the primary tool the EU has developed to address this “carbon-leakage”. ESPR will extend this further by requiring products sold within the bloc to conform to improved carbon and environmental footprint requirements.
Desctruction of unsold products
The destruction of unsold durable consumer products is increasingly causing environmental issues around the world. Sectors such as textiles and footwear have been over-producing and then using destruction as a method to resolve the problem. ESPR sets clear constraints which will prevent this business practice. The intent is to encourage businesses to produce less excess and to design improved end of life pathways for products.
Digital Product Passport
Perhaps the most significant for many businesses is the introduction of the Digital Product Passport (DPP). Consumers need improved information on the products they are purchasing. The DPP will provide consistent information, including chain of custody information. This will give consumers greater assurances of the products they purchase and what their composition is. It will also increase awareness of resource usage, leading to improved consumption patterns.
For businesses, the DPP will introduce a significant requirement. For each product sold, there will need to be an understanding of the composition of the product, the provenance of materials and their repairability. This extends the impact throughout value chains.
ESPR Relationship to other policies
The package of policies under the Green Deal combine to support the objectives of creating a more sustainable EU economy. ESPR plays a significant role in impacting how products are designed and produced for the bloc. There are significant overlaps with other policies which complement ESPR.
For businesses who sell physical products, the majority of their impacts, risks and opportunities are related to the product and its production. This new product regulation will result in the information reported on in CSRD improving both in terms of data availability, but also the positive impact which better designed products will have on a businesses overall.
To meet many of the requirements in ESPR, businesses will need to turn to their value chain partners for information and action. The due diligence requirements put forward in CSDDD will support this and improve consistency across the market in the approach.
The information through improved product labelling and digital product passports will support the ECGT directive. Consumers need consistent, clear and trustworthy information to generate more sustainable consumption. ESPR will support the requirements under ECGT in capturing more information on products during their lifetime.
The Right to Repair directive will also cross over with ESPR. By improving the original design of products in terms of repairability, reusability and durability, a positive step in the circular economy goals will be achieved.
How we can help
Navigating the complexities of regulations such as ESPR can be daunting. Our team of experts understand the full details of legislation and how they translate into practical action for businesses. We work with clients globally to adopt and integrate policies under the EU Green Deal into complex businesses.
Contact us today to learn how we can help your business.
