In December 2023, the European Union (EU) put forward new rules aimed, among others, at the fashion industry, which is considered as one of the biggest polluters globally. These rules are part of a broader effort to make products more environmentally friendly. The EU introduced the Ecodesign for Sustainable Products Regulation (ESPR), which will replace the current Ecodesign Directive. This updated regulation expands the criteria for designing sustainable products, with the goal of making eco-friendly products more common in the EU market. The aim is to tackle environmental issues by reducing how much we consume and transitioning to a more circular economy, where materials are reused and recycled.
The new strategy includes new eco-design requirements for textiles, clearer information, a digital product passport and calls on companies to take responsibility and act to minimize their carbon and environmental footprint. To promote the recycling of used clothing and reduce textile waste, the EU has also introduced the Extended Producer Responsibility (EPR) for textiles in this context. This means that starting from January 1, 2025, fashion brands and retailers will have to take full responsibility for what happens to their products from production to disposal.
As part of this agreement, there's a ban on destroying unsold textiles and footwear. Companies will need to find ways to sell or reuse these products instead of disposing of them. The ban will come into effect at different times for different-sized companies, with larger companies having two years to comply after the Regulation is enacted, while medium-sized enterprises will have a transition period of six years. Small businesses, however, are exempted from these requirements.
The European Environment Agency (EEA) has compiled a comprehensive briefing that provides a good insight into the scale and impact of the destruction of returned and unsold textiles in Europe as well as policy options to reduce returns and overproduction. Here is a list of key takeaways from the briefing:
- Studies indicate that 4-9% of textiles sold in Europe are destroyed annually, totaling between 264,000 and 594,000 tonnes.
- Online clothing purchases have a return rate of about 20%, with approximately one-third of returned items being destroyed.
- Unsold textiles make up around 21% of stock, with an estimated one-fifth of that being destroyed.
- The fashion industry faces challenges in handling returned and unsold textiles, often resorting to destruction, which harms the environment.
- The EU's recent decision to ban textile and footwear destruction underscores the need to find alternative solutions for unsold and returned products.
As the new EU ban takes effect, the upcoming years will demonstrate the extent to which the textiles industry can successfully prevent the destruction of returned and unsold textiles in Europe.