New Ecodesign Regulation and delegated acts - Companies can help shape the design

The Ecodesign for Sustainable Products Regulation (EU) 2024/1781 ("ESPR") replaced the Ecodesign Directive (2009/125/EC) on July 18, 2024. The ESPR aims to make sustainable products the norm in the EU internal market and to reduce their overall environmental and climate impact. Companies can still register until December 5, 2024 to help shape delegated acts.

Ecodesign requirements for almost all products

The ESPR covers a wider range of products: the material scope includes all physical goods that are placed on the market or put into service, including components and intermediate products. Only a few product areas are excluded, such as certain foods, pharmaceuticals, animals and special vehicles. In personal terms, the ESPR applies to all economic operators who place corresponding products on the market or put them into operation (manufacturers, authorized representatives, importers, distributors, dealers and fulfillment service providers).

The ESPR provides a framework of so-called "product aspects" against which the sustainability of a product is to be measured: energy use and energy efficiency, environmental impacts, including carbon footprint and environmental footprint, durability, the presence of substances of concern, sustainable product design and recyclability.

Ecodesign requirements through delegated acts – companies can help shape the process

The European Commission will gradually introduce specific minimum requirements for the individual product aspects in delegated acts. These can be product-specific or cross-product. The first delegated act will enter into force no earlier than July 19, 2025. The distinctive feature of delegated acts derives from the fact that the European Commission consults experts from EU member states before enacting the act. Therefore, representatives and stakeholders from industry, civil society and science can still apply to participate in the Ecodesign Forum until December 5, 2024 in order to help shape the respective delegated acts as an interest group.

After publication in the Official Journal, the companies concerned will have 18 months to implement the provisions of the delegated act. Exemptions are expected to apply to small and medium-sized enterprises ("SMEs"). The member states and the European Commission are also to provide for financial, technical and organizational measures (e.g. creation of guidelines, digital tools, specialist training) to support SMEs. The delegated acts adopted by the European Commission on the basis of the ESPR are also designed to serve as binding requirements for green public procurement.

All relevant information in the Digital Product Passport

Companies also have far-reaching information obligations, including information on durability, reparability and the CO2 and environmental footprint. This information is to be stored in the Digital Product Passport ("DPP"). Once again, it is up to the European Commission, in cooperation with the relevant stakeholders, to tailor the content of the DPP to the respective product type (e.g. material and origin, recycling features, technical performance or repair information). Both consumers and customs authorities can use the information in the DPP, which is to be uploaded to a public web portal, to check whether the company has complied with the sustainability requirements.

Measures against the destruction of unsold goods

From July 19, 2026, the ESPR will initially only prohibit companies from destructing unsold textile products and footwear (Art. 25 ESPR). This also includes new goods that were sent back as returns. Micro and small enterprises are exempt from the regulation; for medium-sized enterprises, the ban will not apply until July 19, 2030. The European Commission may extend the list of products through delegated acts with corresponding implementation deadlines. Companies in the textile industry will therefore have to give more thought to the handling of stock and alternative distribution channels in the future.

Economic operators shall take "necessary measures" to prevent the destruction of any unsold consumer products and provide information about any destruction that has taken place, together with the relevant reasons. Possible exceptions and further details are not expected until the European Commission's delegated act.

What does this mean for companies?

Most of the changes are dependent on delegated acts of the European Commission that have yet to be adopted. These will define the Ecodesign requirements for individual products.

The sanctions for violating the regulations depend on their implementation into German law. The previous legal situation provided for fines of up to EUR 50,000 (for example, for energy-related products). In the future, fines for violations of the ESPR are likely to be significantly higher.

Consumers will also be entitled to claim damages under the ESPR if products do not comply with the Ecodesign requirements set out in the delegated acts.

Companies must ensure at an early stage that their products meet the requirements of the ESPR. This applies in particular if they wish to participate in public tenders in the EU.

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