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19 August 2025

Is Your Wardrobe Killing The Planet?

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Elias Neocleous & Co LLC

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Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
In its drive to become a competitive, climate-neutral, digital and circular economy, the EU has introduced the Ecodesign for Sustainable Products Regulation (ESPR).
Cyprus Environment

In its drive to become a competitive, climate-neutral, digital and circular economy, the EU has introduced the Ecodesign for Sustainable Products Regulation (ESPR). This legislative framework seeks to make environmentally sustainable products the norm by reducing their carbon and environmental footprint throughout their life cycle and enhancing transparency of product information. The ESPR sets out sustainability and circular economy requirements that will influence product design, manufacturing and supply chains across a wide range of industries. Implementation will be phased between 2026 and 2030, with further details to be established through delegated acts and product-specific rules. Businesses that act early to align with these requirements will be the ones best placed to compete. This article outlines the core elements of the ESPR, focusing in particular on the textile, apparel, and footwear sectors as key priorities for the EU, with a direct impact on consumers.

The Regulation applies broadly to all physical goods placed on the market or put into service, including components and intermediate products, while expressly excluding categories such as food, vehicles and medicinal products. Priority product groups have been identified by the European Commission, in cooperation with Member States, based on factors such as market share, environmental impact and potential for improvement. In its 2025–2030 Working Plan, the Commission has designated textiles, garments and footwear as key focus areas, citing significant opportunities to extend product lifespans, enhance material efficiency and reduce impacts on water use, waste generation, climate change and energy consumption.

The ESPR's scope extends across the entire value chain of businesses operating in the EU, encompassing manufacturers (including non-EU producers), importers, distributors, retailers and service providers, each of whom will bear specific compliance obligations and, where relevant, duties toward consumers. Recognizing the extent of the framework, support measures will be available to assist small enterprises in meeting their obligations.

The ESPR establishes the overarching framework for setting ecodesign requirements that products must satisfy before being placed on the internal market or put into service. It applies equally to new and remanufactured products, while excluding reused or second-hand goods thereby indirectly encouraging growth in the second-hand market.

Performance and Information requirements

The ESPR establishes the overarching framework for ecodesign performance and information requirements that products must meet in order to be placed on the market. As an example, chemical safety is recognized as an integral aspect of product sustainability. Accordingly, the presence of substances that hinder reuse or recycling must be considered whilst the inclusion of specific substances in products may be prohibited. The Regulation also addresses premature obsolescence, acknowledging its significant environmental impact through unnecessary consumption of energy and materials. Measures are therefore aimed at promoting the design of more durable products that can be readily repaired, reused or recycled.

To enhance environmental sustainability, information requirements will be linked to specific product parameters such as environmental and carbon footprint, energy efficiency, durability and end-of-life management. Manufacturers may be required to disclose performance data for the relevant parameter or provide other information that could influence handling, maintenance or disposal practices by third parties, thereby improving overall product performance.

Digital Product Passport

A central feature of the ESPR is the Digital Product Passport (DPP), designed to make relevant information accessible across the entire value chain and to significantly improve end-to-end traceability of products. With limited exceptions, such as where an alternative digital system already provides equivalent information for certain product groups like energy-related goods, every product subject to ecodesign measures will be required to have a DPP.

The DPP will encompass a broad spectrum of data, ranging from basic product identifiers to environmental performance metrics, the presence of substances of concern and guidance for end-of-life handling. For the system to function effectively, the DPP must be user-friendly, accurate, comprehensive and kept up to date. However, its implementation presents inherent challenges, given the need to collect, structure, disseminate and store vast volumes of information. Data storage and retrieval is by itself a chapter with environmental impacts which should not be ignored.

The DPP aims to empower consumers to make informed purchasing decisions by enhancing their access to product information, while also enabling economic operators (manufacturers, importers, distributors, dealers) and other value chain actors (including customers, professional repairers, refurbishers, recyclers, market surveillance bodies and customs authorities) to retrieve and/or or update relevant data. At the same time, it will facilitate oversight by competent national authorities, without compromising the protection of confidential business information.

Unsold goods

The ESPR also empowers the European Commission to prohibit the destruction of unsold good which is an environmental concern of growing significance, particularly in light of the rapid expansion of online sales of apparel and footwear. For the purposes of the Regulation, "destruction" refers to the intentional damaging or disposal of a product as waste, excluding cases where the sole purpose is to prepare the product for reuse. In the clothing sector, high production volumes and short usage cycles have resulted in newly manufactured but unsold garments, being destroyed. From a circular economy standpoint, such waste of resources directly contradicts the objectives of the ESPR, thereby justifying regulatory intervention. Harmonized rules across Member States are considered essential to ensure that distributors, retailers and other economic operators face consistent obligations and incentives. The provisions apply to products placed on the EU market.

In addition, the ESPR introduces transparency obligations requiring economic operators, other than micro and small enterprises, to disclose the quantity and weight of unsold consumer products. Economic operators may also be required to report annually on the volume of discarded products, the reasons for their disposal and the proportion directed to reuse, remanufacturing, recycling, energy recovery or disposal. In light of transparency and information available to increasingly eco-conscious customers, the data must be made easily accessible on the business website.

Green public procurement

Public procurement represents approximately 14% of the EU's GDP, positioning it as a powerful instrument to advance the EU's green objectives. Under the ESPR framework, contracting authorities and entities are expected, where appropriate, to align their procurement practices with specific green public procurement (GPP) requirements. Mandatory GPP rules aim to maximize the impact of public spending by stimulating demand for higher-performing, more sustainable products.

Member States will be responsible for supporting national contracting authorities by providing training and capacity-building measures to upskill and reskill staff engaged in GPP. The GPP requirements set under the ESPR will serve as minimum standards, allowing contracting authorities and entities to impose additional, more ambitious conditions. Where feasible and appropriate, GPP requirements will be developed in parallel with the corresponding delegated acts under the ESPR.

Compliance and enforcement

The ESPR imposes compliance obligations and increases regulatory scrutiny for all actors within the supply chain. Each economic operator is responsible for ensuring that products meet the applicable ecodesign requirements in accordance with their role, thereby safeguarding both the free movement of goods within the internal market and their environmental sustainability. Economic operators involved in the supply and distribution chain must take measures to ensure that only products conforming to the Regulation and its delegated acts are made available on the market. As an example, manufacturers bear primary responsibility for applicable conformity assessment procedures due to their detailed knowledge of design and production processes.

Products from third countries, from complete goods to components, must also comply with the ESPR and relevant delegated acts. Importers are required to verify compliance, ensure the availability of CE marking and manufacturer documentation for inspection by competent authorities and, where applicable, confirm the presence of a Digital Product Passport. Customs authorities will have direct access to relevant product information through the EU Single Window Environment for Customs, facilitating DPP-related compliance checks.

Effective market surveillance is essential to achieving the Regulation's objectives. Market surveillance remains a national competence so it is likely to vary across Member States. Online sales, particularly through non-EU platforms, pose specific compliance and enforcement challenges. Although the ESPR does not amend the broader legal framework governing e-commerce, these platforms must be designed to enable economic operators to meet their ESPR obligations. They are required to cooperate with market surveillance authorities, including by removing non-compliant product listings, engaging in regular and structured information exchanges, granting access for product identification and enabling data scraping to detect non-compliant offers.

Business & Market considerations

By introducing harmonized product sustainability requirements at EU level, the ESPR seeks to remove barriers to trade and ensure balanced conditions for businesses operating within, or exporting to, the single market. This reflects the EU's current policy emphasis on competitiveness and "simplification." Nevertheless, before such streamlining can be realized, economic operators and other relevant actors will need to undertake substantial tasks to meet the Regulation's obligations.

In some instances, compliance with the ESPR will entail additional costs. Transitioning towards circular business models and investing in sustainable practices can, however, enhance long-term resilience and generate cost savings. Businesses will need to assess the Regulation in the context of their own operations, identify compliance gaps and develop targeted strategies. The transitional period offers an opportunity for proactive companies to establish action plans that address implementation requirements, optimize supply chains and ensure alignment with the framework.

For consumers, improved product design and manufacturing standards may lead to higher purchase prices. Nevertheless, companies offering sustainable products are expected to gain a competitive edge, as market data indicates that EU consumers increasingly value products that are long-lasting, durable and repairable.

An additional challenge will be the availability and management of data, which is essential for transparency but also carries its own environmental footprint. This factor should not be overlooked in the pursuit of sustainability. The success of the ESPR will depend heavily on the availability, accuracy and validity of information, as well as the disclosure of relevant data. Delivering on the ESPR's ambitions will require an extensive and coordinated data-gathering effort from stakeholders across all stages of a product's lifecycle.

Conclusion

In conclusion, the ESPR represents a step towards embedding sustainability into the internal market. While compliance will have challenges and may entail increased costs in the short term, it ultimately offers businesses the opportunity to future-proof their operations through sustainable innovation and optimized supply chains. The requirement for comprehensive data disclosure and robust market surveillance mechanisms will be pivotal to ensuring effective enforcement and maintaining fair and balanced market conditions across Member States. As the EU advances its ambition for a climate-neutral, competitive and simplified single market, the ESPR will demand proactive engagement from all economic operators, regulators and stakeholders. Its success will depend not only on the regulatory framework itself but also on the commitment of these actors to embrace transparency, collaboration and sustainable practices.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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