Large companies operating within the European Union are no longer allowed to destroy unsold clothing, footwear and accessories following the implementation of sweeping new environmental rules aimed at tackling textile waste and encouraging sustainable business practices.
The new regulation, which took effect on July 19, is expected to significantly change how fashion retailers and manufacturers manage excess inventory by requiring them to keep products in circulation instead of disposing of them. The measure is part of the European Union’s broader strategy to reduce waste, lower greenhouse gas emissions and promote a circular economy.
The ban falls under the Ecodesign for Sustainable Products Regulation (ESPR), legislation introduced to make products sold across the European Union more durable, repairable, reusable and recyclable while reducing their environmental impact throughout their lifecycle.
New rules target waste in the fashion industry
European authorities say the textile industry has become one of the continent’s biggest sources of waste, with hundreds of thousands of tonnes of new clothing destroyed each year despite being suitable for use.
The European Commission argues that disposing of unsold merchandise wastes valuable raw materials, water, energy and labour while contributing unnecessarily to carbon emissions generated during disposal.
Instead of destroying excess stock, companies will now be expected to explore alternative ways of keeping products in use. Businesses will be encouraged to sell unsold items through discounts, move them to alternative markets, donate them to charities or social enterprises, repair and refurbish them for resale, or recycle materials where reuse is no longer possible.
The objective is to extend the lifespan of products while reducing the environmental costs associated with overproduction and waste.
Which companies will be affected?
The regulation currently applies to large companies operating in the European Union.
Medium-sized enterprises have been granted additional time to comply and will be required to implement the rules from 2030. Small and micro-enterprises are exempt from the ban to avoid imposing significant compliance costs on smaller businesses.
The regulation also establishes a strict waste hierarchy, requiring companies to prioritise reuse and recycling before considering disposal.
Limited exemptions remain
Although the legislation generally prohibits the destruction of unsold clothing and footwear, businesses will still be permitted to dispose of products under limited circumstances.
These include situations where products have been damaged beyond repair, pose safety risks, are counterfeit, infringe intellectual property rights or have been rejected by charitable organisations intended to receive donations.
Companies relying on these exemptions must maintain supporting documentation and publish annual reports detailing the quantity and type of products discarded, together with the reasons for disposal.
National authorities across EU member states will oversee compliance and will have powers to investigate businesses that fail to meet the new requirements. Companies must retain records for at least five years to facilitate inspections and demonstrate compliance with the regulation.
Part of a broader sustainability agenda
The ban is among the first major measures introduced under the Ecodesign for Sustainable Products Regulation since it entered into force in 2024.
Textiles were selected as an early priority because of the industry’s significant environmental footprint and growing concerns over the destruction of unsold merchandise.
According to estimates by the European Environment Agency, between 4 and 9 per cent of textile products placed on the European market are destroyed before ever reaching consumers. That translates to roughly 264,000 to 594,000 tonnes of clothing and textiles being discarded every year.
European policymakers believe the new rules will encourage manufacturers and retailers to adopt more sustainable production models while reducing pressure on natural resources.
The European Commission said the regulation was developed following consultations with businesses, industry associations and environmental organisations to ensure the rules are practical while supporting Europe’s transition to a more sustainable and resource-efficient economy.
