New EU Regulations Prohibit Unsold Clothing Destruction, Prompting Industry to Rethink Stock Management
New rules under the Ecodesign for Sustainable Products Regulation will require companies to report unsold stock and explore alternatives such as resale, donation, or recycling, with compliance for large firms from July 2026.
BRUSSELS – The European Commission has adopted new regulations aimed at ending the destruction of unsold clothing, footwear, and accessories, a practice that generates significant waste and carbon emissions in Europe. The measures, part of the Ecodesign for Sustainable Products Regulation (ESPR), will take effect for large companies on 19 July 2026, according to the Commission.
Each year, between 4% and 9% of unsold textiles in Europe are discarded before reaching consumers, producing an estimated 5.6 million tons of CO₂—roughly equal to Sweden’s total annual emissions in 2021.
Under the new rules, companies must report unsold products they dispose of and are prohibited from destroying apparel, footwear, and accessories except under narrowly defined circumstances, such as safety hazards or product damage. National authorities will be responsible for monitoring compliance.
An Implementing Act establishes a standardised reporting format, which takes effect in February 2027 for large companies. Medium-sized firms are required to comply with both the destruction ban and reporting rules in 2030.
Rather than destroying stock, retailers are encouraged to explore alternatives such as resale, remanufacturing, donation, or reuse. Jessika Roswall, European Commissioner for Environment, Water Resilience, and a Competitive Circular Economy, said the measures are essential for sustainable practices in the textile sector. “The textile sector is leading the way in sustainability, but there are still challenges. These new measures will help businesses move toward circular practices, increase competitiveness, and reduce dependencies,” she said.
The problem is substantial: France destroys roughly €630 million worth of unsold products each year, while Germany discards nearly 20 million returned items annually. Online shopping has contributed to the growth of this trend.
According to the Commission, the ESPR is designed to make products in the EU market more durable, reusable, and recyclable, while also promoting efficiency and reducing environmental impact. By establishing a clear compliance timeline—with large companies starting the destruction ban in July 2026, reporting in February 2027, and medium-sized companies following in 2030—the regulations are expected to challenge current stock management practices while creating opportunities for companies to adopt circular business models.
