EU Enacts Distribution Waste Restriction Law... "Export Companies Must Comply with Requirements"

Implementation Expected in 2027 After Detailed Rules Established

A law strengthening eco-design qualification requirements for products distributed within the European Union (EU) and mandating the provision of related information to consumers in the form of a Digital Product Passport (DPP) will come into effect locally. Analysts suggest that domestic companies exporting to the EU need to prepare accordingly.

Overview of the European Union (EU) Ecodesign Regulation / [Image source=KITA report]

Based on the report titled 'Implications and Countermeasures Following the Enforcement of the EU Eco-design Regulation' released on the 11th by the Korea International Trade Association's Institute for International Trade and Commerce, this was announced.

The EU's 'Eco-design Regulation for Sustainable Products' will officially take effect on the 18th. Introduced as part of the European Green Deal proposed by the EU in 2019, this regulation aims to improve energy and resource efficiency and reduce waste generation.

According to the regulation, all physical items launched in the EU market, excluding automobiles and food, must meet eco-design requirements such as ▲durability ▲ease of repair ▲recyclability ▲carbon footprint. Additionally, a DPP containing related information must be attached to the product and provided to consumers via data transfer media such as QR codes. Violations may result in fines or restrictions on market entry into the EU.

The EU plans to establish detailed implementation rules by product category in the future. It is expected that from as early as 2027, the regulation will begin to apply primarily to priority product groups such as textiles, steel, furniture, tires, and detergents, and will eventually expand to cover all products.

The report advised continuous monitoring of the EU's forthcoming product-specific implementation rules and checking compliance with eco-design requirements for key raw materials and components. It also pointed out the need to be cautious about the possibility that the obligation to prohibit disposal of unsold products, which will apply to clothing and footwear from 2026, may be extended to electronic products. Since disposal of unsold products will be prohibited, the industry may need to fundamentally change its inventory management strategies.

Hwang Jun-seok, a researcher at the Korea International Trade Association, said, "The introduction of the new system imposes a burden on the industry to consider ways to reduce waste from the product planning stage," but added, "If our companies respond quickly to remanufacturing and recycling, they can gain a market advantage over competitors."

This content was produced with the assistance of AI translation services.