EU bans destruction of unsold clothing, footwear and accessories

A new European Union regulation prohibiting the destruction of unsold clothing, footwear and fashion accessories entered into force on 19 July 2026, marking a major step toward reducing textile waste and promoting a more circular economy.

Under the Ecodesign for Sustainable Products Regulation (ESPR), large companies across the EU can no longer destroy unused products through incineration, landfilling, shredding or direct recycling. The rules apply directly in all member states and target overproduction, high return rates from online shopping, and fast-fashion business models that generate excess inventory.

The scale of the problem is significant. European data show that between 4% and 9% of all textile products placed on the EU market are destroyed before ever being used, amounting to an estimated 264,000 to 594,000 tonnes annually. This practice wastes substantial resources in water, energy, raw materials and labour, while generating around 5.6 million tonnes of CO₂ emissions each year – roughly equivalent to Sweden’s total net emissions in 2021.

Former Cypriot Green Party MP Charalambos Theopemptou, speaking to Politis radio, highlighted that destroying products has often been cheaper for companies than finding alternative uses. “A shirt was made to be worn,” he said, noting that while shredded clothing can be turned into insulation or other materials, reuse should take priority. Theopemptou pointed to online shopping returns — with roughly one in five garments returned — and overproduction driven by inaccurate demand forecasts as key drivers. About one-third of returned clothing and around 21% of products overall remain unsold.

New obligations for companies

Large enterprises (those exceeding at least two of the following: €25 million in assets, €50 million in annual turnover, or an average of 250 employees) must now prioritise keeping products in circulation. Acceptable options include:

– Selling at discounted prices or through outlet channels

– Redirecting to alternative markets

– Donating to charities and social economy organisations

– Repairing, refurbishing or remanufacturing for resale

Companies are also required to improve inventory management to reduce overproduction. From February 2027, they must disclose information on any discarded unsold products under a standardised EU reporting framework, explaining the reasons for disposal.

Destruction is permitted only in limited, documented cases, such as when products are unsafe, seriously damaged, contaminated, irreparable, counterfeit, or non-compliant with EU or national laws. Before claiming no donation was possible, companies must offer items to at least three eligible social economy organisations or publish a donation offer on their website for a minimum of eight weeks. Businesses must retain supporting documentation for five years. Even when destruction is allowed, it must follow the EU waste hierarchy, with recycling preferred over incineration or landfilling.

Notably, sending unsold items directly for recycling is treated as a form of destruction under the rules, since it prevents the product from fulfilling its original purpose. Reuse and repair must be exhausted first.

Broader context and challenges

The regulation responds to growing concerns over the environmental and social impacts of fast fashion. It aims to create a level playing field for companies adopting sustainable practices while encouraging better stock management and innovation in circular business models.

Environmental advocates stress that the real solution lies in tackling overproduction at its source. While the ban is expected to affect major retailers and online platforms most directly, smaller businesses are currently exempt, with medium-sized enterprises facing the rules from 2030.

This initiative forms part of the EU’s wider strategy for sustainable textiles and circular economy goals, pushing the fashion sector toward greater accountability and resource efficiency.

The article by EUalive’s partner Politis can be found here.

Caption: Labourers work at an apparel manufacturing factory in Karachi, Pakistan, 8 July 2026. Pakistan’s textile and apparel industry is the country’s largest manufacturing sector, the primary driver of export earnings, and one of the nation’s most important sources of employment. EPA/REHAN KHAN