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The European Union’s (EU’s) newly passed regulation, the Ecodesign for Sustainable Products Regulation (ESPR), will incur high costs and is expected to hurt exports from developing countries, a Delhi-based think tank reported on Wednesday.
According to the European Commission, the new regulation aims to enhance the circularity, energy performance, and other environmental sustainability aspects of EU products.
The ESPR will encompass all products by 2030, starting with the regulation of items such as textiles, furniture, mattresses, tyres, detergents, paints, lubricants, iron, and steel from January 2026.
“The ESPR could hurt exports from developing countries due to the increased costs and challenges of meeting the high EU standards and compliance requirements,” the Global Trade Research Initiative said. It added that the regulation will elevate product costs due to necessary changes in production processes.
Since the regulated products are mostly consumer goods, this price increase might contribute to inflation in the EU, the report noted.
From January 2026, Indian products exported to the EU will be required to include a quick response code or barcode that provides detailed information to demonstrate compliance with the prescribed European sustainability standards, the report indicated.
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The regulation mandates that imported products meet stringent sustainability standards, including the use of a digital product passport for traceability. These measures aim to ensure that all products entering the EU market adhere to high environmental standards, thereby influencing global trade practices.
The ESPR expands upon the EU’s existing Ecodesign Directive, which currently covers only energy-related products. The regulation was proposed over two years ago and was officially adopted by European Parliament and European Council in April 2024 and May 2024, respectively.
