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EU Council gives green light for the eco-design regulation fostering green transition

INSIGHT by the EU Council

Published investESG on 2024-05-27
© Alex Shuper
The Council has today adopted the ecodesign regulation, which sets requirements for sustainable products. The regulation replaces the existing ecodesign directive and enlarges its scope, beyond energy products, to all kind of goods placed in the EU market. This is the last step in the decision-making procedure.
Green requirements for sustainable products
The regulation affects all kinds of products, with only a few exceptions (i.e. cars or defence and security related products). The new regulation introduces new requirements such as product durability, reusability, upgradability and reparability, rules on the presence of substances that inhibit circularity; energy and resource efficiency; recycled content, remanufacturing and recycling; carbon and environmental footprints; and information requirements, including a Digital Product Passport. The Commission will be empowered to set ecodesign requirements by delegated acts and the industry will have 18 months to comply with them.
Ecodesign criteria will be applicable in public procurement to incentivise the public purchase of green products. The new regulation introduces a direct-ban on the destruction of unsold textiles and footwear (SMEs will be temporarily excluded) and empowers the Commission to introduce similar bans for other products in the future. The ecodesign regulation will be aligned to the digital services act, when it comes to products sold online.
Next steps
Following the Council’s approval today, the legislative act has been adopted. After being signed by the President of the European Parliament and the President of the Council, the regulation will be published in the Official Journal of the European Union and will enter into force on the 20th day following that of its publication. It will apply from 24 months after the entry into force.
Background
The current Ecodesign Directive 2009/125/EC established energy efficiency requirements covering 31 product groups. According to the Commission’s calculations, this has saved EUR 120 billion in energy expenditure and led to a 10% lower annual energy consumption by the products covered within its scope.
The new regulation was proposed by the Commission on 30th March 2022. The Council adopted its general approach on 23 May 2023, and reached a provisional agreement with the Parliament on 4 December 2023.

All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.