EU to ban destruction of unsold clothing: major market changes ahead

A new regulation adopted by the European Commission will bring large-scale changes to the clothing and footwear market in all EU countries, including Cyprus.

The document aims to ban the destruction of unsold clothing, accessories, and footwear to reduce waste and lower the textile industry's environmental footprint. Despite the environmental focus of the measure, its implementation will lead to noticeable changes for both businesses and consumers.

Companies will no longer be able to destroy unsold products "for reasons of convenience." This will only be permitted in strictly defined cases—for example, for safety reasons or in the event of severe damage to the goods—and under the supervision of national authorities.

The regulation also requires companies to publish data on the quantity of unsold goods discarded as waste. Standardized reporting will come into force from February 2027.

The ban on the destruction of unsold products:

• will take effect for large companies from July 19, 2026;
• for medium-sized enterprises — from 2030.

An increased role is expected for:

• outlet stores,
• discount centers,
• resale platforms,
• reuse programs and charitable donations.

For Cypriot companies, this means a review of inventory and returns management systems, and in some cases, investment in new control and accounting systems. The changes may be particularly sensitive for small and medium-sized businesses.

According to European Commission data, between 4% and 9% of unsold textile products in Europe are destroyed every year—even before they have been used. This leads to emissions of approximately 5.6 million tonnes of CO₂, comparable to the annual net emissions of Sweden.

In France alone, approximately €630 million worth of unsold products are destroyed annually, while in Germany, about 20 million returned items are thrown away each year—largely due to the growth of e-commerce.

The new measures fall under the Ecodesign for Sustainable Products Regulation (ESPR) and are aimed at a gradual transition from a "fast consumption" model to a more circular economy.