Back in early 2022, the European Commission proposed a Regulation to set ecodesign requirements for sustainable products and to repeal the existing 2009 Directive which only applies to energy-related products.  

The Council and the Parliament have now reached a provisional political agreement on the proposed Regulation. In summary, it sets out the scope of the Regulation, gives the Commission the power to set, when necessary, the conditions for the destruction of unsold goods and clarifies provisions about penalties and online marketplaces. Motor vehicles are excluded from the scope of the Regulation, as are products that affect defence or national security.

Eco-requirements and digital passport
The new Regulation would apply to almost all categories of products (such as dishwashers, televisions, car chargers, etc). It establishes a harmonised framework to set requirements for specific product groups to make them not only energy and resource-efficient, but also more durable, reliable, reusable, upgradable, reparable, recyclable and easier to maintain. 

The Commission will be able to propose new requirements by delegated acts when new kinds of products or technologies call for them. Industry and regulators will generally have 18 months to adapt to the new the eco-design requirements. 

In addition, the Commission will be able to use implementing acts to adopt mandatory requirements for public procurement contracts to provide incentives for environmentally sustainable products.

The Regulation also aims at facilitating the movement of such products in the Single Market.  A new "Digital Product Passport" will provide information about products' environmental sustainability. This aims to help consumers and businesses to make informed choices when purchasing products, as well as helping regulators

The Regulation also sets out provisions regarding transparency and prevention of destruction of unsold consumer products. It introduces a direct ban on the destruction of textiles and footwear, no doubt to try to deal with the culture of “fast fashion”. Small and micro companies will be exempt from this ban, while medium size companies will benefit from a six year exemption. Otherwise, it will apply two years after the entry into force of the Regulation. The Commission will also have powers to introduce new bans by delegated acts.

Online marketplaces
The provisional agreement aligns the obligations of online marketplaces to the Digital Services Act in terms of cooperation with member states' market surveillance authorities.

Penalties
The provisional agreement establishes some harmonisation criteria for penalties in case of non-compliance of the ecodesign requirements.  However, national regulators will decide which penalties should be imposed if there are infringements.

Evaluation
The Commission will need to evaluate improvements in the environmental sustainability of the requirements adopted, together with other criteria like their life-cycle or environmental, carbon and material footprints.

The Commission has welcomed the provisional agreement. It now needs to be endorsed and formally adopted by both institutions.  Once adopted, the Regulation will enter into force on the 20th day following its publication in the Official Journal. 

Designs law and “repair clause”

As well as this, the Council and Parliament have agreed changes to EU designs law, including a  “repair clause”. This clause excludes from design protection the replacement parts for a complex product that are used to restore its original appearance, but only for repair purposes and if the replacement part looks exactly like the original piece (for example, a damaged door, or a broken light of a car that should be replaced to make the car look as it was). It is intended to liberalise the spare parts market and ensure that more accessible spare parts for repair are available to consumers across the EU. There is a transitional period of eight years.

How does this affect UK companies?

Our Irish clients will be affected directly by this new legislation, but UK companies trading in the EU will also need to be mindful of its provisions. It will be of interest to see if the UK government follows suit (especially if there is a change of government following the upcoming General Election).