Fashion Can No Longer Destroy Unsold Goods. What Happens Now?

Burning, shredding or sending brand-new products to landfill simply because they remain unsold is now a thing of the past. Since 19 July 2026, large companies operating in the European Union must find alternative solutions for unsold clothing, accessories and footwear. Medium-sized companies will be subject to the same rules from 2030, while micro and small businesses are generally exempt, unless they are used to circumvent the regulation.

 

However, describing it simply as a "ban on burning unsold goods" tells only part of the story. Article 25 of the EU Ecodesign for Sustainable Products Regulation (ESPR) 2024/1781 addresses destruction in a much broader sense. It includes incineration and landfill disposal, but also recycling when a brand-new product is discarded before it has fulfilled the purpose for which it was created. By contrast, preparation for reuse, repair, refurbishment and remanufacturing are considered ways of keeping products in circulation.

 

The first scope of the regulation covers the product categories listed in Annex VII through specific customs codes, including clothing, fashion accessories and footwear. This definition may also include consumer returns whenever they are discarded instead of being placed back on the market. Returns have become one of the fashion industry's most critical challenges. Across Europe, approximately one in five garments purchased online is returned, and an estimated 22% to 43% of those returns are ultimately destroyed.

 

The figures behind this legislative shift are difficult for the industry to ignore. According to the European Environment Agency, between 4% and 9% of textile products placed on the European market are destroyed before ever being used, amounting to between 264,000 and 594,000 tonnes every year. Under the worst-case scenario, this generates up to 5.6 million tonnes of CO₂ equivalent.

For years, excess inventory was managed by clearing warehouses while protecting prices and preserving brand image. Today, unsold goods have become a problem that must be prevented before they need to be managed. This requires more accurate demand forecasting, faster return processing, stronger outlet and second-hand channels, donations, product refurbishment and new business models capable of extending the life of unsold products.

 

Transparency requirements are also increasing. Large companies must publicly disclose the quantity and weight of destroyed products, the reasons behind their disposal, their final destination and the measures adopted to prevent destruction. From 2 March 2027, a standardised European reporting format will become mandatory.

 

The new regulation alone does not solve the issue of overproduction, but it changes what the industry considers acceptable. Every garment, pair of shoes and accessory embodies raw materials, energy, labour and expertise. Treating these products as waste simply because of seasonal calendars or commercial margins means wasting all of that value.