BRUSSELS — A European Union ban on destroying unsold clothing, footwear and accessories took effect Sunday, requiring large fashion companies to find alternative ways to manage excess inventory as part of the bloc’s efforts to reduce waste and greenhouse gas emissions.
The ban, introduced under the Ecodesign for Sustainable Products Regulation, applies to companies with more than 250 employees and annual net turnover exceeding €50 million. The measure covers unsold clothing, accessories and footwear and will extend to medium-sized companies beginning in 2030.
Under the new rules, affected companies must sell excess inventory through discounts or alternative markets, donate items to charities, or pursue other reuse options instead of destroying them. Companies may destroy unsold goods only if they are unsafe, damaged, counterfeit or rejected by charities.
The regulation also requires companies to publish annual reports on discarded products and retain related records for five years.
According to the European Environment Agency (EEA), between 4% and 9% of unsold textile products are destroyed each year. The agency said the growth of online shopping has contributed to the problem, with about one in five fashion items purchased online across the EU returned and often not resold.
The EU said the measure aims to reduce waste, lower carbon emissions and encourage a circular economy through greater reuse, repair and recycling of textile products.
The German Retail Federation (HDE) said consumers could benefit from more discounted merchandise entering outlet, clearance and second-hand markets. However, HDE Managing Director Stefan Genth said retailers could face challenges because some unsold goods are difficult to resell or donate due to damaged packaging, high logistics costs, limited demand or low product value.