EU ban on destroying unsold apparel and footwear 

A historic step towards a sustainable fashion industry

The European Union has banned large companies from destroying unsold apparel and footwear to reduce massive environmental pollution, greenhouse gas emissions, and resource waste.

The ban took effect on July 19, 2026, for large companies with over 250 employees and more than €50 million in annual turnover. Medium-sized companies will follow starting in 2030. Businesses must now resell items at a discount, donate them to charities, or prepare them for reuse and repair. Unsold goods can only be destroyed if they are unsafe, damaged, counterfeit, or explicitly rejected by donation programs. Companies must also publicly report how much unsold inventory they discard.

According to the European Environment Agency (EEA), around 4% to 9% of unsold textile products are destroyed each year.This wasted raw materials, water, and energy, and generated over 5 million tons of CO2 emissions each year.Many fashion brands found it cheaper to burn, shred, or throw away surplus stock and online returns rather than pay to store, clean, or resell them.

The ban is imposed Under the Ecodesign for Sustainable Products Regulation (ESPR), which was adopted in 2024 and expands sustainability rules to cover nearly all physical products. The goal is to reduce waste and promote a “circular economy,” where products are reused rather than thrown away. The destruction ban is the first major restriction under the new rules

The prohibition on destroying unsold clothes and shoes under the ESPR represents a decisive shift in EU product policy. The regulation extends ecodesign principles to nearly all physical products and introduces structured sustainability transparency through the `Digital Product Passport.’

For fashion and retail companies, the ban is not only an environmental requirement but also a governance and operational challenge. Companies that act early can transform compliance into competitive advantage by improving demand forecasting, strengthening resale and repair channels, and building robust product level data infrastructure.

The regulation applies to products placed on the EU market regardless of where they are produced. As a result, the ESPR has strong extraterritorial implications for global manufacturers and retailers.

Moving towards a sustainable fashion industry would require a holistic approach in every stage of the value chain. Businesses should use resources more effectively, reducing and managing the use of chemicals that become waste, and shift to renewable sources of energy and materials. Production should also be optimized to produce items that can last longer and can be easily repaired and recycled. At the systemic level, there is a need for policies that shape better waste management systems and infrastructure, as well as transparency and traceability in the textile supply chain.