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Digital Product Passport Regulation

The concept of the Digital Product Passport (DPP) was introduced as part of the ESPR, which was adopted on July 18th 2024. The first working plan is hot on the trail of new deadlines fast approaching in 2025.

Digital Product Passport Regulation

The Ecodesign for Sustainable Products Regulation (ESPR), put into effect on the 13th of June, 2024 and made effective on July 18, 2024, introduced the concept of a Digital Product Passport as a tool to facilitate sustainability at a granular level. All businesses selling into the E.U. market must be familiar with the ESPR and how the so-called Digital Product Passport regulation, and all related regulations, have changed the requirements for selling products in the E.U.

The common theme among regulations like the European Circular Economy Action Plan (CEAP), the European Ecodesign Requirements for Sustainable Products (ESRP), and similar regulations like the Food Safety Modernization Act (FSMA) and California’s SB 707 (Responsible Textile Recovery Act) in the United States, is that they establish the requirement for a lifecycle management framework. Lifecycle management frameworks depend on a method for recording details related to the lifecycle of a product and a method for associating those details with granularity to the individual unit. Outside of Europe, FSMA is gaining attention around how traceability and labeling requirements need to be used to gain compliance for all food sold in the U.S., whether imported or domestically produced., while California’s SB 707 is set to extend producer responsibility for all textiles manufactured and sold in California.  Regulations that are specific to items sold in North America, including the United States, Canada, and Mexico, are not the focus of this article, but businesses selling products in several markets should consider regulations that frequently must be complied with alongside the latest European regulations. Although one region or another’s regulations will include distinct purposes and applicability, preparing for regulatory compliance with a Digital Product Passport will typically prepare companies for complying with requirements in disparate jurisdictions. That’s because solutions for compliance will largely be built on similar lifecycle management frameworks. This article’s focus is on the so-called Digital Product Passport Regulation with immediate relevance to companies selling in the E.U.

The Digital Product Passport Regulation: An Overview

The first thing to know about the Digital Product Passport is that there is actually no such thing as an E.U. Digital Product Passport Regulation. Instead, the concept of the DPP falls under the broader directive of the EU’s Circular Economy Action Plan (CEAP), which aims to establish a circular economy and encourage sustainable practices throughout product lifecycles. The ESRP includes requirements for the adherence to and the creation of a digital product passport system, which is a tool designed to apply across various industries and with each of several industries having specific and distinct compliance dates and criteria.

Digital product passports are a dynamic solution, enabling products to carry a digital record of their lifecycle, traceability, environmental impact, and other significant data points. They are not a physical label but an integrated digital system for real-time, traceable information provided throughout a product’s lifecycle. This will be made accessible to consumers, retailers, recyclers, and regulators. Each DPP is unique to its product and records information from its creation to end-of-life. It is critical for companies to understand that DPP compliance is not a single action but instead it is an ongoing process.

The timeline for DPP implementation in Europe is rapidly approaching:

Requirements for a Digital Product Passport

Across industries, the requirements for implementing a digital product passport are designed to promote product transparency and sustainable lifecycle management. Key requirements include:

  1. Traceability of Materials
    Information on sources of raw materials, including environmental and social impact data, must be documented.
  2. Product Lifecycle Data
    A DPP must include records of all lifecycle stages: manufacturing, shipping, sale, maintenance, repair, reuse, recycling, and disposal.
  3. Environmental Impact Reporting
    Product passports must track carbon footprints and other environmental impact metrics, especially for products like batteries.
  4. Consumer Information
    DPPs should provide consumers with information about product longevity, repair options, and environmental impacts.

What products are included in the ESPR?

All products and categories sold in the European Union will be regulated by the Ecodesign for Sustainable Products Regulation. The first working plan, released on April 19, 2025, was originally meant to include the following product categories:

Despite those products being cited earlier in the ESPR as part of the first working plan, when the working plan was released on April 15, 2025 a few days ahead of schedule, the first working plan list had changed to include a more focused group of products, along with new timelines. The first working plan specified the following, focused products and timelines, grouped into three categories: four final products, two intermediate products, and two legal acts setting horizontal requirements.

These are the priority industries that were chosen based on where European Commission research showed the greatest potential for gains toward sustainability in the E.U. and indeed globally. Additional delegated acts are forthcoming, but the timelines indicate that some of the biggest industries in the world should continue to invest time into a program that ensures compliance. For the textile and apparel industry, especially clothing and footwear, the Textile Labeling Regulation will be important to stay abreast of. Producers selling in California will also want to keep track of California’s SB707 regulation which has strict collection requirements for producers above minimum production thresholds.

The details of product specific delegated acts are not all known, but they also aren’t a complete mystery. The following list is from the ESPR preliminary study on new product priorities, published at the end of January, 2023, and describes potential measures for the textile industry. Several of these will have a direct correlating component that will be reflected in the DPP for textiles requirements and will also give other industries an idea of how they should be preparing for their own regulatory compliance with corresponding timelines indicating degrees of urgency:

Top 5 Industries affected by the requirement for Digital Product Passports and upcoming related regulations

The CEAP requirements do not affect all industries equally in terms of urgency. Electronics, batteries, textiles, construction materials, and automotive components will each be affected by separate delegated acts despite all being regulated by the Circular Economy Action Plan and the delegated Ecodesign for Sustainable Packaging Regulation. Here are a few dates and notes, broken out by industry, relative to the requirements within these interrelated frameworks:

  1. Electronics
    • Important upcoming dates: TBD.
    • Implications: The ESPR went into force on July 18, 2024 and implicated the electronics industry by name. Detailed documentation on components, sources of raw materials, repairability, and end-of-life recyclability will be required, though they are not mandatory at the time of the ESPR going into force. Electronics will need to be equipped with a product passport that contains maintenance, repair, and recycling information. There is also a very important detail with regard to electronics companies that must be considered urgently, particularly for large electronics companies. Originally the plan to ban the destruction of unsold consumer products would be active from July 19, 2026. This was also meant to apply to clothing and footwear for medium-sized companies (defined by the European Commission) from July 19, 2030 with exceptions for micro and small enterprises. The ESPR also stated that the first working plan, which was already released on April 15, 2025, should consider the prohibition of destruction of unsold goods that are categorized as electronics. In fact, the first working plan has delayed any bans on the destruction of unsold goods citing that “it is premature because the insights gained from implementing the mandatory disclosure of information on the destruction of unsold consumer products (that will provide basis for any bans in the future working plans) are not yet available.”
  2. Batteries
    • Important dates: February 18, 2024, February 18, 2025; July 19, 2025; July 19, 2026; February 18, 2027; February 18, 2029
    • Implications: The first and most important thing for battery manufacturers is that according to Regulation 2023/1542, from February 18, 2027 each light electric transport battery (LMT), each industrial battery with a capacity greater than 2 kWh, and each electric vehicle battery placed on the market or put into service is required to have a battery passport. But there are important dates to note before that compliance date. The commission adopted delegated act 2023/1542 on July 12, 2023. This includes requirements for carbon emission declarations of electric vehicle batteries and even explains how to calculate the carbon footprint for a battery. That went into force on 18 February 2024. As we know, the first working plan of the ESPR did not include batteries but that is easily attributed to the fact that batteries have their own delegated regulations. The commission originally stated in 2023/1542 that a delegated act with carbon calculation for electric vehicle batteries would be established by Feb. 18, 2025. Despite that, 2023/1542 already gives us an indication as to what battery manufacturers will be seeing in the delegated act. The same details are set for release and adoption on 18 February 2025 for rechargeable industrial batteries, except those with external storage; 18 February, 2027 for LMT batteries and 18 February, 2029 for industrial batteries with external storage. Article 7 of the 2023/1542 (Battery and waste battery directive) states that from February 18, 2025 (or 12 months from the adoption of a delegated act) the carbon footprint declaration has to be drawn up for each battery model per manufacturing plant for electric vehicle batteries. The commission is pushing the DPP web registry live by July 19, 2026 so it’s imperative that electric vehicle battery companies prepare product details for this date. Companies should have the product passports ready to be linked to from the web registry by then. Finally it is worth mentioning that in Regulation 2024/1257, there is mention of the need for an “Environmental Vehicle Passport” which may implicate batteries as critical elements in the automotive industry.
  3. Textiles and apparel
    • Important dates: 2026-2027
    • Implications: Updated from the old Textile Labeling Regulation (No 1007/2011), textile labeling now includes information on recycled content, origin, and environmental impacts.
    • Textiles and apparel have the highest priority in the first working plan released on April 15, 2025. As a DPP is required for traceability and lifecycle data, textile companies should already be well on their way to setting up systems that will accommodate DPPs for clothing and footwear.
  4. Construction Materials
    • Important dates: July 19, 2025, 2026, December 31, 2028 – January 1, 2030
    • Implications: The list of products to included in the first working plan released on April 15, 2025 includes iron and steel and not cement. That’s largely because the revised Construction Products Regulation (CPR) Regulation 305/2011 continues to be the main tool for addressing the sustainability of construction products but construction products also fall within the scope of the ESPR. The ESPR functions as a safety net for setting requirements in case the revised Construction Product Regulation hasn’t achieved the intended results. This means that construction companies should be preparing a product passport for their products. These passports will have some similar requirements to the already delegated acts related to textiles and batteries, though carbon emissions associated with production will be emphasized. Construction products already have a declaration of performance and CE marking requirement, which are referred to in 305/2011, these declarations will be expanded. In short, if there is a declaration of performance, then you must expect to add a CE marking on the product. Delegated Regulation 157/2014 covers using digital means to deliver the declaration of performance for construction products, such as would be accessible through a QR code. In terms of the current requirements, Regulation 305/2011 states “at least one of the essential characteristics of a construction product which are relevant for the declared use or uses should be declared.” The ESPR includes a specific clause addressing cement products because of its CO2 intensive production process. That’s where the date range December 31, 2028 – January 1, 2030 comes into focus as very important for cement producers: the ESPR states that cement will get its own delegated act if the determination is that the current CPR doesn’t adequately address the goals of the ESPR. In conclusion, cement producers can bet that they’ll need to add product passports that are in line with the other already delegated acts. In the meantime, iron and steel are already part of the April 15, 2025 first working plan with a high priority and an adoption timeline specified as 2026.
  5. Lubricants
    • Important dates: TBD
    • Implications: Lubricants were in the first working plan to be released on April 19, 2025 with the first delegated act released not entering into force before July 19, 2025. We’ve now seen that the first working plan does not include lubricants as of the April 15, 2025 working plan document release. The first working plan will include the ecodesign requirements for lubricants though. Based on what the ESPR states, we know that the ecodesign requirements will include the need to establish performance requirements, such as minimum recycled content or limits on energy consumption, requirements to phase out non-sustainable products, information requirements to educate consumers on sustainable choices, requirements for labels, product passports, or the disclosure of substances of concern. The best thing to do is for lubricant companies to get their packaging and product marking ready as soon as possible to onboard the required information as it becomes a requirement.

Digital Product Passport for Batteries

Under Regulation (EU) 2023/1542, batteries are one of the first products requiring detailed DPPs. Key requirements for battery DPPs, as listed in Article 7, include:

Battery manufacturers selling in the E.U. market should know that (EU)2023/1542 establishes the method for calculating the carbon footprint of a battery: The formula is:

Carbon Footprint (kg CO2​/kWh)=Total CO2​ emissions (kg)/Total energy delivered over product life (kWh)

Where:

Total energy delivered=battery capacity (kWh)×number of charge cycles

Complete Formula:

Carbon Footprint (kg CO2​/kWh)=Battery capacity (kWh)×charge cyclesTotal CO2​ emissions (kg)​

This provides the carbon footprint per unit of energy (kWh) delivered by the battery over its lifetime, which is a battery DPP requirement.

Digital Product Passport for Textiles

The DPP requirements for textiles are also evolving. These requirements aim to replace the outdated Textile Labeling Regulation (No 1007/2011) with a system that promotes transparency, recyclability, and environmental accountability. Minimum requirements include:

Are there any items excluded from needing a Digital Product Passport?

Not everything that is placed in the E.U. market will require a Digital Product Passport, according to the description in the ESPR. Some item categories are excluded from needing a DPP because they are not regulated by the requirements of the ESPR. Other items will need a DPP, but the requirement details for that DPP aren’t determined in the ESPR. That might be confusing at first, but keep in mind that there are category specific regulations when it comes to DPPs. The following includes categories that are strictly not included:

The following items are not regulated directly by the ESPR because they have requirements that are meant to be specified in their own delegated acts.

The exclusions cited above reflect the acknowledgement that implementing DPPs for certain low-value or non-durable goods would be economically or technically impractical. Most importantly though, some of these categories are regulated by distinct, specific E.U. regulations. The ESPR is meant to act as a sort of trapeze net to cover rules that are not already covered in industry specific regulations. The ESPR isn’t meant to take precedence over those industry specific regulations.

Conclusion

As the compliance deadlines for DPPs draw closer, companies must prepare by implementing necessary tracking systems, software solutions, and internal processes to meet regulatory requirements. A proactive approach not only ensures adherence to the law but also enhances transparency, builds consumer trust, and contributes to a sustainable economy.

NB: more information will be added to this article as the regulation develops and more details are released.