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Digital Product Passport Regulation

The concept of the Digital Product Passport (DPP) has been widely discussed even before the ESPR that introduced was adopted on July 18th 2024. New information is frequently emerging, especially as important dates and the first working plan deadlines approach 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, 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) 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. North American regulations, including the United States, Canada, and Mexico, are not the focus of this article. That doesn’t mean that businesses selling products into these markets shouldn’t consider them alongside the latest European regulations. Regional regulations may have distinct purposes and applicability, but solutions like the Digital Product Passport require very similar framework solutions for compliance. That means that when a company is planning a lifecycle management framework, such as to satisfy the requirements of a Digital Product Passport, it’s helpful to keep in mind that the tools for compliance in one region can be leveraged for compliance in a different jurisdiction. For now, we’re going to focus on the so-called Digital Product Passport Regulation.

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?

Here is a list of products that are included in the ESPR and that will need DPPs. All of these are prioritized in a first working group:

As an example of details that are indicative of what will be category specific in the upcoming delegated acts, this list is from the ESPR preliminary study on new product priorities, published at the end of January, 2023, specific to potential measures for textiles. Several of these will have a direct correlating component that will be reflected in the DPP for textiles requirements, to be specified when the first working plan is adopted on April 19, 2025:

Top 5 DPP affected company categories and upcoming requirement dates

The CEAP requirements do not affect all industries equally, also with regard to Digital Product Passport regulation. Electronics, batteries, textiles, construction materials, and automotive components will each be affected by separate delegated acts, but they all default to being included via regulatory requirements in the Circular Economy Action Plan and the delegated Ecodesign for Sustainable Packaging Regulation. Here are a few dates, broken out by industry, relative to the requirements within these interrelated frameworks:

  1. Electronics
    • Requirement dates: July 18, 2024, April 19, 2025, October 19, 2026
    • Requirements: Detailed documentation on components, sources of raw materials, repairability, and end-of-life recyclability. Electronics must be equipped with a product passport that contain 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. From July 19, 2026, the destruction of unsold consumer products will be prohibited. At the moment it is already adopted that this will apply to clothing and footwear and strictly for medium-sized companies (defined by the European Commission) from July 19, 2030. It’s also clear from the ESPR that this won’t apply to micro and small enterprises (again, defined by the E.C.). However, in several places the ESPR states that the working plan, to be adopted April 19, 2025, should consider the prohibition of destruction of unsold goods that are categorized as electronics. This is a not-so-subtle hint at what is coming for electronics and indicates some of the requirements that will be included in the delegated act for electronics DPPs.
  2. Batteries
    • Requirement Date: January 2026
    • Requirements: Article 7 of Regulation (EU) 2023/1542 outlines minimum details, including the carbon footprint, chemical composition, and disposal instructions. Manufacturers must establish a DPP for tracking lifecycle stages from raw material extraction to disposal or recycling.
  3. Textiles
    • Requirement Date: 2026-2027
    • Requirements: Updated from the old Textile Labeling Regulation (No 1007/2011), textile labeling now includes information on recycled content, origin, and environmental impacts. A DPP is required for traceability and lifecycle data.
  4. Construction Materials
    • Requirement Date: July 2028
    • Requirements: Construction materials must disclose lifecycle environmental impacts, durability, and recyclability, aiming to mitigate waste and promote sustainable building practices.
  5. Automotive Components
    • Requirement Date: 2027
    • Requirements: Automotive DPPs must record maintenance history, component traceability, and lifecycle assessments.

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 in December regarding textiles and the construction industry.