EU Ban on Destroying Unsold Clothes and Shoes: The 2026 ESPR Rule Explained

Which Companies Are Affected?

The ban applies to large enterprises from July 19, 2026, defined in the EU as companies with more than 250 employees and an annual turnover exceeding €50 million . Medium-sized enterprises (50–250 employees, turnover up to €50 million) have a delayed compliance date of 19 July 2030 . Small and micro enterprises (fewer than 50 employees, turnover at or below €10 million) are permanently exempt .

The rule is sector-agnostic: it catches fast-fashion retailers, luxury houses, sportswear brands, and any company selling apparel or footwear into the EU . In short, any large business in the fashion and textile value chain must comply.

Exemptions: When Destruction Is Still Allowed

The ban is not absolute. Under Article 25(5) of the ESPR, the European Commission adopted a Delegated Act on 9 February 2026 (C(2026) 659) that permits destruction in strictly limited, justified circumstances . These derogations include:

• Health, hygiene, and safety reasons (e.g., contaminated or hazardous products)
• Irreversible physical damage that renders products unusable
• Safety recalls for products withdrawn from the market
• Products that cannot be reused, repaired, or recycled when no circular alternative exists

Companies claiming a derogation must document the justification and include it in their annual reporting.

Mandatory Public Reporting

Beyond the destruction ban, the ESPR imposes a disclosure obligation. Under Article 24, any economic operator that discards unsold consumer products must publicly disclose annually on its website :

• The number and weight of unsold products discarded
• The reasons for discarding them
• The waste treatment method (e.g., incineration, landfilling)

Large companies have been required to report since the first full financial year after the ESPR entered into force (18 July 2024), meaning their first reports—covering the 2025 financial year—are due in 2026 . A standardized reporting format was introduced in the February 2026 Implementing Act and takes effect in February 2027 . Medium-sized companies will face the same reporting obligation from 2030 .

The Scale of the Problem: How Much Textile Waste Is Destroyed?

Multiple authoritative EU sources estimate that 4–9% of all textile products put on the European market are destroyed without ever being used . This translates to approximately 264,000–594,000 tonnes of textiles destroyed each year . For online returns specifically, an estimated 22–44% of returned clothing never reaches a new customer and is destroyed . Overall, the EU generated about 6.94 million tonnes of textile waste in 2022, equivalent to 16 kg per person . The environmental cost is significant: processing and destructing these unsold textiles generates up to 5.6 million tonnes of CO₂-equivalent emissions annually .

Why Both Fast Fashion and Luxury Brands Are Targeted

The ban addresses two different but complementary waste drivers:

• Fast fashion and high-street brands: Overproduction, ultra-low prices, and high return rates generate enormous volumes of unsold stock that has historically been incinerated or landfilled . These brands account for the bulk of the tonnage wasted.
• Luxury brands: Many luxury houses have deliberately destroyed unsold inventory to protect brand exclusivity, prevent discounting, and maintain price positioning . Burning or shredding excess stock was a standard practice to keep products off the grey market.

The ESPR targets all companies selling into the EU equally because the waste problem spans the entire value chain. The rule forces both segments to shift from destruction to reuse, donation, recycling, or better demand planning .

Regulatory History: From Adoption to Enforcement