EU Ban on Destruction of Unsold Textiles: Compliance Guide

Between 264,000 and 594,000 tonnes of textiles are destroyed before ever reaching a consumer in the EU every single year, generating approximately 5.6 million tonnes of CO₂ emissions. Starting July 19, 2026, the EU will ban large enterprises from destroying unsold apparel, clothing accessories, and footwear under Article 25 of the Ecodesign for Sustainable Products Regulation (ESPR). This is one of the first ESPR provisions to take effect, and companies have less than 3 months to prepare.

This guide covers who is affected, what the exemptions are, what documentation you need, and how to build a compliant process before the deadline.

What Does the EU Destruction Ban Actually Prohibit?

The destruction ban prohibits economic operators from destroying unsold consumer products listed in ESPR Annex VII. For textiles, this specifically covers apparel, clothing accessories, and footwear. The prohibition applies to direct destruction by the company and to destruction carried out by a third party on the company's behalf.

The European Commission adopted the final delegated and implementing acts on February 9, 2026. Two instruments define the rules:

• Delegated Regulation C(2026) 659 defines 10 specific derogations (exemptions) that allow destruction under documented circumstances.
• Implementing Regulation C(2026) 660 sets out the standardised disclosure format that companies must publish annually.

The ban does not cover products that are donated. Donation is explicitly excluded from the scope. Companies are in fact encouraged to donate unsold inventory to social economy organisations as a first-choice alternative.

Key finding: 4–9% of all textile products placed on the EU market are destroyed before use. That is the equivalent of up to 594,000 tonnes per year, almost matching Sweden's total net CO₂ emissions.

Who Must Comply and When?

Large enterprises must comply with the destruction ban from July 19, 2026. Medium-sized enterprises follow from July 19, 2030. Micro and small enterprises are fully exempt.

The following table breaks down the timeline:

The disclosure requirement starts approximately 12 months after the financial year in which the ban first applies. For large enterprises with a financial year ending December 2026, this means the first disclosure must be published by the end of 2027.

Important: the ban applies to companies selling on the EU market regardless of where they are headquartered. A non-EU brand placing products on the EU market through an authorised representative must also comply.

What Are the 10 Exemptions to the Destruction Ban?

Delegated Regulation C(2026) 659 defines exactly 10 circumstances where destruction of unsold apparel and footwear remains permitted. Every exemption requires specific documentation retained for 5 years.

Here are the 10 derogations:

1. Dangerous products — the product poses a risk to health or safety under the General Product Safety Regulation (GPSR), and no other mitigation is possible.
2. Non-compliance with mandatory law — the product fails to comply with applicable EU or national legislation. Note: this covers only mandatory legal requirements, not voluntary standards or company policies.
3. Intellectual property infringement — the product infringes IP rights.
4. Expired IP licence — the licensing agreement has lapsed.
5. Unsuitability for reuse — the product cannot reasonably be reused.
6. Physical damage — damage renders the product unfit for its intended purpose.
7. Manufacturing defects — defects make the product unusable.
8. Rejected donation — the company attempted donation but was rejected. The final regulation requires offering to at least 3 social economy organisations based in the EU (increased from 2 in the draft version).
9. Social economy entity without recipient — a social economy organisation itself could not find an end recipient.
10. Prepared-for-reuse without recipient — products prepared for reuse but no recipient was found.

Key finding: The final delegated regulation removed a draft derogation that would have allowed destruction for non-compliance with voluntary company chemical safety standards. Only products violating mandatory EU or national law qualify.

A critical change in the final version: the requirement to attempt donation to at least 3 EU-based social economy organisations before claiming exemption (h). This means companies need established relationships with donation partners. Building those relationships takes time, which is why starting now is essential.

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What Must Companies Disclose Annually?

Every company subject to the ban must publish a standardised annual disclosure on their website covering the previous financial year. The disclosure is defined by Implementing Regulation C(2026) 660 and covers far more than just textiles.

The required disclosure includes:

• Legal entity name and identifier
• Financial year covered
• Product categories (classified by CN code)
• Number and weight of units discarded
• Whether packaging is included in the figures
• Reason for discarding each batch
• Waste treatment breakdown by percentage (preparing for reuse, recycling, energy recovery, disposal)
• Measures taken and planned to prevent future destruction

The disclosure must be published within 12 months of the financial year end. The format follows a standardised template set by the implementing regulation.

One important distinction: while the destruction ban is limited to Annex VII products (apparel, accessories, footwear), the disclosure requirement under the implementing regulation covers over 50 product categories including electronics, appliances, furniture, and toys. If your company operates across multiple product lines, the disclosure obligation may be broader than the ban itself.

What Are the Penalties for Non-Compliance?

ESPR Article 72 requires Member States to establish penalties that are effective, proportionate, and dissuasive. The regulation sets minimum requirements rather than fixed fine amounts.

At minimum, penalties must include:

• Financial fines — amount determined at national level
• Temporary exclusion from public procurement

When setting penalty levels, Member States must consider:

• The nature, gravity, and duration of the infringement
• The economic benefits the company derived from the violation
• The environmental damage caused

Member States may also impose criminal sanctions at national level. Every 4 years, the Commission will publish a report benchmarking checks, non-compliance levels, and penalty practices across the EU.

The fact that penalties are set nationally means companies operating in multiple EU markets face varying risk levels. France, which already implemented a destruction ban through the AGEC Law in January 2022, is likely to enforce aggressively given its track record.

How Does France's AGEC Law Compare?

France banned the destruction of unsold non-food products from January 1, 2022, under the Anti-Waste for a Circular Economy (AGEC) law. This was the first such ban in the EU and served as a model for the ESPR Article 25 provisions.

The AGEC law is broader in product scope (all non-food products, not just textiles) but its enforcement approach provides a preview of what companies can expect EU-wide. Before the AGEC law, France destroyed approximately EUR 630 million worth of unsold products annually.

Companies already compliant with France's AGEC law will find the EU-wide ban familiar, though the specific exemption conditions and disclosure format differ. Companies operating only outside France are encountering these requirements for the first time.

Key finding: France's AGEC law reduced unsold product destruction significantly since 2022. The EU-wide ban extends this approach to all 27 Member States from July 2026.

How Can Companies Comply in 3 Months?

With the deadline on July 19, 2026, companies need a practical action plan. The following steps prioritise what matters most in the remaining time.

Step 1: Audit Your Current Unsold Inventory Process (Week 1–2)

Map every point in your operations where unsold products are currently destroyed, returned to manufacturers, or sent to waste management. Identify the volumes by product category and the reasons for destruction. This audit will reveal your baseline and the scale of the change required.

Key questions to answer:

• How many units were destroyed in the last 12 months?
• What was the primary reason for each destruction event?
• Which warehouses, logistics partners, or third parties handle destruction?

Step 2: Establish Donation Partnerships (Week 2–4)

The exemption for "rejected donation" requires documented proof of offering to at least 3 EU-based social economy organisations. Build these relationships now.

Contact organisations such as:

• National textile donation networks (e.g., Humana, Salvation Army, local equivalents)
• Social economy enterprises focused on textile reuse
• Charities with established logistics for receiving bulk donations

Formalize agreements in writing. Document every offer and response. This documentation must be retained for 5 years.

Step 3: Update Internal Policies and Training (Week 3–6)

Replace any internal policy that defaults to destruction with a hierarchy: donate first, repurpose second, recycle third, destroy only under documented exemption. Train warehouse managers, logistics partners, and retail operations on the new process.

Step 4: Set Up Documentation and Tracking Systems (Week 4–8)

Every destruction event must be documented with the specific exemption invoked and supporting evidence. Build a tracking system that captures:

• Product identification (category, CN code, quantity, weight)
• Reason for potential destruction
• Steps taken to avoid destruction (donation attempts, reuse evaluation)
• Final disposition (donated, recycled, destroyed under exemption)
• Supporting documentation (safety assessments, donation rejection letters, damage reports)

A digital product passport platform can serve as this tracking system, linking product-level data to lifecycle events including end-of-life handling.

Step 5: Prepare Disclosure Infrastructure (Week 8–12)

Even though the first disclosure is not due until approximately end of 2027, the data collection starts with the first financial year under the ban. Set up reporting templates that match the standardised format from Implementing Regulation C(2026) 660.

How Does the Destruction Ban Connect to Digital Product Passports?

The destruction ban and the digital product passport (DPP) are complementary instruments within ESPR. While the DPP mandate for textiles takes effect around 2028, implementing DPP infrastructure now directly supports destruction ban compliance.

The connection works at several levels:

Product-level tracking. DPP creates a unique digital identity for each product (or product model/batch), linked via QR code to structured data. This same infrastructure tracks unsold inventory through its lifecycle, whether it's donated, reused, recycled, or destroyed under exemption.

Exemption documentation. When invoking an exemption, you need product-level evidence. A DPP system that already captures product data (safety assessments, material composition, defect records) provides the documentation trail required by the delegated regulation.

Disclosure data. The annual disclosure requires product categories, quantities, weights, and treatment methods. A DPP platform that tracks products from production through end-of-life generates this data automatically.

Circularity enablement. DPP data on material composition and care instructions helps circular economy partners assess whether a product can be reused, repaired, or recycled, reducing the number of products that reach the destruction decision point.

For a detailed overview of ESPR requirements and timelines, see our complete DPP compliance guide.

What Happens After 2026?

The July 2026 ban is only the beginning. Several additional milestones follow:

• ~February 2027: First disclosure template applies. Large enterprises begin collecting data for their first annual disclosure.
• Mid-2027: First EPR (Extended Producer Responsibility) transposition deadline for textiles across EU Member States.
• Mid-2028: DPP becomes mandatory for textiles. The destruction ban and DPP will work in tandem, with DPP providing the data infrastructure for tracking product disposition.
• July 2030: Destruction ban extends to medium-sized enterprises (50–249 employees).

For companies planning their ESPR compliance journey, the destruction ban is the first regulatory milestone. Treating it as an isolated requirement would be a mistake. The processes and systems you build now for tracking unsold inventory will form the foundation of your broader DPP compliance.

Our EU textile regulation timeline article covers the full calendar of upcoming deadlines.

FAQ

Can companies still destroy unsold textiles in the EU after July 2026?

Only under 10 specific exemptions defined in Delegated Regulation C(2026) 659. These include safety concerns, mandatory legal non-compliance, IP infringement, physical damage, manufacturing defects, and rejected donation attempts. Each exemption requires documented proof retained for 5 years.

Does the destruction ban apply to SMEs?

Micro and small enterprises (under 50 employees) are fully exempt. Medium-sized enterprises (50–249 employees) must comply from July 19, 2030. Large enterprises (over 250 employees or over EUR 50M turnover) must comply from July 19, 2026.

What counts as "destruction" under the ban?

Destruction includes any form of discarding unsold products, whether through incineration, landfill, or other waste treatment. It covers both direct destruction by the company and destruction carried out by third parties on the company's behalf. Donation to social economy organisations is explicitly excluded from the definition.

How many donation attempts must a company make before claiming an exemption?

The final regulation requires offering the products to at least 3 social economy organisations based in the EU. If all 3 reject the donation (with documented proof), the company may invoke exemption (h). This threshold was increased from 2 in the draft version.

Does the ban apply to non-EU companies selling in the EU?

Yes. The ban applies to economic operators placing products on the EU market, regardless of where the company is headquartered. Non-EU brands using authorised representatives in the EU are subject to the same requirements.

What is the difference between the destruction ban and the disclosure requirement?

The destruction ban (Article 25(1)) prohibits destroying unsold textiles except under documented exemptions. The disclosure requirement (Article 25(2)) mandates annual public reporting on all discarded unsold products, including volumes, treatment methods, and prevention measures. The disclosure covers over 50 product categories, far broader than the textiles-only ban.

How does the EU destruction ban compare to France's AGEC law?

France's AGEC law, effective since January 2022, bans destruction of all unsold non-food products. The EU-wide ban under ESPR Article 25 initially covers only Annex VII products (apparel, accessories, footwear) but follows the same principle. Companies already compliant with AGEC will find the EU ban familiar, though specific exemption conditions and disclosure formats differ.

Next Steps

The July 19, 2026 deadline is less than 3 months away. Here is what to do now:

1. Run an inventory audit to understand your current unsold product volumes and destruction practices. Use our DPP showcase to see how product-level tracking works in practice.
2. Read our complete guide to DPP compliance for textiles to understand how the destruction ban fits into the broader ESPR framework.
3. Get a free compliance screening to assess your readiness. Contact our team →