Australian businesses can learn about circularity from Europe’s new product eco-design rules
Ross Thompson, Greenbox In the face of climate change, governments and businesses are either pushing or being inevitably pulled to reset their strategies, practices and systems from linear to circular. Legislation and regulations, along with certifications, are a key lever for this mega trend. Mandatory climate-related financial disclosure for big business in Australia and other jurisdictions are just the start of changing times. Keeping household and business products and materials in use is one part of the circular picture, and countries at the forefront of circularity are creating regulatory frameworks that design waste and pollution out of the system. Europe is at the leading edge of this seismic shift. The region provides an indication of what Australian companies might expect ahead and indeed will soon be impacted by when exporting. Let’s consider some notable features and implications of Europe’s new product eco-design rules, which came into force in July 2024: Sustainable products becoming the rule, not the exception The Ecodesign for Sustainable Products Regulations (ESPR) are a framework for setting ecodesign requirements on specific product groups (almost all physical products) – implemented gradually over time based on prioritisation. Priority products range from steel and textiles to tyres, detergents and ICT products and other electronics. These rules will be developed based on scientific evidence, economic analysis and stakeholder consultation. The aim is to improve circularity, energy performance and other sustainability aspects of products placed on the EU market. This regulation brings in rules for a broader range of products and more expansive rules as appropriate. Towards a circular economy, it’s about better durability, reusability, upgradability, reparability, recycling, resource efficiency, carbon footprint and information transparency. Scanning products for sustainability, stop destroying unsold products, and ‘Green Public Procurement’ Novel measures in the ESPR are a ‘Digital Product Passport’, rules to address the destruction […]