Indian exporters must prepare for EU’s sustainability compliance regulation: GTRI

BL New Delhi Bureau Updated - June 19, 2024 at 09:31 PM.

Indian firms exporting items such as textiles, paints, furniture, mattresses, steel and aluminium to the EU must proactively prepare to comply with Ecodesign for Sustainable Products Regulation (ESPR) which requires them to provide barcode accessible detailed information to prove that they meet prescribed European sustainability standards from January 2026, according to a report by research body Global Trade and Research Initiative.

“ESPR will lead to high costs of products because of changes needed in production processes as it will allow traceability back to manufacturer, input suppliers and everyone in the chain to provide detailed information on a product’s environmental impact, durability, and reparability,” according to Ajay Srivastava, Founder, GTRI.

The ESPR requires each product exported to the EU to have a digital product passport (DPP), accessible via a barcode or QR code. The DPPs will assist regulators in enforcing compliance. The details will include requirements on product design, emphasising energy efficiency, durability, repairability, recyclability and overall environmental impact of a product, the report noted.

Exporters of iron, steel, aluminium, textiles, furniture, mattresses, tires, detergents, paints and lubricants will be the first impacted by these regulations starting January 2026. It will be extended to other products by 2030.

To prepare for ESPR, Indian entities need to evaluate the environmental impact of their products throughout their life cycle, stay informed about the regulation’s development and implementation timelines and create strategies to meet the ESPR requirements for affected product categories, the report suggested.

They should also educate their teams about the new regulations and sustainability requirements and ensure that suppliers provide necessary sustainability data for the digital product passports.

Published on June 19, 2024 15:17

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