EU bans large fashion retailers from destroying unsold clothes and shoes

What the ban covers

Large companies across the European Union are now prohibited from destroying unsold clothing, accessories and footwear. The ban, which took effect on Sunday 19 July, applies to firms with more than 250 employees and over €50 million in net annual turnover. Instead of disposal, businesses must find ways to resell, donate or recycle the goods. Destruction is only permitted when items are unsafe, damaged, counterfeit or have been rejected by charities. Companies are also required to publish annual reports on discarded products and keep records for five years.

This is a measure that Europe is taking to avoid the waste of new products. It is part of a whole series of measures so that companies contribute to the circular economy.

The regulation is part of the EU Ecodesign for Sustainable Products Regulation (ESPR), which has been in force since July 2024. Medium-sized enterprises will be brought under the same rules in 2030.

The scale of fashion waste

Every year, between 264,000 and 594,000 tonnes of unsold textiles are destroyed across the 27 EU member states, according to the European Environment Agency. The European Commission estimates that the disposal process alone generates up to 5.6 million tonnes of CO₂ annually, roughly the same as the yearly emissions of 2 to 3 million cars. In Germany, around 17 million returned online purchases were destroyed in 2021. Across the bloc, one in five fashion items ordered online is returned and never resold.

Industry reaction

German retail association HDE sees potential benefits for consumers. Chief executive Stefan Genth said the ban could increase the supply of discounted goods through outlets, remainder markets and second-hand channels. He also noted ecological gains, “since less nearly-new clothing is destroyed and products are more frequently resold or donated.” However, Genth warned that not all unsold goods can easily be resold or donated due to damaged packaging, high logistics costs, weak demand or low product value. Retailers face extra costs for storage, sorting, refurbishment and remarketing, plus documentation requirements and legal uncertainties.

Not all unsold goods can simply be resold or donated.

GermanFashion chief executive Thomas Lange welcomed the ban, calling it an important signal for more responsible use of resources. But he argued the real challenge lies with the huge volumes of cheap ultra-fast-fashion items that consumers order directly from non-European online sellers. Lange said the regulation would have little impact on many European clothing companies because they rarely destroy unsold stock.

Clothing is a valuable product whose destruction should be avoided.

What happens next

The ban is one piece of a broader EU strategy to make products more durable, repairable and reusable. The European Environment Agency has stressed that a circular economy, where goods are designed to last and are reused, repaired and recycled, is no longer optional. The regulation will expand to medium-sized firms in 2030, and the reporting obligations that began last year already require companies to disclose the quantities of unsold goods. The hope, as Comeos sustainability director Nathalie De Greve put it, is that firms will think harder about how much they put on the market and try to better align supply with demand.