Europe has been urged to co-operate with countries beyond its borders and push for higher global sustainability standards

The implementation of the EU’s Ecodesign for Sustainable Products Regulation may cause developing countries to “lose out on market opportunities”, says a report by think-tank the Institute for European Environmental Policy.

The ESPR holds “significant potential to accelerate the transition to a circular economy” by setting performance and information requirements for certain products sold in the EU, according to the briefing. 

Both foreign and domestic companies are required to adhere to the regulation, which seeks to boost the circularity of products — including textiles and footwear, furniture, tyres, detergents and cosmetics — sold in the EU. Goods will need to meet requirements on their durability, reusability, repairability, recyclability, upgradability and environmental impacts. 

Products will also need to have “digital product passports” containing information for consumers on their origin, repairability and recyclability.

The regulation could have a number of unintended “spillover effects”, including increased cost of compliance with sustainability standards for businesses and potential “trade disruptions” for non-compliant products, warns the report. 

It calls for developing countries selling products in the EU to be offered support through technical assistance programmes to ensure they do not lose out on market opportunities due to a lack of institutional capacity to adopt stricter product standards.

The EU should use the ESPR to become a “global leader” and push for higher product sustainability standards internationally, says the IEEP. 

The law is a framework regulation, meaning it relies on the adoption of delegated acts for specific product types. The first delegated act will affect textiles and furniture, and is expected to be published in January 2026 and enter into force 18 months later.

The European Commission is also expected to adopt the first ESPR Working Plan on April 19.

The report is available to read here.