Starting with the Ecodesign for Sustainable Products Regulation’s (the “ESPR,” Regulation (EU) 2024/1781) ban on destroying unsold apparel and footwear in 2026, the European Union (the “EU”) plans to gradually expand the scope of regulated products. Concurrently, the Packaging and Packaging Waste Regulation (the “PPWR,” Regulation (EU) 2025/40) introduces obligations on substance restrictions, conformity assessments and documentation, with full implementation expected in 2030. 

In light of the above, companies already operating in or planning to enter the EU market must thoroughly prepare for these regulatory changes. Key obligations of the PPWR and ESPR are as follows.
 

• The use of substances of concern in packaging must be minimized, and food-contact packaging where Per- and Polyfluoroalkyl Substances (“PFAS”) exceed specific limits is banned from the market.
   

• Manufacturers must perform conformity assessments and prepare both the Technical Documentation (the “TD”) and the Declaration of Conformity (the “DoC”) before placing any packaging on the market.
   

• Importers need to verify that these procedures have been completed before placing any packaging on the market and retain a copy of the DoC.
   

• Upon request from national authorities, manufacturers and importers must provide all the information and TD necessary to demonstrate the conformity of packaging with the respective mandates.
   

From August 12, 2028, or 24 months after the delegated acts under Article 12 take effect (whichever is later), packaging labeling requirements—containing information on packaging material composition—shall apply.

Building on this earlier compliance framework, the following performance mandates will take effect from January 1, 2030, and companies must take preemptive action to integrate these future standards into their transition plans:
 

• Only packaging achieving the recyclability grade A through C may be placed in the EU. The recyclability grade will be determined based on various factors, including packaging material composition and structure, separability of the packaging waste, substances of concern, recyclability and economic viability. Recyclability grades will determine Extended Producer Responsibility (“EPR”) fees via eco-modulation, rewarding more sustainable packaging with lower costs.
   

• Plastic packaging must incorporate a minimum percentage of recycled content. This mandate is expected to stimulate market demand for recycled content.
   

• Manufacturers and importers must minimize packaging and ensure the maximum empty space ratio in e-commerce shipping packaging does not exceed 50%.
   

• Under current regulations, large companies are already required to annually disclose information on the destruction of unsold products.
   

• From July 19, 2026, large companies are prohibited from destroying unsold apparel and footwear.
   

For the majority of product categories, the ESPR serves as a framework, and specific performance and information requirements will be established through the enactment of subsequently delegated acts.
 

• In particular, from 2026 to 2030, the EU will enact these acts to codify specific ecodesign requirements for the prioritized product groups (i.e., iron, steel, aluminum, textiles (apparel), furniture, tires and mattresses), setting specific requirements for product durability, reusability, repairability, recycled content and environmental impacts.
   

• Furthermore, electronic devices (smartphones and tablets) and household appliances (washing machines, refrigerators and dishwashers) previously governed by the Ecodesign Directive will be sequentially integrated into this new framework.
   

• Furthermore, alongside existing labeling requirements, the Digital Product Passport (the “DPP”) will be implemented as a digital record, providing consumers and regulators with transparent lifecycle data.
   

• The ESPR also adopts a verification framework (TD, DoC) similar to the PPWR, which will be implemented sequentially as delegated acts are enacted for each product group.
   

The year 2026 marks a critical turning point where the EU’s circular economy framework moves to strict enforcement. With the primary mandates of the PPWR and ESPR expected to be broadly implemented by 2030, companies already operating in or planning to enter the EU market should proactively develop year-by-year action plans to ensure full compliance.

[Korean Version]