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EU’s Sustainable Products Regulation to hurt Indian exports

24 Jun 2024

Ecodesign for Sustainable Products Regulation (ESPR) mandates stringent sustainability checks for imported products. This is bound to impact Indian exports to Europe significantly.

The European Union recently passed a new regulation, the ESPR, to monitor the sustainability of imported products. It also mandates a Digital Product Passport for easier traceability of items.

It will come into effect in January 2026 and begin monitoring items like textiles, mattresses, furniture, iron and steel, tyres, paints, detergents, and lubricants. By 2030, it will cover all EU imports.

Global research group Global Trade Research Initiative (GTRI) believes this initiative will hurt exports from various countries. These countries will have to change their production processes to meet the ESPR sustainability criteria, which can lead to higher production and compliance costs, thus reducing the pricing advantage Indian exporters enjoy.

To be compliant, Indian firms must ascertain their products' environmental impact throughout their life cycle, ensure ESPR adoption in their processes, set up compliance policies and measures, and provide the necessary sustainability data for Digital product Passports.

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