EU Moves To Ban Destruction Of Unsold Clothing Under New Circular Economy Rules

Each year in Europe, an estimated 4 to 9 percent of unsold textiles are destroyed before ever reaching consumers. The environmental cost is significant, producing roughly 5.6 million tons of CO2 emissions, a level comparable to Sweden’s total net emissions in 2021. Policymakers say these figures reveal structural inefficiencies across the apparel value chain, from overproduction to weak resale infrastructure.

The new rules aim to reverse that pattern. Companies will be required to publicly disclose how much unsold inventory they discard, pushing ESG reporting into operational territory. Alongside disclosure, a formal ban on destroying unsold apparel, clothing accessories and footwear will apply to large companies starting 19 July 2026. Medium-sized companies will follow in 2030, giving smaller operators additional time to adjust supply chains and inventory strategies.

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This requirement aligns with broader European governance priorities that emphasize data transparency and comparable ESG metrics. Regulators expect the move to encourage companies to adopt better forecasting models, improve return logistics and expand resale or remanufacturing initiatives.

Instead of disposing of excess stock, businesses are being pushed toward circular solutions such as donations, reuse or alternative retail channels. Industry analysts note that the policy effectively turns waste into a reputational and financial risk factor, especially for brands already under scrutiny from sustainability-focused investors.