Since most products covered are consumer products, the price rise may lead to inflation in the EU, the report said
Shreya Nandi New Delhi
The European Union’s (EU) recently passed regulation–Ecodesign for Sustainable Products Regulation (ESPR)–will result in high costs and is set to hurt exports from developing countries, a Delhi-based think tank said on Wednesday.
According to the European Commission, the new regulation will improve EU products’ circularity, energy performance, and other environmental sustainability aspects. ESPR will cover all products by 2030, but will begin with regulating items such as textiles, furniture, mattresses, tyres, detergents, paints, lubricants, iron, steel, and other items from January 2026.
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“The ESPR could hurt exports from developing countries due to the increased costs and challenges of meeting high EU standards and compliance costs,” Global Trade Research Initiative (GTRI) said, adding that the regulation will result in high costs of products because of changes needed in production processes.
Since most products covered are consumer products, the price rise may lead to inflation in the EU, the report said.
From January 2026, Indian products exported to the EU will need to include a QR code or barcode accessible detailed information to prove that the product meets the prescribed European sustainability standards, according to the report.
The regulation mandates that imported products meet stringent sustainability standards, including a Digital Product Passport for traceability. These measures aim to ensure all products entering the EU market adhere to high environmental standards, thereby influencing global trade practices, it said.
ESPR builds on the EU’s existing ‘Ecodesign Directive’, which currently only covers energy-related products. The regulation was proposed over two years ago but officially adopted by the European Parliament and the Council in April and May 2024, respectively.