{"id":10229,"date":"2024-11-15T21:10:24","date_gmt":"2024-11-15T21:10:24","guid":{"rendered":"https:\/\/cms.scantrust.com\/?p=10229"},"modified":"2024-12-18T21:59:14","modified_gmt":"2024-12-18T21:59:14","slug":"digital-product-passport-regulation","status":"publish","type":"post","link":"https:\/\/cms.scantrust.com\/digital-product-passport-regulation\/","title":{"rendered":"Digital Product Passport Regulation"},"content":{"rendered":"<div class=\"post-text \" id=\"\"><p>The Ecodesign for Sustainable Products Regulation (ESPR), put into effect on the 13th of June, 2024 and made effective on July 18, introduced the concept of a Digital Product Passport as a tool to facilitate sustainability at a granular level. All businesses selling into the E.U. market must be familiar with the ESPR and how the so-called Digital Product Passport regulation, and all related regulations, have changed the requirements for selling products in the E.U.<\/p>\n<p>The common theme among regulations like the European Circular Economy Action Plan (CEAP), the European Ecodesign Requirements for Sustainable Products (ESRP), and similar regulations like the Food Safety Modernization Act (FSMA) in the United States, is that they establish the requirement for a lifecycle management framework. Lifecycle management frameworks depend on a method for recording details related to the lifecycle of a product and a method for associating those details with granularity to the individual unit. Outside of Europe, FSMA is gaining attention around how traceability and labeling requirements need to be used to gain compliance for all food sold in the U.S., whether imported or domestically produced. North American regulations, including the United States, Canada, and Mexico, are not the focus of this article. That doesn\u2019t mean that businesses selling products into these markets shouldn\u2019t consider them alongside the latest European regulations. Regional regulations may have distinct purposes and applicability, but solutions like the Digital Product Passport require very similar framework solutions for compliance. That means that when a company is planning a lifecycle management framework, such as to satisfy the requirements of a Digital Product Passport, it\u2019s helpful to keep in mind that the tools for compliance in one region can be leveraged for compliance in a different jurisdiction. For now, we&#8217;re going to focus on the so-called Digital Product Passport Regulation.<\/p>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    The Digital Product Passport Regulation: An Overview\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>The first thing to know about the Digital Product Passport is that there is actually no such thing as an E.U. Digital Product Passport Regulation. Instead, the concept of the DPP falls under the broader directive of the EU\u2019s Circular Economy Action Plan (CEAP), which aims to establish a circular economy and encourage sustainable practices throughout product lifecycles. The ESRP includes requirements for the adherence to and the creation of a digital product passport system, which is a tool designed to apply across various industries and with each of several industries having specific and distinct compliance dates and criteria.<\/p>\n<p>Digital product passports are a dynamic solution, enabling products to carry a digital record of their lifecycle, traceability, environmental impact, and other significant data points. They are not a physical label but an integrated digital system for real-time, traceable information provided throughout a product\u2019s lifecycle. This will be made accessible to consumers, retailers, recyclers, and regulators. Each DPP is unique to its product and records information from its creation to end-of-life. It is critical for companies to understand that DPP compliance is not a single action but instead it is an ongoing process.<\/p>\n<p>The timeline for DPP implementation in Europe is rapidly approaching:<\/p>\n<ul>\n<li aria-level=\"1\">April 19, 2025: The first working plan for DPP requirements will be adopted, defining further details for implementation. Article 12 of Regulation (EU) 2024\/1781 provides tangible guidelines for how the DPP framework will be deployed and in Article 18 it&#8217;s explained that on this date mandatory compliance goes into effect. Specific areas of compliance will depend on the product type and there will be delegated acts that will include details that are particular to product categories.<\/li>\n<li aria-level=\"1\">July 19, 2026: The digital registry will be established, acting as the centralized repository for all DPP data within the EU.<\/li>\n<\/ul>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Requirements for a Digital Product Passport\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>Across industries, the requirements for implementing a digital product passport are designed to promote product transparency and sustainable lifecycle management. Key requirements include:<\/p>\n<ol>\n<li aria-level=\"1\">Traceability of Materials<br \/>\nInformation on sources of raw materials, including environmental and social impact data, must be documented.<\/li>\n<li aria-level=\"1\">Product Lifecycle Data<br \/>\nA DPP must include records of all lifecycle stages: manufacturing, shipping, sale, maintenance, repair, reuse, recycling, and disposal.<\/li>\n<li aria-level=\"1\">Environmental Impact Reporting<br \/>\nProduct passports must track carbon footprints and other environmental impact metrics, especially for products like batteries.<\/li>\n<li aria-level=\"1\">Consumer Information<br \/>\nDPPs should provide consumers with information about product longevity, repair options, and environmental impacts.<\/li>\n<\/ol>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    What products are included in the ESPR?\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>Here is a list of products that are included in the ESPR and that will need DPPs. All of these are prioritized in a first working plan:<\/p>\n<ul>\n<li aria-level=\"1\">Iron and steel<\/li>\n<li aria-level=\"1\">Aluminium<\/li>\n<li aria-level=\"1\">Textiles (in particular garments and footwear)<\/li>\n<li aria-level=\"1\">Furniture (including mattresses)<\/li>\n<li aria-level=\"1\">Tires<\/li>\n<li aria-level=\"1\">Detergents<\/li>\n<li aria-level=\"1\">Paints<\/li>\n<li aria-level=\"1\">Lubricants<\/li>\n<li aria-level=\"1\">Chemicals<\/li>\n<li aria-level=\"1\">Energy related products for which ecodesign requirements are to be set for the first time or for which existing measures adopted pursuant to Directive 2009\/125\/EC are to be reviewed under ESPR<\/li>\n<li aria-level=\"1\">Information and communication technology products and other electronics<\/li>\n<\/ul>\n<p>As an example of details that are indicative of what will be category specific in the upcoming delegated acts, this list is from the ESPR preliminary study on new product priorities, published at the end of January, 2023, specific to potential measures for textiles. Several of these will have a direct correlating component that will be reflected in the DPP for textiles requirements, to be specified when the first working plan is adopted on April 19, 2025:<\/p>\n<ul>\n<li aria-level=\"1\">Performance requirement on minimum recycled content in textiles and footwear<\/li>\n<li aria-level=\"1\">Performance requirement on design ensuring easy recyclability of the product at the end of its useful life<\/li>\n<li aria-level=\"1\">Performance requirement on design ensuring the durability of the textile products or footwear<\/li>\n<li aria-level=\"1\">Performance requirement on maximum limit of chemical consumption related to the production of one kg or<\/li>\n<li aria-level=\"1\">Unit of product<\/li>\n<li aria-level=\"1\">Performance requirement on design for reliability (shed-resistance to release of microplastics)<\/li>\n<li aria-level=\"1\">Performance requirement on design for minimising water consumption during the use of the product<\/li>\n<li aria-level=\"1\">Performance requirement on minimum percentage of recycled content in product packaging<\/li>\n<li aria-level=\"1\">Performance requirement on limiting the number of materials used in a single product<\/li>\n<li aria-level=\"1\">Performance requirement on use of component and material coding standards for the identification of<\/li>\n<li aria-level=\"1\">Components and materials in clothing items<\/li>\n<li aria-level=\"1\">Performance requirement on design techniques that ease non-destructive disassembly and re-assembly of<\/li>\n<li aria-level=\"1\">Specific components in clothing items<\/li>\n<li aria-level=\"1\">Performance requirement on use of standard components for those parts that are prone to breaks<\/li>\n<li aria-level=\"1\">Performance requirement of use of modular design in clothing items<\/li>\n<li aria-level=\"1\">Performance requirement on restricting the use of certain materials or manufacturing practises<\/li>\n<li aria-level=\"1\">Performance requirement on minimum durability of the product (during under normal conditions of use)<\/li>\n<li aria-level=\"1\">Performance requirement on minimum reliability (e.g. resistance to shrinkage\/weathering)<\/li>\n<li aria-level=\"1\">Performance requirement for use of component and material coding standards for the identification of<\/li>\n<li aria-level=\"1\">Components and materials for reuse or recycling<\/li>\n<li aria-level=\"1\">Information requirement on how to manage the textile or footwear at the end of its lifetime<\/li>\n<li aria-level=\"1\">Information requirement on the possible lifetime of the textile or footwear<\/li>\n<li aria-level=\"1\">Information requirement on minimum recycled content in textiles and footwear<\/li>\n<li aria-level=\"1\">Information requirement on possible release of non-biodegradable microplastics<\/li>\n<li aria-level=\"1\">Information requirement on percentage of recycled content in product packaging;<\/li>\n<li aria-level=\"1\">Information requirement on how to use the product to avoid its premature substitution\/replacement (or of its components)<\/li>\n<\/ul>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Top 5 Industries affected by the requirement for Digital Product Passports and upcoming related regulations\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>The CEAP requirements do not affect all industries equally, also with regard to Digital Product Passport regulation. Electronics, batteries, textiles, construction materials, and automotive components will each be affected by separate delegated acts, but they all default to being included via regulatory requirements in the Circular Economy Action Plan and the delegated Ecodesign for Sustainable Packaging Regulation. Here are a few dates, broken out by industry, relative to the requirements within these interrelated frameworks:<\/p>\n<ol>\n<li aria-level=\"1\">Electronics\n<ul>\n<li aria-level=\"2\">Important dates: July 18, 2024; April 19, 2025; October 19, 2026<\/li>\n<li aria-level=\"2\">Implications: The ESPR went into force on July 18, 2024 and implicated the electronics industry by name. Detailed documentation on components, sources of raw materials, repairability, and end-of-life recyclability will be required, though they are not mandatory at the time of the ESPR going into force. We do know though that electronics will need to be equipped with a product passport that contain maintenance, repair, and recycling information. There is also a very important detail with regard to electronics companies that must be considered urgently, particularly for large electronics companies. From July 19, 2026, the destruction of unsold consumer products will be prohibited. At the moment it is already adopted that this will apply to clothing and footwear and strictly for medium-sized companies (defined by the European Commission) from July 19, 2030. It&#8217;s also clear from the ESPR that this won&#8217;t apply to micro and small enterprises (again, defined by the E.C.). However, in several places the ESPR states that the working plan, to be adopted April 19, 2025, should consider the prohibition of destruction of unsold goods that are categorized as electronics. This is a not-so-subtle hint at what is coming for electronics and indicates some of the requirements that will be included in the delegated act for electronics DPPs.<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\">Batteries\n<ul>\n<li aria-level=\"2\">Important dates: February 18, 2024, February 18, 2025; April 19, 2025; July 19, 2025; July 19, 2026; February 18, 2027; February 18, 2029<\/li>\n<li aria-level=\"2\">Implications: The first and most important thing for battery manufacturers is that according to Regulation 2023\/1542, from February 18, 2027 each light electric transport battery (LMT), each industrial battery with a capacity greater than 2 kWh, and each electric vehicle battery placed on the market or put into service is required to have a battery passport. But there are important dates to note before that compliance date. The commission adopted delegated act 2023\/1542 on July 12, 2023. This includes requirements for carbon emission declarations of electric vehicle batteries and even explains how to calculate the carbon footprint for a battery. That went into force on 18 February 2024. As we know, the first working plan of the ESPR includes batteries so that by the adoption date of the first working plan on April 19, 2025, we will be seeing more details on the ecodesign requirements for batteries making an important date for manufacturers to note as they establish familiarity on the topic. The commission originally stated in 2023\/1542 that a delegated act with carbon calculation for electric vehicle batteries would be established by Feb. 18, 2025. Despite that, 2023\/1542 already gives us an indication as to what battery manufacturers will be seeing in the delegated act. The same details are set for release and adoption on 18 February 2025 for rechargeable industrial batteries, except those with external storage, 18 February 2027 for LMT batteries and 18 February 2029 for industrial batteries with external storage. Article 7 of the 2023\/1542 (Battery and waste battery directive) states that on February 18, 2025 (or 12 months from the adoption of a delegated act) the carbon footprint declaration has to be drawn up for each battery model per manufacturing plant for electric vehicle batteries. The commission is pushing the DPP web registry live by July 19, 2026 so that it is imperative that electric vehicle battery companies prepare for this date. Companies should have the product passports ready to be linked to from the web registry by then. Finally it is worth mentioning that in Regulation 2024\/1257, there is mention of the need for an &#8220;Environmental Vehicle Passport&#8221; which may implicate batteries as critical elements in the automotive industry.<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\">Textiles\n<ul>\n<li aria-level=\"2\">Important dates: 2026-2027<\/li>\n<li aria-level=\"2\">Implications: Updated from the old Textile Labeling Regulation (No 1007\/2011), textile labeling now includes information on recycled content, origin, and environmental impacts. A DPP is required for traceability and lifecycle data.<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\">Construction Materials\n<ul>\n<li aria-level=\"2\">Important dates: July 19, 2025, December 31, 2028 &#8211; January 1, 2030<\/li>\n<li aria-level=\"2\">Implications: As the list of products to be included in the first working plan to be released on July 19, 2025 includes iron and steel, it&#8217;s no surprise that construction materials are affected by the ESPR. The revised Construction Products Regulation (CPR) Regulation 305\/2011 continues to be the main tool for addressing the sustainability of construction products. But construction products also fall within the scope of the ESPR where it functions as a safety net for setting requirements in case the revised Construction Product Regulation hasn&#8217;t achieved the intended results. This means that construction companies should be preparing a product passport for their products. These passports would have similar requirements to the already delegated acts related to textiles and batteries. Construction products already have a declaration of performance and CE marking requirement, which are referred to in 305\/2011. In short, if there is a declaration of performance, then you must add a CE marking on the product. Delegated Regulation 157\/2014 covers using digital means to deliver the declaration of performance for construction products, such as would be accessible through a QR code. In terms of the current requirements, Regulation 305\/2011 states &#8220;at least one of the essential characteristics of a construction product which are relevant for the declared use or uses should be declared.&#8221; The ESPR includes a specific clause addressing cement products because of its CO2 intensive production process. That&#8217;s where the date range December 31, 2028 &#8211; January 1, 2030 comes into focus as very important for cement producers: the ESPR states that cement will get its own delegated act if the determination is that the current CPR doesn&#8217;t adequately address the goals of the ESPR. In conclusion, cement producers can bet that they&#8217;ll need to add product passports that are in line with the other already delegated acts.<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\">Lubricants\n<ul>\n<li aria-level=\"2\">Important dates: April 19, 2025; July 19, 2025<\/li>\n<li aria-level=\"2\">Implications: Lubricants are in the first working plan to be released on April 19, 2025 and the first delegated act released won&#8217;t be entering into force before July 19, 2025 so lubricant and motor oil manufacturers can breath easy at least until then. The first working plan will include the ecodesign requirements for lubricants though. Based on what the ESPR states, we know that the ecodesign requirements will include the need to establish performance requirements, such as minimum recycled content or limits on energy consumption, requirements to phase out non-sustainable products, information requirements to educate consumers on sustainable choices, requirements for labels, product passports, or the disclosure of substances of concern. The best thing to do is for lubricant companies to get their packaging and product marking ready as soon as possible to onboard the required information as it becomes a requirement.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Digital Product Passport for Batteries\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>Under Regulation (EU) 2023\/1542, batteries are one of the first products requiring detailed DPPs. Key requirements for battery DPPs, as listed in Article 7, include:<\/p>\n<ul>\n<li aria-level=\"1\">Carbon Footprint: A comprehensive assessment of the product\u2019s carbon footprint across its lifecycle, from raw material sourcing to disposal.<\/li>\n<li aria-level=\"1\">Chemical Composition: Transparent information on the chemicals within the battery and their potential environmental impacts.<\/li>\n<li aria-level=\"1\">End-of-Life Processing: Clear guidelines for recycling or disposal to minimize environmental harm<\/li>\n<\/ul>\n<p>Battery manufacturers selling in the E.U. market should know that (EU)2023\/1542 establishes the method for calculating the carbon footprint of a battery: The formula is:<\/p>\n<p>Carbon Footprint (kg CO2\u200b\/kWh)=Total CO2\u200b emissions (kg)\/Total energy delivered over product life (kWh)<\/p>\n<h3>Where:<\/h3>\n<ul>\n<li aria-level=\"1\">Total CO\u2082 emissions (kg): The estimated amount of carbon dioxide emissions produced during the battery&#8217;s entire lifecycle, including manufacturing, usage, and disposal.<\/li>\n<li aria-level=\"1\">Total energy delivered over product life (kWh): The estimated total energy output the battery can deliver over its entire usable life, often calculated as:<\/li>\n<\/ul>\n<p>Total energy delivered=battery capacity (kWh)\u00d7number of charge cycles<\/p>\n<p>Complete Formula:<\/p>\n<p>Carbon Footprint (kg CO2\u200b\/kWh)=Battery capacity (kWh)\u00d7charge cyclesTotal CO2\u200b emissions (kg)\u200b<\/p>\n<p>This provides the carbon footprint per unit of energy (kWh) delivered by the battery over its lifetime, which is a battery DPP requirement.<\/p>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Digital Product Passport for Textiles\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>The DPP requirements for textiles are also evolving. These requirements aim to replace the outdated Textile Labeling Regulation (No 1007\/2011) with a system that promotes transparency, recyclability, and environmental accountability. Minimum requirements include:<\/p>\n<ul>\n<li aria-level=\"1\">Recycled Content Information: The percentage of recycled fibers used in the textile product.<\/li>\n<li aria-level=\"1\">Production Information: Details on where and how the product was made, promoting fair labor practices and sustainability.<\/li>\n<li aria-level=\"1\">Environmental Impact Metrics: Data on water usage, carbon emissions, and other environmental factors.<\/li>\n<\/ul>\n<\/div>\n\n  <h1\n    id=\"\"\n    class=\"post-subtitle\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Are there any items excluded from needing a Digital Product Passport?\n  <\/h1>\n\n\n<div class=\"post-text \" id=\"\"><p>Not everything that is placed in the E.U. market will require a Digital Product Passport, according to the description in the ESPR. Some item categories are excluded from needing a DPP because they are not regulated by the requirements of the ESPR. Other items will need a DPP, but the requirement details for that DPP aren&#8217;t determined in the ESPR. That might be confusing at first, but keep in mind that there are category specific regulations when it comes to DPPs. The following includes categories that are strictly not included:<\/p>\n<ul>\n<li aria-level=\"1\">Products with short lifespans (e.g., single-use plastics, certain low-value textiles). These won\u2019t need a DPP at all.<\/li>\n<li aria-level=\"1\">Non-repairable items. These don\u2019t need a DPP at all.<\/li>\n<li aria-level=\"1\">Perishable goods, such as food items not part of a reusable packaging system. No DPP needed.<\/li>\n<\/ul>\n<p>The following items are not regulated directly by the ESPR because they have requirements that are meant to be specified in their own delegated acts.<\/p>\n<ul>\n<li aria-level=\"1\"><b>Cars.<\/b> It\u2019s important to make the distinction between vehicles as a whole product and the components of such vehicles. The ESPR does not apply to vehicles per Regulation 167\/2013, Regulation 168\/2013 and Regulation 2018\/858. Batteries used in vehicles though, namely with a capacity over 2 kWh, have their own E.U. regulation 2023\/1542. As a result, batteries are certainly not excluded from having a DPP, but the details are in their own battery related regulation.<\/li>\n<li aria-level=\"1\"><b>Packaging. <\/b>Packaging also has its own regulation: the Packaging and Packaging Waste Reduction Regulation, that was proposed in April 2024. This new regulation does not yet have a regulation number because it hasn\u2019t been finalized. Despite that, there is a clear relationship between the ESPR, which includes the need for DPPs, and the Packaging and Packaging Waste Reduction Regulation (PPWR).<\/li>\n<li aria-level=\"1\"><b>Construction Products.<\/b> Similar to the situation with regard to packaging, construction products are technically not regulated by the ESPR. The DPP for construction items is going to be described in a revised construction products regulation that has not yet been released.<\/li>\n<\/ul>\n<p>The exclusions cited above reflect the acknowledgement that implementing DPPs for certain low-value or non-durable goods would be economically or technically impractical. Most importantly though, some of these categories are regulated by distinct, specific E.U. regulations. The ESPR is meant to act as a sort of trapeze net to cover rules that are not already covered in industry specific regulations. The ESPR isn\u2019t meant to take precedence over those industry specific regulations.<\/p>\n<\/div>\n\n  <h2\n    id=\"\"\n    class=\"post-title\"\n    style=\"\n      color: #222;\n      max-width: none;\n      text-align: left;\n    \"\n    >\n    Conclusion\n  <\/h2>\n\n\n<div class=\"post-text \" id=\"\"><p>As the compliance deadlines for DPPs draw closer, companies must prepare by implementing necessary tracking systems, software solutions, and internal processes to meet regulatory requirements. A proactive approach not only ensures adherence to the law but also enhances transparency, builds consumer trust, and contributes to a sustainable economy.<\/p>\n<p>NB: more information will be added to this article in December regarding textiles and the construction industry.<\/p>\n<\/div>\n\n<div class=\"post-spacer\" ><\/div>","protected":false},"excerpt":{"rendered":"<p>The concept of the Digital Product Passport (DPP) has been widely discussed even before the ESPR that introduced was adopted on July 18th 2024. New information is frequently emerging, especially as important dates and the first working plan deadlines approach in 2025.<\/p>\n","protected":false},"author":3,"featured_media":10231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"editor_plus_copied_stylings":"{}"},"categories":[147,28],"tags":[145,144,134,146],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.0.1 (Yoast SEO v20.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Digital Product Passport Regulation - Scantrust<\/title>\n<meta name=\"description\" content=\"The so-called Digital Product Passport Regulation (DPP) has been a popular topic for businesses that sell in the E.U. 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