Fashion has said goodbye to destroying unsold goods. Now it must learn to produce less
As of July 19, 2026, large companies can no longer destroy unsold products. The ban introduced by the European Ecodesign for Sustainable Products Regulation (ESPR) has now taken effect, marking one of the most significant measures in the European Union's strategy to make the economy more circular.
The ban will prove effective if it encourages companies to tackle an even more uncomfortable problem than disposing of excess production: how to avoid generating it in the first place.
The regulation addresses a phenomenon that is far from marginal. According to the European Environment Agency (2024), about 21% of textile products placed on the European market remain unsold, and every year between 4% and 9% of these garments are destroyed before they are ever worn. The regulation aims to put an end to this practice by promoting reuse, repair, and more transparent management of unsold inventory.
The destruction of unsold goods, however, has not simply been the result of inefficiency. Particularly in the luxury and premium segments, eliminating products has often been regarded as the most effective way to protect brand exclusivity, prevent the emergence of parallel markets, and reduce the risk of counterfeiting. Changes in creative direction have also contributed to the phenomenon: collections associated with a previous creative director are frequently withdrawn from the market to avoid confusing consumers. The same applies to many seasonal products that remain perfectly usable but have become difficult to sell. The new regulation does not eliminate this possibility entirely. Products may still be destroyed if they pose a risk to consumer health or safety, fail to comply with European or national regulations, are subject to contractual obligations that prevent their sale or reuse, or have been irreparably damaged. Outside these exceptions, however, companies will have to identify new ways of managing excess inventory.
But what will happen to garments that can no longer be destroyed? Is there a risk that they will be exported outside the European Union to be disposed of elsewhere? The issue is already at the center of the international debate and directly involves the Basel Convention, which regulates the transboundary movement of waste. The discussion focuses primarily on the legal classification of used clothing and the need to obtain prior authorization from destination countries before shipments can proceed. Several nongovernmental organizations, however, fear that excessive administrative requirements could also slow legitimate flows of reuse and recycling, ultimately undermining the very circular economy the regulation is intended to promote. As is often the case in sustainability policy, the challenge lies in finding the right balance between environmental protection, economic development, and international cooperation.
The ban undoubtedly represents a paradigm shift, but it would be a mistake to regard it as the solution to the problem. The ESPR addresses the consequences of overproduction, not its causes. Nothing in the regulation prevents companies from continuing to produce quantities that exceed market demand; beginning in July 2026, they simply will no longer be allowed to dispose of unsold goods by destroying them.
If the fashion industry is to become truly sustainable, it must first learn to produce only what the market is capable of absorbing. This means improving demand forecasting, adopting more flexible production models, reducing response times to market demand, designing products that are more durable and easier to repair, investing in recycling technologies, and building an industrial infrastructure capable of recovering the value of fibers at the end of their life cycle. Consumers, too, will be expected to play their part by prioritizing quality, durability, and sustainability over the logic of continuous consumption.
Francesca Romana Rinaldi is the director of the Monitor for Circular Fashion, SDA Bocconi's initiative to advance knowledge of circular fashion through impact-driven research.
