European Commission’s ESPR and Digital Product Passports: Impact on CTC Models
The European Commission has launched the Ecodesign for Sustainable Products Regulation (ESPR) to advance sustainability and lessen environmental impact through improved product design and manufacturing processes. How will it affect CTC models?
The European Commission's introduction of the Ecodesign for Sustainable Products Regulation (ESPR) marks a major shift towards enhancing sustainability. This regulation aims to ensure that products sold in the EU are more environmentally friendly by establishing comprehensive guidelines for durability, reusability, repairability, recyclability, and energy efficiency. The ultimate goal of this initiative is to minimize environmental impact throughout the product's lifecycle.
The ESPR broadens the scope of previous regulations by extending its reach beyond energy-consuming products to include a wide array of items such as textiles, furniture, and electronics. The regulation mandates that products adhere to stringent sustainability criteria, including waste reduction, the use of recycled materials, and lower energy consumption.
A notable feature of the ESPR is the implementation of Digital Product Passports (DPP), which will provide a digital record of essential product information across its lifecycle. This initiative aims to enhance transparency, enabling consumers and businesses to make better-informed decisions regarding the sustainability of their purchases.
Looking ahead, the ESPR will unfold in several stages:
- Q3 2024: The Ecodesign Forum is set to be established
- Q4 2024: The first Forum meeting will take place to discuss the draft working plan.
- Q2 2025: The first ESPR Working Plan will be adopted and published.
Although the ESPR does not currently address e-invoicing or Continuous Transaction Control (CTC) models directly, it is anticipated to influence these areas as the DPP evolves. Businesses may need to incorporate product tracking information, such as QR codes or barcodes, into their invoices or dispatch documents.
The integration of DPP with digital invoicing and CTC systems could streamline compliance, tracking, and reporting processes, benefiting businesses that adapt to these technological advancements. Overall, the ESPR represents a progressive step towards greater sustainability and transparency in product management, with potential impacts on various business operations, including invoicing and supply chain processes.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
