Image
Digital Product Passport: Is It Mandatory ?
06 Jul, 2024
Image
Digital Product Passport will be mandatory for some selected products from 2026. Batteries are the first product industry that must comply with DPP in 2026, followed by apparels and electronics shortly after. Other industries will follow after these three between the years 2026 to 2030.
The regulation covers both products made in the European Union and those that are shipped from overseas. Making DPP compulsory for product industries is a part of the EU’s European Green Deal (EGD) and Circular Economy Action Plan (CEAP).
Nearly all products entering the European Union will eventually require a DPP. This will affect many local and international businesses across diverse industries. Making the digital product passport mandatory will forever change the way goods are traced through the supply chain.
Mandating DPP will ensure customers get sustainability-related information through data carriers like QR codes.
Industries That DPP Will Impact
The EU’s plan is to start with about 30 product industries that need to comply with DPP before gradually moving up. The first product industry that digital product passport is mandatory for is the battery industry. DPP will take effect on batteries from 2026. Shortly after, the apparel and electronics industry will be impacted.
The idea is to cover about 30 product industries within the range of four years (2026 to 2030). The specific dates for the industries that will be impacted is unknown. However, the EU aims to implement the regulation for the selected industries by 2030 before moving to other categories. This is to make the EU emission-free by 2050.
Some of the industries that DPP will be mandatory for include:
Products imported from outside the EU will also be impacted by DPP. Some industries like electronics that source parts from different places during manufacture will be particularly affected by making digital product passport mandatory. This is because DPP regulations essentialise knowing where products come from and how they are made.
Regulations That Make Digital Product Passport Mandatory
Regulations that make digital product passport mandatory in the European Union include:
Ecodesign for sustainable products regulation (ESPR)
The Ecodesign for Sustainable Products Regulation(ESPR) is the main catalyst behind digital product passports. The regulation was published in March 2022, and aims to promote a circular economy and encourage recycling. The ESPR contains outlines that cover various aspects like product recyclability, durability, and resource efficiency.
EU strategy for sustainable and circular textiles
The European Unions’ strategy for sustainable and circular textiles aims to enhance the durability and longevity of textile products. The strategy was implemented from March 2022, and focuses on improving the ease of repair and recyclability of clothing. The legislation encourages consumers to verify the green claims of products, which is where DPP comes in.
Construction products regulation (CPR)
This regulation was also implemented in March 2022, and is an integral part of CEAP. The Construction Products Regulation (CPR) ensures that all construction products and materials follow the necessary safety and environmental conditions. DPP, in this case, will help construction professionals make better and safer choices during product selection.
EU battery regulation
The EU battery regulation is an aspect of CEAP that focuses on ensuring the safety and sustainability of batteries in the European Union. The regulation was published in December 2020, and emphasises battery recyclability. By 2026, the battery industry is mandated to commence the use of DPP.
Challenges Of Complying To DPP Implementation
Standardisation
It might be difficult to achieve a common standard for DPP that will be accepted by all industries.
Privacy and data security
Uploading detailed product information through DPP might raise some privacy and security concerns. Hence, secure protocols must exist to keep sensitive information from unauthorised people.
Costs and implementation effort
Small and medium-sized companies might have to incur large upfront costs to implement DPPs. This can be a huge financial burden that can affect the widespread adoption of DPP.
Complexity of global supply chain
Coordinating DPP implementation across multiple country borders can pose a significant challenge. This is because supply chains often span across multiple regions.
Integrating with existing systems
Several companies have existing supply chain and product management systems in place. Integrating DPP into these existing systems might cause a disruption.
Regulatory alignment
It is important for the DPP to align with present and future regulations. However, ensuring it complies with these frameworks can be very complex.
Resistance to change
Some industries are used to traditional supply chains and might have issues switching to a new technology.
Technological infrastructure
DPP requires advanced technological infrastructure such as communication protocols and secure databases. Getting the necessary infrastructure can be challenging for some companies.
Customer understanding
Consumers need to understand and accept DPP for its value to show. Hence, educating consumers on how to utilize DPP is vital for its success.
Conclusion
DPP will be mandatory for about 30 industries starting from 2026. The first industry DPP will impact is the battery industry, then subsequent industries will follow before the end of 2030. Making the digital product passport mandatory for product industries is the European Unions’ step towards achieving a sustainable and emission-free region by 2050.
Several challenges might impact the implementation of DPP such as standardization, data security, and regulatory alignment. Solutions to these challenges include data standardisation, interoperability, consumer enlightenment, scalable technologies, and supply chain transparency.
Check out our page to find out more solutions to the challenges of mandating DPP.
