The EU Ecodesign Directive: A Driver of Sustainable Products and the Circular Economy

As climate change and plastic pollution place the global environment under serious threat, the European Union (EU) has led the way in building a strong legal system to promote sustainable production and consumption. The Ecodesign Directive and its latest extension — the Ecodesign for Sustainable Products Regulation (ESPR, 2024) — are becoming a global benchmark with far-reaching effects on export markets, Viet Nam included.

From the 2005 directive to the 2024 regulation

• 2005: The EU issued Directive 2005/32/EC on ecodesign for energy-related products, later amended and expanded in 2009.
• 2024: The EU adopted Regulation 2024/1781 on Ecodesign for Sustainable Products (ESPR), in force since July 2024. This is a major step forward, applying not only to energy-related products but to all products placed on the EU market.

The core content of ESPR 2024

The new regulation sets mandatory ecodesign requirements centred on the product life cycle:

1. Durability and reparability: products must last longer and be easy to maintain and upgrade.
2. Design for disassembly: enabling effective recycling and reuse.
3. Reusability, recyclability and refillability: prioritising products and packaging designed for the circular economy.
4. Transparent product information: ecolabelling and disclosure of the carbon footprint.
5. Restrictions on hazardous chemicals: eliminating or limiting harmful additives and substances.

The EU has also established the Digital Product Passport (DPP), which allows the origin, composition and recyclability of a product to be traced.

Global significance

The EU ecodesign rules are not merely internal to the bloc: they set new rules of the game on the global market. Businesses across Asia, Viet Nam included, must meet the new ecodesign standards if they wish to keep exporting to the EU.

This poses a significant challenge for manufacturing — especially plastic packaging and fast-moving consumer goods (FMCG) — but it also opens an opportunity to strengthen competitiveness and gain access to sustainable markets.

Lessons for Viet Nam

• Domestication of the rules: Viet Nam should move quickly to study ecodesign requirements and incorporate them into national technical regulations aligned with international markets.
• Support for business: promote green finance and preferential credit to lower the cost of transition.
• Innovation: invest in R&D and recycling technology to keep pace with circular design trends.
• Market communication: raise consumer awareness of sustainable product and packaging choices.

The EU ecodesign framework is clear evidence of the global shift towards green transition and the circular economy. For Viet Nam it is both a challenge and an opportunity to restructure production, drive innovation and move closer to its sustainable development goals.