Digital Product Passports (DPPs), a cornerstone of the European Union’s strategy to drive circularity in the textile sector, risk failing to deliver on their potential unless policymakers address critical data and digitisation challenges, a new EUfunded report has warned.
The policy brief, produced by PESCO-UP—a four-year research project funded by the EU and led by Finland’s technical research centre VTT—highlights that without prioritising robust data infrastructure and digital capabilities across the textile value chain, DPPs may fall short in unlocking large-scale textile-to-textile recycling. The initiative is intended to support greater traceability of products and facilitate reuse, repair and recycling, but the report cautions that low levels of digitisation and insufficient data collection could severely limit its effectiveness.
Digital Product Passports are a key element of the EU’s Ecodesign for Sustainable Products Regulation (ESPR), under which products placed on the European market will ultimately be required to carry detailed digital records outlining material composition, environmental impact and lifecycle information. These passports are designed to enhance transparency and enable circular economy mechanisms, particularly for textiles, which have traditionally been difficult to recycle at scale.
However, the PESCO-UP brief indicates that current levels of digitisation in supply chains are inadequate to support the complex data needs that DPPs demand. Unless stakeholders, including brands, manufacturers and recyclers, collaborate to improve data quality and interoperability, the full benefits of DPPs—including efficient textile-to-textile recycling—may not be realised.
The report’s authors argue that policymakers must prioritise the establishment of clear data standards and investment in digital systems that can capture, share and verify product information across global supply chains. Without such measures, the transformative potential of DPPs to reduce waste and promote a more sustainable textile economy could be compromised.
Industry observers note that meeting DPP requirements will be a significant undertaking for many businesses, especially those outside the EU that rely on complex international supply networks. Failure to comply with the forthcoming digital passport standards could result in restricted market access or competitive disadvantages for non-compliant firms, underscoring the urgency of resolving the data readiness challenges identified in the report.
The European Commission is expected to consider stakeholder feedback as it finalises technical requirements and implementation timelines for DPPs under the ESPR, a move that will shape future regulation of product data transparency and circular economy practices across the bloc.
