The European Union has officially declared war on fashion waste.

On 9 February 2026, the EU Commission adopted new measures that will ban EU-based medium and large companies from destroying unsold clothing, footwear, and related accessories.

What Is the EU Ban on Destroying Unsold Clothing?

The new rules are being implemented under the Ecodesign for Sustainable Products Regulation (ESPR), the bloc’s framework for setting sustainability and durability requirements for products placed on the EU market.

Under the new rules, large companies will be banned from incinerating or discarding unsold clothing, footwear and accessories, applicable from 19 July 2026 and will also be obliged to disclose data on unsold stock being discarded, with standardised reporting requirements ensuing from February 2027, for large firms and extending to medium-sized companies by 2030. (Note: Limited exemptions may apply for safety or damage-related reasons.)

How the EU Regulation Builds on France’s Anti-Waste Law

The ESPR builds on France’s AGEC law (Anti-Waste and Circular Economy Law), which came into effect in 2022 and prohibits producers, importers and retailers from destroying unsold non-food products, including clothing and footwear, and requires excess products to be redirected for donation, reuse or recycling.

According to a Forbes article, more than $730 million in returns and unsold inventory is routinely thrown away or destroyed by consumer goods retailers in France, and the current value of goods thrown away or destroyed is five times that of goods given away.

The legislations aim to reduce the carbon footprint left by the luxury industry. According to EU data, an estimated 4% to 9% of unsold textiles in Europe are destroyed before being worn, resulting in roughly 5.6 million tons of carbon emissions. 

Currently, the European Commission has not disclosed any penal provisions for those found in violation of the ban.

Why Luxury Brands Destroy Unsold Inventory

Luxury houses have historically justified the destruction of goods as a means of protecting intellectual property, preventing unauthorised sales, preserving brand exclusivity, and avoiding price dilution. In June 2025, the French Prime Minister Edouard Philippe hinted at a ban with “concessions” for luxury players, designed to help protect intellectual property, while acknowledging the need for balance between sustainability and exclusivity.

Over the years, many brands have come clean about how they handle unsold items.

In July 2018, Burberry announced that it would stop burning its unsold stock and instead seek alternative ways to channel the energy generated back into the manufacturing process. There have also been news reports of slashed Nike sneakers being thrown out of stores in the U.S., and of JCPenney destroying Ralph Lauren merchandise to protect brand integrity.

A recent French television documentary, available online, shows Amazon destroying products returned by consumers on behalf of vendors who cannot pay to warehouse their stock, further highlighting the scale of retail waste.  

Will the EU Ban Actually Reduce Fashion Waste?

A central concern remains jurisdiction.

Brands have been known to relocate excess inventory outside the EU for disposal, irrespective of the environmental and ethical cost of incinerating or shredding unsold stock, rather than having it end up in a discount store or on the ‘gray market’.

Critics argue that the deeper issue is overproduction in the luxury fashion industry. While luxury brands distance themselves from fast fashion, surplus inventory challenges that narrative. True sustainability reform may require rethinking production volumes, not just post-production waste management.

Can India Follow the EU’s Lead on Fashion Waste Regulation?

Interestingly, India may not be far behind in spirit, if not in form. According to a report by Ecotextile, India is also set to introduce new Solid Waste Management Regulations from 1 April, introduced by the Ministry of Environment, Forest and Climate Change will significantly recalibrate accountability within the textile and garment sectors.

The updated framework shifts responsibility for waste handling away from municipal bodies and squarely onto large producers, including garment factories and textile parks, particularly those with built-up areas exceeding 20,000 square metres or generating more than 100kg of waste daily. The rules shall include mandatory four-stream segregation (wet, dry, sanitary, and special care waste), stricter landfill caps, and diversion of high-calorific non-recyclable waste for energy recovery. While India’s rules do not explicitly prohibit the destruction of unsold inventory, the polluter-pays architecture and tighter compliance thresholds signal a regulatory pivot toward lifecycle accountability.

The EU’s ban on destroying unsold clothing is more than a sustainability headline; it represents a structural shift for the luxury fashion industry. Brands that once treated overproduction as a manageable, behind-the-scenes cost must now confront it as a regulatory liability. If enforced effectively, the law has the potential to significantly reduce textile waste, lower carbon emissions, compel more strategic production planning, and accelerate the industry’s transition toward circular fashion models. In doing so, it may finally bring an end to one of luxury fashion’s most controversial and long-guarded practices.