According to EU estimates, 4 to 9 percent of all clothing sold in Europe each year is destroyed before it is sold. This releases about 5.6 million tons of carbon dioxide into the atmosphere each year, equivalent to the annual net emissions of the entire country of Sweden in 2021.
To prevent this damage, a ban on the destruction of unsold goods for large companies came into effect on July 19. Companies with more than 250 employees and an annual turnover of at least 50 million euros will no longer be able to throw away or burn returned or unsold clothing. From 2030, medium-sized companies will also be covered by the law. However, small and micro enterprises will remain outside the restrictions for the time being.
Under the new rules, companies will have to choose three options before destroying products:
1. Selling at a discount; 2. Donating to charity or social institutions; and 3. Repairing or renovating to make it suitable for reuse.
Products cannot be destroyed except in certain exceptional cases such as health and safety risks, legal inconsistencies, intellectual property infringement or serious defects. In these exceptional cases, it is mandatory to retain documents for up to five years, submit reports within 30 days and disclose detailed information on waste in an annual public report.
The market is a bit sluggish.
According to data from the European statistics agency Eurostat, the EU’s total clothing imports fell by 9.70 percent to 41.10 billion euros in the six months from January to June 2026. However, EU clothing imports in 2025 increased by 11.88 percent. This means that the market is somewhat sluggish this year. EU buyers have reduced imports of ready-made clothing as demand for non-essential products has decreased due to high energy prices and inventories have increased.
Bangladeshi ready-made garment exports to the EU have declined by 16.43 percent in the first six months of this year, compared to 18.14 percent growth in the same period last year. As a result, Bangladesh’s share in the market has dropped from 22.73 percent to 21.03 percent.
Although the impact of the recession has been less on some countries. Although the market has shrunk, Vietnam’s share has increased. Their exports increased by 0.36 percent in the first six months of this year. On the other hand, China’s exports decreased by 8.88 percent.