On 18 February 2025, Council and the European Parliament have reached a provisional agreement on the revision of the EU Waste Framework Directive (WFD), which introduces significant changes for businesses. These changes are part of broader efforts to improve sustainability, reduce waste and promote a circular economy across the EU.

1. Micro enterprises included in the scope

• Micro enterprises (businesses with fewer than 10 employees and less than $2 million turnover) will now be included under the textile extended producer responsibility (EPR) obligations, but they will be granted an additional year before these obligations apply.
• The new regulations aim to ensure that EPR fees for micro enterprises are proportionate, considering factors like the volume of products placed on the market.

2. Annual reporting for certain entities

• Social economy entities that run their own separate collection points and micro enterprises will be required to report at least once a year on their waste management practices.

3. Implementation timeline

• The Directive allows for a 30-month implementation period. This includes 20 months for EU Member States (MSs) to transpose the new rules into national legislation. Businesses should be prepared for national regulations to start rolling out by late 2026.

4. Evaluation and future considerations

• By 2029, the European Commission will evaluate the Directive’s effectiveness. This evaluation will focus on the success of EPR schemes, the funds collected, and potential future requirements, such as:
  • A financial contribution from commercial re-use operators, especially larger companies.
  • The setting of waste prevention, collection, preparation for re-use, and recycling targets.

5. Fee modulation based on product lifecycle

• EPR fees will be determined based on the weight and, where applicable, quantity of products.
• Fee modulation may be applied based on sustainability criteria and the environmental impact of the products. For example, ultra-fast and fast fashion brands may face higher fees based on the lifecycle of their products, including how long they are used and how much waste they generate.

6. Additional considerations for the fashion sector

• Product Lifecycle and Circularity: Member States (MSs) could require Producer Responsibility Organizations (PROs) to adjust EPR fees depending on a brand’s sustainability practices, such as:
  • The product range (how many products references a producer offers).
  • Frequency of offers (how often a producer launches new collections).
  • Repair incentives (such as offering repair services or designing products that are easier to repair).
• These changes aim to address concerns around overproduction and waste generation, especially from fast and ultra-fast fashion practices.

7. Next steps

• The provisional agreement will now be reviewed and endorsed by the Council and the European Parliament before undergoing legal linguistic revision.
• Once formally adopted, Member States will proceed with transposing the directive into their national legislation, with businesses expected to comply once the national laws are implemented.