A ban on the disposal of unsold clothes and shoes took effect across the European Union on Sunday, in the bloc's latest move to cut waste.

Hundreds of thousands of tons of fashionwear are destroyed every year across the 27-member EU due to damage, old stock and returned online orders.

The new rule is expected to affect large fashion retailers, wholesalers and manufacturers of apparel — only 20% of which are produced in the EU.

What are the new rules?

Under the EU's Ecodesign for Sustainable Products Regulation, large companies with more than 250 employees and over €50 million in net annual turnover are banned from destroying stocks of unsold clothing, accessories and footwear.

Firms must now find ways of selling the products, including via discounts, alternative markets and charity donations.

Unsold clothes can only be destroyed when items are unsafe, damaged, counterfeit or rejected by charities, according to a post on the European Commission's website.

Companies are now required to publish annual reports on the goods they have discarded and keep records for five years.

The regulation, which was approved by Brussels more than two years ago, will be extended to medium-sized firms in 2030.

How big is the fashion waste issue?

Concerns about so-called fast fashion — low-cost, lower-quality mass-produced clothing — have grown significantly over the past decade.

According to the European Environment Agency (EEA), around 4% to 9% of unsold textile products are destroyed each year.

The waste has been exacerbated by rapid growth in online shopping and returns.

Across the EU, one in five fashion goods ordered online is later returned to the retailer and not resold.

Combined, this amounts to hundreds of thousands of tons of clothes, accessories and footwear.

The new ban aims to help reduce the impact on the environment, as the incineration of millions of clothes hits efforts to cut greenhouse gas emissions.

EU states are also under pressure to consider waste from raw materials, water, energy and transport in the apparel sector and to encourage more recycling and the reuse of products.

In a recent LinkedIn post, the EEA said the bloc wanted the textile industry to become more sustainable.

"A circular economy — where products are designed to last, and are reused, repaired and recycled — is no longer just a vision, but is being embedded in law through these new legislative measures," the EEA wrote.

The fashion industry has repeatedly defended its tactics, noting that disposal is often cheaper than storing, repairing or discounting the products.

What's the reaction to the ban?

The German Retail Federation (HDE) said consumers would benefit from the ban as more discounted apparel is put on sale through outlets, clearance markets and second-hand channels. 

HDE Managing Director Stefan Genth warned, however, that the rule change would be a challenge for many stores.

"Not all unsold goods can be resold or donated easily," he said, due to damaged packaging, high logistics costs, lack of demand or low product values.

Edited by: Saim Dušan Inayatullah

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