The potential of integrating the Digital Product Passport with
the Carbon Border Adjustment Mechanism in the textile industry

The EU Commission is aiming for a more sustainable and circular economy. Therefore, several steps towards traceability and reduction of overproduction has to be taken.

The Ecodesign Directive is one of those steps – in part though the incoporation
of a Digital Product Passport.

In this publication, we look into the Digital Product Passport general requirements
and how it might contribute to a more efficient legislation if linked to the Carbon Border Adjustment Mechanism.

The Digital Product Passport has potential to support the Carbon Border Adjustment Mechanism with transparent information, while the Carbon Border Adjustment Mechanism can provide financial incentives to companies to reduce CO2 emissions
in production.

December 2022