Is the Global South Ready for the EU’s Digital Product Passport? – First Insights from the Textile Sector

The EU’s upcoming Digital Product Passport (DPP), part of the Ecodesign for Sustainable Products Regulation (ESPR), is set to reshape global textile supply chains by enforcing greater product transparency and traceability. While this shift marks a major step toward circularity, it also raises critical concerns: Are producers in the Global South prepared—or at risk of being left behind?

The Global South remains a vital supplier to the EU’s textile market, yet micro, small, and medium-sized enterprises (MSMEs) face significant hurdles in adapting to new digital and regulatory demands. Without support, the DPP could unintentionally become a trade barrier for these producers.

To better understand the landscape, UNIDO conducted a pioneering readiness assessment across key textile exporting countries in the Global South. First insights represent the findings of 104 textile companies from Bangladesh, Egypt, India as well as 9 respective industry associations across five key dimensions: policy knowledge, technological, organizational, supply chain, and information readiness; These categories form the backbone of a company’s ability to comply with the DPP.

The insights from this assessment offer a first look into where the Global South stands—and where support is urgently needed—as the EU finalizes its approach. 

With the full report set for publication in Q3 2025, the key initial preliminary findings are available in the white paper here.

For further information contact N.MARTYS [at] unido.org (Mr. Nikolaus Martys) or T.KOUME [at] unido.org (Mr. Tomoyoshi Koume)