Digital Product Passports: A Key to a Low-Carbon Circular Economy?

By Armin Ibitz

Introduction: The Missing Link in Sustainable Consumption

Imagine buying a new smartphone. You check its price, brand, and features—but what about its environmental impact? How much energy did it take to produce? Is it repairable? Can it be recycled efficiently? For most products, this information is either hard to find or completely unavailable.

With material management accounting for nearly two-thirds of global greenhouse gas (GHG) emissions, closing the information gap is critical for achieving climate goals. The European Union (EU) is leading efforts to transition towards a circular economy, with digitalization playing a central role. One promising tool? The Digital Product Passport (DPP).

What Is a Digital Product Passport?

A Digital Product Passport acts as a digital twin of a physical product, storing key data on its lifecycle—from production and distribution to usage, repair, and recycling. It consists of:

• A unique product identifier (e.g., QR code, RFID tag)

• Comprehensive data on materials, components, and chemical substances

• Repair and disposal information to facilitate reuse and recycling

A simple scan provides immediate insights, helping consumers, repair technicians, and recyclers make informed decisions.

How Can Digital Product Passports Reduce Emissions?

One of the biggest barriers to decarbonization is the lack of transparency in product supply chains. Currently, manufacturers do not share full information about the materials in their products, making recycling inefficient and limiting the reuse of valuable resources.

By providing access to accurate, real-time product data, DPPs can:

✅ Enable informed consumer choices – Shoppers can compare products based on environmental impact, promoting sustainable consumption.

✅ Improve recycling efficiency – Companies gain precise knowledge about material composition, reducing waste and increasing the supply of secondary raw materials. ✅ Facilitate product repairs and upgrades – Repair shops can access specifications for spare parts, extending product lifespans.

✅ Encourage manufacturers to design for circularity – Greater transparency pushes industries toward more sustainable production methods.

Who Benefits from Digital Product Passports?

DPPs offer advantages across multiple sectors:

• Consumers: More control over purchasing decisions with verified sustainability data.

• Manufacturers: Greater access to insights on raw material sourcing and production conditions.

• Repair services: Easier identification of spare parts, helping extend product lifespans.

• Recyclers: Accurate knowledge of material content improves sorting and processing.

• Regulators: Simplified enforcement of environmental regulations and green policies.

Challenges and Industry Concerns

Despite the benefits, some stakeholders raise valid concerns:

🔴 Data Security & Intellectual Property: Manufacturers worry that sharing material compositions could expose trade secrets. Solutions like decentralized identity technology and blockchain can provide secure access to data while protecting confidentiality.

🔴 Industry Readiness: Many companies lack the digital infrastructure to implement DPPs. Phased adoption strategies and government incentives could ease the transition.

🔴 Potential Bureaucratic Burdens: Critics fear that requiring DPPs could add regulatory complexity. However, standardized data formats and collaboration with industry stakeholders can help streamline implementation.

Digital Product Passports in Action: Early Adoption & Future Outlook

Several European countries are already exploring the potential of DPPs. The Netherlands, Denmark, and the UK are integrating digital tracking systems into their circular economy strategies. Germany has included DPPs as a key initiative in its 2020 Digital Policy Agenda for the Environment. The EU Green Deal and Circular Economy Action Plan advocate for an EU-wide rollout of DPPs.

As a key component of the Ecodesign for Sustainable Products Regulation, this initiative seeks to improve transparency across product value chains by offering detailed insights into a product’s origin, materials, environmental footprint, and disposal guidelines. The DPP is intended to bridge the gap between consumer expectations for transparency and the existing shortage of reliable product information.

A Game-Changer for Sustainability?

As climate change accelerates, efficient material management is no longer optional—it is a necessity. Digital Product Passports offer a promising solution to enhance transparency, reduce waste, and lower emissions. However, their success depends on strong industry collaboration, standardized data structures, and robust privacy protections.

Experiences from ongoing pilot projects are crucial in testing the real-world impact of digital product passports and refining implementation strategies.

The coming years will determine whether Digital Product Passports become a cornerstone of the low-carbon circular economy—or just another missed opportunity.