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2. Why Is a Digital Product Passport Necessary?

As we explained in our previous blog, the Digital Product Passport is a unique digital information sheet for every product, accessible via a simple scan. A revolutionary concept which also raises an important question: why is such a fundamental change needed right now?

The answer is that the DPP is not a goal in itself. It is a practical tool designed to address some of the most pressing economic and environmental challenges of our time. Let’s explore the key drivers behind its introduction.

Why are Digital Product Passports important?

For decades, our economy has mostly operated on a linear model: we take raw materials, make products, use them, and then dispose of them. This "take-make-dispose" system has led to increasingly shorter product lifespans and a tremendous amount of waste.

Instead of continuing down the same road, Europe wants to pioneer the transition to a circular economy. In this model, the goal is to prolong the life of products through better maintenance and repair. When a product can no longer be used in its original form, we start looking towards reuse, refurbishment, remanufacturing, and, as a final step, recycling.  

In other words, the idea is to keep materials and products in use for as long as possible and retain their value. This is often visualised on the "value hill," where the higher you are on the hill, the more value you retain. The DPP is a key enabler of this entire system.

Why is a Digital Product Passport (DPP) necessary?

The key drivers behind the DPP

Beyond the overarching goal of switching to a circular economy, there are four concrete problems the DPP is designed to solve:

1. The climate challenge

According to the European Environment Agency, Europe is the fastest-warming continent in the world. This directly threatens our food security, nature, energy supply, and financial stability.  

Small and individual efforts like recycling at home or installing solar panels are important, but their impact isn't always immediately visible. The same applies to businesses. An instrument like the Digital Product Passport makes sustainability efforts measurable and visible. That way, good intentions are backed up by verifiable data.

2. Strategic dependency on raw materials

Europe is heavily reliant on the import of raw (and often rare) materials, such as lithium for batteries. At the same time, the EU exports about 32 million tonnes of waste annually to non-EU countries, which means valuable resources are being lost.  

The DPP helps to reduce this dependency by providing clear insights into what products are made of and where they come from. This knowledge actively promotes recycling and reuse within Europe, which strengthens the EU's strategic autonomy.

3. Combating greenwashing

It’s an unfortunate truth that many companies make environmental claims that are difficult, if not impossible, to prove. This practice, known as greenwashing, damages consumer trust and hinders real progress in sustainability.

With a DPP, companies must provide demonstrable and verifiable information. It moves the conversation away from vague marketing claims and towards transparent, accessible proof.

4. Informing the consumer

People want to know more about the products they buy. Research shows that a staggering 86% of EU consumers want better information on product durability and origin.

The DPP makes this information easy to access via a simple QR code or NFC chip. This helps consumers make more sustainable choices, encourages repair over replacement, and simplifies recycling. In short, it gives people a powerful tool to actively contribute to the circular economy.

The engine of sustainability

In essence, the Digital Product Passport is the practical mechanism that ties Europe's sustainability objectives together. It’s a tool that give us the reliable, verifiable data we need to move from abstract goals to concrete action and build a truly circular economy.

Now that the 'why' is clear, the next logical question is: what will this system of digital passports actually look like in practice? How will the data be stored and accessed, and who gets to see what?

Discover the architecture behind the DPP in our next blog!

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