New EU rules for for slashing waste could present golden opportunity for impact firms

A breakthrough agreement between the European Parliament and the European Council will require food retailers, restaurants and households to cut food waste by a whopping 30 percent per person by the end of 2030.

Food manufacturers face a more modest target of 10 percet, but the new rules – known as the Waste Framework Directive – are set to increase the demand for innovative solutions targeting more sustainable production and consumption methods.

In other words, they could present massive opportunities for impact startups in these sectors.

Fashion industry faces stricter rules

The deal also introduces tough new requirements for textile producers, who will now have to foot the bill for collecting, sorting and recycling their products. Crucially, these rules will apply to all companies selling to EU countries, regardless of where they're based – including e-commerce firms.

This means controversial fast fashion giants like Shein, which has faced criticism for its environmental impact, will need to take responsibility for clothes sold to EU customers. It will also affect companies such as clothing giants H&M and Inditex

"We succeeded in ensuring feasible and realistic provisions for member states to implement food waste reduction policies and we managed to ensure that the agriculture sector will not be negatively impacted," says Anna Zalewska, Polish MEP, in a statement.

Staggering waste numbers

The new rules come as EU statistics show Europeans bin nearly 60 million tonnes of food annually – a staggering 132 kg per person. The textile waste situation isn't much better, with 12.6 million tonnes discarded yearly, including 5.2 million tonnes of clothes and shoes.

The agreement still needs formal adoption by the Council before heading back to the European Parliament for final approval.