Büchel, Jan; Neligan, Ad iana
A icle
Digi al P oduc Passpo : Finding he Righ Balance
Be ween T anspa ency o Ci cula i y and Added Red Tape
In e economics
Sugges ed Ci a ion: Büchel, Jan; Neligan, Ad iana (2025) : Digi al P oduc Passpo : Finding he
Righ Balance Be ween T anspa ency o Ci cula i y and Added Red Tape, In e economics, ISSN
1613-964X, Sciendo, Wa saw, Vol. 60, Iss. 3, pp. 160-164,
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In e economics 2025 | 3
160
Fo um
Jan Büchel and Ad iana Neligan
Digi al P oduc Passpo : Finding he Righ Balance Be ween
T anspa ency o Ci cula i y and Added Red Tape
© The Au ho (s) 2025. Open Access: This a icle is dis ibu ed unde he
e ms o he C ea i e Commons A ibu ion 4.0 In e na ional License
(h ps://c ea i ecommons.o g/licenses/by/4.0/).
Open Access unding p o ided by ZBW – Leibniz In o ma ion Cen e
o Economics.
In e economics, 2025, 60(3), 160-164
JEL: D22, Q01, Q55
DOI: 10.2478/ie-2025-0031
Jan Büchel, Ge man Economic Ins i u e (IW), Co-
logne, Ge many.
Ad iana Neligan, Ge man Economic Ins i u e (IW),
Be lin, Ge many.
The Eu opean Union is in oducing Digi al P oduc Pass-
po s (DPPs) o pa e he way o a low-ca bon and sus-
ainable ci cula economy. The aim o his digi al ool is o
p o ide p oduc - ele an da a anspa en ly o all s ake-
holde s in ol ed. The DPP o e s many chances, bu also
challenges and implemen a ion ba ie s. This pape con-
ibu es o he deba e on DPPs by p esen ing esul s o
a ecen company su ey in Ge many conduc ed by he
Ge man Economic Ins i u e (IW). Since many Ge man
i ms a e no ye amilia wi h o eady o he DPP, a p ac-
icable c oss-sec o al implemen a ion solu ion is needed.
Necessi y o Digi al P oduc Passpo s
The ansi ion o a ci cula economy is a key pilla o he
Eu opean G een Deal, he Eu opean s a egy o clima e-
iendly g ow h. The aim o a ci cula economy is o con-
sume ewe esou ces, use hem se e al imes o eplace
hem en i ely wi h mo e clima e- iendly al e na i es. The
necessa y iew on he en i e p oduc li e cycle equi es
knowledge o bo h he ups eam s ages and he e ec s
o one’s own ac ions on downs eam s ages o he alue
chain (Neligan e al., 2023). Hence, he a ious playe s
along he alue chain a e equi ed o communica e e i-
cien ly – and he e o e au oma ically – ia in e aces. Digi-
al da a is needed o measu e and e alua e he success o
ci cula ma e ial lows and business models. One solu ion
is he planned DPP o make p oduc da a on ma e ials,
p ope ies, epai and disposal op ions a ailable ans-
pa en ly and e icien ly o all s akeholde s in he p oduc
li e cycle (Neligan, 2025).
Va ious p oduc - ela ed egula ions such as he EU Ba -
e y Regula ion o he EU Ecodesign o Sus ainable
P oduc s Regula ion (ESPR) speci y DPPs. The i s DPP
o ba e ies is due o be in oduced in 2027. The EU Com-
mission ou lined in Ap il 2025 a ollou o u he DPPs
in i s Wo king Plan o he EU Ecodesign Regula ion un il
2030. This plan se s ou he sequence o p oduc g oups
o which delega ed ac s con aining new ecodesign p od-
uc equi emen s, e.g. epa abili y and ecyclabili y, will
be adop ed. Delega ed ac s a e now scheduled o s eel
and i on in 2026, o ex iles, aluminium and y es in 2027,
o u ni u e in 2028 and o ma esses in 2029. Ul i-
ma ely, he EU Ecodesign Regula ion will in oduce new
p oduc equi emen s o p oduc g oups in almos e e y
sec o . In addi ion, e e y p oduc wi h ecodesign equi e-
men s will ha e a DPP unless he e is an al e na i e digi al
sys em o e ing equi alen in o ma ion, o example, he
Eu opean P oduc Regis y o Ene gy Labelling (EPREL)
da abase o ene gy- ela ed p oduc s ca ying an ene gy
label (Eu opean Commission, 2025a). Despi e he cu en
e o s o he Eu opean Commission o simpli y i s sus-
ainabili y epo ing obliga ions, he p oposal o he i s
EU Omnibus package on sus ainabili y in Feb ua y 2025
did no add ess he EU Ecodesign Regula ion (Eu opean
Commission, 2025b). Hence, he in oduc ion o DPPs is
o ake place as scheduled. This makes i necessa y o
companies o sha e, digi ally p ocess and add ele an
p oduc in o ma ion o DPPs in he u u e.
Technical equi emen s o implemen ing Digi al
P oduc Passpo s
The ealisa ion o a DPP is complex. The DPP mus eco d
and s uc u e all p oduc -speci ic in o ma ion equi ed
om a egula o y pe spec i e, including ha o p e-
limina y p oduc s. The amoun o in o ma ion o be p o-
cessed in a DPP inc eases he mo e componen s a p od-
uc con ains. The ans e o in o ma ion be ween com-
panies and/o di e en sys ems wi hin companies only
wo ks i he indi idual DPPs a e compa ible o in e ope -
able. This equi es a s uc u ed and, abo e all, s anda d-
ised collec ion and ans e o in o ma ion. All s akehold-
e s in ol ed need o be able o iew and add necessa y
p oduc -speci ic in o ma ion acco ding o hei au ho isa-
ion le els (Neligan e al., 2023). A DPP mus be illed in on
he ini ia i e o he company ha manu ac u es a p oduc .
A a la e s age, howe e , o he s akeholde s such as in-
ZBW – Leibniz In o ma ion Cen e o Economics 161
Fo um
dus ial se ice p o ide s can also add p oduc -speci ic
in o ma ion acco ding o hei au ho isa ion le el, o ex-
ample, i epai se ices a e equi ed and accomplished.
Companies he e o e need he echnical equi emen s o
be able o issue, use and amend DPPs hemsel es. This
means, o example, ha p oduc -speci ic in o ma ion
should be a ailable in digi al o m. I equi es wo essen ial
componen s – especially o companies a downs eam
s ages o he alue chain. On he one hand, da a on he
ups eam p oduc s should be a ailable. This equi emen
can only be in luenced o a limi ed ex en , as i depends
on he way in which supplie s p o ide p oduc -speci ic
da a. On he o he hand, companies hemsel es should
be able o p ocess he ecei ed p oduc -speci ic da a in
a s uc u ed way. They should also collec and p ocess
da a o hei own p oduc s. This allows companies o e -
ec i ely combine ecei ed da a wi h hei own p oduc ion
o p oduc da a and he e o e o issue DPPs hemsel es.
Howe e , company su eys om 2021 o 2023 show ha
only one in h ee companies in Ge many is cu en ly able
o manage da a e icien ly (Bakalis & Büchel, 2024). This
includes he ex ensi e digi al s o age, s uc u ed p o-
cessing and e sa ile u ilisa ion o da a. Con e sely, his
esul means ha wo hi ds o companies could ha e
di icul ies in p ocessing p oduc -speci ic da a e icien ly
and making i a ailable digi ally hemsel es. Fo example,
companies may ecei e p oduc -speci ic da a in a o ma
ha hey do no suppo , making i di icul o p ocess
he da a u he . On a posi i e no e, howe e , a ound wo
hi ds o Ge man companies al eady s o e p oduc da a
digi ally (Be g e al., 2024).
DPP eadiness o Ge man i ms
Al hough DPPs will soon become manda o y, he idea
o DPPs is s ill la gely unknown o Ge man companies
(Büchel & Neligan, 2025). This inding is he esul o a su -
ey o 1,078 companies ha ook place in au umn 2024
as pa o he IW-Zukun spanel, a egula ep esen a i e
su ey among business leade s in indus y, cons uc-
ion and indus ial se ice p o ide s, e.g. wholesale, lo-
gis ics, in o ma ion and communica ion echnology (ICT)
and o he indus y- ela ed se ices. The esponses a e
weighed ep esen a i ely based on he Ge man s a is i-
cal business egis e (Un e nehmens egis e ) o co ec o
possible size and sec o al e ec s.
Two hi ds o he companies su eyed we e no awa e o
DPPs (38%) o do no conside hem o be ele an (27%)
(Figu e 1). Only 4% ha e al eady aken measu es o p e-
pa e o he in oduc ion o DPPs, while a u he 11% a e
planning o engage wi h DPPs. Addi ionally, 17% o com-
panies a e awa e o DPPs, bu do no speci ically deal
wi h hem no do hey plan o do so in he u u e. I is pos-
sible ha he bene i s o DPPs a e no ye clea enough o
Figu e 1
P epa edness o Digi al P oduc Passpo s
Pe cen o Ge man companies, 2024
No es: Ques ion: Has you company al eady aken measu es o p epa e o he in oduc ion o digi al p oduc passpo s? Sec o s included: indus y, con-
s uc ion and indus ial se ice p o ide s. N=1,078.
Sou ce: IW-Zukun spanel, su ey wa e 49.
10
7
4
4
25
19
10
11
12
11
17
17
30
32
39
39
13
27
26
26
9
3
3
3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
La ge companies
(250 o mo e employees)
Medium-sized companies
(50 o 249 employees)
Small companies
(1 o 49 employees)
All companies
Measu es al eady aken o DPPs Planning o engage wi h DPPs No measu es and no planning
No knowledge o he idea o he DPP DPPs no ele an Do no know / no answe
In e economics 2025 | 3
162
Fo um
hese companies o ha hey a e wai ing o echnical so-
lu ions o ma u e. A u he ba ie migh be egula o y un-
ce ain y conce ning he echnical equi emen s o DPPs.
P epa edness o DPPs inc eases wi h company size:
35% o companies wi h mo e han 250 employees ha e
al eady aken measu es o a e p epa ing o hem. Among
medium-sized companies wi h 50 o 249 employees, he
sha e is 26%, while among small companies wi h ewe
han 50 employees, i is 14%. A ound one in ou small
and medium-sized companies do no conside DPPs el-
e an , compa ed o only 13% o la ge companies. One
ac o could be ha la ge companies ypically ha e mo e
pe sonnel capaci y o deal in ensi ely wi h upcoming
egula o y equi emen s. Mo e companies in he basic
ma e ials indus y a e wo king on DPPs o a e planning
o do so (19%). This is impo an because hese compa-
nies play a cen al ole in he success o DPPs: he basic
ma e ials indus y gene ally con ibu es o he i s s ages
o supply chains. I essen ial p oduc da a is al eady digi-
ally s o ed and sha ed a he beginning, i is easie o
cus ome s a la e s ages o he alue chain o ecognise
and p ocess p oduc -speci ic da a. I is s iking ha only
wo hi ds o indus ial se ice p o ide s conside DPPs
ele an o hei business model. This could be due o an
(ongoing) lack o ealisa ion ha DPPs will a ec he en i e
p oduc li e cycle and he e o e po en ially also hei se -
ices du ing and a e he usage phase o a p oduc .
S anda dised digi al p oduc in o ma ion is impe a i e
o he success o DPPs, bu he eali y is di e en : only
a ound hal o he companies su eyed in indus y and
indus ial se ice p o ide s in Ge many o e digi al p od-
uc -speci ic da a o hei cus ome s, supplie s o o he
pa ne s, and only 18% o hese do so in a s anda dised
o m (Figu e 2).
La ge companies a e signi ican ly mo e ad anced: while
h ee qua e s o Ge man companies wi h mo e han 250
employees sha e digi al p oduc da a (39% s anda dised),
wo hi ds o companies wi h 50 o 249 employees do so
(27% s anda dised) and only jus unde one in wo com-
panies wi h ewe han 50 employees (17% s anda dised).
This o e laps wi h su eys showing ha la ge companies
in Ge many a e mo e ad anced in e ms o digi alisa ion
(Büchel e al., 2025) and da a economy eadiness (Bakalis
& Büchel, 2024). This poses addi ional challenges, pa -
icula ly o small and medium-sized companies, o mee
he echnical equi emen s o DPPs.
In he manu ac u ing sec o , h ee ou o i e companies
p o ide p oduc -speci ic da a o o he s – 24% o hem in
a s anda dised o m. Fi ms ha al eady sha e p oduc -
speci ic da a a e mo e likely o be p epa ed o he DPP:
one in ou o hese da a-sha ing companies is p epa -
ing o he DPP o plans o do so in he u u e (wi hou
p oduc -speci ic da a sha ing: 7%). O e all, only 21% o
Figu e 2
Sha ing p oduc -speci ic da a wi h o he companies
Pe cen o Ge man companies, 2024
No es: Ques ion: Does you company al eady p o ide cus ome s, supplie s o o he pa ne s wi h p oduc in o ma ion in digi al and s anda dised o m?
Sec o s included: indus y, cons uc ion and indus ial se ice p o ide s. N=1,078.
Sou ce: IW-Zukun spanel, su ey wa e 49.
39
27
17
18
38
38
31
31
22
32
46
45
1
4
6
6
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
La ge companies
(250 o mo e employees)
Medium-sized companies
(50 o 249 employees)
Small companies
(1 o 49 employees)
All companies
Yes, in digi al and s anda dised o m. We do p o ide digi al p oduc in o ma ion, bu no in a s anda dised o m.
We do no p o ide digi al p oduc in o ma ion. Do no know / no answe
ZBW – Leibniz In o ma ion Cen e o Economics 163
Fo um
companies ha sha e digi al p oduc da a do no consid-
e DPPs as ele an , compa ed o 33% o companies ha
do no sha e p oduc -speci ic da a. Appa en ly, Ge man
i ms ha ha e ealised he bene i s o DPPs ha e al eady
aken he ini ia i e o sha e hei p oduc -speci ic da a
wi h o he companies. Ini ial posi i e expe ience wi h he
bene i s o da a sha ing could also encou age companies
o be mo e open o o he da a sha ing concep s such as
he DPP.
Ad an ages and challenges o DPPs
The DPP is an impo an enable , as i p o ides he nec-
essa y da a and ne wo king oppo uni ies o se he
cou se o a ci cula economy. The aim o he DPP is o
ensu e be e anspa ency along he indus ial alue
chain by digi ally s o ing p oduc -speci ic in o ma ion
(Neligan e al., 2023). Howe e , he DPP as such does
no ensu e lowe en i onmen al impac s om p oduc s.
These depend p ima ily on hei design and he choice o
ma e ials (Eu opean Cou o Audi o s, 2023).
DPPs a e no ye an issue o many companies due o a
lack o egula o y equi emen s ega ding hei speci ic
implemen a ion. As a esul , he e a e majo in o ma ion
gaps among companies abou he associa ed ad an ag-
es and challenges o DPPs. Ye , om a mac o pe spec-
i e, he DPP can b ing u he a - eaching bene i s by
imp o ing ma ke anspa ency, inc easing e iciency, en-
abling new business models and o e ing g ea e p oduc
and coun e ei p o ec ion (Deloi e, 2022).
F om a business pe spec i e, he ne bene i o a DPP will
s ongly depend on he implemen a ion cos s. Manu ac-
u e s a e he p ima y sou ce o in o ma ion o DPPs, and
he e o e hey should pe cei e a DPP app oach as a ben-
e i a he han a bu den (Neligan e al., 2023). On he one
hand, DPPs equi e da a wi h de ailed in o ma ion on p od-
uc s and supply chains. Hence, se ing up DPPs may be
cos ly and ime-consuming om a co po a e pe spec i e,
especially o small and medium-sized companies wi h
digi al backlogs. Due o he po en ially high cos o da a
p o ision, he e is a isk ha he cos s will be highe han
he expec ed business bene i s associa ed wi h he DPP
(Adiso n e al., 2021). In addi ion, o a oid he isk o unin-
ended disclosu e o business sec e s, da a secu i y and
da a p o ec ion mus be ensu ed, as a DPP can be linked
o sensi i e p oduc in o ma ion (Neligan e al., 2023).
A he same ime, DPPs will also inc ease he s anda di-
sa ion and digi alisa ion o p oduc da a which can lead
o ime and cos sa ings in he medium o long e m. Be-
ing a ully digi alised and s anda dised sys em, he DPP
will o e he chance o speed up da a s o age, p ocessing
and use in in e nal p ocesses, e.g. p oduc ion, and c oss-
company p ocesses, e.g. p ocu emen . Howe e , a main
implemen a ion ba ie is ha many companies s ill need
o ca ch up o ul il he digi al equi emen s necessa y o
he DPP. This can ha e bo h posi i e and nega i e impli-
ca ions. I pu s addi ional p essu e on companies ha
a e s ill in he ea ly s ages o managing hei da a. A he
same ime, he equi emen o p o ide DPPs may c ea e
addi ional incen i es o companies o s eng hen hei
digi alisa ion and da a sha ing ac i i ies. O e all, he da a
economy in he EU could he e o e bene i om his.
On he o he hand, he inc eased anspa ency along he
indus ial alue chain and p oduc li e cycle as well as new
ne wo king possibili ies o e e iciency gains, imp o ed
sus ainable supply chain managemen , be e isk man-
agemen and new business oppo uni ies such as he
de elopmen o digi al business models in he sense o a
“p oduc as a se ice” (Neligan e al., 2023). DPPs will in-
c ease he isibili y o a p oduc ’s en i e alue chain. This
helps o op imise p ocesses and o educe he nega i e
en i onmen al impac o a p oduc . Fu he mo e, isks
can be mo e easily and mo e quickly iden i ied wi h he
a ailable de ailed and sha ed da a o a p oduc .
The inc eased quan i y and quali y o p oduc da a p o-
ided by DPPs can also imp o e p oduc quali y and en-
su e p oduc sa e y mo e easily. P oduc quali y can also
be be e communica ed o cus ome s ia DPPs enabling
sus ainable consump ion choices. In addi ion, s anda d-
ised da a in DPPs can acili a e manda o y epo ing. The
inc eased anspa ency can also make i easie o i ms
o adhe e o sus ainable business p ac ices.
The EU Ecodesign Regula ion p ima ily a ec s compa-
nies ha ope a e in he EU. Howe e , supply chains can
be complex and mul i-laye ed, meaning ha companies
ou side he EU can be in ol ed in he manu ac u ing o
p elimina y p oduc s, which a e impo ed, o example.
Eu opean companies a la e s ages o he alue chain
he e o e also depend on digi al p oduc da a om hese
supplie s o be able o ully comple e DPPs. Fu he -
mo e, non-EU companies will also need o ha e DPPs i
hey wan o sell p oduc s egula ed by he EU Ecodesign
Regula ion in he Eu opean Union. Consequen ly, indi ec
e ec s o ce ain equi emen s o companies ou side
he EU can eme ge. Simila discussions a e al eady ak-
ing place in he con ex o he EU Co po a e Sus ainabili y
Due Diligence Di ec i e (CSDDD). I his means addi ional
cos s o non-EU supplie s o p o ide p oduc -speci ic
in o ma ion, hese companies could ha e an incen i e
o sell hei p oduc s p ima ily o cus ome s ou side he
EU o ci cum en his egula ion. I he ma ke si ua ion
and indi idual nego ia ing powe allow, his could a ec
In e economics 2025 | 3
164
Fo um
he compe i i eness o Eu opean companies. I no , a pull
e ec on non-Eu opean supplie s could eme ge o d i e
hei digi alisa ion. This could lead o a si ua ion in which
hese companies bene i o e all om he ad an ages o
inc eased p oduc anspa ency and hus can con ibu e
o mo e sus ainabili y. Ul ima ely, in a globalised wo ld
economy, a DPP in o ma ion sys em can only wo k glob-
ally. Ye , i is mo e likely ha he e will be di e en DPP
sys ems besides he EU solu ion. The main p e equisi e
will be ha hey a e in e ope able in o de o a oid ag-
men a ion and ma ke exclusion.
The ac ha up un il now he e is no conc e e p oposal
o he implemen a ion o a DPP makes i s p epa a ion
mo e di icul . Gi en he low DPP eadiness o i ms, i
is essen ial ha he Eu opean Commission de elops a
c oss-sec o solu ion o a DPP ha can be implemen ed
by as many companies as possible. Exis ing global open
da a s anda ds ha companies a e amilia wi h could be
an impo an basis o his.
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Büchel, J., & Neligan, A. (2025). Digi ale P oduk pass: eady o go?, IW-
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Pa liamen and o he Council amending Di ec i es (EU) 2022/2464
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