Global fashion industry experts weigh the impact of the EU Commission's proposed rules to charge fashion brands and retailers for textile waste.

Earlier this week (5 July), the EU Commission announced proposed rules that will make fashion brands and retailers responsible for the full lifecycle of textile products and will require them to financially support the sustainable management of textile waste across the EU.

The global fashion sector shares its initial views on the impact this could have on the fashion supply chain in both the short and long-term and what still needs to be considered before it becomes a reality.

With fashion today so globalised, International Apparel Federation secretary general Matthijs Crietee ponders on how how a decision made at one end of the supply chain by brands and retailers, could have an unintended consequence at the other end.

He explains: “We notice that sometimes in the development of national policies the interests of the entire supply chain are not fully considered, leading to unintended negative consequences.”

Crietee points out that most extended producer responsibility (EPR) systems include a levy on products sold which is paid by brands or retailers. But then, because of the highly publicised power imbalance which favours brands over suppliers, there is an expectation the levy can be passed on to suppliers, often based in another part of the world.

1. EU rules risk costs being passed to fashion manufacturers

Crietee suggests that a levy added to existing consumer prices would have been a great opportunity to inject additional money from consumers into the system rather than the bills now landing at the doorstep of manufacturers, which already have, generally, very limited means to invest in sustainability.

He says: “When financing our drive towards circularity, we should consider more how the costs are distributed best across all the actors involved.”

But the reality is the textile and apparel supply chain is long and fragmented which is a problem in itself according to Dr Sheng Lu, associate professor of fashion and apparel studies at University of Delaware, who adds policymakers need to clarify who will be the subject of the “eco-modulation fee” and create a “level playing field”.

He is also keen to remind EU policymakers that making and sourcing clothing from recycled textile materials will incur higher costs and limit product choices: “As many EU-based textiles and apparel producers are small and medium-sized, it is critical to provide them with the necessary financial and technical support and enable them to adjust to the new rule.”

Looking at the incoming rules entirely from a supplier perspective, there is a concern, particularly among smaller makers, around how they will be able to invest and implement the technology and infrastructure that allows effective recycling and processing of textile waste.

2. A global supply chain needs international agreements

Mostafiz Uddin, founder of non-profit Bangladesh Apparel Exchange, which focuses on promoting the sustainable apparel ecosystem, says collaboration and coordination across the entire supply chain will ensure compliance with the new rules and its ultimate success.

In addition, he says there are policy challenges the global apparel industry may face with the implementation of the new proposed rules on textile waste and recycling: “One key policy challenge is ensuring consistent and effective implementation of the rules across different regions and countries.”

Uddin, who is based in Bangladesh, explains the global apparel industry operates in a complex landscape with varying regulatory frameworks and enforcement mechanisms.

He believes policy challenges may arise in terms of trade and international cooperation and suggests: “Ensuring a level playing field and fair-trade practices across different regions while adhering to the new rules on textile waste and recycling may require international cooperation and agreements.”

3. Rethinking clothing design

Plus, he points out there are barriers to textile recycling: “Addressing the recycling of blended fabrics, commonly used in apparel production, presents another challenge. These fabrics often contain a mix of different materials, making it more complex to separate and recycle them.”

Uddin’s solution is to develop garment designs that are specifically built for recycling and investing in new technologies that can help overcome this challenge.

Meanwhile, the European apparel and textile industry federation (EURATEX) says there are a number of benefits of the EU’s regulatory effort to solving the waste problem which include the reduction of waste and the enabling of textile waste recycling.

“The 2025 mandatory separate textile waste collection in the EU requires coordination and investments to build a European textile recycling value chain that could recycle 2.5 million tonnes of textile waste by 2030.

“It is therefore important that the Waste Framework Directive (WFD) includes novelties and introduces provisions for harmonised EPRs across the EU. EURATEX welcomes such a proposal as we have been calling for a harmonised framework that is essential for our companies to operate across the EU.”

EURATEX says its members will engage in the WFD improvements and negotiations and will pay special attention to new elements that may be crucial to support circular textiles, such as higher quality waste prevention, recycling of textile waste and use of recycled fibres.

While collaboration is the key to effectively tackling the textile waste crisis, particularly when it comes to trading textile waste, Crietee says it is necessary buying countries are included in the development of the laws to ensure they remain protected.

“We must be aware of an important dilemma here. On the one hand trade in textile waste is needed because we need capacities on a global level to create the volumes of recycled material required to build a competitive, well-functioning market. On the other hand, we want to prevent textile waste simply being dumped on beaches and deserts abroad. It’s a balancing act that needs the input from all involved.”

4. New business opportunities for tackling textile waste

Circular textiles are making waves currently in the apparel sector and are creating new business opportunities both in Europe and further afield and experts agree the laws should reflect this reality.

Lu says a possibility of the new rules is that they could drive significant investments in textile recycling, from exploring new textile recycling methods and improving the efficiency of collecting and sorting used clothing to expanding the production capacity in making garments using recycled textiles.

In fact, he suggests in future, clothing made from recycled textile materials may no longer be a “niche product” but a mainstream offering.

Gherzi Textil Organisation partner Robert Antoshak agrees, adding for those jumping into the new opportunities surrounding textile waste “the rewards could be enormous”.

He goes as far as to say the EU’s goals are “aggressive” and change can be slow, but this means the EU could bolster a fledging textile recycling industry within a matter of years.

“Should the policy succeed within its desired timeframe, recycling could theoretically put a dent in the traditional apparel import business in the sense that where material inputs originate will become more important than ever.

“For brands, though, such circular sourcing may become an added cost. It’s not clear from the EU’s announcement how that will be handled specifically from a regulatory perspective. Even so, the EU’s intention to better define what constitutes “waste” is long overdue.”

Depending upon how this initiative unfolds, Antoshak expects it could complement some industry-sponsored programmes while presenting an alternative approach when compared to others, but he notes: “More details are needed to see how all of this could play out.”

5. Creation of new product lines within the apparel industry

Uddin predicts there will be a number of benefits for fashion manufacturers if these proposed rules go ahead. He says producers will be able to explore collaborations with brands, textile engineers and material scientists to develop fabrics that are recyclable, made from recycled materials, or designed for upcycling.

Additionally, he says the emphasis on recycling and reusing textile waste provides opportunities for the creation of new product lines within the apparel industry: “Manufacturers can explore the production of accessories, such as bags, shoes, and home décor items, using recycled or upcycled textiles. This caters to the growing market of environmentally conscious consumers and promotes the use of circular materials and reduces waste.”

Furthermore, he says the proposed rules encourage the adoption of sustainable business models: “This opens doors for companies to develop and offer services related to textile repair, refurbishment, and resale. Investing in these circular economy practices can lead to new revenue streams and business opportunities.”

6. Encouraging consumers to push for transparency

The new rules are also likely to influence consumer awareness around sustainability in the textile sector and the hope, Lu believes, is that they will encourage consumers to pressure brands to act more responsibly.

But Uddin is yet to be convinced this will be a direct result of the new rules, particularly in the near term, and says the industry needs to drive this change.

“The industry needs to educate consumers and shift their mindset towards sustainable fashion. Breaking away from the culture of disposable fast fashion and fostering a preference for durable and circular products requires awareness-building and consumer education initiatives.”

7. Legislation is fundamental to driving change on textile waste

The fashion industry experts that shared their thoughts on the EPR proposals with Just Style in general agreed legislation of some sort is necessary to move the needle.

Crietee says: “If no push is given, the market will stay stuck in the rut of low volumes of recycled material with high, uncompetitive prices. And because creating a more circular textile system is a major and a crucial step towards a more sustainable industry, generally the industry accepts the need for legislation.”

Similarly, Lu says the new rules are the first of their kind and go far beyond existing regulations on sustainable textile and apparel production.

“While circular fashion is mostly voluntary efforts by companies, the new rules will impose a mandatory “eco-modulation fee” that is used to collect, sort, and recycle used textiles. The proposal also aims to address the “issue of illegal exports of textile waste to countries ill-equipped to manage them”.

Notably, he says that despite the controversies surrounding the negative impacts of the used clothing trade on the developing world, few countries impose export restrictions on used clothing. Additionally, to his knowledge, there are no specific rules or regulations that explicitly mention stopping “fast fashion”.

While it is still too early to determine exactly how the new proposed rules will work Lu believes the y ould substantially promote increased use of recycled textile fibres in clothing with profound implications for the future of global apparel production, sourcing, and trade patterns.

He cites one of his recent studies, which found that given the many ways of recycling textile waste (e.g., mechanical and chemical), the supply chain of clothing made from recycled materials is versatile, potentially allowing countries of all kinds to get involved.

Lu can also see sourcing clothing made from recycled textile materials offering many exciting business benefits beyond sustainability, such as reducing “China exposure,” expanding nearshoring, and diversifying the sourcing base.”

Uddin concludes that embracing these new rules and aligning with circular principles means the global apparel industry can position itself as a leader in sustainability, attract environmentally conscious consumers, and contribute to a more circular and resource-efficient future.

He states: “As a visionary in the sustainable apparel ecosystem, I believe the latest update on the new proposed rules regarding textile waste and recycling in the EU is a positive development.”

 By Just Style