The textile industry is far from achieving its SDG goals. Although there have been many attempts to improve the sustainability of the fashion world, the sector remains one of the most polluting industries, and has the fourth highest impact on the environment and climate change, after food, housing, and transport.

As consumers, we now have more access to cheap clothing than ever before

Fast fashion brands encourage overconsumption, leading to a massive amount of textile waste. The prevalent use of low-quality, inexpensive plastic fibres, combined with little emphasis on reusability or recyclability, has created a global environmental and humanitarian crisis As the world's largest importer of clothing, the EU recognized the urgency to launch its EU Strategy for Sustainable and Circular Textiles in May 2023.

What is the EU Strategy for Sustainable and Circular Textiles?

The Strategy looks at the entire lifecycle of textile products and proposes coordinated actions to change how we produce and consume textiles.  

The Strategy outlines a comprehensive set of forward-looking actions to address the various challenges faced by the textile industry. The Commission plans to implement design requirements for textiles to ensure they last longer, are easier to repair and recycle, and contain minimum recycled content. To enhance transparency, clearer information and a Digital Product Passport will be introduced.

Efforts will be made to counteract overproduction and overconsumption, while also discouraging the destruction of unsold or returned textiles. The Strategy addresses the issue of microplastics released unintentionally from synthetic textiles, aiming to mitigate this environmental concern. Additionally, measures will be taken to combat greenwashing, empowering consumers and raising awareness about sustainable fashion.

The introduction of mandatory and harmonized Extended Producer Responsibility rules for textiles across all Member States will incentivize producers to design more sustainable products.  

There will be restrictions on the export of textile waste, and a push to promote sustainable textiles on a global scale.

The Strategy also aims to incentivise circular business models, particularly in the reuse and repair sectors. Companies and Member States will be encouraged to support these objectives, contributing to a more sustainable and responsible textile industry.

Three Major takeaways

1. Recycled clothing will not end up in landfill, or be exported outside of the E.U.

To enhance the reuse and recycling of textile waste, the EU has introduced the separate collection for textiles, which will be mandatory for its member states by January 1, 2025. Currently, 65% of all discarded textiles are being treated as general waste and is incinerated or ends up in landfill. That is mainly due to the fact that there is very limited capacity to collect textiles as a separate source of waste.

Additionally, the EU’s Waste Framework Directive (WFD) is already being revised to regulate the export of textile waste better. Exporting textile waste to non-OECD countries will only be permitted under strict conditions. To prevent textile waste from being misrepresented as second-hand goods during export, the EU will implement more precise disposal criteria.

As part of the ongoing discussion of the WFD, the EU is looking at the introduction of a mandatory EPR (Extended Producer's Responsibility) for textiles in coming years. This type of regulation already exists for other goods, such as electronics or tyres. This will make fashion brands and retailers more accountable for the management of their textiles once they become waste. Under the EPR, there will also be a ban on the destruction of unsold or returned textiles.

2. As consumers, we will have more information about the origin and sustainability of our textile products.

A new mandatory digital product passport has been introduced to ensure transparency, fairness, and credibility throughout the entire textile supply chain. This passport will include circular and environmental requirements. Clothing companies must provide accessible information about their products' durability, reparability, recycled content, and materials used, enabling consumers to make informed purchases. This information will need to be included either on the physical label or in a digital format.

Transparency and fairness are further reinforced by the upcoming Corporate Sustainability Due Diligence Directive, a separate EU initiative affecting multiple industries, including fashion. This directive aims to promote sustainable, responsible, and transparent corporate behaviour across global supply chains. Companies will be required to fulfil due diligence obligations to identify, prevent, mitigate, or cease negative impacts of their activities and supply chains on human rights and the environment. Expected to come into force in 2025, the directive will apply to both large EU companies and non-EU companies operating within the EU. In cases of non-compliance, member states may impose fines, and victims will have the right to take legal action.

3. We will have more opportunities to buy real sustainable clothing

The Eco-design for Sustainable Products Regulation (ESPR) establishes new, binding eco-design requirements for textiles is aimed at extending the lifespan of clothing. These requirements encourage companies to adopt more circular practices, such as making materials more durable or recyclable, using waterless dyeing methods, utilizing waste as raw material for fabrics, reducing the number of collections brought to market, and offering consumers repair services or second-hand collections.

Additionally, the EU will provide economic incentives to companies to promote sustainability, primarily through eco-modulation. This approach lowers fees for brands offering eco-friendly products while raising fees for those with less sustainable offerings. Sustainable companies may also benefit from subsidies or tax reductions. The EU and its member states will support research, innovation, and investments in circular fashion through tenders, loans, and grants. As a result, consumers will have increased access to affordable sustainable clothing.

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