Circular Fashion Tomorrow: EU’s Government-Led Legislative Mandates – Part I

November 17, 2023 Staff

By Hyesim Seo & B. Ellie Jin

With growing ecological concerns, fashion companies bear increased responsibility for environmental sustainability. A linear system in fashion production, distribution, and utilization is the underlying cause of negative environmental impacts. In such a system, clothes are produced using substantial amounts of nonrenewable resources and used for short periods, ultimately ending up in landfills or being incinerated (Ellen MacArthur Foundation, 2017). To address these concerns, the spotlight has shifted to a closed-loop system. Contrary to the linear system, a closed-loop system aims to close the loop on production by “reusing and recycling all materials, eliminating waste and pollution and regenerating the environment (Vogue Business Team, 2020).” By extending the lifespan of fashion products, a closed-loop system is considered crucial in building a circular economy (Stanton, 2021).

EU’s Circular Schemes for Sustainable Textiles

With an increasing focus on enhancing circularity in the fashion industry, the EU leads in introducing sustainability initiatives for the textiles sector. According to the European Commission, only 22% of the EU’s 12.6 million tons of textile waste is separately collected for recycling or reuse while the majority is incinerated or buried in landfills (European Commission, 2023). In order to address the textile waste issues, in March 2022, the EU published the Strategy for Sustainable and Circular Textiles. This Strategy aims to achieve a vision by 2030 as follows:

Textile products available on the EU market should be durable, recyclable, and repairable, with a significant portion comprising recycled fibers. They must be free from harmful substances and produced in adherence to social rights and environmental standards.
Consumers enjoy extended value from high-quality, yet affordable textile products.
Re-use and repair services are profitable for businesses and readily accessible to the public.
The textile industry demonstrates competitiveness, resilience, and innovation, as manufacturers assume product responsibility across the value chain. This involves ensuring recycling capacity and minimizing reliance on incineration and landfill disposal.

With its objectives, the Strategy presents a set of actions for the future. One of the discussed actions is“Extended Producer Responsibility (EPR) and boosting reuse and recycling of textile waste.” In July 2023, the European Commission announced the introduction of mandatory Extended Producer Responsibility (EPR) for textiles to encourage the development of circular product designs and to consider the end-of-life stage for products. The purpose of EPR systems is to encourage producers such as fashion brands and retailers to take responsibility for collecting and recycling their products (Ndure, 2023b). Producers will be required to pay the costs related to waste management, which incentivizes them to minimize waste and ensure circularity in their product life cycles (Ndure, 2023a).

Among the European countries, France and the Netherlands have launched the EPR schemes for their textile industries (Fashion United, 2023). The U.K. has also made similar legislative efforts through Textile 2030 commitments (Fashion United, 2023). Relatedly, France recently introduced an initiative that subsidizes repairs to clothing and shoes from €6 to €25 to reduce waste and pollution. Tailors, clothing brands, and repair shops can join the initiative at no cost through Refashion, the eco-organization accredited by the French authorities to oversee the EPR for Apparel and Footwear in France (Briscoe & Guy, 2023; European Commission, 2021).

Legislative Movements Reshaping U.S. Fashion

The U.S. is currently in the process of considering similar legislation, but its enactment remains uncertain and undecided. In March 2023, California State Senator Josh Newman proposed the Responsible Textile Recovery Act (SB707), which requires the industry to support an Extended Producer Responsibility (EPR) program (Nishimura, 2023). Three US industry associations – the American Apparel and Footwear Association (AAFA), Accelerating Circularity Inc., and American Circular Textiles – have urged the US Senate to advance the “Responsible Textile Recovery Act (SB707)” over a two-year period (Abdulla, 2023). In July 2023, the California SB707 was withdrawn from legislative hearing deferring the decision-making until 2024 (Ndure, 2023b; Nishimura, 2023). Herman, AAFA’s Senior Vice President of Policy, mentioned that the extra time will allow all stakeholders to thoughtfully and deliberately craft what will be the first textile EPR program in the US (Ndure, 2023b).

In conclusion, as the EU’s scheme gains enforcement and acceptance in the fashion sector, numerous European fashion businesses have actively embraced circularity in their practices. Hence, U.S. fashion brands and retailers should be mindful of the movement. The upcoming Part II article will introduce some of these circular fashion practices.

References

Abdulla, H. (2023, July 6). US apparel sector calls for two-year Extended Producer Responsibility bill. Just Style. https://www.just-style.com/news/us-apparel-sector-calls-for-two-year-extended-producer-responsibility-bill/?cf-view&cf-closed

Briscoe, O., & Guy, J. (2023). France will pay you to repair your clothes. CNN. https://www.cnn.com/2023/07/13/business/france-shoe-clothing-repairs-scli-intl/index.html

Ellen MacArthur Foundation. (2017). A new textiles economy: Redesigning fashion’s future. http://www.ellenmacarthurfoundation.org/publications

European Commission (2021, February 2). Avis de: Refashion. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12822-Strategie-de-lUnion-europeenne-pour-des-textiles-durables/F1567456_fr

Fashion United. (2023, May 2). Extended Producer Responsibility isn’t enough to tackle global ‘fashion waste mountain’. Here’s why. https://fashionunited.com/news/fashion/extended-producer-responsibility-isn-t-enough-to-tackle-global-fashion-waste-mountain-here-s-why/2023050253645

Ndure, I. (2023a, July 6). EU extended responsibility scheme to charge fashion brands for textile waste. Just Style. https://www.just-style.com/news/eu-extended-responsibility-scheme-to-charge-fashion-brands-for-textile-waste/?cf-view

Ndure, I. (2023b, July 14). California bill delay means apparel sector can ‘craft US’ first textile EPR’ initiative. Just Style. https://www.just-style.com/news/california-bill-delay-means-apparel-sector-can-craft-us-first-textile-epr-initiative/?cf-view

Nishimura, K. (2023). Sustainability Report 2023. Sourcing Journal. https://sourcingjournal.com/report/sustainability-report-2023/

Stanton, A. (2021, February 22). What is a closed loop system? The Good Trade. https://www.thegoodtrade.com/features/what-is-a-closed-loop-system/

Vogue Business Team. (2020, November 30). Fashion’s circular economy could be worth $5 trillion. Vogue Business. https://www.voguebusiness.com/sustainability/fashions-circular-economy-could-be-worth-5-trillion