The upcoming Circular Economy Act in 2026 will build on the previous 2020 Circular Economy Action Plan and seeks to create a market demand for secondary materials and establish a single market for waste. The intention is for the Circular Economy Act to complement and facilitate the rolling out of the Eco-design for Sustainable Product Regulation (ESPR). The ESPR working plan is due to be enforced in 2028 and includes textiles as one of the four priority sectors.
ESPR criteria requires textiles to meet specific sustainability and circularity requirements in order to be placed on the European market. The expected criteria include minimum requirements for durability, repairability and recyclability, limits on microplastic shedding from synthetic fibres and the introduction of Digital Product Passports (DPP). These digital passports will store essential information about product sustainability, promote circularity, and ensure stronger legal compliance. A key measure of the regulation outlines a ban on the destruction of unsold textiles. It will also require large and eventually medium-sized companies to publicly disclose annual data on discarded products, including the quantity and reasons for disposal.
EU’s updated Waste Shipment Regulation (WSR), which will apply from May 2026, will restrict the export of textile waste to prevent member states from exporting unsorted textiles. This will work in tandem with ESPR and EPR, no longer allowing brands to dump textile waste in developing countries.
These regulations are set to reshape the retail sector, and in turn consumer behaviour. Consumers will be empowered through increased transparency and retailers will be held responsible for environmental impacts across their supply chain.
Solutions
No single entity can revolutionise the textile sector. Addressing these issues requires coordinated action across government, consumers, and businesses. Each group has an interconnected role to play in circularity, sustainability, and long-term value creation.
What can the government do?
Both consumer behaviour and business strategy need more sustainable consumption habits. Government can incentivise sustainable production with textile specific grants or penalties for unsustainable practices. For example, France recently supported a pioneering bill proposing a blanket ban on advertising for fast fashion, as well as the introduction of environmental levies per item of clothing.
What can individuals do?
Consumer decision making drives product development. The first step is awareness of the environmental impacts of specific textiles. When enough people modify their behaviour and make purchases aligned to their values, industry is forced to follow.
Consumers should try to repair and repurpose existing textiles. The environmental impact of clothing repair has been captured in a recent report by the Waste and Resources Action Programme (WRAP), detailing that repairing a hole in a wool jumper saves over 16 kgCO2e, which is the equivalent of leaving a lightbulb on for 50 days. Purchasing durable, high-quality products and supporting circular business models, such as repair, rental, resale, and responsible take-back initiatives, is key.
The third step is that we need to buy less and buy better. Shopping second hand in charity shops or on platforms such as Vinted is an excellent way to keep clothing in circulation. Second hand fashion has already overtaken traditional retail in France, where Vinted is the number one retailer by sales volume. Rental platforms such as Drobey in Ireland are also increasing in popularity. The global market for used clothes and accessories is now worth over $100bn, up from $30bn-40bn in 2020.
What can businesses do?
Global fashion brands must invest in next-generation materials and technologies and integrate them in their production processes. Garments must be manufactured to be reused, remade, and recycled.
However, reimagining growth looks different for every material. Industry experts such as the Ellen MacArthur Foundation and Textile Exchange advocate for the phasing out of fossil-fuel based synthetics. Instead, sustainably sourced and renewable natural fibres should be favoured.
The retail sector will need to align more with a “regenerative economy” and “post-growth” principles. However, moving from linear to circular requires new attitudes, knowledge and skill sets.
This is particularly true for product development and in the case of textiles, designers. The European Commissions research on Eco-design found that 80% of a product’s environmental impact is detailed at the design stage, before production even begins.
Business models need to adapt to include services linked to reuse and repair, which will optimise their ability to generate new revenues.