The fashion industry is one of the largest contributors to global waste, generating millions of tons of discarded clothing every year. Traditionally, brands have had little accountability for what happens to their products post-sale. However, this is changing with the rise of Extended Producer Responsibility (EPR) laws—a policy approach that shifts the responsibility for end-of-life product management onto producers. EPR laws are designed to make brands accountable for the waste they create, compelling them to finance and facilitate recycling, reuse, and sustainable disposal of their products.

What is EPR?
Extended Producer Responsibility (EPR) is a policy framework that makes producers financially and legally responsible for the entire lifecycle of their products, including disposal and recycling. Traditionally applied to industries like electronics and packaging, EPR is now being expanded to fashion and textiles to address the industry’s growing waste crisis.

Key Components of EPR in Fashion

  • Mandatory Take-Back Schemes: Brands must establish collection systems for used garments, ensuring that consumers have accessible and convenient ways to return old clothing for proper disposal, recycling, or refurbishment. This reduces the likelihood of textile waste ending up in landfills.
  • Eco-Modulation Fees: Producers are required to pay fees based on the environmental impact of their products. Brands using materials that are difficult to recycle or have a high environmental footprint will incur higher fees, whereas those prioritising sustainability will be rewarded with lower costs.
  • Waste Reduction Targets: Governments set specific goals for textile waste reduction and recycling rates. Companies must actively participate in meeting these targets, often requiring investment in sustainable production processes and circular economy initiatives.
  • Transparency & Reporting: Companies must disclose waste management data, detailing how they handle post-consumer textiles. This includes annual reporting on recycling efforts, materials used, and the efficiency of take-back programmes to ensure accountability.

Countries such as France, Sweden, and the European Union have already enacted EPR regulations for textiles, while others, including the United States and the UK, are considering similar policies.

How EPR Laws Will Impact Fashion Brands
EPR policies introduce new obligations and challenges for fashion brands, but they also create opportunities for sustainability-driven innovation.

1. Financial Responsibility for Textile Waste

  • Brands will need to fund the collection, sorting, and recycling of their garments, shifting costs that were previously externalised onto the companies themselves. This may require investments in waste management infrastructure or partnerships with third-party recyclers.
  • Higher fees will be imposed on non-recyclable and unsustainable materials, pushing brands to rethink fabric selection and production methods to minimise costs.
  • Retail prices may increase as brands factor in EPR compliance costs, which could influence consumer purchasing behaviour and the market dynamics of fast fashion versus sustainable alternatives.

Example: France’s EPR law requires brands selling in the country to pay into a national fund that supports textile recycling programmes, ensuring collective responsibility for fashion waste.

2. Redesigning Products for Circularity

  • EPR laws incentivise sustainable design choices by imposing lower fees on eco-friendly materials. Brands that invest in biodegradable, recyclable, or upcycled fabrics will benefit from cost savings and regulatory compliance.
  • Increased demand for mono material fabrics, which are easier to recycle, may shift industry trends away from blended textiles, which are more challenging to break down.
  • Brands will be encouraged to adopt modular and repairable designs, making garments easier to fix, alter, or disassemble for recycling, thereby extending product lifespans and reducing overall waste.

Example: Adidas has developed 100 per cent recyclable shoes, aligning with future EPR regulations and demonstrating leadership in circular fashion.

3. Expansion of Take-Back & Recycling Programmes

  • Many brands will establish in-house recycling and repair programmes, ensuring they can efficiently process returned garments rather than relying on third-party waste management solutions.
  • Increased investment in partnerships with textile-to-textile recyclers will become essential for meeting EPR compliance standards, driving innovation in fibre regeneration technologies.

Example: H&M and Zara have launched garment collection initiatives to support textile circularity, though EPR regulations will require them to take more substantial action.

4. Supply Chain & Logistics Challenges

  • Brands will need efficient logistics for collecting and processing used clothing, requiring expanded infrastructure to manage returns, sorting, and redistribution.
  • Investments in sorting and recycling technologies will be necessary to streamline post-consumer textile processing and reduce contamination rates.
  • Global brands may need to navigate different EPR regulations across markets, adjusting operations and compliance efforts based on varying country-specific laws and requirements.

Example: The EU is developing a Digital Product Passport system to track textile recycling and ensure transparency in product lifecycle management.

5. Increased Transparency & Consumer Awareness

  • Brands must disclose material content and recyclability of products, providing customers with clear information on how to responsibly dispose of their garments.
  • Consumers may demand clearer sustainability commitments, influencing purchasing decisions and brand loyalty.
  • Increased scrutiny from regulators and watchdog organisations will hold brands accountable for compliance with EPR laws and circular economy initiatives.

Example: Patagonia’s Worn Wear Program integrates transparency into its circular fashion efforts, demonstrating how brands can engage consumers in sustainable practices.

Current Status of EPR in Fashion
Presently, only a limited number of countries have fully operational EPR systems for textiles, though several more are in various stages of development or planning.

France
France is a pioneer in textile EPR, having implemented legislation as early as 2007. The programme was broadened significantly through the 2020 AGEC law, covering a broad range of textile goods such as garments, shoes, and linens. Under this system, businesses pay fees to Refashion, the national EPR body, calculated based on the volume and nature of products sold. These fees are adjusted to encourage the use of sustainable and recyclable materials. Brands are also required to report on sales volumes, recycled content, and end-of-life management practices and must include the Triman label to guide consumers on proper disposal. France supports this framework with a vast network of textile collection sites.

Netherlands, Latvia, and Hungary
The Netherlands began enforcing textile EPR from July 1, 2023. Producers must register and report annually on the weight of textiles they bring to market, with goals to prepare at least 50 per cent of those textiles for reuse or recycling by 2025, rising to 75 per cent by 2030.

Latvia launched its system on July 1, 2024, funded through a Natural Resource Tax on textile imports. Companies can opt out of the tax by participating in an approved collective EPR organisation.

Hungary has also introduced an EPR framework for textiles under its 2023 legislation. Manufacturers must either meet compliance independently or join a certified producer responsibility organisation.

European Union
In July 2023, the European Commission proposed amendments to the Waste Framework Directive that would require member states to adopt EPR systems for textiles within 18 to 30 months after the directive comes into force. These systems would include tiered fee structures designed to discourage environmentally harmful practices such as fast fashion. Separately, EU nations are mandated to roll out dedicated textile waste collection systems by January 2025, though implementation progress varies.

California
In the United States, California stands out as the first state to adopt mandatory EPR for textiles. Enacted in September 2024, the Responsible Textile Recovery Act mandates that producers enrol in a CalRecycle-approved stewardship organisation by January 2026. This programme covers apparel, home textiles, and accessories, while exempting second hand retailers and smaller businesses. Producers must comply with recycling targets and fee structures designed to promote sustainability.

Other Countries
Other countries are at various stages of exploring or piloting EPR programmes. These include Australia, Colombia, South Korea, and the United Kingdom. In the US, proposed legislation in Washington and New York aims to establish similar textile EPR mandates.

How Brands Can Prepare for EPR Compliance

1. Adopt Sustainable Materials & Circular Design
To comply with EPR laws, brands must focus on designing products that are easier to recycle, biodegradable, and aligned with circular economy principles.

  • Use recyclable fabrics to minimise waste and facilitate end-of-life processing: Traditional blended textiles make recycling difficult, as separating synthetic and natural fibres requires energy-intensive processes. Brands should opt for mono-material fabrics, such as 100 per cent organic cotton or pure polyester, that can be more easily repurposed in recycling systems.
  • Invest in biodegradable alternatives to reduce long-term environmental impact: Conventional synthetic fabrics, such as polyester and nylon, take decades or even centuries to break down in landfills. By incorporating biodegradable synthetic alternatives—like bio-based polyester or innovative fibres like Tencel and Piñatex—brands can reduce their contribution to long-term waste buildup.
  • Collaborate with material scientists and researchers to explore next-generation sustainable textiles: Fashion companies must stay ahead of the curve by supporting research into closed-loop textile production, bioengineered fabrics, and improved natural fibre processing. Collaborating with textile innovators and sustainability-focused R&D institutions can lead to breakthroughs in fabric sustainability.

2. Develop Take-Back & Recycling Programmes
EPR laws encourage brands to create robust systems for collecting, reusing, and recycling textiles to minimise landfill waste and promote circularity.

  • Establish partnerships with recycling companies and textile upcyclers to manage collected garments efficiently: Most brands lack the infrastructure to process returned clothing internally, making partnerships with third-party textile recyclers and upcycling organisations essential. Companies such as Worn Again Technologies and Carbios are pioneering textile-to-textile recycling that allows old garments to be transformed into new materials.

3. Educate Consumers & Encourage Participation
For EPR to be effective, consumers must actively participate in take-back schemes and responsible disposal initiatives. Brands need to educate and incentivise consumers to engage in sustainable practices.

  • Implement return incentives for used clothing, such as discounts on future purchases: Many consumers hesitate to return old garments due to inconvenience or lack of motivation. Offering incentives—such as store credits, discounts, or loyalty programme points—can encourage them to return used clothing instead of discarding it.
  • Run awareness campaigns on textile recycling, informing consumers about responsible disposal options: Many consumers are unaware of the environmental impact of textile waste or the availability of recycling programmes. Brands can use social media campaigns, in-store signage, and influencer collaborations to educate customers about how to properly recycle or donate clothing.
  • Integrate sustainability education into brand marketing, reinforcing circular fashion values: Sustainability should be woven into every aspect of a brand’s identity. Companies can showcase behind-the-scenes sustainability efforts, material sourcing processes, and the benefits of garment recycling through storytelling, case studies, and customer testimonials.

4. Collaborate with Policymakers & Industry Peers
As EPR regulations evolve, brands must engage with industry organisations, governments, and sustainability groups to help shape policies and adapt to compliance requirements.

  • Advocate for standardised EPR regulations to ensure consistency across different markets: The lack of uniformity in EPR laws across regions can create compliance challenges for global brands. By actively participating in regulatory discussions and lobbying for harmonised global EPR standards, fashion companies can streamline compliance and implementation efforts.
  • Join circular economy alliances and industry groups to share best practices and stay ahead of regulatory changes: Collaboration within the industry fosters knowledge sharing and innovation. Brands can join initiatives such as the Ellen MacArthur Foundation’s Make Fashion Circular programme, or Cascale (formerly Sustainable Apparel Coalition) to align their sustainability strategies with broader industry efforts.

5. Invest in Digital Solutions for Compliance
Technology can play a crucial role in tracking, managing, and optimising EPR compliance efforts, helping brands stay accountable and transparent.

  • Implement blockchain-based tracking systems to monitor product lifecycles and improve supply chain transparency: Blockchain technology enables traceability of garments from production to disposal, ensuring that brands can verify material origins, track recycling progress, and prove compliance with EPR requirements. Companies like TextileGenesis and IBM’s Blockchain for Sustainable Supply Chains are pioneering solutions for fashion brands.
  • Use AI-powered analytics tools to optimise waste reduction efforts and recycling efficiency: Artificial intelligence can help brands analyse waste patterns, predict returns, and optimise inventory management to reduce excess production. AI-driven platforms can also streamline textile sorting processes in recycling facilities, improving efficiency and accuracy.