This proposal comes from the newly-formed T2T Alliance, which brings together leading next-generation textile recyclers including Circ, Circulose, Re&Up, Samsara Eco and Syre.
As of January 2025, EU member states have enforced a ban on the incineration or landfilling of waste clothing and textiles. In response, Extended Producer Responsibility (EPR) schemes are being implemented. These will require brands and retailers to cover the costs of collecting and reselling or recycling textile waste.
Currently, only around 1 per cent of textile waste is recycled back into textile fibres, while approximately 6-7 million tons of it are generated in the EU annually.
A recent report by London-based consultancy Systemiq recommends imposing EPR fees of €250–330 per ton on polyester-rich fabrics and garments sold within the EU. These fees are designed to fund the collection, sorting and recycling of post-consumer waste on a large scale.
Global supply chain collaboration
Speaking at the inaugural Textile Recycling Expo in Brussels, held from June 4-5, Dolly Vellanki, sourcing and public affairs manager for Circ, outlined the key points of the T2T Alliance’s newly released position paper.
She emphasised that both post-consumer and post-industrial textile waste must be recognised as equally important. These waste streams offer the essential feedstocks needed for companies to expand operations immediately.
The Alliance is advocating for the introduction of a legally binding recycled content requirement in new textiles, starting with 10 per cent by the year 2028. This would then increase to 15 per cent by 2030 and reach 30 per cent by 2035.
To support these targets, Vellanki stressed the necessity of a robust verification and traceability system. This would need to include a comprehensive chain of custody as well as mass balance tracking, but only in the event that recycled content quotas are officially mandated.
Importantly, the T2T Alliance argues that these measures must not be restricted to Europe alone. Marco Lucietti, head of global marketing and communications at Re&Up, headquartered in Eindhoven, Netherlands, noted that the textile sector is highly dependent on global supply chains and that a protectionist approach would be counterproductive.
He pointed out that recycling is already transforming the spinning and weaving industries, and emphasised that this must be achieved without any compromise to quality. With F2F recycling expected to become a $30 billion global industry by 2030, he believes there is sufficient opportunity for international collaboration and mutual benefit.
Support from the European Commission
Opening the Brussels Expo, Aurel Ciobanu-Dordea, director for circular economy at the European Commission, reassured attendees of the EU’s commitment to tackling the textile waste problem.
Among the new policy initiatives under discussion are proposals for mandatory public procurement of certain textile categories within the EU. The Commission is also looking into ways to streamline the administrative processes associated with such programmes. Efforts are being made to accelerate the implementation of EPR schemes in member states and to harmonise their structures as much as possible across the bloc.
To further engage stakeholders, a public consultation on textile waste is being launched throughout EU member states. Ciobanu-Dordea highlighted that the textile sector has a long and complex supply chain, much of which extends beyond the EU’s borders. For this reason, the Commission aims to test its ideas through wide-ranging consultation and ensure the inclusion of non-EU partners.
Polyester – a circular challenge
Polyester currently accounts for around 57 per cent of global fibre demand, making it a critical material in the drive to develop large-scale circular recycling solutions.
According to Systemiq’s report, titled The Textile Recycling Breakthrough, Europe has the potential to achieve a step change in polyester recycling—if decisive action is taken by both policymakers and industry leaders. Although advanced textile recycling technologies, such as depolymerisation, have made substantial progress in recent years, their widespread commercial use remains in its early stages.
Depolymerisation is particularly promising for handling large quantities of polyester textile waste that cannot be reused or mechanically recycled. This technology is not only technically capable of producing outputs equivalent to virgin polyester, but also offers significant environmental benefits, particularly in terms of reducing greenhouse gas emissions.
Despite these advantages, depolymerisation has not yet scaled up. Two core challenges stand in the way: affordability and accessibility. Producing recycled polyester from post-consumer textile waste in Europe currently costs about 2.6 times more than producing virgin polyester in Asia, making cost the most critical barrier to overcome.
Accessibility issues also persist. On the supply side, securing sufficient quantities of high-quality textile waste remains a significant hurdle. On the demand side, the high cost of recycled polyester has meant that most brands continue to prefer cheaper alternatives, such as virgin polyester or polyester recycled from PET beverage bottles. With limited incentive across the supply chain to adopt textile-based recycled polyester, depolymerisation is unlikely to move beyond the pilot stage without targeted policy intervention.
A tipping point within reach
Despite these barriers, Systemiq believes a breakthrough is achievable with the right mix of policies and industry initiatives.
The organisation’s report applies a “tipping point” framework to the problem, drawing on contributions from a steering group made up of 17 organisations across the textile value chain. It offers a detailed comparison of the costs associated with recycled polyester from post-consumer waste and virgin polyester derived from fossil fuels.
The study identifies ten specific policy and industry levers that can close the cost gap. These interventions fall into four strategic categories: improving access to waste feedstock, increasing demand for recycled materials, reducing production costs, and bridging the remaining financial gap through EPR funding mechanisms and green incentives.
If these measures are successfully implemented, Europe could reach a critical tipping point where recycled polyester becomes more accessible, cost-effective, and desirable than virgin alternatives. Under these conditions, depolymerisation capacity could expand nearly tenfold by 2035, substantially reducing the fashion industry’s environmental footprint by cutting both waste and emissions, while also decreasing reliance on virgin materials.
An earlier Systemiq report suggested that a broader systemic shift—combining depolymerisation, mechanical recycling, reduction, and reuse—could create €5.5 billion in annual value and generate 28,000 new jobs in Europe’s recycling sector by 2040.
The latest Systemiq report was funded through grants from Arc’teryx, Eastman, Interzero, Textile Exchange and Tomra, and was overseen by an independently chaired steering group including representatives from industry, civil society and academia to ensure objectivity and analytical integrity.
Fibre2Fashion News Desk (IL)