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Feasibility study on measures to incentivise circularity in textiles and fashion in the EU

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12 November 2025

Feasibility study on measures to incentivise circularity in textiles and fashion in the EU

Infrastructure

Investments and funding

R&I, techniques and technological solutions

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The European Commission’s feasibility study on measures to incentivise circularity in textiles and fashion in the EU analyses regulatory, economic, and technological tools to drive circular textile systems. It proposes extended producer responsibility (EPR) schemes, eco-design incentives, and consumer engagement as key pathways to achieving sustainable and circular textile production in Europe.

Authors

Editorial team

Topics
Geographical descriptors

Albania

Armenia

Austria

Belgium

Bosnia and Herzegovina

Bulgaria

Croatia

Cyprus

Czechia

Denmark

Estonia

EU-27

Finland

France

Georgia

Germany

Greece

Hungary

Iceland

Ireland

Italy

Kosovo

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Moldova

Montenegro

Netherlands

North Macedonia

Norway

Poland

Portugal

Romania

Serbia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Türkiye

Ukraine

Other

Organisation Type

Academic / Research and VET Institutions

Company with 250 or more employees

Cluster Organisations

Consumer Organisations

Cultural and Heritage Organisations

Destination Management & Marketing Organisations

EU Institutions

Financial Institutions and Investors

Industry Associations and Chambers of Commerce

Local Authorities

National authorities

Networks and Federations / Confederations

NGOs / Non-profits

Regional Authorities

SMEs (a company with less than 250 employees)

Social Economy Entity

  • Transition Pathway's building blocks

    • Infrastructure

    • Investments and funding

    • R&I, techniques and technological solutions

    • Skills

    • Social dimension

    • Sustainable competitiveness

    • Regulation and public governance

  • Industrial ecosystems

    • Digital

    • Proximity and social economy

    • Textile

  • Textiles ecosystem areas

    • Fibres, yarns and fabrics

    • Apparel and clothing accessories

    • Household/interior textiles

    • Technical textiles

    • Research and Innovation

    • Technology and Machinery

    • Waste management, reuse and repair

    • Business support and Communication

    • Not area specific (interested in more than one of the above)

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The European Commission has published a comprehensive feasibility study titled ‘Feasibility study of measures to incentivise improved circularity in textiles and fashion in the European Union.’ Developed under the Strategy for Sustainable and Circular Textiles, the study explores potential measures to promote circularity across the textile value chain and support the transition towards a more sustainable, resource-efficient, and resilient European textile ecosystem.

Key Insights

1. Policy and regulatory measures:

The study highlights the need for harmonised EU-level regulation to address inconsistencies in textile waste management and recycling practices. It suggests EPR schemes and eco-modulation of fees to incentivise sustainable design and recycling initiatives. Clear labelling and traceability requirements are also emphasised as key enablers of circular practices.

2. Business model innovation:

Transitioning to circular business models such as product-as-a-service, reuse, repair, and rental can significantly reduce waste and extend product lifespans. The study notes that such models require supportive infrastructure and access to finance, particularly for small and medium-sized enterprises that drive innovation in sustainable textiles.

3. Technological and infrastructural needs:

Investments in advanced fibre-sorting, recycling, and eco-design technologies are critical to scaling circularity. The report underscores the need for EU-wide recycling infrastructure and interoperable data systems to track materials and enable textile-to-textile recycling.

4. Economic and social impacts:

Circular transition measures could generate new green jobs and strengthen Europe’s industrial competitiveness. However, these must be accompanied by skills development initiatives to prepare the workforce for emerging roles in circular manufacturing, design, and materials recovery.

5. Consumer engagement and awareness:

Behavioural change remains central to circularity. The study highlights the importance of awareness campaigns, sustainability education, and information tools to encourage responsible purchasing, care, and disposal of textiles.

This feasibility study provides an evidence-based foundation for the European Commission’s ongoing policy development to promote circularity within the textile and fashion industries. It calls for coherent policy frameworks, cross-sector collaboration, and technological investment to accelerate the shift towards circular textiles.

Readers can explore the full study and its detailed findings on the Publications Office of the European Union.

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