As a result, there is an oversupply of used textiles and a sharp decline in demand from traditional export markets, the statement noted.
Europe’s textile sorting and recycling industry is witnessing an unprecedented crisis and is under immense pressure due to global disruptions like the Ukraine war, logistical challenges in Africa and the rise of ultra-fast fashion, EuRIC Textiles and Municipal Waste Europe recently said.
Prices for used textiles have dropped, while the costs of collection, sorting and recycling have skyrocketed.
EuRIC Textiles is a branch of the European Recycling Industries’ Confederation (EuRIC) that promotes the collective interests of the European textile recycling and re-use industries. AISBL is a non-profit association that represents the interests of local authorities in their waste management obligations.
The trade in used textiles between the European Union (EU) and non-EU decreased from 464,993 tonnes in 2022 to 430,185 tonnes in 2023.
Looking at Germany alone, the exports of used textiles to Ghana (one of Europe’s key export markets) have decreased from 7911.2 tonnes in 2020 to 4532.9 tonnes in 2023.
Additionally, demand for recycled materials remains low: recycled cotton had an estimated production volume of 319 000 tonnes in 2023 (compared to 24.4 million tonnes of virgin cotton) globally.
Consequently, prices for second-hand textiles have plummeted, while the costs of collection, sorting and recycling have skyrocketed.
Since spring 2024, the prices for sorted second-hand garments no longer cover processing costs, leading to major cash flow problems for sorting operators. Warehouses are becoming overwhelmed, increasing the risk of textile waste being incinerated.
The organisations urged the EU to encourage member states to lower value-added tax (VAT) on textile repair, reuse and recycling activities, within the existing VAT Directive framework, and explore the possibility of introducing a tax on new, petroleum-based materials.
Such measures, if adopted at national levels, would incentivise the use of recycled materials and reduce the environmental impact of virgin textile production, the statement said.
This situation is likely to raise processing costs for municipalities, potentially resulting in higher waste disposal fees for residents, with the fear that textiles will be thrown in the residual waste instead.
Downstream players in the recycling chain, such as tearing and spinning mills, are also feeling the strain, leading to significant staff cuts, it said.
To avert widespread bankruptcies, immediate financial and legislative support is essential. Short-term financial incentives for EU companies that contribute significantly to a sustainable circular textile chain are needed to safeguard the industry from collapsing, said the statement.
Investment in recycling technologies and infrastructure, alongside targeted support for municipalities dealing with textile waste stagnation, is crucial.
The organisations called on the EU to facilitate public-private partnerships to foster innovation in textile recycling and to scale up recycling technologies.
In the mid-term, efforts should focus on making the textiles reuse and recycling sector competitive. The EU should raise demand for recycled textiles, expand recycling capacity and promote the use of sustainable materials through upcoming ecodesign requirements, the statement added.
Fibre2Fashion News Desk (DS)