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Europe’s Textile Circularity Push Depends on Reuse Quality, Fair Work and Stronger Sorting Systems

Maílis Carrilho
Written by Maílis Carrilho
Published May 26, 2026
6 min read
Updated May 27, 2026

Europe’s textile sector is entering a decisive phase as new waste rules, circular economy targets and growing scrutiny of fast fashion reshape how clothes are designed, collected, sorted, reused and recycled. The central challenge is no longer whether textiles should become more circular, but how to build a system that keeps garments in use for longer while protecting workers and avoiding the export of low-quality waste.

In an opinion piece for Sustainable Views, Saskia Bricmont, a Green MEP and founder of the Sustainable Textile Working Group in the European Parliament, argues that Europe’s reuse economy must be built around value, quality and dignity across the clothing chain. Her core message is that circularity cannot rely only on higher collection volumes. It must also ensure that garments are suitable for reuse, sorters have the information and conditions needed to do their work properly, and social economy actors are protected as the market changes.

Separate Collection is Only the First Step

The policy context is changing quickly. From 2025, EU Member States must have separate collection systems for textiles in place, a requirement intended to divert clothing and household textiles away from mixed waste and into reuse or recycling channels. The European Environment Agency estimates that, in 2020, each person in the EU consumed about 16 kg of textiles, while 4.4 kg per person were collected separately for reuse and recycling, and 11.6 kg ended up in mixed household waste.

Separate collection, however, does not automatically create circularity. If collected textiles are low quality, contaminated, poorly labelled or unsuitable for reuse, sorting costs rise, and more material is pushed towards downcycling, disposal or export. This is why the debate is increasingly shifting from collection targets to the quality of the reuse chain.

The EU’s broader textile strategy aims to move the market away from fast fashion and towards products that are durable, repairable, recyclable and, where possible, made with recycled fibres. The European Commission’s 2030 vision also states that fast fashion should be “out of fashion” and that profitable reuse and repair services should become widely available.

New EPR Rules Will Change Brand Responsibility

A major regulatory shift came with the revised Waste Framework Directive, which entered into force in October 2025. The directive requires Member States to establish extended producer responsibility schemes for textiles and footwear. Under these systems, producers will pay fees for products placed on the market, with those fees financing collection, sorting, reuse preparation, recycling and disposal.

The rules are significant for fashion brands, retailers, importers and online sellers because they connect product design with end-of-life costs. Fees are expected to be adjusted according to sustainability criteria, including durability and recyclability. In practical terms, companies that place lower-quality or harder-to-recycle products on the market could face higher financial responsibility over time.

For businesses, this makes circular design more than a reputational issue. Material choices, fibre blends, chemical content, repairability, labelling and product durability are becoming compliance and cost factors. Brands will need better data on product composition and stronger traceability across supply chains to prepare for these requirements.

Sorting Capacity and Labelling are Critical Bottlenecks

The Sustainable Views article highlights the need to strengthen textile labelling so citizens and sorters can understand what garments contain and what can realistically be done with them. This is a practical issue for circularity. Fibre composition, chemical treatments, trims, coatings and mixed materials all affect whether an item can be reused, repaired, recycled mechanically, recycled chemically or sent to lower-value applications.

The EEA has also warned that sorting and recycling capacity need to be scaled up urgently. Most textile waste in Europe still goes unsorted, and only a small share is collected separately. Of the textile waste generated in 2020, the EEA estimates that 82% came from consumers, with the remainder coming from manufacturing or unsold textiles.

This creates operational pressure across municipalities, collectors, charities, reuse operators and recyclers. As more textiles enter separate collection systems, the sector will need investment in manual and automated sorting, fibre identification technologies, repair infrastructure, reuse logistics and domestic recycling capacity. Without this, Europe risks increasing collection volumes without building enough value-retention capacity.

Exports remain a sensitive part of the system

Europe’s circular textile challenge also has a global dimension. Used textile exports from the EU have tripled over the past two decades, rising from just over 550,000 tonnes in 2000 to almost 1.7 million tonnes in 2019, according to EEA data.

Exports can support reuse markets when garments are genuinely reusable and traded transparently. But they can also shift waste burdens to countries with weaker waste management infrastructure when low-quality or unsorted material is exported as second-hand clothing. The revised Waste Framework Directive addresses this by requiring separately collected textiles to undergo sorting before possible shipment, helping prevent waste from being falsely labelled as reusable.

For companies and policymakers, this means circularity claims will face closer scrutiny. A garment collected in Europe should not be counted as circular simply because it leaves the EU market. The quality, traceability and final destination of used textiles matter.

Social Economy Actors Need Protection

A central point in Bricmont’s argument is dignity across the reuse chain. Textile circularity depends heavily on people who collect, sort, repair, resell and redistribute used clothing. Many of these activities are carried out by charities, social enterprises and local reuse organizations that combine environmental goals with employment and inclusion.

The revised EU rules recognize this role by exempting social economy enterprises engaged in second-hand textile collection and management from EPR obligations, while allowing them to operate their own collection systems and have their textile waste managed at no cost by producer responsibility organizations.

This distinction matters. If circular textile systems are dominated only by compliance schemes and large commercial operators, there is a risk that social value will be lost. A credible reuse economy must preserve decent working conditions, fair compensation, training and safe sorting environments, especially as the volume and complexity of textile waste increases.

Implications for Brands, Cities and Investors

For apparel and textile companies, Europe’s direction is clear. Circularity will increasingly require upstream changes, not just downstream waste management. Companies should prepare by improving product durability, reducing problematic fibre blends, limiting hazardous substances, investing in repair and resale models, and preparing for digital product information systems.

For municipalities and waste operators, the priority is capacity. Separate collection must be matched with quality sorting, local partnerships and clear routes for reuse and recycling. For investors, the transition creates opportunities in sorting technologies, textile-to-textile recycling, repair services, resale logistics, fibre identification, data systems and circular design tools.

The bigger message is that textile circularity cannot be measured only in tonnes collected. The value retained in garments, the quality of materials entering reuse and recycling streams, and the dignity of the people working across the chain will determine whether Europe’s textile transition delivers real environmental and social gains.

Source: www.sustainableviews.com


Maílis Carrilho
Written by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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