Indian T&A Exports To Face New Sustainability-Related Regulatory Challenges In EU & US
The Indian T&A sector is expected to encounter multiple sustainability-related regulatory challenges from its major markets like the US and EU in the future. The European Union, for instance, has introduced the `EU Strategy for Sustainable and Circular Textiles’, which includes Extended Producer Responsibility (EPR) regulations that require brands to manage textile waste. In the US, regulations like the `New York Fashion Act’ emphasise transparency in supply chains and waste management.
Experts opine that between 2024 and 2030 a wave of new regulations is likely to be introduced in an attempt to improve textile circularity and reduce environmental impacts. These include tighter EPR mandates, sustainability reporting requirements, and restrictions on waste exports. For example, the EU is likely to expand its Textile Waste Directive, while countries like China are expected to implement stricter environmental regulations on textile manufacturing. These new rules, they feel, will push brands to adopt more circular processes to manage and trace textile waste more effectively.
Meanwhile, The Union Textile Ministry is working towards a framework on sustainability for the industry amid a rising global focus, especially among developed nations, to incorporate sustainable initiatives in production and trade of textiles. It is believed that a shift towards sustainability in the textiles sector is crucial for maintaining a competitive edge in the global market. The ministry is currently in the process of consulting with the industry to get its feedback on this initiative.
“These regulations are set to reshape the global apparel and textile value chain, presenting both an opportunity and challenges. On one hand, they encourage brands to be more transparent and responsible, driving the industry towards circularity. However, compliance can be expensive, especially for smaller businesses, as it requires overhauling supply chains, investing in sustainable practices, and collaborating with recyclers and waste handlers. Furthermore, the global disparity in regulatory standards creates challenges for international trade, making it harder for exporters from countries with lax regulations to compete in highly regulated markets like the EU,” says Ranjit Sasi, Director, Business & Operations, India, Reverse Resources.
Headquartered out of Finland and having global presence, Reverse Resources (RR) through its Software-as-a-Service (SaaS) platform helps brands manage their textile waste responsibly as well as sustainably. RR’s platform enables mapping, digital steering and tracing circular textile flows. Established over eight years ago, RR has been intently focusing on investigating market barriers and best use cases of textile waste streams. Having done extensive research and fieldwork (across Europe, Asia and parts of North Africa), the company has a proven core competency in establishing textile waste feedstock routes for existing and emerging textile recycling companies. To date, it has mapped waste across 20 countries for large fashion brands and organisations such as United Nations Industrial Development Organisation, Global Fashion Agenda, Accelerating Circularity, and recently Fashion for Good.
“Our SaaS platform enables matching of textile waste with the best possible recycling solutions, enable predictive transparency and build data-driven supply chains. It’s like an Uber of textile waste that allows the industry to plan and oversee the textile flows end-to-end from the source of the waste to recycling and build the longest circular life cycles for the fibres. Our mission is to create a feasible systemic shift to allow the industry to reduce its dependency on virgin materials and fibres and scale up textile-to-textile (T2T) recycling and the use of textile waste as the source of the fibre it needs,” adds Sasi.
Rising regulations are also inciting action from the industry, such as recyclers using textile waste as feedstock to displace virgin fibre production. However, information on textile waste is currently fragmented, with data scattered across a multitude of organisations and platforms. This lack of centralised knowledge and standardised data hampers the industry’s ability to address and capitalise on textile waste.
To tackle this issue, Fashion for Good, with catalytic funding from Laudes Foundation and IDH, has recently partnered with Reverse Resources, Global Fashion Agenda, Circle Economy, and Accelerating Circularity – who actively address many facets of textile waste and leverage each other’s diverse skill sets and wealth of information to create a tool consolidating the outcomes of individual research. This tool provides an overview of data points on waste quantities, types, compositions, and other insights, as well as links to the original studies. With information on waste attributes, data collection methodologies, organisations involved, and a lens on upcoming studies for a region, the tool empowers users of textile waste, as well as stakeholders looking to further the industry’s knowledge base.
“We’re excited to launch worldofwaste.co, a tool providing crucial data on global textile waste hotspots. This collaborative effort brings together key industry partners to empower recyclers and innovators with insights into waste volumes and compositions, helping turn waste into valuable resources and accelerating the shift towards a more circular and sustainable fashion industry.” says Katrin Ley, Managing Director of Fashion for Good.
With a lens on global hotspots of textile waste, as well as links to established resources for each region, strategies aimed at valorising waste become more attainable. For instance, recyclers can strategise their feedstock sourcing by gaining insights into waste streams and their specific characteristics. Governments can utilise this data to develop informed policies and regulations that encourage sustainable waste management practices. Fostering connections between stakeholders, both local and international, can help address operational challenges towards the advancement of circularity.
“Waste to Wealth” report published in July 2022 jointly by Fashion for Good, Sattva Consulting, Reverse Resources and Saahas Zero Waste, gives an overview of the challenges and opportunities India is facing with textile waste flows and the many nuances of the emerging circular economy in the country.
As per the report, apart from being an important stakeholder in textile and fashion production, India is also one of the few and largest mechanical recycling hubs in the world, with over 900 recycling units. While India possesses a huge mechanical recycling infrastructure and potential, the country has not been able to establish the complete circularity of textile wastes.
Around 7,793 ktons, or 8.5 per cent of global textile waste, is accumulated in India every year. Around 59 per cent of this waste finds its way back into the textile industry through reuse and recycling but only a fraction of this makes it back into the high-end global supply chains due to quality and visibility challenges. The remaining 41 per cent is downcycled (19 per cent), incinerated (5 per cent) or ends up in a landfill (17 per cent). Out of total waste circulation, 51 per cent comes from domestic post-consumer collection, 42 per cent from pre-consumer sources, and only 7 per cent is imported post-consumer waste.
