Decarbonising Fashion: A Circular Economy in Focus
The textile and clothing industry is responsible for around 10% of global carbon emissions—more than the combined output of international flights and maritime shipping.
This pressing environmental challenge highlights the urgent need for a transformation in how textiles are produced, used and recycled. Despite the magnitude of the issue, only 1% of textile waste is currently recycled into new fibres.
To address this crisis, the Global Fashion Agenda (GFA) has launched the Upstream Circularity Playbook. The playbook provides a comprehensive framework to help garment manufacturing regions transition to circular business models by repurposing post-industrial textile waste.
GFA describes it as “a clear roadmap for reducing dependency on virgin resources, driving economic impact and enabling a scalable, circular future in manufacturing regions.”
Developed with support from Deutsche Gesellschaft für Internationale Zusammenarbeit and the H&M Foundation, the playbook draws on more than 20 case studies from countries like Bangladesh, Cambodia, Indonesia and Vietnam.
The Upstream Circularity Playbook tackles Scope 3 emissions head-on, providing actionable strategies that touch every part of the value chain.
It champions bold changes such as recycling post-industrial textile waste, smarter manufacturing and scaling innovative end-of-life solutions.
By collaborating across brands and regions, it empowers the fashion industry to reimagine waste as opportunity, drastically cutting emissions. From production lines in Vietnam to wardrobes worldwide, this roadmap redefines sustainability with practical, impactful steps for a circular future.
A grim reality for textiles
The current state of the textile industry underscores the urgency of this initiative. While demand for textiles continues to grow, the sector remains profoundly wasteful.
Less than 1% of textile waste is recycled into new fibres, leading to estimated losses of more than US$100bn annually. Meanwhile, the industry’s circularity rate has declined from 9.1% in 2018 to just 7.2% in 2023, leaving 90% of materials wasted or unused.
Access to recycled materials also varies significantly across regions. According to a GFA study, while 66% of companies report good access to recycled inputs, 18% face poor access.
GFA warns: “With textile consumption and waste set to continue to grow, the need for scalable solutions is more pressing than ever.”
Opportunities in circular practices
Despite the grim statistics, there is hope. The playbook outlines the immense potential of scaling post-industrial textile recycling, which presents significant economic and environmental opportunities.
GFA estimates that capturing and recycling textile waste in manufacturing hubs like Vietnam, Turkey, India and Bangladesh could unlock a US$4.5bn market. Transitioning to a circular economy could also create up to nine million new jobs globally by 2030, particularly in sorting, recycling, upcycling and repair.
The report also notes that existing recycling technologies could achieve up to 80% circularity in fashion if implemented at scale, often at a lower cost than sourcing virgin materials.
Meanwhile, leading brands and manufacturers are embracing ambitious goals: 80% of brands and 86% of producers aim to achieve textile-to-textile recycling targets by 2030, signalling growing momentum toward circular practices.
Steps toward circular collaboration
The Upstream Circularity Playbook offers five practical steps for textile producers to foster collaboration and advance circularity:
- Segregating textile waste in factories: Establish systems to manage and trace waste at its source, separating streams for effective recycling.
- Digital traceability of waste: Use shared platforms to track waste volumes and characteristics, ensuring alignment with recycler requirements.
- Collecting, aggregating and sorting: Streamline operations among intermediaries to prepare waste for recycling and maintain compliance.
- Matching waste to recycling technologies: Align waste types with suitable technologies for optimal material recovery.
- Reintroducing recycled materials: Integrate recycled outputs into product designs with durability and quality in mind.
For circular practices to flourish, the playbook emphasises four additional foundational measures:
- Supportive policy and taxation: Governments must create favourable environments through tariffs, incentives and formalisation of waste handling.
- Advanced technologies: Innovations in textile recycling and feedstock identification are vital.
- Access to finance: Investments in infrastructure and technology are needed to scale recycling efforts.
- Capacity building: Training supply chain stakeholders ensures coordinated, effective participation in circular initiatives.
Primark’s Circular Product Standard
The report highlights Primark as a key example of progress. In 2023, the retailer launched its Circular Product Standard, which prioritises durability, recyclability and sustainable fibres.
By collaborating with Recover, a leader in recycled cotton, Primark has integrated these materials into circular designs for denim and jersey products, selling more than three million items.
Primark plans to scale its efforts by training product teams and suppliers, reinforcing its commitment to circularity.
Lynne Walker, Director of Primark Care, explains: “Our collaboration is a key part of embedding circularity into our product design and we’re proud to be driving positive change that enhances product durability and reduces textile waste.”
This push toward circularity demonstrates the potential for the textile industry to transform into a more sustainable and equitable sector, paving the way for a greener future.
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