Article

Textile recycling: The path to circularity

Name: Implement Consulting Group
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Revolutionising the textile industry for a sustainable future

Published

3 October 2024

With only 1% of used clothing being recycled into new garments, the push for sustainable practices in the textile industry is critical. The industry faces an urgent need to transition from a linear to a circular model, but what are the challenges and opportunities for textile recycling to foster a circular economy?

Understanding the importance of textile circularity

The environmental and economic imperatives

The fashion industry is a major contributor to global greenhouse gas emissions, and in 2021 alone, the industry accounted for 1.2 billion tonnes of CO2. Economically, under-wearing and failure to recycle clothes accounts for a loss of USD 500 billion annually.

Transitioning to a circular model is essential, not only to mitigate environmental damage but also to unlock significant economic benefits by reimagining production and consumption practices.

Steps towards a circular economy

Recycling textiles: Challenges and innovations

Textile recycling is key to achieving circularity. As one of the means to achieve this, the industry aims to increase the use of recycled polyester (rPET) from 14% to 45% by 2025. This requires advancements in chemical recycling technologies and infrastructure expansion for collection, sorting and closed-loop recycling.

The transition towards circularity is supported by consumer demand for eco-friendly products and upcoming regulations, such as the extended producer responsibility for textiles set to take effect in 2025.

Building a sustainable future for the textile industry

Key enablers to achieve a circular model at industrial scale

Not only is textile recycling important to achieve circularity in the flow of textiles, but a number of factors need to be in place to transfer to the future business model at large scale.

In Implement, we have identified eight key enablers for unlocking circular business models for textiles, ranging from ensuring sufficient feedstock volumes to influencing consumer behaviour.

Collaborative partnerships across the value chain: Building a circular business model requires extensive collaboration with partners across the textile value chain. These partnerships are essential to ensure efficient material flow and achieve sufficient feedstock of textiles. By working together, stakeholders can optimise collection, sorting and processing, ultimately improving the quality and variety of recycled outputs.
Ensuring sufficient feedstock volumes: A substantial collection of textiles is crucial for the economic viability of recycling operations. Efficient recycling plants depend on diverse textile feedstock, allowing them to operate at full capacity. This involves strategic planning around location, recycling maturity, drop-off points and regulations to ensure consistent and adequate material supply.
Evaluating the environmental impact: Assessing the environmental impact of textile recycling requires life cycle assessment (LCA) methodologies. Key considerations include energy use, logistics steps and waste handling. By comparing recycled and new clothing production, businesses can determine the benefits of sustainability and make informed strategic choices for their operations.
Overcoming technical challenges: Overcoming technical challenges: Achieving textile circularity involves addressing technical challenges, particularly in sorting and recycling processes. Implementing advanced high-volume sorting technologies is essential to process large quantities of textiles efficiently. These systems must be able to handle diverse materials, ensuring accurate sorting and facilitating reuse and recycling.
Meeting off-taker requirements: Meeting off-taker requirements: For recycled materials to be used in new products, they must meet the quality and compatibility requirements of off-takers. This includes maintaining competitive costs and ensuring that recycled materials integrate seamlessly with existing manufacturing processes. Transparency, enabled by textile traceability across the value chain, is vital for proving sustainability to customers.
Financial obligations and investments: Significant investments are needed to support the transition to a circular model. An estimated EUR 6-7 billion is required by 2030 to upgrade technology and infrastructure. This includes advanced sorting equipment, rejuvenation factories and partnerships with industry stakeholders to drive innovation and efficiency.
Promoting circular behaviour: Changing consumer and organisational behaviour is essential to increasing circularity. Raising awareness through educational campaigns and establishing clear guidelines can encourage practices like prolonged garment use and recycling. As circularity becomes a natural part of society, businesses can leverage this shift to meet the growing demand for sustainable products.
Capitalising on commercial opportunities: Embracing textile circularity presents numerous commercial opportunities. Companies can differentiate themselves as eco-friendly brands, benefitting from increased consumer demand and government incentives. By investing in innovative technologies and forming strategic partnerships, businesses can gain a competitive edge and contribute to a sustainable future.

By focusing on these eight key enablers, the textile industry can effectively transition to a circular model.

However, the path to a sustainable future requires collective action, and stakeholders must commit to innovative solutions and strategic partnerships. By embracing these changes, the textile industry can significantly reduce its environmental footprint and unlock new economic opportunities.

How we may help

We support your way into the circular economy, transitioning to producing environmentally friendly products and comply to new regulations such as carbon taxes and extended producer responsibility.