Europe is on the brink of a major breakthrough in textile recycling, with new research revealing that textile-to-textile polyester recycling could increase nearly tenfold by 2035 if the right policies, investments, and industry commitments are swiftly implemented.
The report, titled “The Textile Recycling Breakthrough”, was released today by sustainability consultancy SystemIQ and identifies a clear pathway for scaling up depolymerisation technologies — a form of chemical recycling that breaks down complex post-consumer polyester waste into high-quality raw materials.
“Europe can drive and achieve a textile recycling breakthrough. But without leadership from policymakers, the system will remain stuck in pilot mode,” said Sophie Herrmann, Partner at SystemIQ. “The technology is ready. What we need now is the right enabling conditions to bring it to scale.”
Unlocking Circularity with Policy and Investment
Today, fewer than 1% of global textile fibres come from recycled textile waste. Most used clothing in Europe ends up landfilled, incinerated, or exported, and existing waste collection and sorting infrastructures are financially overstretched.
Depolymerisation presents a scalable solution, offering the ability to convert polyester garments into virgin-equivalent materials. However, recycled polyester produced through depolymerisation is currently 2.6 times more expensive than its virgin counterpart sourced from Asia. The report attributes this to high capital investment requirements, low demand from brands, and underdeveloped feedstock logistics.
To overcome these challenges, the study recommends:
- A targeted Extended Producer Responsibility (EPR) fee of €250–330 per tonne to close over half of the cost gap.
- A 5% green premium at the brand level to cover remaining financial shortfalls.
- Alignment of EPR schemes with the upcoming Ecodesign for Sustainable Products Regulation (ESPR).
- Long-term offtake agreements and supply chain infrastructure development.
If all ten levers identified in the study are activated — from improving feedstock access to incentivising demand and reducing production costs — Europe could scale depolymerisation capacity from 30,000 tonnes today to 300,000 tonnes annually by 2035.
Industry Endorsements and Co-Funders
The report received strong endorsements from key industry stakeholders and co-funders, including Eastman, Arc’teryx, Textile Exchange, TOMRA, and Interzero.
“Depolymerisation is ready to play a central role in circular textiles. What’s needed is a demanding policy framework and committed industry partnerships,” said Eric Dehouck, Managing Director at Eastman Circular Solutions France.
Kyle Wood, Senior Director of Strategy at Arc’teryx, added, “We believe that great design must extend beyond products to the systems they are part of. This study charts a clear path for the shift towards regenerative textile systems in Europe.”
Economic and Environmental Potential
The study estimates that with the right enabling environment, Europe’s textile recycling sector could deliver €5.5 billion in annual value and generate 28,000 new jobs by 2040, while drastically reducing reliance on virgin polyester and lowering the industry’s environmental impact.
As Europe finalises key regulatory frameworks such as the ESPR and expands EPR schemes across member states, this report offers a compelling roadmap for transforming textile waste into valuable resources — and turning circular fashion from vision to reality.
