In its second position paper the T2T Alliance states transitioning to a truly circular economy is a strategic imperative to improve the EU’s competitiveness.
It explains: “We cannot further stall the ongoing legislative efforts driving the circular economy. In this context, the T2T Alliance, representing leading global closed-loop textile recyclers, calls for the textile industry, particularly the textile recycling industry, to be explicitly included in the scope of the Circular Economy Act.
The T2T Alliance, which includes Circ, Circulose, RE&UP, Syre, Samsara Eco and Recover notes that to become fully circular in line with the goals of the Circular Textiles Strategy, the textile sector needs a stable single market for secondary material.
T2T Alliance’s advises these policy measures for the Circular Economy Act
Harmonise existing legislation for better access to feedstock across the globe
- Implement EoW Criteria that are functional and industry informed
- Addressing key barriers slowing down the textile recycling sector such as feedstock classification and reporting rules
- Streamline EPR funding allocation rules to include contribution to recyclers.
Boost uptake of secondary material to stabilise the recycling industry
- Implement recycled content targets in public and private sectors.
Develop fiscal tools that support actors across the textile recycling supply chain
- Create a Circular Economy Fund
- Introduce targeted financial tools that address the cost gap between virgin and secondary material.
The T2T Alliance adds the Circular Economy Act should address a key financial barrier preventing secondary material production to scale: the cost gap between virgin and secondary material.
It notes: “Secondary materials remain significantly more expensive due to higher operational and R&D costs associated with recycling processes. These increased costs translate to higher prices of secondary textile material, creating challenges for recyclers to secure demand and an uneven playing field for brands that incorporate
“Therefore, we invite the European Commission to explore the opportunity of implementing targeted fiscal tools such as feed-in tariffs, rebate scheme, or a reduced VAT scheme for secondary materials.
“The introduction of such fiscal tools for a ten-year period will accelerate the circular textile economy while ensuring that financial support remains time-bound and focused on market development.”
The T2T Alliance points out it is dedicated to working on these suggestions in more detail and reiterates that it calls on the European Commission to include its suggested measures within the Circular Economy Act and welcomes the opportunity to discuss them in more detail.
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