Europe-Brazil ECCON Newsletter – Volume 3, January 2025
In this volume of the Europe-Brazil ECCON Letter, we will analyze the implications of the European Sustainability and Circularity policies, focusing on Textile Chain and the European Deforestation Regulation Nr. 995/2010 (EUDR).
Textile Market in the European Union
In 2024, the European Union approved the proposals for the revision of the EU Waste Framework Directive , which adopted more ambitious targets for textile waste in Member States. Currently, the EU generates approximately 12.6 million tons of textile waste annually, of which only 22% is destined for reuse and recycling.
To address this challenge, the European Union seeks to implement strategies that promote more efficient textile waste management and encourage circularity within the sector. Circularity refers to a production and consumption model where resources are kept in use for as long as possible, reducing waste and promoting recycling, thereby minimizing environmental impact. To achieve this, the EU is working on revising directives, action plans, and sustainable strategy updates, such as the EU Strategy for Textile Sustainability and Circularity and the Waste Framework Directive.
In addition to fostering sustainability in the textile market, the EU aims to ensure incentives for producers of raw materials for the textile industry, such as cotton growers. Regulation (EU) No. 1307/2023, part of the Common Agricultural Policy, exemplifies this effort by providing funding for rural producers, promoting sustainable practices, and contributing to the preservation of rural areas suitable for cultivation. This may benefit the internal market by encouraging local production and consumption, as well as the external market by making more sustainable textile raw materials available.
After adopting the European Green Deal in 2022, the EU established ambitious goals to achieve climate neutrality by 2050. These goals include implementing a circular economy across the entire production chain – from raw material producers to the end consumer. Through new legislation and strategies, the EU seeks to provide alternatives for climate adaptation and mitigation.
European Union Strategy for Textiles
As part of the Circular Economy Action Plan, the European Commission launched in March 2022 a strategy aimed at making textiles more durable, recyclable, and sustainable. In addition to addressing the negative impacts of fast fashion, the initiative seeks to promote innovation in the textile and fashion sectors.
The plan aims to transform critical sectors of the European economy into more sustainable and circular models. It identifies seven priority sectors for achieving a circular economy: plastics; textiles; electronic waste; food, water, and nutrients; packaging; batteries and vehicles; and buildings and construction.
Among the proposed measures, outstanding are the creation of eco-design criteria for textiles, the provision of more transparent information to consumers, the creation of a digital product passport, and stricter corporate accountability for reducing carbon emissions and minimizing environmental impacts.
The EU Strategy for Textile Sustainability and Circularity, approved in 2023, represents significant progress in the pursuit of more sustainable production and consumption models. In particular, it aims to mitigate the damages caused by fast fashion, a business model characterized by rapid and large-scale production of low-cost clothing that encourages excessive consumption and early disposal, generating alarming volumes of textile waste.
One of the main challenges faced by the strategy is the textile industry’s dependence on non-renewable resources, especially in the production of synthetic fibers derived from fossil fuels. The proposal to increase the use of recycled fibers and reduce the presence of hazardous substances – such as azo dyes, formaldehyde, phthalates, PCBs, and others listed in the EU REACH Regulation – by 2030 is of utmost importance but faces significant obstacles.
The cotton industry, for example, is already impacted by climate change and water scarcity, aggravated by intensive agriculture. To achieve a meaningful transition, it will be necessary to go beyond recycling, encompassing agricultural practices that respect both the environment and workers’ rights.
The success of this strategy depends on collective efforts between governments and the private sector (companies and consumers), ensuring that sustainability becomes central at all stages of the textile production chain.
Actions to Modify the Textile Chain
In this direction, the European Union may transform the textile production chain by encouraging the circularity and sustainability of this market. This includes revising specific legislation and introducing eco-design requirements into production processes.
Consumer awareness of the environmental impacts of their clothing choices is also considered essential to drive significant changes.
The EU strategy highlights the importance of extended producer responsibility and reverse logistics, encouraging companies to take responsibility for the life cycle of the products they introduce to the market.
Moreover, consumers of sustainable products should gain greater legal protection, with the proposed revision of the Regulation on Ecodesign for Sustainable Products, creating stricter requirements for the design of eco-labels, such as the EU EcoLabel.
The EU’s concern is that eco-labels undergo an analysis process to verify their sustainable production, thus protecting consumers from unfair commercial practices and avoiding negative environmental impacts.
EUDR and the Impact on the Textile Market
The exclusion of cotton and other natural fibers (linen, wool and silk) from the European Union Deforestation Regulation (EUDR) presents an opportunity for further discussion on sustainability in the textile sector.
While the EUDR focuses on commodities such as soy, timber, cocoa, and beef, materials like cotton also have relevant environmental impacts. In Brazil, for example, cotton cultivation occurs largely in areas that were previously converted for agricultural use, highlighting the importance of sustainable management practices throughout the supply chain in this sector and similar.
Cotton presents regulatory and environmental challenges due to its long supply chain and integration into the textile industry, its environmental impact requires ongoing attention and the adoption of sustainable practices throughout the supply chain. However, the cotton industry brings significant employment opportunities, as it continues to grow and contributes to local economies, particularly in regions where cotton cultivation is a key agricultural activity.
The inclusion of cotton in sustainable agriculture practices, similar to other key commodities, is important to promote broader sustainability efforts. This would enhance transparency across the supply chain and encourage more responsible environmental practices, aligning with global goals for sustainability and climate action.
The technical team at ECCON has experience on EUDR rules and may assist you on fulfilling your export obligations. For more information, visit our website or contact us at: contato@ecconsa.com.br.
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We are interested in hearing your feedback and suggestions. Please let us know how we can improve our communication!
Julia Maillet Rocha Lenzi
Ana Heloísa Oliveira Alves
Yuri Rugai Marinho
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