Impact of EU Circularity Regulations on Apparel Industry

This technical report outlines the implications of the European Union's circularity regulations on the textiles and apparel industry. It discusses the growing regulatory pressures that are transforming circularity from a voluntary ESG theme into a significant market-access challenge. The report details the introduction of the Digital Product Passport (DPP), which will apply to textiles and apparel starting in 2027, and its potential financial implications for companies, including new product-level data requirements. Additionally, it highlights the eco-modulated fees set to be introduced by April 2028, aimed at promoting product durability and recyclability. The report also addresses the EU's ban on the destruction of unsold textiles, which will require companies to adopt alternative strategies for excess inventory. Furthermore, it examines the Extended Producer Responsibility (EPR) scheme and its impact on operational costs and market access for apparel companies, emphasizing the need for effective data management and compliance strategies to navigate these emerging regulations.