What is the future of circular fashion and how can it be promoted? To answer these questions, the French Circular Fashion Federation (FMC) has drawn up fifteen actions designed to facilitate collaboration between public authorities and private individuals. Alongside key provisions of the French Anti-Waste and Circular Economy Law, it presents food for thought, regulatory proposals and legislative changes that could benefit the circular economy of fashion.
Development of circular sourcing
The circular economy concept is an important step in the right direction. Although there are now almost 45,000 voluntary collection points for used clothing in France, it is not a matter of course for many citizens to hand in their old textiles there.
To change this, the FMC recommends increasing the number and visibility of collection points through communication campaigns. This is intended to open up new target groups who hand in used clothing and also raise general consumer awareness of the need to hand in clothing to collection points.
The resulting increase in textiles collected could make it possible to approach the goal set by sustainability organization Refashion of collecting 50 percent of all textiles placed on the market. In 2021, the proportion was still 34 percent.
Supporting the sorting, repairing and recycling industries
Many textiles cannot be directly recycled due to the technological limitations of sorting centers. In 2021, 8.7 percent of used textiles were recovered as solid recovered fuel (SRC) and 1.3 percent were sorted out. In order to reduce the backlog, investments by small and large companies in the technological development of sorting, repair and textile recycling must be supported by targeted financing. These efforts will also allow some of the sorting and recycling operations to be outsourced, as currently 95 percent of textiles collected for recycling are exported.
Accelerated introduction of the European Product Passport
The EU Commission has decided to introduce a European product passport. In March 2022, the European Commission endorsed the introduction of a digital passport for textiles, based on mandatory information requirements, circularity and other key environmental considerations. The French Confederation of Environmental Professions (CME) [Anm. d. Red.: Er vereint die drei wichtigsten Berufsverbände im Bereich des globalen Abfallmanagements: Sammlung, Sortierung, Verwertung, Verarbeitung und Recycling von Abfällen] recommends that the introduction of the product passport should be a priority for the EU. It should also be a simple, accessible, free and understandable system for all consumers, which integrates and sets out all the components of a product’s circularity. This includes information on eco-design, traceability, product identification and composition, reusability, recyclability and environmental impact.
Supporting the sustainable design of textile products
Many garments made from multiple materials, fibers or layers are very difficult to recycle. Recycled textiles make up only about one percent of textile materials used in the manufacture of clothing. Sustainable design therefore needs to be better understood and supported, for example by creating a catalog of sustainable and circular supply companies, raising awareness among companies and textile design schools, or introducing minimum recyclability requirements (fiber to fibre) or the incorporation of recycled material.
Standardization of labeling requirements at French and European level
Eco-labelling, created by the AGEC law (the French anti-waste and circular economy law) and made mandatory by the ‘Climate & Resilience’ law, will be introduced for textile products in France in 2023. The scope of the Product Environmental Footprint, a standardized version of the environmental label, is defined at European level. The aim here is to ensure standardization of the labeling requirements.
Introduction of a European system for the used clothing industry
The extended producer responsibility for textiles created in France in 2008 is the first in the world. Today, 89 percent of the textile waste collected is reused or recycled through the eco-organization Refashion or one of its partners. The development of the circular economy can only be achieved with the introduction of a system at EU level that is in line with France. This is the only way to guarantee that French manufacturers and market players are not disadvantaged in a highly competitive environment.
Extend the benefits of the reuse and recycling fund to all circular fashion stakeholders
The AGEC Act created the Repair and Reuse/Recycling Funds. However, the provisions of the Climate and Resilience Act later stipulated that only companies from the social and solidarity economy are eligible for loans – despite the proximity to other actors in the circular economy such as second-hand shops, second-hand trading companies, marketplaces for vintage Clothing, repair shops and upcycling designers. The French Circular Fashion Association rejects this measure as it leads to a distortion of competition in the second-hand market between large companies and small retailers.
Scale circular sourcing
The AGEC law set minimum percentages for the annual amount for purchases of textile products by public persons. According to this, 20 percent of the products must be made from reuse, reuse or using recycled materials. The French Circular Fashion Association believes that public procurement needs to be massively expanded as part of a circular economy. This could be done by penalizing non-compliance and increasing minimum stakes.
Start a big awareness program
To combat fast fashion, half a day per year could be dedicated to circular fashion in middle and high schools. A cue such as “For the sake of the environment, choose clothes that have had a first life” could also be included in advertising, similar to alcohol, tobacco, groceries or cars.
Introduction of an index for the circularity of textile products
While the repairability index introduced by AGEC law provides consumers with information on the end of life of the products in question, it does not take into account recycling, reuse or upcycling. A scale from 0 to 10 could be based on certain criteria. In doing so, it would be possible to take into account externalities associated with circularity, negative externalities avoided by circularity, or the proportion of recycled or reused material.
Facilitate digitization of circular fashion
Many businesses have accelerated their digitization. This process is not easy for small businesses. The FMC proposes to accompany the digitization of all businesses in the circular economy, through investments, training and support from regional associations. It is also about involving the entire value chain of the circular economy in the digitization of supply and demand in order to increase the exchange of materials, textiles and solutions between all actors:innen.
Introduction of a voucher for circular clothing
The introduction of a Circular Clothing Check would directly support household consumption by making consumers aware of textile products from recycling, reuse and refurbishment. Similar to a holiday voucher, this could be subsidized, issued on a voluntary basis and exempt from social security contributions or taxes.
Promoting circular and sustainable trade in the cities of tomorrow
Second-hand shops should be able to set up easily in French towns and villages and offer innovative initiatives. This includes, for example, traveling second-hand shops or the collection of second-hand clothing directly from private individuals. At the same time, it would also make sense to reduce the CO2 impact of delivery by massively expanding low-CO2 deliveries through river and rail freight, electric and hydrogen logistics and the last mile by cargo bike and making them more cost-effective.
A reduced VAT rate for circular products and services
In addition, a reduced VAT rate of 5.5 percent should be introduced for products from the circular economy and for their repair services. The circular VAT would lead to an increase in purchasing power for consumers and favor the most sustainable companies.
Promote investment and innovation through a circular tax credit
Modeled on the research tax credit, a circular tax credit would allow certain expenses to be reimbursed. For example, the credit could include improving production processes, developing new materials, or initiatives to extend the lifespan of products, as well as funding research or dissertations.
About the Fédération de la Circulaire Mode: The French Circular Fashion Federation (FMC) has almost 150 members working in the field of circular economy. Some of the best known include Clear Fashion, Galeries Lafayette, Kering, Le Slip Français, Marine Serre, Printemps, and Vestiaire Collective. Since April 2022, the association has been committed to strengthening the competitiveness of the French fashion industry and textile recycling.
This article was published on FashionUnited.fr. Translation and editing: Barbara Russ