The fast-fashion industry is driving a global environmental crisis, with textiles contributing significantly to greenhouse gas emissions, water and chemical use and waste generation. A new working paper by the Organisation for Economic Co-operation and Development (OECD) has advocated for the adoption of Extended Producer Responsibility (EPR) policies to embed circular economy principles in the garments sector.
In 2015 alone, 92 million tonnes of garments ended up as waste, while the sector consumed 79 billion cubic metres of water annually and produced 4 gigatonnes of greenhouse gas emissions.
EPR, already widely implemented for packaging and electronics, shifts the financial and operational responsibility for waste management to producers, the paper titled Extended producer responsibility in the garments sector said. This approach incentivises sustainable design, efficient resource use and improved waste collection and recovery. However, while EPR schemes are established in France and the Netherlands, they remain underutilised globally for textiles.
The paper brought up the success of the EPR in France as an example. France introduced an EPR scheme for textiles in 2009 and saw positive results.
The scheme increased the collection of post-consumer garments from 2 kilogrammes per capita in 2009 to 3.7 kg in 2019, outperforming the EU’s average collection rate of 22 per cent. It also supports reuse and recovery, achieving a 60 per cent rate for collected materials compared to the European average of 8 per cent.
Recent updates to the French scheme include repair credits for households and funding for social enterprises that boost sorting and reuse. These measures aim to extend the lifespan of garments while reducing waste.
France’s experience highlight the potential of EPR to improve recycling infrastructure, incentivise eco-friendly design and address the global trade of used garments responsibly, the OECD paper said.
The report, however, cautioned that EPR alone cannot address all the environmental challenges posed by textiles. Recycling technologies, though promising, face significant economic and technical barriers. Pre-consumer waste, a high-value resource, remains underutilised, while the use of hazardous chemicals during production persists.
To maximise EPR’s impact, the OECD recommends complementary policies, including:
Regulation: Defining standards for garment waste, recycled content and reuse.
Economic incentives: Encouraging recycled content demand and investment in recycling infrastructure.
Awareness campaigns: Helping households extend the life of garments through better practices.
Momentum for EPR adoption is building, particularly in Europe, the report said. By 2025, Europe Union Member States will be required to establish separate textile waste collection under the revised Waste Framework Directive. Additionally, a proposed EU mandate for EPR schemes in textiles, currently under negotiation, could compel all Member States to follow France’s lead.
Beyond Europe, other OECD countries are exploring EPR legislation as governments seek to transition to circular economies that minimise waste and retain material value, the paper stated. It underscored the urgency of such policies to mitigate the environmental impact of fast fashion and transform the garments sector into a more sustainable industry.