Fashion industry adapts as EU mandates textile recycling

Finnish fashion companies are integrating recycling into their business models as new EU rules make textile recycling mandatory, reports Yle.

A new EU regulation will require the fashion industry to organize textile recycling by 2028, with a ban on destroying unsold clothing and footwear taking effect this year unless justified by defects. The used clothing market is growing steadily, particularly among young adults.

Recycled clothing represents the fastest-growing segment in the fashion industry, according to Emilia Gädda, sustainable business expert at the Finnish Textile & Fashion Association. She noted growth has been consistent in recent years, though not explosive.

Swedish retailer Kappahl reported in May that its second-hand service expanded to about 100 stores, with sales of used items doubling last year. S Group operates the Emmy online store for second-hand branded products, while Marimekko has run a preloved online shop for several years, allowing community members to sell used brand items, receiving 80% of the resale price in cash or 110% as a gift card.

Leena Aarikka-Stenroos, professor of industrial management at Tampere University, said second-hand clothing appeals to young consumers as a unique alternative to fast fashion, offering stylish, individual expression with lower environmental impact.

The EU’s extended producer responsibility framework, set to take effect in Finland in April 2028, will require companies selling in the Finnish market to establish systems for consumers to return end-of-life textiles, ensuring proper recycling. The measure aims to reduce textile waste and extend product lifecycles, as currently only 1% of used clothing in the EU is recycled into new garments.

A 2020 report by the European Environment Agency identified the textile industry as the third-largest contributor to water pollution and land use. The EU will also ban the destruction of unsold clothing and footwear without justified cause, with large companies facing the restriction from July 2026 and medium-sized companies from July 2030. Micro and small businesses are exempt.

According to the European Commission, 4–9% of unsold textiles in Europe are destroyed annually before use, generating about 5.6 million tons of CO₂ emissions—nearly equivalent to Sweden’s total emissions in 2021.