Textile recycling revolution in Europe could be boon for sustainability

29 May 2025 Consultancy.uk

A major shift towards increasing polyester textile recycling could have a huge impact on both social and environmental sustainability – but these efforts will not succeed without significant policy changes. That is according to a new study from Systemiq.

Over the past few years, images of huge dumps of discarded clothing – in places like Ghana and Chile – have periodically popped up in the news. Much of this trashed clothing was never sold, or even used, by anyone.

The resulting pollution is a major threat and could exacerbate an already worrying increase in microplastics in soil, groundwater, and even rainwater. The scale of the problem seems huge for the global textile industry, but a more robust recycling ecosystem could be part of a solution.

Advanced recycling technologies do already exist, but the process is costly, making recycled polyester 2.6 times more expensive than new material. Less than 1% of the 125 million tonnes of synthetic and natural fibres used in the global textile industry are made from recycled sources.

Europe’s textile waste system is under pressure

The report from Systemiq shows that Europe could achieve ten-times more textile-to-textile recycling of polyester textiles by 2035 if industry and governments can bridge the cost gap between recycled and virgin polyester. This will need to involve bold regulations and new waste sorting processes.

Unlike cotton or other ‘natural’ textiles, virgin polyester, mainly manufactured in China, is produced from fossil fuels. That means that besides cutting back on wasted goods that contribute to pollution, recycling polyester will also help the fashion industry reduce its use of fossil fuels.

Depolymerisation

Key in the process of polyester recycling is depolymerisation, which is – as the name suggests – the breaking down of a polymer into its more basic (monomeric) components. These ‘reclaimed’ monomers can then be reused for making new material.

Depolymerisation is suitable for even hard-to-recycle waste and can handle blended, coloured, or degraded textile waste. It is, overall, the preferred technological route for the chemical recycling of polyester.

It could be a tipping point for textile-to-textile recycling if stakeholders can address feedstock access, production costs, market demand, and funding. European output of recycled polyester from depolymerisation could grow from the approximately 30,000 tonnes expected before 2028 to around 300,000 tonnes annually by 2035 – a nearly tenfold increase.

A key takeaway from the report is that depolymerisation is far less emissions-intense than virgin polymer production and also more efficient than other types of recycling. The technology behind depolymerisation is already considered mature, so new facilities can be developed – so far there is only one single depolymerisation plant operating at commercial scale of 100,000 tonnes of output per year.

2025 annualised cost comparison of feedstock sources for polyester textiles

Regulations will play a big role

To overcome these hurdles, the report highlights the importance of an ambitious Extended Producer Responsibility (EPR) scheme. This would require companies that sell textiles in Europe to pay for the collection, sorting, and recycling of their products.

The study proposes an EPR fee of approximately €250 per tonne by 2028, increasing to €330 by 2035. This fee would cover a large portion of recycling costs, making recycled polyester more competitive. Additional measures, such as recycled content requirements for new products and clearer rules for textile waste trade, could also be very effective.

“Europe can drive and achieve a textile recycling breakthrough. But without leadership from policymakers, the system will remain stuck in pilot mode as the business case does not work,” said Sophie Herrmann, partner at Systemiq.

If these measures are implemented, Europe would be on its way to the forefront of a competitive circular industry, creating jobs while also reducing greenhouse gas emissions. While polyester recycling alone will not solve the entire textile waste problem, it is considered essential for managing non-reusable polyester waste and will support the development of other recycling solutions.

“We have the technology to recycle polyester back into textiles,” added Herrmann. “Investors are watching the space. Now we need the enabling conditions to take these solutions to scale. If we get this right, Europe can lead on creating a competitive, circular textile industry – contributing to economic resilience, job growth and GHG emission reductions.”

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