According to the statement, the current situation is even more precarious than during the COVID-19 pandemic, caused by global disruptions such as the war in Ukraine, logistical challenges in Africa and the rise of ultra-fast fashion. These pressures threaten to destabilize both the industry and efforts towards broader environmental sustainability.

Trade in used textiles between the EU and non-EU countries has declined sharply, from 464,993 tons in 2022 to 430,185 tons in 2023. Germany, a major player, saw its exports to Ghana decline from 7,911 tons in 2020 to 4,533 tons in 2023. At the same time, demand for recycled materials is low. In 2023, global production of recycled cotton was only 319,000 tons, which is only a fraction compared to 24.4 million tons of new cotton.

This oversupply of used textiles, combined with falling demand, has led to a collapse in prices for second-hand textiles, while the costs of collection, sorting and recycling are skyrocketing. The situation is becoming untenable for many operators, whose warehouses are quickly filling up, increasing the risk of textile waste being incinerated. Since spring 2024, the selling price of sorted second-hand garments no longer covers the processing costs, leading to significant liquidity problems. Without countermeasures, many players in the sorting industry could face bankruptcy.

To mitigate these challenges, EuRIC Textiles and Municipal Waste Europe are jointly calling on the EU and national governments to reduce VAT on textile repair, reuse and recycling activities under the VAT Directive. Furthermore, a tax on virgin petroleum-based materials could create an incentive for the use of recycled materials, thus reducing the environmental impact of textile production from raw materials.

In the recycling chain, downstream actors such as shredding and spinning mills are already feeling the effects, and massive staff cuts are looming. If this trend continues, processing costs for municipalities will increase, potentially leading to higher waste collection fees for residents and further environmental degradation as textiles end up in residual waste.

To prevent further collapse, immediate financial and legislative support is essential. In addition to investments in recycling technologies and infrastructure, short-term incentives for sustainable textile recycling companies are essential. Public-private partnerships could drive innovation and increase Europe's ability to process textile waste efficiently. Furthermore, a revision of the Waste Framework Directive (WFD) and a rapid implementation of extended producer responsibility (EPR) programs are crucial.

In the long term, the sector must become more competitive and align itself with the EU's goals for a strong circular economy. This requires a focus on expanding recycling capacity and a mandatory requirement to incorporate a certain proportion of recycled textiles into new products. Without these steps, Europe risks undermining its climate goals and the future of its textile recycling industry.