On February 20th, the Circular Fashion Federation launched the European Manifesto for Circular Fashion, a bold roadmap to make Europe a global leader in sustainable and circular fashion. With over 300 industry stakeholders behind this initiative, we are calling for five key measures to accelerate the transition to a competitive and circular fashion economy:
✅ Ensuring fair competition & trade measures – Today, many imported fast-fashion products escape EU sustainability regulations, creating unfair competition for European circular businesses. We advocate for stronger trade policies, including integrating textiles into the Carbon Border Adjustment Mechanism (CBAM) and eliminating the €150 customs exemption on first hand textiles.
✅ Implementing circular VAT incentives – Circular fashion business models, such as repair, resale, ecodesign and upcycling, should be encouraged through reduced VAT rates across the EU. This would make sustainable options more financially attractive compared to the traditional “take-make-waste” model.
✅ Strengthening consumer transparency – Consumers deserve clear, reliable, and verifiable information about the sustainability of their purchases. We support the harmonization of environmental scoring systems, and the implementation of a circular Digital Product Passport (DPP) to ensure better product traceability.
✅ Harmonizing Extended Producer Responsibility (EPR) – Many EU countries have different rules for eco-contribution, eco-modulation and the scope of EPR, leading to market fragmentation. We call for aligned EPR obligations across Europe, ensuring producers take responsibility for their products throughout their lifecycle.
✅ Investing in collection, sorting & recycling infrastructure – With textile waste collection becoming mandatory in 2025, we need significant investment in recycling infrastructure. We propose European standards for textile sorting, stronger export controls to prevent waste dumping, and to leverage EU funding to support local recycling initiatives.
This Manifesto is a call to action for policymakers, brands, and industry leaders. By uniting forces, we can create a fairer, greener, more resilient and competitive European fashion ecosystem.