EU’s Circular Economy Advancements on the Horizon

The textile sector’s circular wheels have started turning, according to the European Apparel and Textile Confederation (Euratex), as a “major step” to implement the European Partnership for Textiles of the Future has been taken.

The European Commission and the European Technology Platform for the Future of Textiles and Clothing (Textile ETP) will ink a Memorandum of Understanding (MoU). Once finalized sometime over the next few days, per the Brussels-based organization, the partnership driving the 27 member states’ circularity and innovation efforts will kick off in pursuit of “reinforcing Europe’s strategic autonomy and global competitiveness.”

“Innovation is the bridge between sustainability and competitiveness,” Mario Jorge Machado, president of Euratex, said. “The Commission’s decision is a welcome contribution, but it’s only a starting point.”

For context, the Partners for Textiles of the Future effort was established under the EU’s key funding program, Horizon Europe, in alignment with the EU Strategy for Sustainable and Circular Textiles. The idea, according to Euratex, is for the partnership to “harness digital innovations and novel business models to strengthen Europe’s leadership in sustainable textiles,” per the Belgian platform, by “fostering research, innovation, and investment in environmentally friendly, resource-efficient and cost-competitive production practices.”

“The launch of this dedicated EU research and innovation funding program for the textile sector is a testament to the persistent work of Textile ETP over many years, building up a strong European community of industry, research and higher education stakeholders and developing a positive future vision for this industry built on technology adoption and material, process and business model innovation,” Marina Crnoja-Cosic, president of Textile ETP, said. “It is now up to us to demonstrate to the European Commission that their investment will generate a positive return through accelerated innovation in the sector and by a strong engagement and co-investment of industry, especially SMEs in the coming three years.”

The EU Strategy for Sustainable and Circular Textiles, published in March 2022, prompted a proposal to adopt a mandatory textiles Extended Producer Responsibility (EPR) system. As it currently stands, this initiative—the European Partnership for Textiles of the Future—will work to drive the industry’s aforementioned green transition directive.  

“The initiative will leverage digital innovations and new business models within the sector and enhance Europe’s strategic autonomy,” per the EC’s statement. “At the same time, it will help to keep the industry competitive, resilient and sustainable in a rapidly changing global market.”

That includes the EC’s (and private partners) plan to invest up to roughly $39 million each (30 million pound) from 2025-2030 into the partnership, per the EC’s statement. Euratex’s statement alleged that the Commission (and private industry partners) would commit to investing up to about $77 million (60 million pound) from 2025-2030 in collaborative research and innovation projects. In any case, Textile ETP will co-lead this partnership, working with the EC as well as any (all?) European textile innovation stakeholders.

“Today, we take another important step forward in our commitment to strengthen Europe’s industrial landscape,” Stéphane Séjourné, the EC’s executive vice president for prosperity and industrial strategy, said in a statement. “Our new partnership on the future of textiles brings together the Commission and industry to drive technological progress and sustainability across the sector. This initiative will accelerate the transition toward a stronger, more competitive and sustainable European textile industry.”

Following the official signing of the MoU will see the initiative’s first funding opportunities introduced in the Horizon Europe Work Program 2025. That will be published in spring, with submission deadlines anticipated to close in early fall for the first projects to start in mid-2026.

“Additional resources should be made available under the new Multiannual Financial Framework, with a strong focus on Europe’s manufacturing base—including textiles—and targeted support for clean technologies, skills, and infrastructure,” Machado said of the EU’s financial perspective. “Only then can we build a resilient, competitive and sustainable industrial future.”