The European Union has officially adopted its highly anticipated Extended Producer Responsibility (EPR) law for textiles, a groundbreaking measure that will fundamentally change how fashion brands operate across the continent. The new directive mandates that brands and retailers selling in the EU will now be responsible for the full lifecycle of their products, from design to end-of-life waste management.

The legislation comes as a direct response to Europe's growing textile waste problem. Annually, the EU generates an estimated 12.6 million tonnes of textile waste, with clothing and footwear alone accounting for 5.2 million tonnes, or about 12 kg per person. Less than 1 per cent of all textiles worldwide are currently recycled into new products, with the vast majority ending up in landfills or being incinerated. This new law aims to close that loop, forcing the fashion industry to confront its linear take-make-dispose model.

A new financial reality for fashion brands

Under the new EPR framework, fashion companies must now cover the costs associated with collecting, sorting, and recycling their discarded garments. This financial obligation is expected to drive significant changes in product design and material sourcing. The law introduces a system of eco-modulated fees, meaning brands that design their products for durability, repairability, and recyclability will pay lower fees. This creates a powerful economic incentive to move away from low-quality, fast fashion items and invest in more sustainable, circular business models.

The EU has set a clear timeline for implementation:

• 20 months from the law's entry into force for member states to transpose the rules into national legislation.

• April 2028 as the deadline for EPR schemes to be fully operational across all member states.

This staggered rollout means brands will face a complex, country-by-country compliance landscape initially, including navigating a patchwork of fees and reporting obligations. The legislation also establishes a mandatory producer register, which will bring unprecedented transparency to the industry by requiring brands to disclose the total volume of clothing they place on the market each year.

Table: Selected examples of EPR implementation in EU member states

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The rise of circular fashion models

While the new law presents challenges, it also creates opportunities for brands to innovate. Companies that have already adopted circular business models stand to benefit from the new regulations.

Patagonia, for instance, has long championed its Worn Wear program, which encourages customers to repair, reuse, and recycle their products. Similarly, Eileen Fisher's Renew program takes back used garments and transforms them into new designs. These examples demonstrate that EPR can be both environmentally responsible and economically viable.

And the Dutch denim brand Mud Jeans pioneered a ‘lease a jeans’ model. The company leases jeans to customers, who can return them after use to be recycled into new pairs. Mud Jeans has also focused on design for circularity, replacing traditional leather patches with eco-friendly prints to simplify the recycling process. The new EU law is expected to increase this shift, encouraging widespread adoption of similar take-back schemes, repair services, and recycling infrastructure. The move signals the end of business as usual for the fashion industry and marks a pivotal step toward a truly circular economy.