Characterized by overproduction and over consumption of low-cost clothes, the global textile industry is a major source of environmental pollution. The industry is currently worth $1.4 billion and employs over 300 million people, especially in developing countries like Bangladesh, Brazil, China, India, Pakistan and Turkey. To reduce its environmental impact and increase efficiency, the industry needs to adopt a more circular economy and connect the downstream segment with the upstream. It needs to use more renewable materials, make durable clothes and encourage recycling by converting used garments into new ones.
Circularity to make upcyling more mainstream
The industry can make supply chains more resilient by developing reverse logistics capacities. This would help reduce 33 per cent
of carbon dioxide emissions and connect production and disposal ends of the value chain. It would also reduce air, land and soil pollution caused by processes, says a recent UNCTAD study as a part of the SMEP program.
There is growing demand for more attention to used clothes in the industry. The UNCTAD report says, existing collection systems for used clothes are outdated and create an illusion of circularity. Upcycling could make circularity more mainstream and improve management.
Smarter transportation for job creation
Another important social concern for the circular textiles industry is loss of jobs. Sectors like the cotton and polyester are likely to face a decline in employment levels due to increased automation and decreasing investments. However, as per a recent ILO research, the industry will benefit in the long term as it will create 18 million new jobs by 2030. A 2020 OECD study also predicts, employment levels will rise 2 per cent in this decade. The industry needs to adopt smarter ways to transport textiles back to reprocessing sites. It needs to avoid engaging people into low-value-added occupations of manual material separation.
Recycling textiles abroad can prove more expensive for companies as import rates for used textiles are higher than other secondary materials such as scrap plastics. On the other hand, there are minimal fees for disposal of used garments in the domestic market. The EU has launched a new initiative to change VAT rules for recycling used garments.
Delivering profitable circular solutions
It is difficult to change the current linear process of sourcing, retail and disposal of textiles and garments as COVID-19 has created several logistical challenges, says the UNCTAD research. Textile companies need to focus on new technologies, business models and customer acquisition. They need to acquire new markets for small-scale circular operations. They also need to focus on delivering profitable circular solutions. Convince buyers about the benefits of buying responsibly produced textiles.
