France is accelerating its regulatory offensive against the ultra-fast fashion sector, moving beyond legislative rhetoric to concrete financial penalties. The Ministry of Ecological Transition has formally instructed Refashion, the state-accredited eco-organization, to finalize a robust ‘eco-modulation’ framework targeting high-volume, low-cost importers. This initiative aims to internalize the environmental costs of the ‘disposable’ business model, primarily targeting platforms like Shein and Temu. Market data indicates, these firms have secured a combined 23 per cent share of France’s online fashion market, a dominance the government seeks to curb through targeted environmental surcharges.
Implementing the 'polluter-pays' mechanism
The proposed fiscal architecture integrates with existing Extended Producer Responsibility (EPR) laws, which already mandate that apparel firms finance waste management. Under the new directive, the ‘bonus-malus’ system will be sharpened; while sustainable brands receive rebates, ultra-fast fashion products could face surcharges ranging from €5 to €10 per item by 2030. Industry analysts suggest this levy could effectively double the retail price of entry-level garments, eroding the primary competitive advantage of high-churn retailers. The objective is to ensure that the industry pays for the true impact of its logistics and waste footprint, stated Monique Barbut, Minister of Ecological Transition.
Strategic shift toward circularity
This regulatory shift is a part of a broader French strategy to boost domestic circularity. Revenue generated from these penalties is earmarked to subsidize local textile recyclers and sustainable French labels, creating a protectionist yet green industrial buffer. As Shein reportedly prepares for a potential European public offering, France’s aggressive stance represents a significant headwind, signaling a shift toward a "slow fashion" economy where volume-based growth is increasingly penalized by stringent environmental taxation.
Refashion is the government-mandated eco-organization overseeing the Extended Producer Responsibility (EPR) for clothing, footwear, and household linens in France. Funded by industry contributions, it manages the collection and recycling of over 800,000 tonnes of textiles placed on the French market annually.
With a 2028 target to reach a 60 per cent textile collection rate, Refashion is currently deploying a €58 million aid package to modernize sorting facilities. Its financial stability is anchored by mandatory fees from over 5,000 member brands, with a focus on scaling fiber-to-fiber recycling technologies to meet upcoming EU-wide circularity mandates.
