PARIS — As European Union policymakers push ahead with reforms that will impact the textile industry, the coming months will be a pivotal period for clarity on legislation aimed at shaping the future of fashion in the bloc.
Two key proposals — the Environmental Omnibus Package and the Circular Economy Act — are expected to be published before the end of the year. These should aim to “simplify” and harmonize regulations around waste, industrial emissions, extended producer responsibility (EPR) and the use of recycled materials.
In mid-July, the European Commission published a six-week call for evidence, catching off guard many groups and industry stakeholders.
Harmonization in the registration, reporting and payment systems across different member states is widely seen as a plus for regulating textile waste and extended producer responsibility schemes, and could create an easy, single platform in the EU.
However, concerns have been raised by industry stakeholders about a rushed and opaque consultation process, with some fearing prior targets will be watered down.
“Things are changing,” said Clélia Ortscheidt, consultant at Ohana Public Affairs, a Brussels-based environmental legislative consultancy. “A lot of people are very worried about it, and a bit concerned by the last minute, very short time period for not only asking for feedback, but also putting forward the proposal.”
That should be released in late October or early November, but due to the short time period, will be published without an impact assessment.
Brands and suppliers are watching closely to see whether the final text of the Omnibus will include the textile sector and exactly how far-reaching its impact will be.
Meanwhile, the Circular Economy Act, due for formal proposal in the second half of 2026, is widely seen as more forward-looking, with ambitions to make recycled materials price competitive with virgin materials.
Despite all the moving parts and uncertainty, most large brands are staying the course on their previously announced circularity and recycling strategies, she added.
A worker stitches apparels at a garment factory in Vietnam.
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Manufacturers Stay the Course on Sustainability Amid Tariff and Regulatory Uncertainty
Despite growing geopolitical instability, tariffs and unclear ESG regulations, global apparel manufacturers are holding firm on their long-term sustainability commitments, according to Cascale, the international industry organization formerly known as the Sustainable Apparel Coalition. This is despite brands reassessing supply chains in light of shifting European sustainability regulations and the whack-a-mole unpredictability of U.S. tariffs.
“We haven’t seen any backtrack,” said Cascale senior director of strategic growth Lisa Domoney. “We see brands continuing with their commitments.”
Manufacturers across Asia have taken lessons from the pandemic supply chain shocks, said Domoney, thus the response from key sourcing countries and manufacturers has been measured with a long-term perspective.
“The manufacturing community is not as panicky as before. They’ve managed through these crises previously. It becomes almost business as usual. Asia has a longer-term view. We’re seeing a shift in that global dynamic,” she said.
Many countries, specifically in Southeast Asia, are ready to step into a leadership role on sustainability steps as the U.S. backtracks and Europe flounders. “It has become like we’re just leading through this.”
Instead, manufacturers are continuing with steady progress rather than panic and continuing with decarbonization plans and factory improvements despite the shifting regulatory landscape.
“They know that sustainable, resilient supply chains deliver longer-term competitive advantages,” Domoney said. “Sudden disruptions undermine the progress that we’ve already made within the industry. Sustainability doesn’t become just a sideline; it is a business strategy.”
For example, Bangladesh’s Garment Manufacturers and Exporters Association is continuing with its plans to see 50 percent of sustainable material sourcing, 30 percent GHG emissions reductions, 20 percent renewable energy and zero hazardous chemicals discharge by 2030.
While brands are reassessing their bottom lines, Domoney emphasized the business case for long-term thinking and sticking with published commitments — even if regulations do change — and abiding by responsible purchasing practices.
“During any period of instability, short-term thinking is a reflex. That’s what causes the harm,” she said, noting the sudden sourcing shifts “lead to disruption, financial hardship for suppliers and broken trust.”
Looking ahead, Cascale’s annual forum will address decarbonization, decent work standards, tariff impacts and audit fatigue.
On audit reform, the group is pushing for greater standardization rather than the need to obtain multiple certifications for different brands, which will be a key topic at the group’s forum in Hong Kong, Sept. 15 to 17.
Cascale, then Sustainable Apparel Coalition, annual meeting in Singapore in 2022.
Getty Images for Global Fashion
Industry Faces Compliance Countdown on the EU Digital Product Passport
The fashion and textile industry is bracing for a seismic shift as the EU’s Digital Product Passport (DPP) legislation edges toward its 2027 compliance deadline. But with fundamental questions still unanswered and technology in flux, brands are navigating a murky regulatory future.
Officially part of the EU’s Ecodesign for Sustainable Products Regulation (ESPR), the DPP aims to establish a standardized system of product traceability, detailing sourcing, materials, environmental impact and more. Though the umbrella legislation came into force in July 2024, sector-specific timelines vary. For textiles, mandatory compliance is slated for mid-2027.
But with just two years to go, much remains undefined.
“There’s still a lot of things unanswered,” said Tim Bodil, vice president of enterprise and digital passport at e-commerce software provider Pimberly, which works with Harvey Nichols and sports retailer JD.
“There are still a lot of questions around where the responsibility will lie in the supply chain. If your supplier doesn’t give you the right level of product data, then how are you going to provide that to your consumer? All those questions are still to be answered, and there’s quite a lot to do over the course of the next two years,” he said.
That lack of clarity is particularly challenging for small and mid-sized brands, many of which lack the infrastructure to handle the necessary data and changing regional regulations.
Bodil said they are increasingly turning to new AI technologies to comply with upcoming regulations, including tools that can extract data from product photographs, such as identifying materials, colors and components.
“AI provides smaller brands with access to the kind of computer power and automation that was previously only available to large organizations,” he explained. “It’s going to help automate the process of compliance checking, sourcing validation and even consumer engagement.”
However, the technology is still in “very early days” of application. “The biggest challenge is not the cost, it’s the data. If you’ve got good quality product data, then AI is going to do a much better job of understanding and interpreting that,” he said.
As for brands wondering how to prepare, the focus is still on streamlining information.
“Product data will have a currency in the future in a way that it hasn’t historically. Brands need to focus on preparing for that shift,” Bodil said. “Because ultimately, it’s the data that will drive compliance, differentiation and value.”