How EU Regulations are shaping the future of fashion

This article discusses how new EU regulations are transforming the fashion industry by promoting circular practices such as durability, recycling, and extended producer responsibility.

How EU Regulations are shaping the future of fashion

Europe’s bold regulatory shift

In Europe, the transition towards circular fashion is being propelled by an ambitious regulatory agenda. The EU Strategy for Sustainable and Circular Textiles, unveiled in 2022, outlines a transformative vision for how clothes are designed, produced, consumed, and disposed of. These policies go beyond sustainability: they aim for nothing short of a structural overhaul of the fashion industry. By 2030, all textile products sold in the EU must meet stringent criteria: they must be durable, repairable, recyclable, and made predominantly from recycled fibers (European Commission, 2022). This regulatory shift signals the end of the fast fashion era, where a throwaway culture dominated.

Extended Producer Responsibility: a new rulebook for fashion

A cornerstone of Europe’s circular fashion transformation is the introduction of Extended Producer Responsibility (EPR) schemes, which hold brands financially and operationally accountable for the entire lifecycle of their products, from design and production to post-consumer disposal. Under these policies, producers are required to cover the costs associated with collection, sorting, recycling, and proper end-of-life management of textiles. But EPR is more than just a waste management solution: it is a mechanism for shifting the industry toward accountability, longevity, and design innovation. These policies require brands to report the total weight and material composition of products placed on the market, and to support dedicated systems for collecting used textiles, often through Producer Responsibility Organizations (PROs). In several countries, including France and the Netherlands, EPR schemes for textiles are already in place or under development. France, in particular, has adopted an advanced model that includes eco-modulation: a pricing structure in which producers pay lower fees for garments that are more durable, recyclable, or made from recycled materials. This provides a strong incentive to rethink materials and construction methods at the design stage. The obligations can also include reuse targets, support for second-hand markets, and mandatory public reporting on progress. As a result, companies are not only investing in take-back programs and recycling infrastructure, but are also being pushed to reevaluate overproduction and reduce their environmental footprint at the source. This structural shift comes at a time when Europe is grappling with a staggering textile waste problem: around 5.2 million tonnes of textile waste are generated annually (European Environment Agency, 2023), much of which ends up in landfills or incinerators. EPR is designed to reverse this trend by creating financial and regulatory incentives for better design, longer product lifespans, and more circular business models. It marks a transition from voluntary sustainability to legally enforced responsibility, turning fashion brands into active stewards of circularity.

Digital transparency: a game changer

One of the most promising developments is the Digital Product Passport, which will allow consumers to scan a simple QR code on garments to access detailed information about a product’s materials, carbon footprint, and repair history. This transparency empowers consumers to make more informed, sustainable choices and positions second-hand and rental platforms as trusted gateways to a circular fashion economy. At the same time, the EU is imposing strict regulations on the destruction of unsold stock. This practice, often used to maintain brand image, will soon be illegal, forcing companies to rethink their overproduction strategies and unsustainable sales practices (European Commission, 2023).
These changes mark a clear shift towards second-hand and rental fashion. As garments are designed with longevity in mind, their potential for second or third lives grows, increasing both their durability and value. Consumers will soon be able to track the entire history of a product, making pre-loved items not only more sustainable but smarter.

A global alignment: the rise of circular fashion

Whether driven by policy or economics, the momentum behind second-hand fashion is undeniable. In the U.S., rising costs have made second-hand fashion a practical choice for many, while in Europe, regulatory changes are pushing the industry towards sustainability. This convergence of forces is propelling circular business models to the forefront of the fashion industry. Circularity is no longer a fringe concept; it’s becoming a strategic imperative. Fashion brands are increasingly recognizing that investing in resale and rental is not only a response to consumer demand but a way to future-proof their business against environmental risks and economic volatility. The garments of tomorrow won’t just be designed for a single life cycle. They’ll be built for many, equipped with the transparency, durability, and repairability needed to thrive in a world that demands sustainability and accountability. As this shift gains momentum, second-hand and rental fashion are set to play an essential role in the future of the industry.