From the Sector

June 1, the European Parliament has adopted its Report on an EU Strategy for Sustainable and Circular Textiles. The Report wants to step up the EU’s ambition towards sustainability and circularity even further, but it has failed to recognise the strategic role of the European textile industry to scale up sustainability, nor to appreciate the global competitive threat which our companies are facing.

Director General Dirk Vantyghem commented on the MEP Report: “We welcome the strong interest of the European Parliament in the textile and fashion industry, but encourage MEPs to develop a balanced vision which reconciles sustainability and competitiveness. Developing a new business model for our industry requires carefully crafted legislation at global level, and an open dialogue between the industry, the brands and the consumer.”

EURATEX supports the EU Textile Strategy, as it was presented over a year ago by the European Commission. The 160.000 European textile companies are committed to invest in sustainability, develop new circular business models and produce high quality textile products – not just in fashion, but also in home and medical textiles, construction, agriculture or cars. To do so, indeed a new regulatory framework is needed, with clear definitions, coherent rules and effective controls. But also, the companies should be able to comply with these rules and remain globally competitive.

The EP Report has failed to respect that balance between sustainability and competitiveness. Instead, it suggests even more rules and restrictions, totally disregarding the current economic challenges caused by high energy prices, loss in consumer confidence and assertive trade partners. Putting the bar even higher will simply mean that the European textile industry will be pushed out of the market, resulting in a bigger environmental footprint and increased dependency on foreign supplies. Quite the opposite of what the EU wants to achieve with its open strategic autonomy plans.

The Report also fails to differentiate between textile products. There is a mix up between fashion and technical textiles, between products made in Europe and outside, between high quality and durable products and low-quality items. It is regretful that the European Parliament did not make that distinction and simply refers to “textiles” as a general cause of concern, without acknowledging e.g. the high quality products, made by European textile and fashion companies.

The Report puts a strong responsibility on the supply side – the industry and the brands – and does not sufficiently address the role of the consumer. Initiatives therefore are essential to create a stronger demand for sustainable textiles, which includes better communication and transparency (avoid greenwashing), fiscal measures, green public procurement and better control of online marketplaces.

On a positive note, the EP Report does recognise the importance to invest in research and innovation, to support reskilling and upskilling, the need of scaling up circular economy and pay attention to the needs of SMEs. EURATEX has always insisted that such massive transition can only be successful if accompanied by significant and dedicated support programmes. The EU Textiles Transition Pathway should offer a clear perspective in this regard.

• European textile industry needs to prepare for a paradigm shift, and become global leader in sustainable textiles

Organised by EURATEX in partnership with the Portuguese Textile Association (ATP), the Porto Convention – Sustainability meets Competitiveness: How to Square the Circle? – took place on 13-14 October in Porto, Portugal, with nearly 250 entrepreneurs attending from all over Europe. They discussed the current challenges of the European textile industry and set the grounds for a bright future, based on some strong foundations: innovation, creativity, quality and sustainability.

In his keynote speech, Mr. Pedro Siza Vieira, Former Minister for the Economy and Digital Transition of Portugal, assessed the geopolitical and macroeconomics changes, and how this will impact on the future of the textile industry: nearshoring and friend-shoring, independence from foreign gas through the use of European sustainable energy, as well as circular and automated production lines. While the current turbulence causes uncertainty, he sees a better future for our industry.

The first CEO Panel, addressing the theme of How to Measure and Communicate about Sustainability, focused on the challenges to translate “sustainability” towards the consumers. The panel addressed the issue of greenwashing and the role of brands in communicating about sustainability. It looked at how the new European Commission regulations on eco-label, digital product passport (DPP) and product environmental footprint (PEF) will create a new framework.

The second CEO Panel, discussing Financing Sustainability, looked at the cost of sustainable investments, and how this cost should be managed within the entire supply chain, including the brands and retailers.

Four workshops with industry experts followed in the afternoon, addressing the themes of Extended Producer Responsibility (EPR) in Textiles, Digital Product Passport (DPP), Recycling Textile Waste and Labelling Textiles (Product Environmental Footprint). As these initiatives will roll out in the coming years – as part of the EU Textile Strategy – participants got a better understanding of the future framework for our industry.

Dirk Vantyghem, Director General of EURATEX, commented on this: “to prepare for a brighter future requires a new regulatory framework, where quality and durability become the norm, where transparency and sustainability is rewarded, where free riders – who do not comply with rules and standards – are kept outside the market. The EU Textile Strategy aims at creating such a framework, which must be fair and balanced, and requires a close and constant dialogue between the regulator and the industry.”

During the 2nd day of the convention, participants had the opportunity to visit state of the art textile companies (Têxteis J.F. Almeida, RIOPELE, and TMG Automotive) and the Portuguese textile  research centre CITEVE. They showcased how the Portuguese textile industry is making this transition, while remaining globally competitive.

Alberto Paccanelli, President of EURATEX, concluded: “We need to attract creative people in our companies, we need to produce top class quality products, and we need to become more sustainable. That is the recipe for our success in a globalised and highly competitive industry.” Paccanelli is positive about the future: “While we face very tough times, I am optimistic about the future of our European textile industry. The rest of the world is watching us, as we move forward with our strategy. We should become their benchmark and Europe should become a global leader in sustainable textiles.”

• European Apparel and Textile Confederation EURATEX welcomes revamped EU Industry Strategy, but calls for consistency across EU policies

Europe’s industry is going through turbulent times as a result of the corona-pandemic; turnover in textiles and clothing sector dropped between 10 and 20%. However, even bigger challenges lie ahead: serious disruptions in supply chains, soaring energy prices and protective tendencies are threatening the competitiveness of our industry.

Against that background, the revised EU Industry Strategy – launched on May, 5 - is addressing very relevant issues, and underlines the need to think carefully about Europe’s industrial base. EURATEX welcomes the initiative, including the focus on 14 “eco-systems” and the proposal to develop privileged partnerships with trusted partners.

At the same time, EURATEX calls for more consistency by the EU across its different policy areas. Director General Dirk Vantyghem commented: “We welcome the recognition that we need a strong industrial base in Europe, but at the same time are struggling to maintain that base, as our companies face significant challenges related to over-regulation and raising energy and supply costs. It feels like one hand offering you help, while the other hand squeezes you tight”.

Looking at the global perspective, EURATEX is not calling to close the European borders; our industrial model relies on accessing global markets. But clearly, there is a need to establish global rules to ensure fair competition, and make sure these rules are properly implemented and controlled. Also today’s proposal to address distortions caused by foreign subsidies in the Single Market, should be welcomed in this context.

Dirk Vantyghem concluded: “European textiles and clothing industry went through turbulent times. Today, as part of this new EU Industry Strategy, we have an opportunity to build a new business model, based on innovation, quality, sustainability and fairness. We look forward to develop that new EU Textile strategy with all stakeholders involved.”