EU Tests Deposit-Return Model for Clothing as Textile Waste Pressures Mount

The European Union has launched a multi-country pilot to test a deposit-return system for used clothing, pairing financial incentives with digital product passports to improve textile reuse and recycling, according to EU-backed project reporting, as policymakers push to curb one of the bloc’s fastest-growing waste streams.

Textiles have emerged as a priority in Europe’s circular economy agenda, driven by rising consumption, short product lifecycles and limited reuse infrastructure. Data published by EU institutions show that Europeans discarded nearly 7 million tonnes of textiles in 2022, much of it mixed into household waste. Observers note that unlike packaging, textiles have so far lacked a standardized collection and return framework at scale.

The pilot, known as TexMat and funded under the Horizon Europe research and innovation programme, brings together 14 partners spanning research institutes, technology providers, second-hand retailers and civil society groups. Trials will run in Finland and Spain, where consumers will be able to deposit unwanted garments into automated collection units that evaluate quality, identify fiber composition and log product data via embedded digital product passports.

Those passports, which the EU plans to roll out across the textile market in the coming years, are designed to store information on materials, origin and repairability. In the TexMat system, they will also trigger notifications to producers when returned items require recycling or disposal, linking consumers more directly to extended producer responsibility obligations.

The scale of the challenge remains significant. In 2022, Europeans generated about 16 kilograms of textile waste per person, with roughly two-thirds not collected separately and instead sent to landfill or incineration. Industry groups argue that manual sorting and fragmented collection systems have limited recovery rates, particularly for low-value or blended fabrics. Analysts say automation and data capture could reduce handling costs while improving the flow of usable garments into second-hand markets.

Project partners say the deposit-return approach is intended to remove guesswork for households. Automated assessment is expected to distinguish resale-quality clothing from items suited only for recycling, easing pressure on municipal waste operators. Elina Ilén, who leads the project at Finland’s VTT Technical Research Centre, said the system aims to make textile returns as simple as bottle deposits while supporting resale channels and cutting manual labor.

The consortium includes academic institutions from Finland, Spain, Estonia and Sweden, along with second-hand specialists, digital traceability firms and technology developers. Civil society organizations are involved to test consumer engagement and public acceptance, while data analysts based in the Netherlands are tracking attitudes toward textile circularity and regulatory change.

The pilot comes as regulations tighten. In September last year, the European Parliament approved new rules that will require fashion brands to cover the full cost of textile waste management, a move expected to accelerate investment in collection and recycling systems. Observers note that successful pilots could offer a template for compliance once those obligations take effect.

TexMat is scheduled to run through March 2029, with partners refining the technology and assessing whether the model can be expanded across the EU. Analysts caution that scaling will depend on consumer participation, cost efficiency and alignment with national waste systems, but say the trial reflects a broader shift toward treating textiles as recoverable resources rather than disposable goods.

Source: European Commission

SUNSHINE Spotlight: The EU’s TexMat pilot is testing whether deposit-return incentives and digital product passports can move textiles out of landfill and into reuse and recycling at scale.