Will the Netherlands throw away its lead in Circular Textiles?
The transition to a much-needed circular textile and fashion industry is stuck in deadlock. Without stronger legislation and essential funding, recyclers — the indispensable link in the chain — will be left behind, and clothing brands won’t move forward. If the government does not intervene now, recyclers will collapse, the entire transition will stall, and the Netherlands will lose its frontrunner position.
Photo: Ellen in conversation with the government on Sustainable Tuesday.
The Deadlock: circular textiles are more expensive, and fashion brands have other priorities
The shift toward a circular fashion and retail sector has stalled. Despite numerous good initiatives, they run into the persistent price paradox: circular production is more expensive, while consumers are not always willing to pay the premium. On top of this, competition in the sector is fierce. Choosing circular options is simply not profitable at the moment. Just this year, several established Dutch clothing brands went bankrupt, including Vanilia and New Optimist. In such a climate, many companies shy away from the necessary investments. As a result, the sector remains stuck in polluting, cheap, non-circular production, no matter how ambitious pioneering brands may be.
Photo: New clothing in stores that already looks like waste before being bought.
Credit: Ellen Mensink
Recycling Is crucial and urgent, but not stimulated
The mountain of non-rewearable clothing is growing at an alarming rate. Globally, around 92 million tons of textile waste are collected each year. According to the Circularity Gap Report Textiles, less than 0.3% of clothing collections are made from recycled material — mostly from production waste (pre-consumer) and PET bottles, not from worn textiles (post-consumer).
The key step toward a truly sustainable and circular textile sector is large-scale recycling of discarded clothing. Skipping the production of new materials and recycling old garments could cut CO₂ emissions by 50%.
Current Extended Producer Responsibility (EPR) legislation is supposed to accelerate the shift toward a circular fashion industry. However, the law treats reuse and recycling as interchangeable — a counterproductive approach. Reuse is simpler and therefore receives the most attention, but on its own, it will not deliver a circular transition. Moreover, the ambition of reusing 10% of all clothing by 2025 is unrealistic: demand is too low and there aren’t enough second-hand shops in the Netherlands to meet this target. Eventually, every garment becomes waste — and without strong incentives for recycling, that pile will only grow.
The Solution: support recyclers and motivate clothing brands
How can the fashion industry break through this deadlock? Through basic economics: more demand lowers prices. But as long as brands lack incentives, demand will not materialize. Circular textiles require specialized knowledge and product development — both of which cost time and money, currently borne by recyclers. Brands do not have the necessary expertise, time, or resources. What is needed now is decisive policy: a clear mix of incentives and obligations — both the carrot and the stick.
The Stick: Current legislation, especially EPR, must be tightened. Without mandatory requirements and enforcement obliging brands to include a minimum percentage of locally discarded clothing in their collections, demand will remain absent, innovation will stall, and leading recyclers will collapse.
Today, recycling under EPR is still considered “successful” even if Dutch fibers are shipped to low-wage countries or uniforms from China are used in our clothing. But this does not solve our local waste problem, nor does it give us control over what happens to our materials. Instead, we are exporting knowledge, innovation, and the opportunity for new regional economic growth.
The Carrot: Circular fashion must be actively supported. Recyclers such as Brightfiber are already developing high-quality circular fibers, yarns, fabrics, and end products — making it easier for brands to adapt. Dutch recyclers pioneering in circular product development, in collaboration with brands, should receive greater financial support. If they collapse, all of this valuable knowledge will be lost.
Don’t wait for the perfect system
In the Netherlands and Europe, we spend endless time advising, networking, and calculating models, legislation, and action plans for the circular economy. But why not just get started? Enable the existing group of recyclers and forward-thinking brands to move ahead and make the real costs of circular development and production visible. Support these pioneers for a limited period by compensating the additional costs of low volumes, product development, and marketing. Finance stockpiles so that companies can produce more efficiently and scale up quickly as demand grows. And temporarily bridge the price gap of just a few euros per sustainable T-shirt, until the market can sustain itself.
This way, the Netherlands can maintain its leading position in circular textiles and break through the deadlock.
Stop Talking, Start Walking
On Sustainable Tuesday, our CEO Ellen Mensink shared Brightfiber’s call to action: “Stop Talking, Start Walking.” Invited on stage by Harm Edens, Ellen addressed key government representatives including Suzanne Kröger (GroenLinks-PvdA), Geert Gabriëls (GroenLinks-PvdA), Marieke Koekkoek (Volt Nederland) and Pieter Grinwis (ChristenUnie), urging them to seize this historic moment to accelerate the Netherlands’ leadership in the global transition toward a circular economy. Duurzame Dinsdag, which brings together pioneers of sustainability and connects them with policymakers, also launched the Trend Report 2025—a forward-looking guide to the most impactful sustainable innovations and developments that are shaping our society. This report highlights the urgency and the opportunities of building a circular future, reflecting the same mission that drives us at Brightfiber. We invite policymakers, leaders, and partners to visit our factory and see firsthand how circular textiles are already making sustainability tangible, scalable, and economically transformative.
