Large scale automated sorting and the removal of so called hardpoints (such as zippers and buttons) can significantly reduce raw material costs. However, most chemical recycling technologies today remain unable to compete on price with oil based virgin PET, or even with mechanically recycled PET. As a result, additional financial support mechanisms will be required to bridge this cost gap during the scale up phase.
Carbon pricing would be the most structurally embedded risk and hardest to reverse. Carbon pricing is different as it sits directly on Scope 3, where 96–99% of apparel emissions occur. That means it’s embedded in Tier 2 manufacturing and upstream energy systems. Unless those systems decarbonise, cost exposure compounds year over year.