Policy Push: Polyester Depolymerisation a Must for Scaling up Recycling, Says Study

Why is depolymerisation of post-consumer textile waste in Europe not scaling up? A report discusses the issue at length and suggests coordinated action by policy and industry on ten interdependent levers that should be activated together to reach a tipping point.

Long Story, Cut Short
  • Producing recycled polyester from post-consumer textile waste in Europe costs around 2.6 times more than the average cost of virgin polyester in Asia.
  • Recycling of polyester textile waste in Europe will not reach a breakthrough in scale without significant policy action.
  • Bold, long-term policy action is needed to help create stable market conditions and reduce investment risks. At the same time, collaboration within the industry is essential to drive the necessary infrastructure transformation.
As part of the revised Waste Framework Directive, all textile waste must be collected separately across the EU from 2025.
Piling Up As part of the revised Waste Framework Directive, all textile waste must be collected separately across the EU from 2025. Additionally, the EU Waste Shipments Directive imposes strict controls on the export of unsorted textile waste to non-OECD countries. Ravit Bennier Cohen / Unsplash

To scale up the depolymerisation of post-consumer textile waste in Europe, the barriers of accessibility and affordability must be addressed. This requires coordinated action by policy and industry on ten interdependent levers that should be activated together to reach a tipping point, says a report.

The existing depolymerisation technologies are both environmentally attractive and technically capable of producing virgin-equivalent outputs, with the potential to significantly reduce the negative consequences of burgeoning textile waste and to reduce greenhouse gas (GHG) emissions compared to virgin polyester production. However, despite its attractiveness, depolymerisation is not yet scaling, the report—The Textile Recycling Breakthrough: Why policy must lead the scale-up of polyester recycling in Europe—by Systemiq laments.

  • To reach a tipping point for mass adoption – where recycling polyester waste through depolymerisation becomes more competitive than virgin polyester production from fossil fuels – two more conditions must be met: affordability and accessibility.

Affordability remains the most significant constraint: Producing recycled polyester from post-consumer textile waste in Europe costs around 2.6 times more than the average cost of virgin polyester in Asia.

Accessibility challenges exist on both the supply and demand side. On the supply side, access to textile waste feedstock at the necessary quality and quantity for at-scale recycling remains out of sight. On the demand side, the current premium of ~2.6× means that most brands continue to favour cheaper virgin polyester or recycled polyester from PET beverage bottles, while the production value chain has little incentive to incorporate this material on its own accord.

  • Without targeted policy action to address both affordability and accessibility, depolymerisation will remain stuck in pilot purgatory, and the breakthrough to mass adoption will not happen.
  • Without a recycling system, the linear status quo will continue to deepen Europe’s – and the world's – textile waste crisis. The report suggests 10 levers to trigger a tipping point: policy and industry action needed across four areas. These are:

Implement design for recycling: Design for recycling is a foundational step. Promoting more sustainable textile design by using a limited range of materials, avoiding fibre blends that are hard to recycle, selecting dyes and additives that do not hinder recycling, avoiding glued components, using materials identifiable by recyclers, and avoiding coated materials can dramatically increase the recyclability of garments.

  • Experts suggest that approximately 1/3 of textile products could be redesigned without compromising functionality. This is a low-cost intervention that directly improves sorting, pre-processing, and recycling inefficiencies – making feedstock easier and cheaper to process.

Establish widespread separate collection: Widespread separate collection and consumer awareness are essential to raising feedstock quantity and diverting it from incineration or landfill. By implementing EPR systems across Member States and embedding them into everyday infrastructure – through nationwide bring-points and civic amenity sites – the EU can significantly increase separate collection rates.

  • With accompanying awareness campaigns to reduce contamination, average EU collection rates are assumed to reach 43% by 2030 and 50% by 2035, but will have a significant ramp-up period. This approach to implementing the existing EU Waste Framework Directive mandate for separate collection could substantially increase textile waste volumes available for processing.
  • However, greater volumes of collection alone are not enough – quality and system efficiency must also improve. Next to post-consumer textile waste, recyclers could source non-rewearable technical textiles to increase scale (not modelled).

Set standards for sorting for recycling: Standardisation of feedstock specifications, where possible can enable these volumes to translate into high-quality, high-quantity input for recyclers. Today, the recycling value chain is fragmented: some depolymerisers integrate pre-processing, while others rely on external sorters. This creates inefficiencies and investment uncertainty.

  • In addition, quality specifications of feedstock volumes are neither standardised nor transparent, with associated sourcing uncertainties for both sorters for recycling (what kind and level of contaminants are included) and recyclers. Agreeing on feedstock specifications and aligning upstream and downstream roles would increase facility throughput, reduce transaction costs, facilitate market making and liquidity, and improve asset utilisation.

Establish clarity on trade: Clarity on trade rules for the export of textile waste is a final enabling condition for feedstock access. Setting precise legal boundaries that define the "end of waste" and distinguish reusables and recycled polyester pellets from waste would allow only reusable materials or recycled polyester to be exported.

  • These would need to be aligned with import regulations in countries with polymerisation and yarn-making facilities. This creates certainty for investors and helps domestic automated sorting scale to 1.8 million tonnes per year by 2035 (if other levers like EPR financing are implemented).
  • Together, these four levers could address the systemic fragmentation that currently limits feedstock availability (while not overlooking financing issues related to the gap in unit economics identified above). But to scale depolymerisation, strong downstream demand is just as essential

TEAM & FUNDING: Systemiq core team: Sophie Herrmann, Clara Luckner, Carl Kuehl, Leonard von Boetticher, Juliette Kool and Ulrike Stein.

  • This work was made possible by grants from: Arc’teryx, Eastman, Interzero, Textile Exchange and Tomra.

ABOUT: Systemiq is a systems change company that works with businesses, policymakers, investors and civil society organisations to reimagine and reshape the systems that sit at the heart of society — energy, nature and food, materials, built environment, and finance - to accelerate the shift to a more sustainable and inclusive economy. Founded in 2016, Systemiq is a certified B Corp with offices in Brazil, France, Germany, Indonesia, the Netherlands, and the UK.

WHAT THEY SAID:

This study helps chart a path forward for brands looking to support a circular transition and shift toward regenerative textile systems in Europe. It's also a powerful reminder that design does not exist in isolation, and must proceed in partnership with long term commitments and policy frameworks. We're excited to contribute to this conversation and help push the industry in the right direction.

Kyle Wood
Senior Director, Strategy 
Arc'teryx

Through the interplay of both political and industry-driven levers, Europe has a great opportunity to make circularity in textiles a reality – and turn it into a competitive advantage. The study proves that bold, long-term policy action is needed to help create stable market conditions and reduce investment risks. At the same time, collaboration within the industry is essential to drive the necessary infrastructure transformation. Both need to work hand in hand to reach the breakthrough in textiles recycling.

Julia Haas
Head of Commercial Partnerships 
Interzero

This report brings to light the multiple levers necessary for scaling textile-to-textile chemical polyester recycling in the EU. These levers are in the domain of multiple stakeholders who all need to support their segment developments, cross-industry information exchanges and actions on building textile-to-textile circular systems through industry wide collaborations.

Louisa Hoyes
Segment Director, Textiles 
TOMRA

Europe has the opportunity to lead the transition to circular textiles, and technologies like depolymerization are ready to play a central role. What’s needed now is the right and demanding policy framework, long-term offtake commitments, and de-risking mechanisms to take these solutions to scale.

Eric Dehouck
Managing Director
Eastman Circular Solutions, France

This report highlights the interventions needed to accelerate textile-to-textile recycling in the EU, which Textile Exchange believes will be an important impact reduction strategy. Its findings complement the dataset we are building to capture global sources of textile waste and availability projections, for inclusion in our long-standing annual Materials Market Report.

Beth Jensen
Senior Director, Climate and Nature Impact 
Textile Exchange

  • Addressing growing environmental concerns and the demand for sustainability, this report underscores the urgent need to scale up textile recycling across both post-consumer and textile production waste streams. These materials are valuable resources that can be recycled through economically viable solutions, fostering a circular economy. By integrating innovation and collaboration, as detailed in the report, the textile industry is reducing its environmental footprint while meeting market needs for spinning and nonwoven applications.

Thomas Wallert
Area Sales Manager, Textile Recycling 
Andritz

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  • Authored by:

    Sophie Herrmann, Clara Luckner, Carl Kuehl, Leonard von Boetticher, Juliette Kool and Ulrike Stein.

  • Publisher: Systemiq
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  • This work was made possible by grants from: Arc’teryx, Eastman, Interzero, Textile Exchange and Tomra

 
 
  • Dated posted: 23 May 2025
  • Last modified: 23 May 2025