BARCELONA/LONDON, Sept 1 (Reuters): In a warehouse on the outskirts of Barcelona, women stand at conveyor belts, manually sorting T-shirts, jeans and dresses from large bales of used clothing - a small step towards tackling Europe's towering problem of discarded fashion.
Within a year, the sorting centre run by garment re-use and recycling charity Moda Re plans to double the volume it handles to 40,000 metric tonnes annually.
"This is just the beginning," said Albert Alberich, director of Moda Re, which is a part of Spanish charity Caritas and runs Spain's biggest second-hand clothing chain.
"Increasingly we are going to turn used clothes into raw material from Europe for fashion companies."
Partly funded by Zara-owner Inditex, Moda Re will expand sites in Barcelona, Bilbao, and Valencia, in some of the first signs of a planned ramp-up in garment sorting, processing, and recycling capacity in response to a barrage of new European Union proposals to curb the fashion industry.
Also in Spain, rivals including H&M, Mango and Inditex have created a non-profit association to manage clothing waste, responding to an EU law requiring member states to separate textiles from other waste from January 2025.
Despite such efforts, less than a quarter of Europe's 5.2 million tonnes of clothing waste is recycled and millions of tonnes ends up as landfill every year, the European Commission said in July.
Precise data on the growth of clothing waste is scarce but collection for recycling and reuse increased gradually in several European countries from around 2010, a 2021 EU report said.
Fast fashion, or making and selling cheap clothes with a short lifespan, is "highly unsustainable", the Commission said in July. The textile industry is a major contributor to climate change and environmental damage, it noted.
Inditex, which in March said it placed 10 percent more items of clothing on the market globally last year than in 2021, aims to use 40% recycled fibres in garments by 2030 as part of sustainability goals announced in July.
"The main problem that we are facing is overconsumption," said Dijana Lind, ESG analyst at Union Investment, Frankfurt-based asset manager that holds shares in Adidas, Hugo Boss, Inditex, and H&M.
Lind said she had been engaging with Adidas, Hugo Boss, and Inditex about the need for those companies to increase their use of recycled textiles, and for the apparel industry as a whole to increase textile recycling.
Hugo Boss said in a statement to Reuters that "overproduction and overconsumption are, in general, an industry-wide problem," adding that it was using data analysis to better adjust production to demand.
Between 6 and 7 billion euros of investment will be needed by 2030 to create the scale of textile waste processing and recycling that the EU is aiming for, consultancy McKinsey estimated in a report last year. Reuters could not establish what level of investments were currently being made in the industry.
Lind said companies had introduced some first steps but "more needs to be done."
Inditex said it would invest 3.5 million euros in Moda Re over three years and had recycling containers in all its Spanish stores. It did not respond to a request for comment on the suggestion it needed to do more.
In a statement to Reuters, H&M said it recognized it was "part of the problem."
"The way fashion is produced and consumed needs to change - this is an undeniable truth," H&M said.
The obstacles to significantly reducing clothing waste are formidable, despite the EU crackdown, industry sustainability commitments and initiatives like the Moda Re expansion.
Hundreds of similar plants, along with investment in technology and market interventions will be needed to meet industry goals to recycle 2.5 million tonnes of textile waste by 2030, McKinsey said in the report.
© 2024 - All Rights with The Financial Express
