La Impact Weekly: Week of May 19th 2025
This week: Signs of textile recycling scale-up, some recent funding announcements, lots of EU back and forths, and as always, some great SME spotlights.🫒
Featured Stories: Is this finally the moment for recycled textiles?
La Backdrop. Materials account for 91% of fashion’s total emissions, so it’s no surprise the industry has set its sights on recycling them. A recent Fashion for Good and Boston Consulting Group report found that next-gen materials still make up only 1% of today’s fiber market, while some sources estimate that just 3.5% of the industry is considered truly “circular.” Some materials like polycotton (which account for half of global textile waste) are struggling even more due to the challenges of blended recycling textiles. Why has it been so hard? We’re operating in a linear system. But if we’re naming challenges, let’s call it “commercialization.” Many innovative material startups are stalling at the transition phase, just before cost engineering and process optimization can unlock economies of scale and bring us closer to price parity. In this context, the rise of industrial-scale textile regeneration facilities from innovators like Reju and Circ isn’t just welcome, it’s necessary. These hubs provide the infrastructure to transform textile waste into high-quality, circular materials at scale.
Los Details.
Reju’s Regeneration Hub One (Netherlands). Reju, backed by Technip Energies and IBM Research, has selected Chemelot Industrial Park in Sittard-Geleen, Netherlands, for its first full-scale textile recycling facility. Regeneration Hub One will process 50,000 tonnes of polyester-rich textile waste annually, creating Reju Polyester with a 50% lower carbon footprint than virgin alternatives. The plant builds on the success of Reju’s Frankfurt pilot, Hub Zero, and is expected to help the EU meet circularity and Digital Product Passport (DPP) targets. Final investment approval is pending later in 2025. Read more.
Circ’s $500Mn Poly-Cotton Recycling Plant (France). Circ will build a $500Mn facility in Saint-Avold, France. It will be the world’s first large-scale plant capable of recycling polycotton blends into virgin-equivalent fibers using patented hydrothermal technology. The project is backed by French President Emmanuel Macron, with support from the French government and EU funds under the France 2030 industrial strategy. The facility, expected to launch in 2028, will process 70,000 tonnes of textile waste per year and create over 200 jobs. Circ’s approach enables recovery of both cellulose (cotton) and polyester from blended fabrics, an innovation long considered the final barrier in textile circularity. Read more.
Mi Take. Will Europe become the hub of recycled textiles? With aggressive regulatory momentum (e.g., ESPR, EPR), the Clean Industrial Deal emphasizing circularity, and national-level investments like France 2030, Europe is positioning itself as the go-to region for “sustainable” textile industry innovation. In my database of next-gen materials, approximately 42% are based in Europe (including the UK), which is substantial. Will we see that number grow? When I think about Circ’s Fiber Club and the T2T Alliance, it feels like we’re at an inflection point for recycled textiles. We’re starting to overcome the bottleneck highlighted in Fashion for Good’s report, where innovators often get stuck just before cost optimization and scaling. If we reach price parity, or even get close, we can expect broader adoption of recycled materials, and SME brands may finally have the option to use them across full collections, not just a few here and there. There are still challenges around performance, quality, and feel, but this is definitely a step in the right direction. It is worth calling that for some the push for textile recycling feels like a way to “keep doing things the wrong way,” a strategy that maintains the status quo of a fundamentally linear system. Will recycling scale up enable the circular economy or only serve as a “band-aid”? Is investment and political support more of a driver than tariffs?
Here are this week’s other news:
Brand & Industry Moves
🫒 Amy Powney launches Akyn. After nearly two decades at Mother of Pearl, Amy Powney introduces Akyn, a fashion brand rooted in sustainability and transparency. Akyn’s debut collection, “Run to the rescue with love,” emphasizes regenerative materials. Read more.
🫒 Passenger x OUTO to advance inclusion in outdoor spaces. Passenger Clothing has partnered with Opening Up The Outdoors (OUTO) to promote diversity and accessibility in outdoor activities. Through this initiative, both organizations seek to create momentum for continued inclusion within outdoor spaces, ensuring that nature is accessible to all. Read more.
🫒 New Optimist and Roua Alhalabi launch Amsterdam-grown indigo collection. Amsterdam-based circular fashion label New Optimist has partnered with natural dye expert Roua Alhalabi to create a capsule collection dyed entirely with plant-based indigo. For the first time in modern history, true indigo is being cultivated within Amsterdam’s city limits, specifically on a previously unused strip of public land in Nieuw-West. The collection includes garments such as kimonos, wrap tops, and crewnecks, all dyed using this locally grown indigo and produced within the city, embodying a fully local, circular approach to fashion. Read more.
YKK to shift 100% aluminum zippers. Starting May 2025, YKK will transition all aluminum alloy zippers to low-carbon aluminum made using renewable energy. The move supports the company’s “Sustainability Vision 2050” and aims to significantly cut emissions, less than 4 metric tons of CO₂ per ton compared to conventional production. Read more.
Patou unveils sustainable raffia collection. Patou has partnered with the Ecole des Savoir-Faire in Madagascar to create a line of handmade raffia accessories for its Spring/Summer 2025 collection. The initiative trained 20 students in traditional crochet techniques, with each artisan crafting bags from locally sourced, sustainable raffia. Each bag takes 50 hrs to complete and features a label bearing the maker’s name, showcasing Patou’s ethical sourcing through its “Patou Cares” platform. Read more.
Fashion Tech & Sustainability Innovation Updates
Eeden secures €18Mn Series A. German startup Eeden has raised €18Mn in Series A funding to advance its chemical recycling technology for cotton-polyester textiles. The capital will support the construction of a demonstration plant in Münster, optimization of large-scale processing, and the establishment of commercial projects with textile industry partners. Eeden’s process recovers pure cellulose and PET monomers from blended fabrics, enabling the production of virgin-quality lyocell, viscose, and polyester fibers, thus contributing to a circular textile economy. Read more.
Eurofins launches testing to authenticate recycled plastics in textiles. Eurofins Sustainability Services has introduced a new testing method to verify the presence of recycled plastics in textiles, apparel, and footwear. Utilizing thermal analysis techniques, this method detects changes in polymer properties resulting from recycling processes, offering a more accurate alternative to traditional chain-of-custody certifications. Read more.
Sparxell secures €1.9Mn EU grant to scale plant-based colorants. Cambridge-based startup Sparxell has received a €1.9Mn grant from the European Innovation Council to scale production of its biodegradable, plant-based pigments. The funding will support the company’s expansion to tonne-level manufacturing in 2025, aiming to replace fossil-based dyes in fashion, cosmetics, and packaging. The company has completed over 25 pilot projects with global brands and is part of LVMH’s La Maison des Startups accelerator program. Read more.
H&M foundation names 10 winners of 2025 Global Change Award. The H&M Foundation has selected ten breakthrough innovations as winners of its 2025 Global Change Award, each receiving €200,000 and a year of mentorship through the Changemaker Programme. The innovations span decolorization processes, chipless RFID tags, plastic-free soles, bio-dyes, and waterless textile recycling, all aiming to accelerate decarbonization across the textile value chain. Read more.
Upstream News
Garment workers in Chittagong protest over unpaid wages and Bonuses. Over 2,000 workers from Modiste CEPZ Ltd, a JMS Group subsidiary in the Chattogram Export Processing Zone (CEPZ), staged a protest on May 19, 2025, blocking the Airport Road to demand unpaid April wages and a portion of their Eid-ul-Fitr bonuses. The demonstration disrupted traffic and highlighted ongoing labor rights concerns in Bangladesh’s RMG sector. Read more.
Hundreds of workers fall ill at Gazipur garment factory. On May 17, 2025, more than 200 workers at International Classic Composite Ltd in Gazipur, Bangladesh, were hospitalized with gastrointestinal issues after consuming factory-supplied drinking water. The factory was shut down for the day, and authorities launched an investigation. This lasted well into Monday, where hundreds more got sick. The exact cause remains unclear, but there are suspicions for hysteria. Read more, and this one too.
Regulatory and Policy Shifts
EU proposes €2 fee on low-value imports. The European Union is set to introduce a €2 handling fee on low-value parcels imported directly to consumers, primarily targeting the surge of inexpensive goods from Chinese e-commerce giants like Shein and Temu. This move aims to address the overwhelming influx of such packages, which reached 4.6Bn in 2024, with 91% originating from China. The proposed fee, part of a broader customs overhaul, seeks to level the playing field for European retailers and ensure compliance with safety and environmental standards. Additionally, the EU plans to eliminate the current duty-free exemption for items under €150 by 2028, further tightening regulations on low-cost imports. Read more.
Dior commits €2Mn to combat labor exploitation. In response to a probe by Italy’s antitrust authority into labor practices within its supply chain, Dior has pledged €2Mn over 5 years to support initiatives aiding victims of labor exploitation. Although no legal violations were found, Dior agreed to revise its ethical guidelines, enhance supplier oversight, and provide training on labor laws and ethics to its suppliers and marketing teams. The antitrust body said that Dior’s pledges “were an appropriate remedy for the possible unlawfulness and decided to close the investigation” Read more.
EU Ombudsman launches inquiry into process to reduce sustainability reporting and due diligence requirements. The EU Ombudsman has launched an inquiry into the European Commission’s “Omnibus I” proposal, which seeks to scale back sustainability reporting and due diligence rules. Civil society groups argue the Commission bypassed key steps like public consultation and impact assessments. Will this be enough to turn recent rollbacks back? Doubtful, but here is to hoping. Read more.
EU demands Shein address consumer rights violations. The European Commission, alongside consumer protection authorities from Belgium, France, Ireland, and the Netherlands, has issued a formal warning to Shein over multiple breaches of EU consumer laws. Alleged violations include fake discounts, pressure-selling tactics, misleading product information, and concealed contact details. Shein has one month to propose corrective measures; failure to comply could result in fines based on its EU turnover. Read more.
Macron calls for EU to scrap supply chain sustainability law. French President Emmanuel Macron urged the European Union to abandon its proposed Corporate Sustainability Due Diligence Directive (CSDDD). The directive would require large companies to ensure their supply chains are free from forced labor and environmental harm. Both leaders argue that such regulations could hinder Europe’s ability to compete with the U.S. and China, and advocate for reducing bureaucratic burdens on businesses. But, meanwhile…. Read more.
Germany softens opposition to EU supply chain law. Germany has walked back its earlier push to scrap the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), now calling instead for a streamlined, less bureaucratic version. The directive, already revised to delay implementation until 2028 and narrow its scope, continues to face mixed support across member states. Read more.
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