Investment in Recycling Technology & Infra Need to Make Fshion industry 80% Circular by 2030
16 December 2021: A recent McKinsey & Co study also revealed that the fashion industry could become 80% circular by 2030, provided investment in existing recycling technologies and infrastructure is increased. This report reveals the often-overlooked opportunity for textile recycling in post-industrial waste.
Commenting on the study, Karl-Hendrik Magnus, Senior Partner and the Leader of the Apparel, Fashion & Luxury Group, McKinsey & Company, stated that Textile recycling must be rapidly scaled to help the fashion industry remain on a 1.5°C pathway.”
Meanwhile,Global Fashion Agenda (GFA), a leading non-profit for industry collaboration on sustainability in fashion, has recently published their new report on “Scaling Circularity” which reveals the opportunities and investment required to scale circular fashion systems.The study was carrred out following the outcome of COP26.
COP26 is the most recent annual UN climate change conference. COP stands for Conference of the Parties, and the summit was attended by the countries that signed the United Nations Framework Convention on Climate Change (UNFCCC).
According to the study, current technologies can deliver 75% textile-to-textile recycling into the fashion system, in additoin to additional 5% recycled feedstock from other industries. However, to achieve this target by 2026, a capital investment of about 5 to 7 billion US dollar will have to be pumped into the recycling technologies, in addition to mobilisation of capital towards collection and sorting infrastructure.
However, the GFA’s study points out that investing in recycling infrastructure is attractive provided there is greater transparency of the demand for recycled materials and the consistent supply of traceable high-quality feedstock. And pre-competitive collaborations play a unique role in assuring supply, demand and attracting commercial investment where it is needed at pace. There is a need to convene influential players throughout the fashion value cycle and develop traceability of waste streams and aligning on mutual incentives,
The GFA’s findings are based on independent analysis and learnings from the Circular Fashion Partnership in Bangladesh. This partnership is a cross-sectoral project being undertaken to scale post-industrial recycling and capture textile value domestically in Bangladesh. The study emphasises on textile recycling. It throws light on how latest recycling technologies deliver better environmental outcomes across GHG emissions, water depletion and land use.
In the words of Karl-Hendrik Magnus of McKinsey & Co. “The Circular Fashion Partnership is proof of the power of pre-competitive collaboration, and its model for impact should be replicated and scaled.”
Federica Marchionni, CEO of GFA, concludes “With sufficient investment, supportive policies, and by enabling pre-competitive collaborations, I am optimistic that we can create a profitable circular system and accelerate fashion’s journey to net zero.”
www.circularfashionpartnership.com
