Extended Producer Responsibility (EPR) and the Future of Textiles: What Manufacturers Need to Know

The European Parliament and the Council have reached a provisional agreement to update the EU Waste Framework Directive (WFD). While the WFD has long been a cornerstone of European waste policy, this targeted amendment represents a major turning point—especially for the textile sector.

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From 1 January 2025, Member States must have ensured separate collection of textile waste, backed by new obligations for producers under mandatory and harmonised Extended Producer Responsibility (EPR) schemes. This is not just an incremental policy shift; it represents a fundamental change in how products are designed, consumed, and managed throughout their lifecycle.

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What Is Extended Producer Responsibility (EPR)?

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At its core, Extended Producer Responsibility (EPR) is about accountability. It shifts the burden of end-of-life product management away from governments and taxpayers, and onto the companies that place products on the market.

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Rooted in the internationally recognised “polluter pays” principle, EPR ensures that the true cost of waste—collection, sorting, recycling, disposal—is borne by those who profit from the production and sale of goods.

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While already established in areas such as electronics, batteries, and packaging, the EU’s new rules extend EPR to textiles, with several important implications:

• Producers will finance collection, sorting, reuse, and recycling of textiles.
• Eco-modulation of fees will reward companies that design products with higher circularity (e.g., use of recycled fibres, durability, or recyclability).
• A wide range of textile products are covered, including clothing, footwear, hats, curtains, blankets, and household linens.
• E-commerce platforms and non-EU producers selling into the EU will also be subject to EPR rules, closing loopholes that previously left overseas sellers unaccountable.
• Stricter rules on waste shipments will reduce the risk of textile waste being exported under the false label of “reuse.”

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This approach not only tackles Europe’s growing textile waste problem but also incentivises circular business models and product design innovation.

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The Bigger Picture: Food Waste and Beyond

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The amendment agreed on 18 February 2025 also touches on other waste streams. For instance, binding food waste reduction targets now require:

• A 10% reduction in food waste from processing and manufacturing.
• A 30% per capita reduction from retail, restaurants, food services, and households by 2030.

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Together, these measures reflect a broader EU ambition: aligning with the EU Strategy for Sustainable and Circular Textiles and the European Green Deal, to reduce waste, cut carbon emissions, and drive systemic change.

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A Global EPR Trend

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Although the EU is setting the pace, EPR is going global.

• In the United States, for example, there are already 146 EPR laws across 35 states, covering 21 product categories—and that number is only expected to grow. Packaging laws are moving fastest, with states like California, Oregon, and Colorado taking the lead. California’s SB 54 requires manufacturers to register, report packaging data, and take steps to reduce plastic pollution, while Oregon’s SB 582 makes participation in Producer Responsibility Organisations (PROs) mandatory and requires regular disclosure of product impacts. For companies operating in multiple states, this creates a fragmented landscape that demands proactive planning and close collaboration with suppliers to track sustainability data across jurisdictions.
• The United Kingdom has also been tightening its EPR rules for packaging. Businesses that supply or import packaging above certain thresholds now need to report their packaging data, pay recycling and waste management fees, and ensure they meet all compliance requirements. Large organisations must keep detailed records of the packaging they supply or import, pay relevant fees, and submit reports every six months. Smaller organisations also need to track and report their data, with the first submissions having been due on April 1, 2025. The rules cover a wide range of activities, including supplying packaged goods under your own brand, importing packaged products, running an online marketplace, providing reusable packaging, or supplying empty packaging. 

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For multinational companies, keeping up with these regulations can be challenging. The key is having reliable processes to collect and share data across the supply chain, staying closely connected with suppliers, and keeping track of obligations in every market. Companies that manage this well can not only stay compliant but also use it as an opportunity to strengthen their sustainability efforts and gain a competitive edge.

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Why EPR Matters for Businesses

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EPR regulations aren’t just about compliance—they reshape business strategy at every level:

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1. Financial Impact: Producers will face new compliance fees, contributions to waste management programs, and administrative costs. Eco-modulation also means that poor design choices can become more expensive over time.
2. Operational Complexity: Managing EPR across multiple jurisdictions will demand robust data systems and collaboration across suppliers. Companies will need to integrate compliance reporting into procurement, product design, and logistics.
3. Product Design and Innovation: EPR pushes manufacturers to design for circularity—from material selection to recyclability. This could drive a new wave of product innovation, especially when combined with the Ecodesign for Sustainable Products Regulation (ESPR). ESPR complements EPR by setting clear sustainability requirements—particularly for textiles (especially apparel), steel, and aluminium—including durability, repairability, reusability, energy and resource efficiency, recycled content, and transparency on carbon footprints. 

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How Digital Traceability Turns EPR Compliance into Opportunity

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Extended Producer Responsibility (EPR) brings new obligations for companies: tracking products, financing collection and recycling, and ensuring compliance across multiple jurisdictions. For organizations with complex supply chains, meeting these requirements can be overwhelming—different rules, extensive reporting, and rising administrative costs.

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Finboot’s MARCO Track & Trace simplifies this challenge. Its Digital Product Passport (DPP)—a blockchain-verified digital twin for every product—carries all essential information about sustainability, compliance, and performance throughout the product lifecycle.

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The DPP captures:

• Verified sustainability data: carbon footprint, recycled content, circularity metrics.
• Compliance records: EPR obligations, along with regulatory frameworks like RED III, CSRD, and others.
• Immutable, auditable proof of every step in the supply chain.

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While the DPP is mandatory under ESPR, it also becomes a powerful tool to meet EPR requirements. Companies can generate and manage DPPs across batches, share them automatically with stakeholders, and customize the data depending on the audience. This ensures that internal teams, suppliers, and customers all have the information they need—while staying fully compliant.

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With MARCO Track & Trace, compliance transforms from a burden into a streamlined, automated process:

• Sustainability reports generated automatically, saving time and resources.
• Compliance documents linked directly to product data.
• Audits reduced from weeks of preparation to a few clicks.
• Full transparency across supply chains, enhancing trust with regulators, partners, and consumers.

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By embedding compliance into the Digital Product Passport, MARCO T&T turns EPR from a regulatory headache into an opportunity for efficiency, transparency, and innovation. Companies that embrace this approach can not only comply but differentiate themselves in a market increasingly driven by sustainability and circularity.

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With MARCO Track & Trace, EPR compliance is not just achievable—it’s a competitive advantage. Contact us here.

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FAQs

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1. What products are covered under the new EU EPR rules for textiles? 

The rules apply to a wide range of textile products, including clothing, footwear, hats, curtains, blankets, and household linens. Both EU-based and non-EU producers selling into the EU are subject to these obligations.

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2. How does EPR affect product design and sustainability strategies? 

EPR encourages companies to design products for circularity. This means prioritizing recycled materials, durability, repairability, and recyclability. Eco-modulated fees reward manufacturers who make more sustainable choices, aligning financial incentives with environmental impact.

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3. Can digital traceability help with EPR compliance? 

Yes. Digital Product Passports (DPPs) like those provided by Finboot’s MARCO Track & Trace platform provide a blockchain-verified record of every product’s lifecycle. This enables companies to track sustainability data, manage regulatory obligations, generate automated reports, and simplify audits, turning EPR compliance into a strategic advantage.

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4. Are EPR regulations only relevant in the EU? 

No. While the EU is leading the way, EPR is becoming a global trend. The U.S., U.K., and other countries are implementing similar regulations, particularly for packaging and electronics. Companies operating internationally must stay updated on each jurisdiction’s requirements and maintain robust supply chain data.

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