The European Union is introducing a number of new rules under the Eco-design Regulation for sustainable products.
The European Fashion Alliance (EFA) welcomed politicians and industry representatives to a series of roundtables at the European Parliament in Brussels on Wednesday, organised by MEP Christian Eller.
The group's report, entitled "The State of European Fashion", reveals the state of the industry, which is at a critical juncture in a time of business and social transformation - and is not prepared for the EU's plethora of regulations.
The survey was conducted with the 27 members of the group, which include representatives from Italy, France, Germany.
Only 44% of the respondents were familiar with the Digital Product Passport, or DPP, which requires brands to provide detailed data on a product's materials, origin and environmental footprint.
"Fashion brands, from small to large, have indicated that they need financial support for their sustainable transition, as well as easier access to materials and infrastructure," said EMA Chairman Scott Lipinski.
Brands are experiencing "confusion" as multiple levels of regulations are introduced, as well as facing financial pressures to keep up with requirements. "There are mixed feelings [from fashion houses] and concerns that with all the new legislation, it will be harder to compete with businesses in other regions that don't have this level of legislation," said sustainability advisor Christine Gulay, who has worked with brands Kering, Pangaia and Eden, among others.
Many companies in the sector believe a "tsunami" of legislation is coming, and they don't know or understand the specifics of how to comply, don't have the resources and skills to get up to speed, or don't know how to finance the transition.
"This is a huge financial burden for smaller businesses. We need subsidies if we want to have proper competition with bigger players in other regions," Gulay said.
Dirk Vantighem, director general of the European Confederation for Clothing and Textiles, or Euratex, who was in the room, stressed that European companies are competing with producing countries like India or Pakistan that can produce at a lower cost. If cost pressures increase with these new regulations, the European manufacturing sector will be disadvantaged.
The newly appointed Commissioner for the Environment, Jessica Roswall, has addressed one of the main problems plaguing the industry.
"Let's be honest about the challenges we face. One of the areas that requires attention is the low recycling and collection rates of recyclable textile products in Europe," she said. Europe generates more than 12 million tonnes of textile waste a year, but only 22% of this is collected separately and 8% is reused, Roswall added.
From 1 January, member states will be obliged to set up separate collection systems for textile waste. | BGNES