Textile Recycling Requires Billions in Investment; Investors Seek Financial Guarantees
Europe is considering mandating a circular textile economy, but financing the necessary infrastructure remains challenging. According to an analysis by ReHubs and Boston Consulting Group, scaling up textile-to-textile recycling across Europe to reach 15% of production by 2035 could require between €8 billion and €11 billion in capital expenditures. This would support collecting around 8 million metric tons of textiles annually and converting about 2.7 million metric tons back into new fibers, a significant increase from the current global rate of less than 1%. Operating such an infrastructure system is expected to require additional annual costs between €5 billion and €6.5 billion by 2035. Robert van de Kerkhof, CEO of ReHubs Europe, noted that private investment will be crucial but requires public funding mechanisms like grants or guarantees during the initial phase due to high risks involved in scaling up recycling technologies. Investors are particularly concerned about technology risk and revenue certainty. Recyclers need long-term purchasing commitments from brands to justify large-scale investments, while brands want proven capacity before committing significant volumes.
Topics: infrastructure development investment requirements sustainability textile recycling