What Drives the Circular Economy? Textile Sorting or Consumption Reduction

Abstract Textiles are essential in the EU’s shift towards a circular economy, sustainability, and climate neutrality, accounting for 4 to 6% of the EU’s ecological footprint. To explore the potential of the circular economy in the EU fashion textiles value chain, this study carried out a literature review to collect data and used system dynamics modelling to assess the potential of the circular economy. The results show that landfilling of clothing consumed and produced in the EU will increase from 3.3 million tonnes in 2018 to 5.8 million tonnes per year. Around 95% of this amount represents the lost value. The findings show that the projected increase in textile sorting capacity in the EU is insufficient to contribute to the target reduction of municipal waste streams by 2030. Moreover - sorting rates are declining. Two strategies were analysed: clothing sorting and consumption reduction. The system dynamics model led to the conclusion that it is more effective to prioritise measures aimed at reducing clothing consumption rather than focusing solely on increasing sorting capacity. However, it should be kept in mind that sorting and recycling are in any case necessary to create a circular economy. This study reduces uncertainty and knowledge gaps in the literature and can be used for policy planning.