Public Policy and Green Innovation in Fashion: How Governments Can Support Sustainable Design Ecosystems

The global fashion system is both a significant contributor to environmental degradation and a fertile arena for transformative innovation. It accounts for substantial greenhouse gas emissions, extensive water and energy use, and large volumes of waste, yet it simultaneously offers considerable opportunities for economic renewal through circular design, sustainable materials, and service-oriented business models such as repair, rental, and resale. This paper integrates recent data, policy developments, and illustrative case studies to examine how governments can catalyze sustainable design ecosystems within textiles and apparel. It contends that effective public policy relies on a combination of complementary levers: regulatory pull through eco-design standards and extended producer responsibility mandates; market-shaping instruments including green public procurement, fiscal incentives, and sustainable finance mechanisms; capacity-building in the form of workforce up-skilling, standardization, and infrastructure development; and targeted research, development, and demonstration funding. These measures are most effective when tied to clear, measurable objectives and transparent reporting frameworks. Drawing on examples from France’s anti-waste legislation, the UK’s SCAP initiative, the EU’s proposed EPR scheme, and pioneering private actors such as Patagonia and initiatives championed by the Ellen MacArthur Foundation, the paper identifies both successes and persistent gaps, offering practical lessons for policymakers seeking to accelerate sustainable transformation in the global fashion sector.