The European Union’s ambitious leap toward a circular economy is facing a significant technical roadblock that could undermine its green transition. A new policy brief from the Centre for European Policy Studies (CEPS), a prominent Brussels-based think tank, warns that the upcoming Digital Product Passport (DPP) will struggle to enable large-scale textile-to-textile recycling unless policymakers urgently address deep-seated data gaps and the low level of digitalization across the industry’s value chain.
The urgency of the situation is underscored by staggering data from the European Environment Agency (EEA), which reveals that nearly 75 percent of the EU’s post-consumer textiles are currently incinerated or sent to landfills. This mismanagement affects over 5 million tons of waste annually, a byproduct of a textile sector that CEPS describes as still favoring outdated linear production models. Transitioning to durable digital tools is no longer a choice but an essential move to reduce emissions and dependency on virgin resources.
At the heart of the solution is PESCO-UP, a four-year EU-funded project led by VTT, Finland’s largest research and technology company. The project focuses on the "upcycling" of complex polyester and cotton blends, aiming for a material processing efficiency of 90 to 95 percent. To bridge information gaps between stakeholders, the project is developing a Digital Material Passport (DMP). Unlike the broader DPP, the DMP is a specialized tool. According to the policy brief, “Compared to the DPP, the DMP focuses specifically on materials rather than entire products—and only targets value chain actors rather than including consumers.”
This distinction is vital for recyclers who require granular data on fabric construction, chemical finishes, and composition to process mixed streams effectively. However, research involving 20 companies across the sector highlighted significant hurdles, particularly regarding the interoperability of data. Without a unified digital language, vital information regarding a garment’s chemical makeup often vanishes by the time it reaches a recycling facility.
As the EU prepares for the 2027 rollout of the Ecodesign for Sustainable Products Regulation (ESPR) delegated act for textiles, the pressure is on. PESCO-UP experts have presented three critical proposals to policymakers: establish clear data priorities, improve the interoperability of policies, and support consumer engagement. With a comprehensive version of the digital passport expected by 2033, the window to align technological capabilities with legislative requirements is closing. Without a robust digital bridge, Europe’s goal of turning textile waste into a valuable resource may remain a distant aspiration.
