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Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity

The fashion industry is at a pivotal moment in its journey toward sustainability. With greenhouse gas emissions contributing significantly to global climate change, urgent action is needed to decarbonise supply chains. This report, developed by Fashion for Good in collaboration with the Apparel Impact Institute, outlines existing and innovative solutions to reduce emissions, unlock financing opportunities, and create a pathway to net zero by 2050. Through deep industry insights and financial analysis, this report serves as a guide for brands, manufacturers, policymakers, and investors committed to driving meaningful change.

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Wealth in Waste

This report is part of the “Sorting for Circularity: India” initiative led by Fashion for Good and its partners. It aims to explore the untapped potential of India’s textile waste industry to transition into a circular economy by identifying waste streams, analysing current practices, and suggesting pathways for systemic improvements across the value chain.

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Organic Cotton Traceability Pilot

This project tested the feasibility of tracking organic cotton, from farms to retail, using on-product markers and blockchain technology.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Sorting for Circularity India

This project was designed to organise and optimise India’s textile waste supply chain. By evaluating various waste streams for collection, sorting, and pre-processing, the initiative aimed to enhance circularity in textiles. It sought to improve collection and sorting systems, foster recycling infrastructure, and introduce innovative solutions to generate new revenue streams and next-generation materials from textile waste-reducing reliance on virgin resources and minimising landfill and incineration.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Sorting for Circularity India: Post-Consumer Pilot

India generates around 3,944k tonnes of post-consumer textile waste annually, with 48% viable for recycling feedstock, though inadequate sorting and recycling systems prevent full utilisation. This project involved two primary pilots that tested sorting innovations: Matoha’s FabriTell desktop scanner for semi-automated sorting and PICVISA’s ECOSORT for fully automated sorting. The pilots aimed to assess these technologies’ ability to categorise waste by fibre and colour efficiently, ultimately facilitating quality feedstock production for recycling. Initial findings suggest India could effectively harness a closed-loop textile recycling system, with cotton and polyester blends as dominant waste types.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Sorting For Circularity Europe

The Sorting for Circularity Europe project was launched in early 2021 and initiated by Fashion for Good together with Circle Economy. The project was made possible by catalytic funding from Laudes Foundation and brand partners, adidas, BESTSELLER, Inditex and Zalando, with H&M Group as key project partners. The project addressed the need for data on textile waste in the market, identifying waste types and recycling opportunities.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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From Waste to Black Pigment

The aim of the project was to validate the use of  black pigments derived from waste materials to replace conventional carbon black from virgin fossil fuels in dope dyeing applications. The aim is to reduce the environmental impact of textile dyeing by using renewable, eco-friendly pigments sourced from waste.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Renewable Carbon Project

The aim of the project was to test and validate the technical feasibility of the different PHA polymer and composite resins to make mono and multifilament fibres. Fashion for Good worked with the Nonwovens Innovation & Research Institute (NIRI) to run the melt spinning trials to allow for a comparative evaluation. The initial scope of the project also included end of use testing including degradation testing. However the project partners decided to prioritise additional spinning trials over degradation testing.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Agriwaste Natural Fibres

The aim of the project was to explore the use of agricultural residues to produce natural fibres, reducing reliance on conventional fibres like cotton. Building on the findings of the Laudes Foundation commissioned report ‘Spinning Future Threads’.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included:

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Materra Pilot

The aim of the pilot was to test and refine Materra’s technology to grow extra long staple cotton at a pilot farm, as historically this variety of cotton has not been grown in large volumes in this region due to specific climatic requirements for cultivation.

Problem Statement

The apparel industry faces immense pressure to meet the 1.5°C target set by the Paris Agreement, with fashion accounting for 2-8% of global greenhouse gas emissions. Scope 3 emissions, especially from processing (Tier 2), represent a critical challenge. Shifting to dry processing technologies has the potential to reduce water and energy use, contributing to lower emissions and a smaller environmental footprint.

Stakeholders involved

The D(R)YE Factory of the Future project brought together key industry leaders and innovators committed to revolutionizing textile processing. The project’s brand stakeholders included: